Cummins (NYSE:CMI) Posts Quarterly Earnings Results, Misses Expectations By $0.48 EPS

by · The Cerbat Gem

Cummins (NYSE:CMI – Get Free Report) released its quarterly earnings results on Tuesday. The company reported $6.73 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $7.21 by ($0.48), FiscalAI reports. The company had revenue of $9.46 billion for the quarter, compared to analysts’ expectations of $9.33 billion. Cummins had a return on equity of 25.29% and a net margin of 7.82%.The business’s quarterly revenue was up 9.4% compared to the same quarter last year. During the same period in the prior year, the business earned $6.43 EPS.

Here are the key takeaways from Cummins’ conference call:

  • Record second-quarter performance: Cummins reported $9.5 billion in sales, up 9% year over year, and $1.7 billion in EBITDA. Record operating cash flow of $1.5 billion supported $501 million returned to shareholders, including dividends and buybacks.
  • The company raised its 2026 revenue-growth outlook to 10%–13% from 8%–11% and lifted its EBITDA-margin forecast to 18%–18.5%, citing stronger North American truck demand, robust power-generation demand, and improved Chinese markets.
  • Data-center demand remains exceptionally strong, with power-generation revenue up 19% in the quarter and a multi-year hyperscaler agreement providing visibility into several gigawatts of future backup-power demand. Cummins is expanding capacity and developing a 130-liter natural-gas genset for the growing prime-power market, though near-term growth remains capacity constrained.
  • Cummins plans a measured rollout of its HELM engines under the EPA’s proposed 2027 emissions framework, beginning limited production of the X15 and X10 in January 2027 while keeping current products available during the transition. Executives expect a smoother demand pattern than previously anticipated, but pricing, warranty costs, regulatory details, and the magnitude of any pre-buy remain uncertain.
  • Several businesses are facing margin pressure despite higher revenue, as research and development, freight, product-coverage, tariffs, and incentive-compensation costs weighed on second-quarter profitability. Accelera improved its loss but is still expected to post a 2026 net loss of $260 million–$290 million, while mining demand was reduced to a forecast range of down 5% to up 5%.

Cummins Price Performance

NYSE:CMI traded down $8.21 during trading hours on Thursday, reaching $642.03. 222,931 shares of the company’s stock were exchanged, compared to its average volume of 972,873. The company has a quick ratio of 1.11, a current ratio of 1.73 and a debt-to-equity ratio of 0.48. The company has a market capitalization of $88.59 billion, a P/E ratio of 32.79, a price-to-earnings-growth ratio of 1.55 and a beta of 1.24. Cummins has a 12 month low of $379.41 and a 12 month high of $737.76. The business’s 50-day simple moving average is $669.35 and its two-hundred day simple moving average is $624.58.

Cummins Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Friday, August 21st will be paid a dividend of $2.20 per share. This is a boost from Cummins’s previous quarterly dividend of $2.00. This represents a $8.80 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Friday, August 21st. Cummins’s dividend payout ratio (DPR) is currently 41.52%.

Analyst Ratings Changes

A number of research analysts recently weighed in on CMI shares. Sanford C. Bernstein reaffirmed a “market perform” rating and set a $700.00 price objective on shares of Cummins in a report on Wednesday. Barclays boosted their price objective on shares of Cummins from $610.00 to $760.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Wells Fargo & Company upped their price target on Cummins from $794.00 to $874.00 and gave the stock an “overweight” rating in a report on Wednesday, June 17th. Morgan Stanley boosted their price target on Cummins from $752.00 to $761.00 and gave the company an “overweight” rating in a report on Friday, July 17th. Finally, Zacks Research cut shares of Cummins from a “strong-buy” rating to a “hold” rating in a report on Monday, July 13th. Eleven equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $745.64.

Check Out Our Latest Stock Analysis on CMI

Insider Buying and Selling at Cummins

In related news, VP Donald G. Jackson sold 730 shares of the firm’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $710.92, for a total value of $518,971.60. Following the completion of the transaction, the vice president owned 8,316 shares of the company’s stock, valued at approximately $5,912,010.72. This trade represents a 8.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Brett Michael Merritt sold 701 shares of the firm’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $688.75, for a total value of $482,813.75. Following the completion of the sale, the insider directly owned 10,404 shares of the company’s stock, valued at approximately $7,165,755. This trade represents a 6.31% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 13,579 shares of company stock valued at $9,377,684 over the last three months. 0.30% of the stock is owned by insiders.

Institutional Trading of Cummins

Several hedge funds and other institutional investors have recently modified their holdings of CMI. Brighton Jones LLC lifted its stake in 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 during the last quarter. Intech Investment Management LLC boosted its holdings in Cummins by 40.8% in the first 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 in the last quarter. Treasurer of the State of North Carolina raised its holdings in Cummins by 2.8% during the second quarter. Treasurer of the State of North Carolina now owns 64,289 shares of the company’s stock valued at $21,055,000 after buying an additional 1,759 shares in the last quarter. ICW Investment Advisors LLC bought a new stake in shares of Cummins during the 2nd quarter worth about $225,000. Finally, Osterweis Capital Management Inc. acquired a new position in shares of Cummins during the 2nd quarter valued at about $31,000. 83.46% of the stock is currently owned by hedge funds and other institutional investors.

About Cummins

(Get Free Report)

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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