Cummins (NYSE:CMI) Posts Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Cummins (NYSE:CMI) released its quarterly earnings data on Thursday. The company reported $8.25 earnings per share for the quarter, beating the consensus estimate of $8.20 by $0.05, FiscalAI reports. Cummins had a return on equity of 26.82% and a net margin of 9.26%. The firm had revenue of $9.44 billion during the quarter, compared to the consensus estimate of $9.89 billion. During the same period in the previous year, the company posted $5.59 earnings per share. The firm’s quarterly revenue was up 13.5% on a year-over-year basis.

Here are the key takeaways from Cummins’ conference call:

• Cummins reported Q3 revenue of $9.4 billion, up 13%, and record EBITDA of $1.8 billion, or 18.9% of sales. Excluding prior-year Accelera charges, EBITDA margin rose about 170 basis points, primarily on higher volumes.
• Power generation demand—especially from data centers—remained exceptionally strong, with order intake exceeding expectations and demand increasingly broad across North America, China, and Asia-Pacific. Supply constraints delayed some Q3 shipments, but the company expects to recover most of them in Q4 and is expanding capacity.
• Cummins revised its 2026 revenue-growth outlook to approximately 10%, the low end of its prior 10%–13% range, mainly due to weaker North American pickup-truck demand. The company also lowered its medium-duty and pickup engine market forecasts; its approximately 18.2% EBITDA-margin outlook remains within the previous range.
• Cummins subsidiaries issued a stop-use recommendation for HyLYZER electrolyzer products after reviewing operating data. No recall has been initiated, but the company is evaluating possible modifications, and the potential financial impact is not included in its guidance.
• The company returned $661 million to shareholders in Q3 through repurchases and dividends, and said it remains on track to return approximately 50% of operating cash flow to shareholders for 2026.

Cummins Stock Up 0.4%

CMI stock traded up $1.98 during trading on Friday, reaching $450.56. 2,167,833 shares of the company traded hands, compared to its average volume of 1,387,830. Cummins has a 12 month low of $443.62 and a 12 month high of $737.76. The business has a 50 day simple moving average of $526.45 and a 200 day simple moving average of $599.60. The company has a market capitalization of $62.02 billion, a price-to-earnings ratio of 16.91, a price-to-earnings-growth ratio of 1.19 and a beta of 1.26. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.13 and a current ratio of 1.74.

Cummins Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 3rd. Investors of record on Friday, November 20th will be given a dividend of $2.20 per share. The ex-dividend date of this dividend is Friday, November 20th. This represents a $8.80 dividend on an annualized basis and a yield of 2.0%. Cummins’s dividend payout ratio (DPR) is presently 44.97%.

Key Cummins News

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Third-quarter EPS of $8.25 edged past the $8.20 consensus, and revenue rose 13.5% year over year to $9.44 billion. The company also pointed to strong data-center demand, recovering shipments and capacity expansion as growth supports. Cummins Q3 Earnings Call Highlights Power Demand and Truck Weakness
• Neutral Sentiment: Citigroup, Truist Financial and Wells Fargo cut their price targets, but maintained buy or overweight ratings. Their revised targets still imply upside from the quoted share price, tempering—but not erasing—the signal from the reductions. Citigroup recommendations Truist Financial recommendations Wells Fargo recommendations
• Negative Sentiment: Cummins lowered its FY2026 revenue guidance to $37.0 billion, below the roughly $37.7 billion consensus, citing pickup-truck weakness. Third-quarter revenue also fell short of analyst expectations, raising concern that softer vehicle demand could offset strength in data-center-related business. Cummins Q3 profit more than doubles; cuts FY26 revenue outlook

Insider Buying and Selling at Cummins

In other news, VP Earl Newsome sold 698 shares of Cummins stock in a transaction that occurred on Monday, August 24th. The shares were 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 $2,562,973.38. The trade was a 13.48% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.30% of the company’s stock.

Analyst Ratings Changes

A number of research analysts have commented on CMI shares. Bank of America cut their target price on shares of Cummins from $731.00 to $600.00 in a research report on Thursday, September 24th. Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $700.00 price target on shares of Cummins in a research report on Wednesday, August 5th. Barclays lowered their price target on shares of Cummins from $760.00 to $675.00 and set an “overweight” rating for the company in a research report on Monday, October 19th. Wells Fargo & Company dropped their price objective on shares of Cummins from $608.00 to $520.00 and set an “overweight” rating on the stock in a research note on Friday. Finally, Wall Street Zen lowered shares of Cummins from a “buy” rating to a “hold” rating in a report on Monday, November 2nd. Thirteen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Cummins currently has an average rating of “Moderate Buy” and an average price target of $674.53.

Cummins Company Profile

Cummins Inc is a global power technology company founded in 1919 and headquartered in Columbus, Indiana. It designs, manufactures, distributes and services products used in commercial vehicles, industrial equipment, power generation and other applications.

The company’s offerings include diesel and natural gas engines, power generation systems, and components such as filtration, turbochargers and emissions-control systems. Through its Accelera business, Cummins also develops technologies including batteries, fuel cells and electrolyzers for lower-emission power and transportation.

Cummins serves customers in markets around the world through manufacturing operations, distribution networks and service locations.