Cummins (NYSE:CMI) Announces Quarterly Earnings Results, Beats Estimates By $0.64 EPS

Cummins (NYSE:CMI) released its earnings results on Thursday. The company reported $5.81 earnings per share for the quarter, beating the consensus estimate 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%.The firm’s revenue for the quarter was up 1.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $5.16 EPS.

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

Cummins stock traded down $49.51 during mid-day trading on Thursday, reaching $556.12. 1,245,757 shares of the company’s stock traded hands, compared to its average volume of 887,406. Cummins has a 12-month low of $260.02 and a 12-month high of $617.98. The company has a quick ratio of 1.11, a current ratio of 1.77 and a debt-to-equity ratio of 0.52. The stock has a 50 day moving average of $538.55 and a two-hundred day moving average of $459.09. The company has a market cap of $76.76 billion, a price-to-earnings ratio of 28.90, a PEG ratio of 2.12 and a beta of 1.13.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on CMI shares. UBS Group upgraded shares of Cummins from a “sell” rating to a “neutral” rating in a research note on Tuesday, November 25th. JPMorgan Chase & Co. increased their price objective on shares of Cummins from $485.00 to $580.00 and gave the stock a “neutral” rating in a research note on Wednesday, January 14th. Raymond James Financial upgraded shares of Cummins from a “market perform” rating to an “outperform” rating and set a $585.00 price objective on the stock in a research report on Monday, December 22nd. Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $475.00 target price on shares of Cummins in a report on Friday, November 7th. Finally, Zacks Research cut Cummins from a “strong-buy” rating to a “hold” rating in a report on Wednesday, January 28th. Eleven research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $522.07.

More Cummins News

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

Insider Transactions at Cummins

In other Cummins news, CEO Jennifer Rumsey sold 4,570 shares of the business’s stock in a transaction on 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 transaction, the chief executive officer owned 42,880 shares in the company, valued at $20,320,403.20. The trade was a 9.63% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Brett Michael Merritt sold 1,450 shares of Cummins stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $489.32, for a total transaction of $709,514.00. Following the transaction, the insider directly owned 9,271 shares of the company’s stock, valued at approximately $4,536,485.72. This represents a 13.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.41% of the stock is currently owned by company insiders.

Institutional Trading of Cummins

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Raymond James Financial Inc. raised its stake in shares of Cummins by 4.5% during the third quarter. Raymond James Financial Inc. now owns 1,515,473 shares of the company’s stock valued at $640,090,000 after acquiring an additional 64,822 shares in the last quarter. Boston Partners purchased a new stake in shares of Cummins during the 3rd quarter worth $473,471,000. AQR Capital Management LLC lifted its position in shares of Cummins by 2.8% during the third quarter. AQR Capital Management LLC now owns 659,376 shares of the company’s stock valued at $276,167,000 after buying an additional 17,798 shares during the last quarter. Merewether Investment Management LP acquired a new stake in Cummins in the third quarter valued at approximately $91,147,000. Finally, California State Teachers Retirement System lifted its holdings in shares of Cummins by 0.8% during the 3rd quarter. California State Teachers Retirement System now owns 214,051 shares of the company’s stock valued at $90,409,000 after purchasing an additional 1,665 shares during the last quarter. Hedge funds and other institutional investors own 83.46% of the company’s stock.

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.