FY2026 EPS Estimates for Cummins Increased by Zacks Research

Cummins Inc. (NYSE:CMI - Free Report) - Equities researchers at Zacks Research lifted their FY2026 EPS estimates for shares of Cummins in a research note issued on Tuesday, August 25th. Zacks Research analyst Team now forecasts that the company will earn $30.09 per share for the year, up from their prior forecast of $29.28. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Cummins' current full-year earnings is $30.06 per share. Zacks Research also issued estimates for Cummins' Q4 2026 earnings at $8.49 EPS, Q2 2027 earnings at $8.27 EPS and Q1 2028 earnings at $8.38 EPS.

A number of other equities analysts have also issued reports on the company. Morgan Stanley increased their price target on Cummins from $752.00 to $761.00 and gave the company an "overweight" rating in a research note on Friday, July 17th. CICC Research assumed coverage on Cummins in a report on Sunday. They issued an "outperform" rating for the company. Citigroup raised their target price on Cummins from $770.00 to $790.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th. UBS Group lowered their target price on Cummins from $850.00 to $835.00 and set a "buy" rating on the stock in a report on Wednesday, August 5th. Finally, Raymond James Financial boosted their price target on shares of Cummins from $675.00 to $745.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 26th. Twelve research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, Cummins currently has an average rating of "Moderate Buy" and a consensus target price of $745.64.

Cummins Price Performance

Shares of NYSE:CMI opened at $578.41 on Thursday. Cummins has a 12 month low of $389.52 and a 12 month high of $737.76. The stock has a market cap of $79.62 billion, a price-to-earnings ratio of 29.56, a PEG ratio of 1.36 and a beta of 1.24. The stock's 50 day moving average price is $653.34 and its 200 day moving average price is $628.37. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.73 and a quick ratio of 1.13.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share for the quarter, missing analysts' consensus estimates of $7.21 by ($0.48). Cummins had a return on equity of 25.29% and a net margin of 7.82%.The company had revenue of $9.46 billion during the quarter, compared to analyst estimates of $9.33 billion. During the same period in the prior year, the company posted $6.43 earnings per share. The company's revenue was up 9.4% on a year-over-year basis.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in CMI. Valmark Advisers Inc. boosted its position in Cummins by 1.9% in the 1st quarter. Valmark Advisers Inc. now owns 877 shares of the company's stock valued at $472,000 after buying an additional 16 shares during the last quarter. Guardian Partners Inc. lifted its position in Cummins by 1.0% during the 1st quarter. Guardian Partners Inc. now owns 1,584 shares of the company's stock valued at $852,000 after purchasing an additional 16 shares during the period. Nicolet Advisory Services LLC lifted its position in Cummins by 1.6% during the 4th quarter. Nicolet Advisory Services LLC now owns 1,101 shares of the company's stock valued at $619,000 after purchasing an additional 17 shares during the period. Uhlmann Price Securities LLC boosted its stake in shares of Cummins by 2.4% in the 1st quarter. Uhlmann Price Securities LLC now owns 717 shares of the company's stock valued at $386,000 after purchasing an additional 17 shares during the last quarter. Finally, ICW Investment Advisors LLC grew its position in shares of Cummins by 2.6% during the 4th quarter. ICW Investment Advisors LLC now owns 723 shares of the company's stock worth $369,000 after buying an additional 18 shares during the period. 83.46% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at Cummins

In related news, VP Earl Newsome sold 698 shares of Cummins 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 transaction, the vice president owned 4,479 shares of the company's stock, valued at approximately $2,562,973.38. This trade represents a 13.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.30% of the stock is owned by company insiders.

Cummins Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Friday, August 21st will be given a $2.20 dividend. This is a positive change from Cummins's previous quarterly dividend of $2.00. The ex-dividend date is Friday, August 21st. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.5%. Cummins's dividend payout ratio is 44.97%.

Key Stories Impacting Cummins

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Analyst support remains favorable. Jefferies reaffirmed its Buy rating, while Zacks Research raised its EPS forecasts across several periods: Q3 2026 to $8.51, FY2027 to $34.10 and FY2028 to $40.91. Zacks nevertheless maintains a Hold rating. Jefferies Sticks to Its Buy Rating for Cummins
• Positive Sentiment: AI-related power demand is a potential growth catalyst. Industry expectations for substantial hyperscaler spending on artificial intelligence are highlighting Cummins’ backup generators and power systems as “picks-and-shovels” beneficiaries as data centers face electricity constraints. Hyperscalers Will Spend $750 Billion on AI This Year. Cummins Sells the Backup Power.
• Positive Sentiment: The dividend was increased. Cummins declared a quarterly dividend of $2.20 per share, up from $2.00, equivalent to an $8.80 annualized payout and a roughly 1.5% yield. The increase reinforces the company’s shareholder-return appeal.
• Neutral Sentiment: Valuation and recent fundamentals are mixed. Cummins is valued at approximately 29 times earnings, and analysts expect about $30.06 in current-year EPS. Revenue recently grew 9.4% year over year to $9.46 billion, but quarterly EPS of $6.73 missed consensus by $0.48, indicating profitability remains a risk.
• Negative Sentiment: An insider reduced exposure. Vice President Earl Newsome sold 698 shares for approximately $399,410, cutting his direct holdings by 13.48%. The transaction is relatively small compared with his remaining position but may be viewed as a modest negative signal.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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