FY2026 EPS Estimates for Cummins Increased by Zacks Research

Cummins Inc. (NYSE:CMI) – Equities research analysts at Zacks Research upped their FY2026 earnings per share estimates for Cummins in a report issued on Tuesday, August 25th. Zacks Research analyst Team now forecasts that the company will earn $30.09 per share for the year, up from their prior estimate of $29.28. Zacks Research has a “Hold” rating on the stock. The consensus estimate for Cummins’ current full-year earnings is $30.06 per share. Zacks Research also issued estimates for Cummins’ Q4 2026 earnings at $8.49 EPS, Q2 2027 earnings at $8.27 EPS and Q1 2028 earnings at $8.38 EPS.

Several other research analysts have also weighed in on CMI. CICC Research began coverage on shares of Cummins in a research note on Sunday. They set an “outperform” rating on the stock. Citigroup upped their target price on shares of Cummins from $770.00 to $790.00 and gave the company a “buy” rating in a research note on Tuesday, July 14th. Wells Fargo & Company increased their target price on shares of Cummins from $794.00 to $874.00 and gave the stock an “overweight” rating in a report on Wednesday, June 17th. Argus boosted their price target on shares of Cummins from $696.00 to $770.00 and gave the company a “buy” rating in a report on Monday, June 1st. Finally, Weiss Ratings upgraded shares of Cummins from a “buy (b-)” rating to a “buy (b)” rating in a research report on Monday, August 17th. Twelve research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $745.64.

Cummins Stock Performance

Shares of CMI stock opened at $578.41 on Thursday. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.73 and a quick ratio of 1.13. The stock has a market cap of $79.62 billion, a PE ratio of 29.56, a price-to-earnings-growth ratio of 1.36 and a beta of 1.24. The stock has a 50-day moving average of $653.34 and a 200-day moving average of $628.37. Cummins has a one year low of $389.52 and a one year high of $737.76.

Cummins (NYSE:CMI) last released its earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share for the quarter, missing the consensus estimate of $7.21 by ($0.48). The company had revenue of $9.46 billion during the quarter, compared to analyst estimates of $9.33 billion. Cummins had a net margin of 7.82% and a return on equity of 25.29%. The company’s quarterly revenue was up 9.4% compared to the same quarter last year. During the same period in the previous year, the company posted $6.43 EPS.

Cummins Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Friday, August 21st will be paid a $2.20 dividend. This is a boost from Cummins’s previous quarterly dividend of $2.00. This represents a $8.80 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend is Friday, August 21st. Cummins’s dividend payout ratio (DPR) is 44.97%.

Insider Buying and Selling at Cummins

In related news, VP Earl Newsome sold 698 shares of the business’s stock in a transaction on Monday, August 24th. The shares were sold at an average price of $572.22, for a total transaction of $399,409.56. Following the transaction, the vice president directly owned 4,479 shares in the company, valued at approximately $2,562,973.38. The trade was a 13.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.30% of the company’s stock.

Institutional Trading of Cummins

Large investors have recently added to or reduced their stakes in the company. Valmark Advisers Inc. boosted its holdings in shares of Cummins by 1.9% during the 1st quarter. Valmark Advisers Inc. now owns 877 shares of the company’s stock worth $472,000 after buying an additional 16 shares during the period. Guardian Partners Inc. lifted its position in Cummins by 1.0% during the first quarter. Guardian Partners Inc. now owns 1,584 shares of the company’s stock worth $852,000 after acquiring an additional 16 shares during the last quarter. Nicolet Advisory Services LLC boosted its holdings in shares of Cummins by 1.6% during the fourth quarter. Nicolet Advisory Services LLC now owns 1,101 shares of the company’s stock worth $619,000 after acquiring an additional 17 shares during the period. Uhlmann Price Securities LLC boosted its holdings in shares of Cummins by 2.4% during the first quarter. Uhlmann Price Securities LLC now owns 717 shares of the company’s stock worth $386,000 after acquiring an additional 17 shares during the period. Finally, ICW Investment Advisors LLC grew its position in shares of Cummins by 2.6% in the fourth quarter. ICW Investment Advisors LLC now owns 723 shares of the company’s stock valued at $369,000 after purchasing an additional 18 shares during the last quarter. Institutional investors and hedge funds own 83.46% of the company’s stock.

Key Stories Impacting Cummins

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Analyst support remains favorable. Jefferies reaffirmed its Buy rating, while Zacks Research raised its EPS forecasts across several periods: Q3 2026 to $8.51, FY2027 to $34.10 and FY2028 to $40.91. Zacks nevertheless maintains a Hold rating. Jefferies Sticks to Its Buy Rating for Cummins
• Positive Sentiment: AI-related power demand is a potential growth catalyst. Industry expectations for substantial hyperscaler spending on artificial intelligence are highlighting Cummins’ backup generators and power systems as “picks-and-shovels” beneficiaries as data centers face electricity constraints. Hyperscalers Will Spend $750 Billion on AI This Year. Cummins Sells the Backup Power.
• Positive Sentiment: The dividend was increased. Cummins declared a quarterly dividend of $2.20 per share, up from $2.00, equivalent to an $8.80 annualized payout and a roughly 1.5% yield. The increase reinforces the company’s shareholder-return appeal.
• Neutral Sentiment: Valuation and recent fundamentals are mixed. Cummins is valued at approximately 29 times earnings, and analysts expect about $30.06 in current-year EPS. Revenue recently grew 9.4% year over year to $9.46 billion, but quarterly EPS of $6.73 missed consensus by $0.48, indicating profitability remains a risk.
• Negative Sentiment: An insider reduced exposure. Vice President Earl Newsome sold 698 shares for approximately $399,410, cutting his direct holdings by 13.48%. The transaction is relatively small compared with his remaining position but may be viewed as a modest negative signal.

Cummins Company Profile

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.