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

Cummins (NYSE:CMI) released its quarterly earnings data on Thursday. The company reported $5.81 EPS for the quarter, topping 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 had revenue of $8.54 billion for the quarter, compared to the consensus estimate of $8.09 billion. During the same quarter in the previous year, the business earned $5.16 earnings per share. The company’s quarterly revenue was up 1.1% on a year-over-year basis.

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 Trading Down 10.8%

Shares of CMI opened at $540.11 on Friday. The firm has a market cap of $74.56 billion, a P/E ratio of 28.03, a price-to-earnings-growth ratio of 2.13 and a beta of 1.13. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.77 and a quick ratio of 1.11. Cummins has a 1 year low of $260.02 and a 1 year high of $617.98. The company has a 50 day simple moving average of $539.41 and a two-hundred day simple moving average of $459.65.

Wall Street Analyst Weigh In

Several research firms have weighed in on CMI. Truist Financial increased their price objective on Cummins from $628.00 to $653.00 and gave the stock a “buy” rating in a report on Thursday, December 18th. Barclays lifted their price target on shares of Cummins from $546.00 to $610.00 and gave the company an “overweight” rating in a research report on Friday, January 23rd. Wall Street Zen upgraded Cummins from a “hold” rating to a “buy” rating in a research note on Saturday, November 15th. Zacks Research cut shares of Cummins from a “strong-buy” rating to a “hold” rating in a report on Wednesday, January 28th. Finally, Wolfe Research downgraded Cummins from an “outperform” rating to a “peer perform” rating and set a $540.00 price target on the stock. in a report on Monday, January 26th. Eleven investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $526.40.

Insider Buying and Selling at Cummins

In related news, CEO Jennifer Rumsey sold 4,570 shares of the company’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 sale, the chief executive officer owned 42,880 shares of the company’s stock, valued at $20,320,403.20. This represents a 9.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Brett Michael Merritt sold 1,450 shares of the company’s stock in a transaction dated 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 in the company, valued at $4,536,485.72. This represents a 13.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.41% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Brighton Jones LLC raised its holdings in shares of Cummins by 4.1% in the fourth quarter. Brighton Jones LLC now owns 2,112 shares of the company’s stock valued at $736,000 after acquiring an additional 83 shares in the last quarter. Intech Investment Management LLC lifted its stake in shares of Cummins by 40.8% during the 1st quarter. Intech Investment Management LLC now owns 3,956 shares of the company’s stock worth $1,240,000 after purchasing an additional 1,146 shares during the last quarter. Treasurer of the State of North Carolina lifted its stake in shares of Cummins by 2.8% during the 2nd quarter. Treasurer of the State of North Carolina now owns 64,289 shares of the company’s stock worth $21,055,000 after purchasing an additional 1,759 shares during the last quarter. ICW Investment Advisors LLC bought a new stake in Cummins during the second quarter valued at about $225,000. Finally, Osterweis Capital Management Inc. purchased a new position in Cummins in the second quarter valued at about $31,000. Institutional investors own 83.46% of the company’s stock.

Key Headlines Impacting Cummins

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Q4 financial beat — Cummins reported Q4 revenue of $8.54B and EPS of $5.81, both ahead of consensus, showing underlying earnings power that supports longer‑term profitability. Cummins (NYSE:CMI) Posts Better-Than-Expected Sales In Q4 CY2025
• Positive Sentiment: Power Systems strength — The Power Systems segment posted a material improvement in EBITDA margins, helping offset weakness in Engines and lifting adjusted profitability for the quarter. Cummins Q4 Earnings Beat on Strong Performance From Power Systems Unit
• Neutral Sentiment: Class‑action settlement notice — A proposed class‑action settlement was announced; it’s procedural for investors to monitor but not an operational driver of near‑term earnings. The Rosen Law Firm, P.A. Reminds Investors of the Proposed Class Action Settlement
• Neutral Sentiment: Cummins India performance — Local results show improved quarterly profit on cost control; positive for regional operations but not a major market‑moving item for the global stock. Cummins India’s quarterly profit rises on lower expenses
• Negative Sentiment: Guidance disappointed — Management issued FY‑2026 revenue and margin guidance that the market read as conservative/uncertain, triggering a meaningful selloff as investors re‑priced growth and margin expectations. Cummins (CMI) Is Down 7.4% After Issuing 2026 Revenue and Margin Guidance – What’s Changed
• Negative Sentiment: One‑time Accelera charges — Cummins booked sizable charges tied to a strategic review of its Accelera business (reported around $458M), which reduced reported earnings and raised execution/turnaround questions. Management did note asset monetizations (data‑center sale) but the charge still pressured sentiment. Cummins posts slight rise in revenue, records charges on Accelera strategic review
• Negative Sentiment: Mixed takeaways from analysts/transcript — Earnings beats were tempered by commentary on variable end‑market demand (engines weakness) and margin pressure; some analysts flagged that cash‑flow gains are positive but may be overshadowed by near‑term margin/guide risks. Cummins Q4: Mixed Results Overshadow Cash Flow Generation For The Year

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.