Cummins (NYSE:CMI) Posts Earnings Results

Cummins (NYSE:CMI) posted its earnings results on Thursday. The company reported $8.25 earnings per share for the quarter, topping analysts’ consensus estimates of $8.20 by $0.05, FiscalAI reports. The firm had revenue of $9.44 billion for the quarter, compared to the consensus estimate of $9.89 billion. Cummins had a return on equity of 25.29% and a net margin of 7.82%. The business’s revenue for the quarter was up 13.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $5.59 EPS.

Here are the key takeaways from Cummins’ conference call:

• Cummins reported Q3 revenue of $9.4 billion, up 13%, and record EBITDA of $1.8 billion, or 18.9% of sales. Excluding prior-year Accelera charges, EBITDA margin rose about 170 basis points, primarily on higher volumes.
• Power generation demand—especially from data centers—remained exceptionally strong, with order intake exceeding expectations and demand increasingly broad across North America, China, and Asia-Pacific. Supply constraints delayed some Q3 shipments, but the company expects to recover most of them in Q4 and is expanding capacity.
• Cummins revised its 2026 revenue-growth outlook to approximately 10%, the low end of its prior 10%–13% range, mainly due to weaker North American pickup-truck demand. The company also lowered its medium-duty and pickup engine market forecasts; its approximately 18.2% EBITDA-margin outlook remains within the previous range.
• Cummins subsidiaries issued a stop-use recommendation for HyLYZER electrolyzer products after reviewing operating data. No recall has been initiated, but the company is evaluating possible modifications, and the potential financial impact is not included in its guidance.
• The company returned $661 million to shareholders in Q3 through repurchases and dividends, and said it remains on track to return approximately 50% of operating cash flow to shareholders for 2026.

Cummins Stock Performance

CMI traded up $1.98 during midday trading on Friday, reaching $450.56. The company had a trading volume of 2,167,833 shares, compared to its average volume of 1,134,200. The business has a 50-day moving average of $526.45 and a two-hundred day moving average of $599.60. The company has a quick ratio of 1.13, a current ratio of 1.73 and a debt-to-equity ratio of 0.48. Cummins has a 1 year low of $443.62 and a 1 year high of $737.76. The company has a market cap of $62.02 billion, a P/E ratio of 18.80, a P/E/G ratio of 1.32 and a beta of 1.26.

Cummins Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Friday, November 20th will be given a $2.20 dividend. The ex-dividend date is Friday, November 20th. This represents a $8.80 dividend on an annualized basis and a yield of 2.0%. Cummins’s dividend payout ratio is presently 44.97%.

Insider Buying and Selling at Cummins

In other news, VP Earl Newsome sold 698 shares of Cummins stock in a transaction dated Monday, August 24th. The stock was 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 of the company’s stock, valued at $2,562,973.38. The trade was a 13.48% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.30% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on CMI shares. Wells Fargo & Company lowered their target price on Cummins from $608.00 to $520.00 and set an “overweight” rating on the stock in a report on Friday. Morgan Stanley boosted their price target on Cummins from $752.00 to $761.00 and gave the company an “overweight” rating in a research note on Friday, July 17th. Truist Financial reduced their price target on shares of Cummins from $779.00 to $637.00 and set a “buy” rating for the company in a research report on Friday. Wall Street Zen cut shares of Cummins from a “buy” rating to a “hold” rating in a research note on Monday, November 2nd. Finally, Sanford C. Bernstein reissued a “market perform” rating and issued a $700.00 price objective on shares of Cummins in a report on Wednesday, August 5th. Thirteen research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $674.53.

Cummins News Summary

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Third-quarter EPS of $8.25 edged past the $8.20 consensus, and revenue rose 13.5% year over year to $9.44 billion. The company also pointed to strong data-center demand, recovering shipments and capacity expansion as growth supports. Cummins Q3 Earnings Call Highlights Power Demand and Truck Weakness
• Neutral Sentiment: Citigroup, Truist Financial and Wells Fargo cut their price targets, but maintained buy or overweight ratings. Their revised targets still imply upside from the quoted share price, tempering—but not erasing—the signal from the reductions. Citigroup recommendations Truist Financial recommendations Wells Fargo recommendations
• Negative Sentiment: Cummins lowered its FY2026 revenue guidance to $37.0 billion, below the roughly $37.7 billion consensus, citing pickup-truck weakness. Third-quarter revenue also fell short of analyst expectations, raising concern that softer vehicle demand could offset strength in data-center-related business. Cummins Q3 profit more than doubles; cuts FY26 revenue outlook

Cummins Company Profile

Cummins Inc is a global power technology company founded in 1919 and headquartered in Columbus, Indiana. It designs, manufactures, distributes and services products used in commercial vehicles, industrial equipment, power generation and other applications.

The company’s offerings include diesel and natural gas engines, power generation systems, and components such as filtration, turbochargers and emissions-control systems. Through its Accelera business, Cummins also develops technologies including batteries, fuel cells and electrolyzers for lower-emission power and transportation.

Cummins serves customers in markets around the world through manufacturing operations, distribution networks and service locations.