Cummins (NYSE:CMI) Posts Earnings Results, Beats Expectations By $0.05 EPS

Cummins (NYSE:CMI) released its earnings results on Thursday. The company reported $8.25 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $8.20 by $0.05, FiscalAI reports. The business had revenue of $9.44 billion during the quarter, compared to analyst estimates of $9.89 billion. Cummins had a net margin of 9.26% and a return on equity of 26.82%. The company’s revenue for the quarter was up 13.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $5.59 earnings per share.

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 Trading Up 0.4%

NYSE:CMI traded up $1.98 on Friday, reaching $450.56. The company’s stock had a trading volume of 2,167,833 shares, compared to its average volume of 1,387,830. Cummins has a 12-month low of $443.62 and a 12-month high of $737.76. The company has a quick ratio of 1.13, a current ratio of 1.74 and a debt-to-equity ratio of 0.46. The firm has a market cap of $62.02 billion, a price-to-earnings ratio of 16.91, a price-to-earnings-growth ratio of 1.19 and a beta of 1.26. The stock has a 50 day moving average price of $526.45 and a 200 day moving average price of $599.60.

Cummins Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Friday, November 20th will be paid a dividend of $2.20 per share. The ex-dividend date of this dividend is Friday, November 20th. This represents a $8.80 annualized dividend and a yield of 2.0%. Cummins’s dividend payout ratio (DPR) is 44.97%.

Analyst Ratings Changes

CMI has been the topic of a number of recent research reports. Citigroup lowered their price target on shares of Cummins from $630.00 to $525.00 and set a “buy” rating on the stock in a research report on Friday. Morgan Stanley raised their target price 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. Evercore lowered their target price on Cummins from $845.00 to $782.00 and set an “outperform” rating on the stock in a report on Tuesday, August 11th. Barclays cut their price target on Cummins from $760.00 to $675.00 and set an “overweight” rating for the company in a report on Monday, October 19th. Finally, Zacks Research downgraded Cummins from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 13th. Thirteen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $674.53.

Insider Activity at Cummins

In other news, VP Earl Newsome sold 698 shares of the stock in a transaction on Monday, August 24th. The stock was sold at an average price of $572.22, for a total transaction of $399,409.56. Following the completion of the transaction, the vice president directly owned 4,479 shares in the company, valued at approximately $2,562,973.38. This represents a 13.48% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.30% of the stock is currently owned by company insiders.

More Cummins News

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.