Cummins (NYSE:CMI) Announces Earnings Results, Beats Estimates By $0.55 EPS

Cummins (NYSE:CMI) released its quarterly earnings results on Tuesday. The company reported $6.15 EPS for the quarter, topping analysts’ consensus estimates of $5.60 by $0.55, Briefing.com reports. The company had revenue of $8.40 billion for the quarter, compared to the consensus estimate of $8.37 billion. Cummins had a net margin of 8.44% and a return on equity of 25.71%. Cummins’s revenue was up 2.7% on a year-over-year basis. During the same period in the previous year, the firm earned $5.96 EPS.

Here are the key takeaways from Cummins’ conference call:

• Company raised full-year guidance, now forecasting 2026 revenue +8% to +11% and an EBITDA margin of 17.75%–18.5%, up from prior ranges—a clear upgrade to both top‑ and bottom‑line expectations.
• Power Systems delivered record EBITDA in Q1 and management raised its 2026 outlook for the segment to revenue growth of 14%–19% and EBITDA margins ~25%–26%, driven by strong data‑center demand and operational improvements.
• While North America on‑highway volumes were weak in Q1 (Cummins heavy‑duty unit sales down ~16%), the company upgraded demand assumptions—now guiding NA heavy‑duty 230k–250k units and medium‑duty 125k–135k units for 2026, citing stronger orders and earlier-than-expected H1 recovery.
• Cummins took a $199M net charge for the sale of its low‑pressure fuel cell business to Alstom, which reduced Q1 EBITDA but also narrowed Accelera’s projected 2026 losses (ex‑charge guidance now roughly $270M–$300M), leaving near‑term earnings hit offset by clearer long‑term focus.

Cummins Price Performance

NYSE:CMI traded up $14.34 during mid-day trading on Tuesday, reaching $671.07. 805,274 shares of the company were exchanged, compared to its average volume of 906,311. Cummins has a 12 month low of $296.59 and a 12 month high of $689.35. The stock has a market cap of $92.72 billion, a PE ratio of 32.78, a PEG ratio of 2.08 and a beta of 1.27. The company has a quick ratio of 1.16, a current ratio of 1.76 and a debt-to-equity ratio of 0.51. The company has a fifty day moving average of $581.03 and a 200 day moving average of $537.79.

Cummins Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, March 5th. Investors of record on Friday, February 20th were given a dividend of $2.00 per share. The ex-dividend date was Friday, February 20th. This represents a $8.00 annualized dividend and a yield of 1.2%. Cummins’s dividend payout ratio is 38.99%.

Insider Buying and Selling at Cummins

In other news, VP Amy Rochelle Davis sold 4,054 shares of the company’s stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $561.34, for a total transaction of $2,275,672.36. Following the transaction, the vice president owned 15,807 shares of the company’s stock, valued at $8,873,101.38. This represents a 20.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, VP Jennifer Mary Bush sold 4,270 shares of Cummins stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $584.93, for a total transaction of $2,497,651.10. Following the sale, the vice president directly owned 15,130 shares of the company’s stock, valued at $8,849,990.90. This represents a 22.01% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 31,195 shares of company stock valued at $18,397,489 over the last three months. Insiders own 0.30% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of CMI. Kemnay Advisory Services Inc. acquired a new stake in shares of Cummins in the 4th quarter valued at approximately $28,000. Birchwood Financial Partners Inc. bought a new position in Cummins during the fourth quarter worth $28,000. Osterweis Capital Management Inc. bought a new stake in shares of Cummins in the second quarter valued at about $31,000. Acumen Wealth Advisors LLC acquired a new position in shares of Cummins in the fourth quarter valued at about $32,000. Finally, Caitong International Asset Management Co. Ltd bought a new position in Cummins during the third quarter worth about $37,000. 83.46% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research firms have weighed in on CMI. Weiss Ratings restated a “buy (b)” rating on shares of Cummins in a research report on Friday, April 10th. Sanford C. Bernstein set a $600.00 price objective on Cummins and gave the stock a “market perform” rating in a research note on Friday, February 6th. Truist Financial raised their target price on Cummins from $703.00 to $730.00 and gave the company a “buy” rating in a research note on Monday, April 20th. Citigroup raised their price objective on shares of Cummins from $630.00 to $710.00 and gave the company a “buy” rating in a research report on Monday, April 13th. Finally, Barclays upped their target price on Cummins from $546.00 to $610.00 and gave the company an “overweight” rating in a report on Friday, January 23rd. Eleven equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $600.27.

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.