Cummins (NYSE:CMI) Releases Earnings Results, Beats Estimates By $0.55 EPS

Key Points

• Cummins reported $6.15 EPS, beating estimates by $0.55 with $8.40B in revenue, and raised full‑year 2026 guidance to revenue +8%–+11% and an EBITDA margin of 17.75%–18.5%.
• Power Systems delivered record Q1 EBITDA and management boosted the segment’s 2026 outlook to revenue growth of 14%–19% and EBITDA margins ~25%–26%, citing strong data‑center demand and operational improvements.
• Cummins took a $199M net charge from selling its low‑pressure fuel‑cell business to Alstom, which reduced Q1 EBITDA but narrowed Accelera’s projected 2026 losses to about $270M–$300M.

Cummins (NYSE:CMI - Get Free Report) released its quarterly earnings results on Tuesday. The company reported $6.15 earnings per share for the quarter, beating analysts' consensus estimates of $5.60 by $0.55, Briefing.com reports. Cummins had a return on equity of 25.71% and a net margin of 8.44%.The business had revenue of $8.40 billion during the quarter, compared to analyst estimates of $8.37 billion. During the same quarter last year, the company posted $5.96 EPS. Cummins's revenue for the quarter was up 2.7% on a year-over-year basis.

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 3.0%

Shares of NYSE CMI traded up $19.51 during trading hours on Tuesday, hitting $676.24. The company had a trading volume of 772,620 shares, compared to its average volume of 906,006. The stock has a market capitalization of $93.43 billion, a P/E ratio of 32.96, a price-to-earnings-growth ratio of 2.08 and a beta of 1.27. The company has a quick ratio of 1.16, a current ratio of 1.76 and a debt-to-equity ratio of 0.51. Cummins has a 1-year low of $296.59 and a 1-year high of $689.35. The firm's 50 day moving average is $581.03 and its 200-day moving average is $537.79.

Cummins Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, March 5th. Stockholders of record on Friday, February 20th were issued a $2.00 dividend. This represents a $8.00 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend was Friday, February 20th. Cummins's dividend payout ratio is presently 38.99%.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on CMI shares. Zacks Research lowered shares of Cummins from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, January 28th. JPMorgan Chase & Co. lifted their price objective on Cummins from $485.00 to $580.00 and gave the stock a "neutral" rating in a research report on Wednesday, January 14th. Citigroup lifted their target price on shares of Cummins from $630.00 to $710.00 and gave the stock a "buy" rating in a report on Monday, April 13th. Sanford C. Bernstein set a $600.00 target price on Cummins and gave the stock a "market perform" rating in a research report on Friday, February 6th. Finally, Raymond James Financial upped their price target on shares of Cummins from $585.00 to $675.00 and gave the company an "outperform" rating in a report on Monday, February 9th. Eleven research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, Cummins currently has an average rating of "Moderate Buy" and a consensus price target of $600.27.

Insider Buying and Selling

In related news, VP Jennifer Mary Bush sold 4,270 shares of the firm's stock in a transaction dated Tuesday, February 10th. The shares were sold at an average price of $584.93, for a total value of $2,497,651.10. Following the completion of the sale, the vice president directly owned 15,130 shares in the company, valued at approximately $8,849,990.90. This trade represents a 22.01% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Donald G. Jackson sold 1,600 shares of the firm's stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $600.13, for a total transaction of $960,208.00. Following the completion of the sale, the vice president owned 7,214 shares of the company's stock, valued at $4,329,337.82. This trade represents a 18.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 31,195 shares of company stock worth $18,397,489 in the last quarter. 0.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cummins

Hedge funds have recently bought and sold shares of the stock. Kemnay Advisory Services Inc. acquired a new stake in Cummins during the fourth quarter worth approximately $28,000. Birchwood Financial Partners Inc. acquired a new position in Cummins during the fourth quarter valued at approximately $28,000. Acumen Wealth Advisors LLC acquired a new position in Cummins during the fourth quarter valued at approximately $32,000. Caitong International Asset Management Co. Ltd acquired a new position in Cummins during the third quarter valued at approximately $37,000. Finally, Quattro Advisors LLC acquired a new position in Cummins during the fourth quarter valued at approximately $48,000. 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.

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