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

Cummins (NYSE:CMI) announced its quarterly earnings results on Thursday. The company reported $8.25 EPS for the quarter, beating the consensus estimate of $8.20 by $0.05, FiscalAI reports. The firm had revenue of $9.44 billion for the quarter, compared to analyst estimates of $9.89 billion. Cummins had a return on equity of 26.82% and a net margin of 9.26%. The business’s revenue for the quarter was up 13.5% on a year-over-year basis. During the same quarter last year, the firm posted $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 Stock Up 0.4%

CMI stock traded up $1.98 on Friday, hitting $450.56. 2,167,833 shares of the company’s stock were exchanged, 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 firm has a 50 day moving average price of $526.45 and a two-hundred day moving average price of $599.60. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.13 and a current ratio of 1.74. The stock has a market cap of $62.02 billion, a P/E ratio of 16.91, a price-to-earnings-growth ratio of 1.19 and a beta of 1.26.

Cummins Announces Dividend

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

Analyst Ratings Changes

Several research analysts have issued reports on the stock. DA Davidson increased their target price on shares of Cummins from $605.00 to $750.00 and gave the stock a “buy” rating in a report on Thursday, August 6th. Barclays reduced their price target on shares of Cummins from $760.00 to $675.00 and set an “overweight” rating for the company in a report on Monday, October 19th. Citigroup reduced their price target on shares of Cummins from $630.00 to $525.00 and set a “buy” rating for the company in a report on Friday. Truist Financial lowered their price target on shares of Cummins from $779.00 to $637.00 and set a “buy” rating for the company in a research report on Friday. Finally, JPMorgan Chase & Co. dropped their price objective on shares of Cummins from $690.00 to $600.00 and set a “neutral” rating on the stock in a research note on Wednesday, September 23rd. Thirteen equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $674.53.

Insider Transactions at Cummins

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

Key Stories Impacting Cummins

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.