Cummins (NYSE:CMI) Posts Quarterly Earnings Results, Beats Expectations By $0.52 EPS

Cummins (NYSE:CMI) released its quarterly earnings data on Tuesday. The company reported $6.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.63 by $0.52, Briefing.com reports. The company had revenue of $8.40 billion during the quarter, compared to the consensus estimate of $8.37 billion. Cummins had a return on equity of 25.71% and a net margin of 8.44%.The firm’s revenue was up 2.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $5.96 earnings per share.

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 Stock Up 2.8%

Shares of NYSE:CMI opened at $693.44 on Wednesday. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.16 and a current ratio of 1.76. Cummins has a 52-week low of $296.59 and a 52-week high of $698.31. The business’s 50 day simple moving average is $582.66 and its two-hundred day simple moving average is $539.56. The firm has a market cap of $95.81 billion, a P/E ratio of 33.86, a PEG ratio of 2.08 and a beta of 1.27.

Cummins Announces Dividend

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

Insider Activity

In other news, Director William I. Miller sold 18,107 shares of the company’s stock in a transaction that occurred on Wednesday, February 11th. The stock was sold at an average price of $597.10, for a total transaction of $10,811,689.70. Following the transaction, the director directly owned 34,243 shares of the company’s stock, valued at $20,446,495.30. This represents a 34.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Jennifer Mary Bush sold 4,270 shares of the stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $584.93, for a total value of $2,497,651.10. Following the completion of the transaction, the vice president owned 15,130 shares in the company, valued at approximately $8,849,990.90. This represents a 22.01% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 31,195 shares of company stock valued at $18,397,489. Corporate insiders own 0.30% of the company’s stock.

Institutional Investors Weigh In On Cummins

Institutional investors and hedge funds have recently made changes to their positions in the business. Kemnay Advisory Services Inc. acquired a new position in Cummins during the 4th quarter valued at about $28,000. Birchwood Financial Partners Inc. bought a new position in shares of Cummins in the fourth quarter valued at approximately $28,000. Osterweis Capital Management Inc. bought a new position in shares of Cummins in the second quarter valued at approximately $31,000. Acumen Wealth Advisors LLC purchased a new position in shares of Cummins during the fourth quarter valued at approximately $32,000. Finally, Caitong International Asset Management Co. Ltd bought a new stake in Cummins during the third quarter worth $37,000. Institutional investors and hedge funds own 83.46% of the company’s stock.

Trending Headlines about Cummins

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Q1 results topped expectations — EPS $6.15 vs. consensus ~$5.6 and revenue $8.40B (slight beat). Power Systems and data?center power lifted margins, supporting near?term profitability. Zacks: Cummins’ Q1 Earnings Beat
• Positive Sentiment: Company raised its revenue outlook for FY2026, citing robust demand for power?generation equipment — a near?term growth driver that mitigates some cyclical weakness in on?highway markets. Reuters: Cummins raises revenue outlook
• Positive Sentiment: Management reiterated an improved outlook on the earnings call and lifted guidance despite trucking headwinds, signaling confidence in recovery and margin resilience. TipRanks: Cummins lifts outlook
• Neutral Sentiment: Earnings call materials and presentation are available for review; they provide segment detail (Power Systems strength vs. Engine softness) useful for modeling near?term revenue/margin mix. Seeking Alpha: Q1 presentation
• Neutral Sentiment: Market commentary highlights improving index momentum (S&P/NYSE) around Cummins, which may amplify moves but is not a company fundamental. Kalkine: S&P 500 momentum
• Negative Sentiment: Management is refocusing the portfolio toward zero?emission growth after a mixed quarter — a strategic shift that could require increased R&D/capex and create execution risk during the transition. Yahoo Finance: Refocus on zero emission
• Negative Sentiment: Engine and Components sales declined and trucking demand remains weak, pressuring segments that historically generate higher margins and potentially delaying cyclical recovery. Zacks: Key metrics analysis

Analyst Ratings Changes

Several equities analysts have issued reports on the stock. Robert W. Baird set a $580.00 price target on shares of Cummins in a research report on Friday, February 6th. UBS Group set a $565.00 target price on Cummins and gave the stock a “neutral” rating in a report on Friday, February 6th. Citigroup restated a “buy” rating on shares of Cummins in a research report on Wednesday. Sanford C. Bernstein set a $600.00 price target on shares of Cummins and gave the stock a “market perform” rating in a report on Friday, February 6th. Finally, Argus set a $696.00 price objective on shares of Cummins in a research note on Tuesday, February 10th. Eleven equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $615.40.

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.