Cummins (NYSE:CMI) Announces Quarterly Earnings Results

Cummins (NYSE:CMI) issued its quarterly earnings results on Tuesday. The company reported $6.73 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $7.21 by ($0.48), FiscalAI reports. The company had revenue of $9.46 billion for the quarter, compared to analyst estimates of $9.33 billion. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The company’s revenue for the quarter was up 9.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $6.43 EPS.

Here are the key takeaways from Cummins’ conference call:

• Record second-quarter performance: Cummins reported $9.5 billion in sales, up 9% year over year, and $1.7 billion in EBITDA. Record operating cash flow of $1.5 billion supported $501 million returned to shareholders, including dividends and buybacks.
• The company raised its 2026 revenue-growth outlook to 10%–13% from 8%–11% and lifted its EBITDA-margin forecast to 18%–18.5%, citing stronger North American truck demand, robust power-generation demand, and improved Chinese markets.
• Data-center demand remains exceptionally strong, with power-generation revenue up 19% in the quarter and a multi-year hyperscaler agreement providing visibility into several gigawatts of future backup-power demand. Cummins is expanding capacity and developing a 130-liter natural-gas genset for the growing prime-power market, though near-term growth remains capacity constrained.
• Cummins plans a measured rollout of its HELM engines under the EPA’s proposed 2027 emissions framework, beginning limited production of the X15 and X10 in January 2027 while keeping current products available during the transition. Executives expect a smoother demand pattern than previously anticipated, but pricing, warranty costs, regulatory details, and the magnitude of any pre-buy remain uncertain.
• Several businesses are facing margin pressure despite higher revenue, as research and development, freight, product-coverage, tariffs, and incentive-compensation costs weighed on second-quarter profitability. Accelera improved its loss but is still expected to post a 2026 net loss of $260 million–$290 million, while mining demand was reduced to a forecast range of down 5% to up 5%.

Cummins Price Performance

NYSE CMI traded down $34.57 during trading hours on Tuesday, hitting $614.28. 909,160 shares of the company’s stock traded hands, compared to its average volume of 962,399. The company has a market capitalization of $84.76 billion, a PE ratio of 31.93, a PEG ratio of 1.55 and a beta of 1.24. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11. Cummins has a 52-week low of $364.14 and a 52-week high of $737.76. The firm’s 50-day moving average is $670.29 and its 200-day moving average is $623.53.

Cummins Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Friday, August 21st will be paid a dividend of $2.20 per share. The ex-dividend date of this dividend is Friday, August 21st. This represents a $8.80 annualized dividend and a yield of 1.4%. This is a boost from Cummins’s previous quarterly dividend of $2.00. Cummins’s dividend payout ratio is currently 41.52%.

Insiders Place Their Bets

In related news, VP Marvin Boakye sold 3,481 shares of the stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $679.90, for a total value of $2,366,731.90. Following the completion of the sale, the vice president owned 8,508 shares of the company’s stock, valued at approximately $5,784,589.20. This trade represents a 29.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Brett Michael Merritt sold 701 shares of Cummins stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $688.75, for a total value of $482,813.75. Following the transaction, the insider owned 10,404 shares in the company, valued at approximately $7,165,755. The trade was a 6.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 13,579 shares of company stock worth $9,377,684. 0.30% of the stock is currently owned by insiders.

Institutional Trading of Cummins

Large investors have recently added to or reduced their stakes in the stock. Brighton Jones LLC increased its position in Cummins by 4.1% during the fourth quarter. Brighton Jones LLC now owns 2,112 shares of the company’s stock worth $736,000 after purchasing an additional 83 shares during the last quarter. Intech Investment Management LLC boosted its holdings in Cummins by 40.8% in the 1st quarter. Intech Investment Management LLC now owns 3,956 shares of the company’s stock valued at $1,240,000 after purchasing an additional 1,146 shares during the last quarter. Treasurer of the State of North Carolina grew its stake in shares of Cummins by 2.8% in the 2nd quarter. Treasurer of the State of North Carolina now owns 64,289 shares of the company’s stock valued at $21,055,000 after buying an additional 1,759 shares during the period. ICW Investment Advisors LLC purchased a new stake in shares of Cummins in the 2nd quarter valued at approximately $225,000. Finally, Osterweis Capital Management Inc. acquired a new stake in shares of Cummins during the 2nd quarter worth approximately $31,000. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on CMI shares. Zacks Research downgraded shares of Cummins from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 13th. JPMorgan Chase & Co. raised their target price on Cummins from $600.00 to $725.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 6th. Weiss Ratings cut Cummins from a “buy (b)” rating to a “buy (b-)” rating in a research report on Wednesday, May 6th. Truist Financial increased their price objective on Cummins from $815.00 to $901.00 and gave the company a “buy” rating in a report on Thursday, July 2nd. Finally, Wells Fargo & Company lifted their target price on Cummins from $794.00 to $874.00 and gave the stock an “overweight” rating in a report on Wednesday, June 17th. Eleven equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Cummins presently has a consensus rating of “Moderate Buy” and an average price target of $740.07.

About Cummins

Cummins Inc (NYSE: CMI) is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world’s leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company’s product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.