Cummins (NYSE:CMI) Posts Quarterly Earnings Results, Misses Estimates By $0.48 EPS

Cummins (NYSE:CMI) released its quarterly earnings data on Tuesday. The company reported $6.73 EPS for the quarter, missing analysts’ consensus estimates of $7.21 by ($0.48), FiscalAI reports. The firm had revenue of $9.46 billion during the quarter, compared to the consensus estimate of $9.33 billion. Cummins had a net margin of 7.89% and a return on equity of 25.25%. Cummins’s quarterly revenue was up 9.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $6.43 EPS.

Here are the key takeaways from Cummins’ conference call:

• Record second-quarter performance: Cummins reported $9.5 billion in sales, up 9% year over year, and $1.7 billion in EBITDA. Record operating cash flow of $1.5 billion supported $501 million returned to shareholders, including dividends and buybacks.
• The company raised its 2026 revenue-growth outlook to 10%–13% from 8%–11% and lifted its EBITDA-margin forecast to 18%–18.5%, citing stronger North American truck demand, robust power-generation demand, and improved Chinese markets.
• Data-center demand remains exceptionally strong, with power-generation revenue up 19% in the quarter and a multi-year hyperscaler agreement providing visibility into several gigawatts of future backup-power demand. Cummins is expanding capacity and developing a 130-liter natural-gas genset for the growing prime-power market, though near-term growth remains capacity constrained.
• Cummins plans a measured rollout of its HELM engines under the EPA’s proposed 2027 emissions framework, beginning limited production of the X15 and X10 in January 2027 while keeping current products available during the transition. Executives expect a smoother demand pattern than previously anticipated, but pricing, warranty costs, regulatory details, and the magnitude of any pre-buy remain uncertain.
• Several businesses are facing margin pressure despite higher revenue, as research and development, freight, product-coverage, tariffs, and incentive-compensation costs weighed on second-quarter profitability. Accelera improved its loss but is still expected to post a 2026 net loss of $260 million–$290 million, while mining demand was reduced to a forecast range of down 5% to up 5%.

Cummins Stock Down 3.5%

Shares of Cummins stock traded down $22.40 on Tuesday, reaching $626.45. 1,205,950 shares of the company were exchanged, compared to its average volume of 964,272. Cummins has a one year low of $364.14 and a one year high of $737.76. The company has a market capitalization of $86.44 billion, a price-to-earnings ratio of 32.55, a PEG ratio of 1.55 and a beta of 1.24. The company has a current ratio of 1.71, a quick ratio of 1.11 and a debt-to-equity ratio of 0.50. The company has a 50-day moving average of $670.29 and a 200 day moving average of $623.53.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Friday, August 21st will be given a dividend of $2.20 per share. This is a positive change from Cummins’s previous quarterly dividend of $2.00. The ex-dividend date of this dividend is Friday, August 21st. This represents a $8.80 annualized dividend and a dividend yield of 1.4%. Cummins’s payout ratio is presently 41.52%.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on CMI. Citigroup lifted their price objective on Cummins from $770.00 to $790.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. Barclays raised their price objective on shares of Cummins from $610.00 to $760.00 and gave the stock an “overweight” rating in a report on Wednesday, May 6th. Raymond James Financial boosted their price objective on shares of Cummins from $675.00 to $745.00 and gave the company an “outperform” rating in a research report on Tuesday, May 26th. Evercore reissued an “outperform” rating and issued a $845.00 price target on shares of Cummins in a research note on Monday, May 11th. Finally, Robert W. Baird set a $700.00 price objective on Cummins in a research report on Wednesday, May 6th. Eleven analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, Cummins has a consensus rating of “Moderate Buy” and an average price target of $740.07.

Insiders Place Their Bets

In related news, VP Jennifer Mary Bush sold 5,000 shares of the firm’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $696.21, for a total value of $3,481,050.00. Following the completion of the transaction, the vice president directly owned 11,986 shares of the company’s stock, valued at approximately $8,344,773.06. This trade represents a 29.44% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Marvin Boakye sold 3,481 shares of the company’s stock in a transaction on Friday, May 8th. The stock was sold at an average price of $679.90, for a total transaction of $2,366,731.90. Following the sale, the vice president directly owned 8,508 shares in the company, valued at $5,784,589.20. This trade represents a 29.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 13,579 shares of company stock valued at $9,377,684 in the last ninety days. 0.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Cummins

Several hedge funds have recently bought and sold shares of CMI. Boston Partners bought a new stake in shares of Cummins during the third quarter worth about $473,471,000. First Trust Advisors LP lifted its position in Cummins by 245.1% in the 4th quarter. First Trust Advisors LP now owns 542,796 shares of the company’s stock valued at $277,071,000 after acquiring an additional 385,525 shares in the last quarter. Merewether Investment Management LP acquired a new position in Cummins during the 3rd quarter valued at about $91,147,000. Caisse de depot et placement du Quebec increased its holdings in Cummins by 360.1% during the 4th quarter. Caisse de depot et placement du Quebec now owns 241,908 shares of the company’s stock worth $123,482,000 after purchasing an additional 189,333 shares in the last quarter. Finally, Alyeska Investment Group L.P. purchased a new stake in shares of Cummins in the third quarter worth approximately $68,812,000. 83.46% of the stock is currently owned by institutional investors and hedge funds.

About Cummins

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.