Cummins (NYSE:CMI) Issues Quarterly Earnings Results

Cummins (NYSE:CMI) announced its quarterly earnings data on Thursday. The company reported $5.81 earnings per share for the quarter, beating analysts’ consensus estimates of $5.17 by $0.64, Briefing.com reports. Cummins had a return on equity of 26.02% and a net margin of 7.95%.During the same period last year, the firm earned $5.16 EPS. The firm’s quarterly revenue was up 1.1% compared to the same quarter last year.

Here are the key takeaways from Cummins’ conference call:

• Cummins reported strong 2025 results with full-year revenues of $33.7 billion and record underlying EBITDA of $5.8 billion (17.4% ex?items), delivering record segment earnings in Power Systems and Distribution despite a North America truck downcycle.
• Management guided 2026 company revenue growth of +3% to +8% and EBITDA of ~17%–18% of sales, while flagging a roughly 50?bp margin dilution from tariffs and capex of $1.35–$1.45 billion.
• Power Systems is a key growth driver — 2025 revenue hit a record $7.5 billion with EBITDA 22.7%, completed the 95?liter capacity expansion ahead of schedule, and expects 2026 power revenues to rise 12%–17% on strong multi?year data center demand.
• The company took $458 million of accelerate/electrolyzer charges in 2025 (including $218 million in Q4) and is scaling back hydrogen/electrolyzer participation, which will reduce losses but signals weaker near?term prospects in that zero?carbon line.
• North America heavy and medium?duty truck demand remained weak (engine volumes down ~30% in Q4), with management expecting continued H1 softness but a H2 pickup and some pre?buy ahead of the 2027 Low?NOx rule — a timing risk with upside if recovery accelerates.

Cummins Price Performance

CMI stock traded down $49.51 during trading on Thursday, hitting $556.12. The stock had a trading volume of 1,245,757 shares, compared to its average volume of 887,406. Cummins has a twelve month low of $260.02 and a twelve month high of $617.98. The company’s 50-day moving average price is $538.55 and its two-hundred day moving average price is $459.09. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.77 and a quick ratio of 1.11. The stock has a market capitalization of $76.76 billion, a P/E ratio of 28.90, a PEG ratio of 2.12 and a beta of 1.13.

Insider Activity at Cummins

In other Cummins news, insider Brett Michael Merritt sold 1,450 shares of Cummins stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $489.32, for a total transaction of $709,514.00. Following the sale, the insider owned 9,271 shares of the company’s stock, valued at $4,536,485.72. The trade was a 13.52% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Jennifer Rumsey sold 4,570 shares of the stock in a transaction dated Tuesday, November 11th. The shares were sold at an average price of $473.89, for a total transaction of $2,165,677.30. Following the completion of the sale, the chief executive officer owned 42,880 shares of the company’s stock, valued at approximately $20,320,403.20. The trade was a 9.63% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.41% of the company’s stock.

Institutional Inflows and Outflows

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

Key Stories Impacting Cummins

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Q4 earnings beat and modest revenue growth — Cummins reported $5.81 EPS (above consensus) and revenue up ~1.1% year-over-year, driven by better margins and operational performance; this supports the company’s underlying profitability. Cummins Q4 Earnings Beat on Strong Performance From Power Systems Unit
• Positive Sentiment: Power Systems margin strength — management cited a surge in EBITDA margin in the Power Systems unit, a meaningful operational bright spot that supports cash flow and long?term profitability. Cummins Q4 Earnings Beat on Strong Performance From Power Systems Unit
• Positive Sentiment: Data-center demand offsets some weakness — Cummins took a strategic charge in its Accelera segment but is benefiting from higher sales into data centers, which supports longer-term revenue diversification. Cummins Takes $458 Million Accelera Hit But Cashes In On Data Centers
• Neutral Sentiment: FY?2026 guidance is mixed — the company updated revenue guidance to a range of about $34.7B–$36.4B (vs. consensus near $35.1B), a range that straddles analyst estimates and leaves uncertainty about full?year upside.
• Neutral Sentiment: Cummins India shows localized improvement — quarterly profit at Cummins India rose on lower expenses, a positive datapoint for international operations but limited immediate impact on the U.S. ticker. Cummins India’s quarterly profit rises on lower expenses
• Negative Sentiment: Large Accelera charge — Cummins recorded a $458M hit tied to restructuring/strategic changes in Accelera, which pressured reported results and raises near?term earnings variability. Cummins Takes $458 Million Accelera Hit But Cashes In On Data Centers
• Negative Sentiment: Proposed class-action settlement announced — a court?approved notice about a proposed settlement creates legal overhang and potential future cash or disclosure implications. The Rosen Law Firm Reminds Investors of Proposed Class Action Settlement

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on CMI. Weiss Ratings reissued a “buy (b-)” rating on shares of Cummins in a report on Monday, December 29th. Truist Financial lifted their price objective on Cummins from $628.00 to $653.00 and gave the company a “buy” rating in a research note on Thursday, December 18th. Wolfe Research cut Cummins from an “outperform” rating to a “peer perform” rating and set a $540.00 price objective for the company. in a report on Monday, January 26th. Barclays raised their target price on Cummins from $546.00 to $610.00 and gave the stock an “overweight” rating in a report on Friday, January 23rd. Finally, Zacks Research downgraded Cummins from a “strong-buy” rating to a “hold” rating in a report on Wednesday, January 28th. Eleven equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $522.07.

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.