Cummins (NYSE:CMI) Posts Earnings Results, Misses Estimates By $0.48 EPS

Cummins (NYSE:CMI) announced its quarterly earnings data 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 the consensus estimate of $9.33 billion. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The company’s revenue was up 9.4% compared to the same quarter last year. During the same quarter last year, the firm posted $6.43 earnings per share.

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 Trading Down 5.3%

Shares of CMI stock traded down $34.57 during trading hours on Tuesday, reaching $614.28. 909,160 shares of the stock were exchanged, compared to its average volume of 962,399. Cummins has a 12-month low of $364.14 and a 12-month high of $737.76. The company has a current ratio of 1.71, a quick ratio of 1.11 and a debt-to-equity ratio of 0.50. The company’s 50-day moving average price is $670.29 and its 200-day moving average price is $623.53. The firm has a market capitalization of $84.76 billion, a price-to-earnings ratio of 31.93, a price-to-earnings-growth ratio of 1.55 and a beta of 1.24.

Cummins Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st will be issued a $2.20 dividend. This is a boost from Cummins’s previous quarterly dividend of $2.00. The ex-dividend date is Friday, August 21st. This represents a $8.80 annualized dividend and a dividend yield of 1.4%. Cummins’s dividend payout ratio (DPR) is 41.52%.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the stock. Argus lifted 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. Morgan Stanley increased their price objective on shares of Cummins from $752.00 to $761.00 and gave the stock an “overweight” rating in a research note on Friday, July 17th. Robert W. Baird set a $700.00 price objective on shares of Cummins in a research report on Wednesday, May 6th. Truist Financial lifted their target price on shares of Cummins from $815.00 to $901.00 and gave the company a “buy” rating in a research note on Thursday, July 2nd. Finally, Evercore reiterated an “outperform” rating and issued a $845.00 price target on shares of Cummins in a research note on Monday, May 11th. Eleven equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, Cummins presently has a consensus rating of “Moderate Buy” and a consensus target price of $740.07.

Insider Activity at Cummins

In related news, insider Brett Michael Merritt sold 701 shares of the stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $688.75, for a total value of $482,813.75. Following the sale, the insider directly owned 10,404 shares of the company’s stock, valued at $7,165,755. This represents a 6.31% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Jennifer Mary Bush sold 5,000 shares of the firm’s stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $696.21, for a total transaction of $3,481,050.00. Following the completion of the sale, the vice president directly owned 11,986 shares of the company’s stock, valued at approximately $8,344,773.06. The trade was a 29.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 13,579 shares of company stock worth $9,377,684 in the last three months. 0.30% of the stock is owned by insiders.

Institutional Trading of Cummins

Institutional investors and hedge funds have recently made changes to their positions in the company. Boston Partners purchased a new position in Cummins during the 3rd quarter worth $473,471,000. First Trust Advisors LP raised its stake in Cummins by 245.1% in the fourth quarter. First Trust Advisors LP now owns 542,796 shares of the company’s stock valued at $277,071,000 after buying an additional 385,525 shares during the last quarter. Merewether Investment Management LP acquired a new stake in Cummins in the third quarter worth about $91,147,000. Caisse de depot et placement du Quebec boosted its holdings in Cummins by 360.1% in the fourth quarter. Caisse de depot et placement du Quebec now owns 241,908 shares of the company’s stock worth $123,482,000 after acquiring an additional 189,333 shares in the last quarter. Finally, Alyeska Investment Group L.P. purchased a new stake in shares of Cummins during the third quarter worth about $68,812,000. 83.46% of the stock is currently owned by institutional investors.

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.