Zacks Research Comments on Cummins' Q3 Earnings (NYSE:CMI)

Key Points

• Zacks Research raised Cummins’ EPS estimates for Q3 2026 to $8.51 from $8.32 and increased projections across several 2027–2028 periods, while maintaining a “Hold” rating.
• Cummins’ latest quarterly results missed earnings expectations at $6.73 per share versus $7.21 anticipated, although revenue reached $9.46 billion and increased 9.4% year over year.
• The company raised its quarterly dividend to $2.20 per share from $2.00, providing an annualized payout of $8.80 and a yield of approximately 1.5%; analysts see a “Moderate Buy” consensus with an average price target of $745.64.

Cummins Inc. (NYSE:CMI - Free Report) - Research analysts at Zacks Research upped their Q3 2026 earnings per share estimates for shares of Cummins in a research note issued to investors on Tuesday, August 25th. Zacks Research analyst Team now forecasts that the company will post earnings of $8.51 per share for the quarter, up from their prior estimate of $8.32. Zacks Research currently 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' Q1 2027 earnings at $7.10 EPS, Q3 2027 earnings at $9.25 EPS, Q4 2027 earnings at $9.49 EPS, FY2027 earnings at $34.10 EPS, Q2 2028 earnings at $10.50 EPS and FY2028 earnings at $40.91 EPS.

Cummins (NYSE:CMI - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share (EPS) for the quarter, missing the consensus estimate 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 for the quarter, compared to the consensus estimate of $9.33 billion. During the same quarter in the previous year, the business earned $6.43 earnings per share. Cummins's revenue was up 9.4% compared to the same quarter last year.

A number of other equities research analysts have also commented on the stock. Truist Financial set a $894.00 price target on shares of Cummins in a report on Wednesday, August 5th. Robert W. Baird set a $700.00 price target on shares of Cummins in a report on Wednesday, May 6th. Wells Fargo & Company boosted their price objective on shares of Cummins from $794.00 to $874.00 and gave the company an "overweight" rating in a research report on Wednesday, June 17th. Citigroup upped their price objective on shares of Cummins from $770.00 to $790.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th. Finally, Raymond James Financial raised their target price on Cummins from $675.00 to $745.00 and gave the stock an "outperform" rating in a research note on Tuesday, May 26th. Twelve investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, Cummins has a consensus rating of "Moderate Buy" and an average target price of $745.64.

Cummins Stock Performance

NYSE:CMI opened at $573.19 on Wednesday. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.13 and a current ratio of 1.73. Cummins has a fifty-two week low of $389.52 and a fifty-two week high of $737.76. The firm has a market cap of $78.91 billion, a PE ratio of 29.29, a price-to-earnings-growth ratio of 1.36 and a beta of 1.24. The business has a 50 day moving average price of $656.14 and a 200-day moving average price of $628.10.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Activest Wealth Management raised its holdings in Cummins by 537.5% in the fourth quarter. Activest Wealth Management now owns 51 shares of the company's stock worth $26,000 after purchasing an additional 43 shares in the last quarter. Cedar Mountain Advisors LLC boosted its holdings in shares of Cummins by 1,500.0% during the 1st quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company's stock valued at $26,000 after buying an additional 45 shares in the last quarter. Persistent Asset Partners Ltd bought a new stake in shares of Cummins during the 2nd quarter valued at $26,000. Wellington Shields Capital Management LLC purchased a new stake in shares of Cummins in the 4th quarter worth about $27,000. Finally, Key Financial Inc increased its stake in shares of Cummins by 62.5% in the 1st quarter. Key Financial Inc now owns 52 shares of the company's stock worth $28,000 after acquiring an additional 20 shares in the last quarter. Institutional investors own 83.46% of the company's stock.

Insider Buying and Selling

In other Cummins news, VP Earl Newsome sold 698 shares of the firm's stock in a transaction dated Monday, August 24th. The shares were 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 $2,562,973.38. This trade represents a 13.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. 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 dividend of $2.20 per share. This is an increase from Cummins's previous quarterly dividend of $2.00. This represents a $8.80 annualized dividend and a dividend yield of 1.5%. The ex-dividend date is Friday, August 21st. Cummins's dividend payout ratio is presently 44.97%.

More Cummins News

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Zacks raises earnings forecasts across multiple periods: Zacks Research increased its EPS estimates for Q3 2026 to $8.51 from $8.32, Q1 2027 to $7.10 from $6.88, Q3 2027 to $9.25 from $9.02, Q4 2027 to $9.49 from $9.04, FY2027 to $34.10 from $33.57, Q2 2028 to $10.50 from $9.88 and FY2028 to $40.91 from $40.40. The broad-based revisions signal improving expectations for Cummins’ future profitability. Cummins stock coverage
• Positive Sentiment: AI-related power demand provides a potential growth catalyst: Analysts and financial media are highlighting Cummins’ generator and backup-power systems as beneficiaries of hyperscalers’ expected investment in AI infrastructure. Rising demand for reliable electricity at data centers could expand opportunities beyond the company’s traditional engine markets. Hyperscalers will spend $750 billion on AI
• Positive Sentiment: Higher dividend supports shareholder returns: Cummins’ quarterly dividend was raised to $2.20 per share from $2.00, equal to an annualized $8.80 payout and an approximately 1.5% yield. The increase reinforces the company’s income appeal, although the payout is not a new announcement. Cummins insider trading report
• Neutral Sentiment: Analyst stance remains cautious: Despite raising estimates, Zacks Research maintained a Hold rating. Cummins also trades at a relatively elevated earnings multiple, making execution and delivery on projected growth important for further upside.
• Negative Sentiment: Vice president sold shares: VP Earl Newsome sold 698 shares for approximately $399,410, reducing his direct holdings by 13.48%. The transaction is small relative to Cummins’ market value but represents a modest negative insider-sentiment signal. Cummins VP stock sale

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.

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