Zacks Research Weighs in on Cummins’ Q2 Earnings (NYSE:CMI)

Cummins Inc. (NYSE:CMI) – Research analysts at Zacks Research lifted their Q2 2026 earnings estimates for shares of Cummins in a note issued to investors on Tuesday, May 19th. Zacks Research analyst Team now forecasts that the company will post earnings of $7.50 per share for the quarter, up from their prior estimate of $6.62. Zacks Research has a “Strong-Buy” rating on the stock. The consensus estimate for Cummins’ current full-year earnings is $28.39 per share. Zacks Research also issued estimates for Cummins’ Q3 2026 earnings at $8.32 EPS, FY2026 earnings at $29.28 EPS, Q2 2027 earnings at $8.12 EPS, Q3 2027 earnings at $8.48 EPS, Q4 2027 earnings at $8.66 EPS, FY2027 earnings at $31.73 EPS, Q1 2028 earnings at $7.71 EPS and FY2028 earnings at $35.32 EPS.

Cummins (NYSE:CMI) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.63 by $0.52. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The business had revenue of $8.40 billion for the quarter, compared to analyst estimates of $8.37 billion. During the same period last year, the company earned $5.96 EPS. The firm’s revenue was up 2.7% on a year-over-year basis.

Several other analysts also recently commented on the company. Truist Financial set a $815.00 price objective on Cummins in a research note on Wednesday, May 6th. Wall Street Zen lowered shares of Cummins from a “strong-buy” rating to a “buy” rating in a research note on Sunday, March 8th. Robert W. Baird set a $700.00 price objective on Cummins in a research note on Wednesday, May 6th. Wells Fargo & Company raised their target price on shares of Cummins from $693.00 to $794.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Finally, Barclays raised their price target on Cummins from $610.00 to $760.00 and gave the company an “overweight” rating in a report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $677.87.

Cummins Stock Performance

Shares of NYSE:CMI opened at $638.16 on Friday. The firm’s 50 day simple moving average is $610.34 and its 200 day simple moving average is $561.99. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11. The company has a market capitalization of $88.06 billion, a price-to-earnings ratio of 33.12, a P/E/G ratio of 1.69 and a beta of 1.27. Cummins has a fifty-two week low of $307.90 and a fifty-two week high of $718.08.

Institutional Trading of Cummins

A number of institutional investors have recently bought and sold shares of CMI. Brighton Jones LLC boosted its stake 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 acquiring an additional 83 shares in the last quarter. Intech Investment Management LLC grew its holdings in Cummins by 40.8% during the first quarter. Intech Investment Management LLC now owns 3,956 shares of the company’s stock worth $1,240,000 after buying an additional 1,146 shares in the last quarter. Treasurer of the State of North Carolina raised its holdings in shares of Cummins by 2.8% in the second quarter. Treasurer of the State of North Carolina now owns 64,289 shares of the company’s stock valued at $21,055,000 after purchasing an additional 1,759 shares during the last quarter. ICW Investment Advisors LLC purchased a new stake in Cummins in the 2nd quarter valued at about $225,000. Finally, Osterweis Capital Management Inc. bought a new stake in Cummins during the second quarter worth $31,000. Institutional investors own 83.46% of the company’s stock.

Insider Activity

In related news, insider Brett Michael Merritt sold 701 shares of the firm’s stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $688.75, for a total value of $482,813.75. Following the completion of the transaction, the insider owned 10,404 shares in the company, valued at $7,165,755. This trade represents a 6.31% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Nathan R. Stoner sold 607 shares of the firm’s stock in a transaction on Monday, May 11th. The shares were sold at an average price of $694.06, for a total transaction of $421,294.42. Following the transaction, the vice president directly owned 9,447 shares of the company’s stock, valued at $6,556,784.82. The trade was a 6.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 22,397 shares of company stock valued at $14,465,833. 0.30% of the stock is currently owned by insiders.

Cummins Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 4th. Investors of record on Friday, May 22nd will be issued a dividend of $2.00 per share. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $8.00 annualized dividend and a dividend yield of 1.3%. Cummins’s payout ratio is 41.52%.

Key Stories Impacting Cummins

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Zacks Research raised earnings estimates across multiple future periods for Cummins, including FY2026 to $29.28 per share, FY2027 to $31.73, and FY2028 to $35.32, while keeping a Strong-Buy rating. Higher profit forecasts typically support a stronger valuation.
• Positive Sentiment: Cummins also said at its investor day that it is raising 2030 financial targets and investing in large-engine capacity and product development, signaling confidence in longer-term growth and profitability. Article
• Positive Sentiment: A Barron’s report highlighted that CEO Jennifer Rumsey is positioning Cummins to benefit from the AI/datacenter buildout, which may improve investor sentiment around future demand. Article
• Neutral Sentiment: Seeking Alpha posted an Analyst/Investor Day slideshow, which mainly reiterates the company’s strategy and is less likely to be a direct stock-moving catalyst. Article
• Negative Sentiment: A separate Business Wire item said a Delaware jury found Cummins liable for misappropriating C3 AI trade secrets. While the market appears more focused on the bullish growth updates, the legal ruling could still create risk or headline pressure. Article

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.