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

Cummins (NYSE:CMI) issued its quarterly earnings results on Tuesday. The company reported $6.73 earnings per share for the quarter, missing the consensus estimate of $7.21 by ($0.48), FiscalAI reports. The firm had revenue of $9.46 billion during the quarter, compared to analysts’ expectations of $9.33 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.Cummins’s revenue for the quarter was up 9.4% on a year-over-year basis. During the same period in the previous year, the company earned $6.43 earnings per share.

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 Stock Performance

Shares of Cummins stock traded up $17.36 during trading on Wednesday, hitting $653.32. 320,613 shares of the company’s stock traded hands, compared to its average volume of 969,950. Cummins has a 1 year low of $372.00 and a 1 year high of $737.76. The business has a 50-day simple moving average of $669.66 and a 200-day simple moving average of $624.04. The stock has a market capitalization of $90.15 billion, a P/E ratio of 33.90, a PEG ratio of 1.58 and a beta of 1.24. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.71 and a quick ratio of 1.11.

Cummins Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st will be paid a $2.20 dividend. 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 1.3%. The ex-dividend date is Friday, August 21st. Cummins’s dividend payout ratio (DPR) is presently 45.67%.

Analyst Upgrades and Downgrades

CMI has been the topic of a number of research reports. Barclays boosted their target price on shares of Cummins from $610.00 to $760.00 and gave the company an “overweight” rating in a report on Wednesday, May 6th. Zacks Research cut Cummins from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 13th. Raymond James Financial raised their price objective on Cummins from $675.00 to $745.00 and gave the company an “outperform” rating in a research report on Tuesday, May 26th. Truist Financial set a $894.00 target price on Cummins in a research note on Wednesday. Finally, Sanford C. Bernstein restated a “market perform” rating on shares of Cummins in a report on Wednesday. Eleven equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, Cummins has an average rating of “Moderate Buy” and an average target price of $739.57.

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 sale, the vice president owned 8,316 shares in the company, valued at approximately $5,912,010.72. This trade represents a 8.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, VP Marvin Boakye sold 3,481 shares of Cummins stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $679.90, for a total transaction of $2,366,731.90. Following the completion of the sale, the vice president directly owned 8,508 shares of the company’s stock, valued at approximately $5,784,589.20. This trade represents a 29.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 13,579 shares of company stock worth $9,377,684. 0.30% of the stock is owned by company insiders.

Institutional Trading of Cummins

Several large investors have recently modified their holdings of CMI. State Street Corp grew its stake in shares of Cummins by 0.8% during the 4th quarter. State Street Corp now owns 6,509,852 shares of the company’s stock valued at $3,322,954,000 after purchasing an additional 49,628 shares during the period. Raymond James Financial Inc. increased its position in Cummins by 2.6% in the fourth quarter. Raymond James Financial Inc. now owns 1,555,541 shares of the company’s stock worth $794,521,000 after buying an additional 40,068 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Cummins by 0.7% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,547,919 shares of the company’s stock valued at $790,158,000 after acquiring an additional 10,572 shares during the period. Boston Partners bought a new position in shares of Cummins in the third quarter worth approximately $473,471,000. Finally, Charles Schwab Investment Management Inc. lifted its stake in shares of Cummins by 0.5% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 899,129 shares of the company’s stock valued at $458,960,000 after buying an additional 4,246 shares in the last quarter. Institutional investors own 83.46% of the company’s stock.

Cummins News Summary

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Second-quarter revenue rose 9.4% year over year to $9.46 billion, exceeding the $9.33 billion consensus estimate. The company also reported improving North American truck markets and record demand for standby generators used by data centers. Cummins Reports Strong Second Quarter 2026 Results; Raises Full-Year Outlook
• Positive Sentiment: Cummins raised its full-year revenue outlook to $37 billion-$38 billion, broadly in line with the approximately $37.2 billion analyst consensus. Management cited accelerating data-center power orders and stronger truck demand as key growth drivers. Cummins Raises Outlook as Profit, Sales Climb
• Positive Sentiment: The data-center generator opportunity remains a significant bullish theme, potentially supporting Cummins’ power-systems business even as industrial and commercial markets remain mixed. CMI Q2 deep dive
• Neutral Sentiment: Investors are also evaluating regulatory clarity and the pace of the transition between traditional engines and newer powertrain technologies, factors that could influence Cummins’ longer-term margins and capital spending.
• Negative Sentiment: Quarterly EPS of $6.73 missed the $7.21 consensus estimate, despite increasing from $6.43 a year earlier. Other reports cited adjusted EPS of $6.94 versus a $7.33 estimate, but both showed an earnings shortfall. Cummins misses quarterly profit estimates despite strong generator demand
• Negative Sentiment: The earnings miss outweighed better-than-expected sales and the raised outlook, particularly with Cummins trading at a relatively demanding valuation. Investors may be concerned that costs, product mix, or execution issues are limiting near-term profit conversion. Cummins Craters on Q2 Results

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.