Cummins (NYSE:CMI) Posts Earnings Results, Beats Expectations By $0.64 EPS

Cummins (NYSE:CMI) announced its quarterly earnings results on Thursday. The company reported $5.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.17 by $0.64, Briefing.com reports. The firm had revenue of $8.54 billion during the quarter, compared to the consensus estimate of $8.09 billion. Cummins had a net margin of 8.44% and a return on equity of 25.71%. The firm’s quarterly revenue was up 1.1% on a year-over-year basis. During the same period last year, the firm posted $5.16 EPS.

Here are the key takeaways from Cummins’ conference call:

• Cummins reported strong 2025 results with full-year revenues of $33.7 billion and record underlying EBITDA of $5.8 billion (17.4% ex‑items), delivering record segment earnings in Power Systems and Distribution despite a North America truck downcycle.
• Management guided 2026 company revenue growth of +3% to +8% and EBITDA of ~17%–18% of sales, while flagging a roughly 50‑bp margin dilution from tariffs and capex of $1.35–$1.45 billion.
• Power Systems is a key growth driver — 2025 revenue hit a record $7.5 billion with EBITDA 22.7%, completed the 95‑liter capacity expansion ahead of schedule, and expects 2026 power revenues to rise 12%–17% on strong multi‑year data center demand.
• The company took $458 million of accelerate/electrolyzer charges in 2025 (including $218 million in Q4) and is scaling back hydrogen/electrolyzer participation, which will reduce losses but signals weaker near‑term prospects in that zero‑carbon line.
• North America heavy and medium‑duty truck demand remained weak (engine volumes down ~30% in Q4), with management expecting continued H1 softness but a H2 pickup and some pre‑buy ahead of the 2027 Low‑NOx rule — a timing risk with upside if recovery accelerates.

Cummins Stock Up 6.8%

Shares of Cummins stock opened at $577.15 on Friday. The business has a fifty day simple moving average of $541.01 and a 200 day simple moving average of $461.27. The stock has a market cap of $79.67 billion, a PE ratio of 28.13, a price-to-earnings-growth ratio of 1.90 and a beta of 1.13. The company has a quick ratio of 1.11, a current ratio of 1.76 and a debt-to-equity ratio of 0.51. Cummins has a 12 month low of $260.02 and a 12 month high of $617.98.

Wall Street Analyst Weigh In

CMI has been the subject of several research analyst reports. Barclays lifted their price objective on Cummins from $546.00 to $610.00 and gave the company an “overweight” rating in a research report on Friday, January 23rd. Raymond James Financial raised shares of Cummins from a “market perform” rating to an “outperform” rating and set a $585.00 target price for the company in a research note on Monday, December 22nd. UBS Group set a $565.00 price target on shares of Cummins and gave the company a “neutral” rating in a research note on Friday. JPMorgan Chase & Co. raised their price target on shares of Cummins from $485.00 to $580.00 and gave the company a “neutral” rating in a report on Wednesday, January 14th. Finally, Zacks Research cut shares of Cummins from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, January 28th. Eleven research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Cummins presently has an average rating of “Moderate Buy” and an average target price of $574.73.

Insider Transactions at Cummins

In other Cummins news, insider Brett Michael Merritt sold 1,450 shares of the firm’s stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $489.32, for a total transaction of $709,514.00. Following the transaction, the insider owned 9,271 shares in the company, valued at approximately $4,536,485.72. This trade represents a 13.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Jennifer Rumsey sold 4,570 shares of the company’s stock in a transaction dated Tuesday, November 11th. The shares were sold at an average price of $473.89, for a total value of $2,165,677.30. Following the completion of the sale, the chief executive officer directly owned 42,880 shares of the company’s stock, valued at approximately $20,320,403.20. This trade represents a 9.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.41% of the stock is currently owned by company insiders.

Institutional Trading of Cummins

A number of large investors have recently made changes to their positions in the company. Betterment LLC lifted its holdings in Cummins by 3.5% during the third quarter. Betterment LLC now owns 673 shares of the company’s stock worth $284,000 after acquiring an additional 23 shares in the last quarter. Coldstream Capital Management Inc. lifted its holdings in shares of Cummins by 1.0% during the 3rd quarter. Coldstream Capital Management Inc. now owns 2,685 shares of the company’s stock valued at $1,134,000 after purchasing an additional 27 shares in the last quarter. 44 Wealth Management LLC grew its position in shares of Cummins by 0.8% in the 2nd quarter. 44 Wealth Management LLC now owns 4,338 shares of the company’s stock valued at $1,421,000 after purchasing an additional 36 shares during the period. Moneta Group Investment Advisors LLC increased its stake in Cummins by 5.5% during the 3rd quarter. Moneta Group Investment Advisors LLC now owns 895 shares of the company’s stock worth $378,000 after purchasing an additional 47 shares in the last quarter. Finally, Tocqueville Asset Management L.P. raised its holdings in Cummins by 1.6% during the 3rd quarter. Tocqueville Asset Management L.P. now owns 3,093 shares of the company’s stock worth $1,306,000 after buying an additional 50 shares during the period. Institutional investors own 83.46% of the company’s stock.

Key Cummins News

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Q4 beats: Cummins reported $5.81 EPS and $8.54B revenue—both above consensus—driven by better-than-expected results that support near-term earnings visibility. Cummins (CMI) Tops Q4 Earnings and Revenue Estimates
• Positive Sentiment: Power Systems strength and monetization: Power Systems drove a surge in EBITDA margin, and the company monetized data‑center related assets, cushioning the hit from restructuring. These operational wins support cash generation and margins. Cummins Takes $458 Million Accelera Hit But Cashes In On Data Centers
• Positive Sentiment: Cummins India posted higher quarterly profit on lower expenses, showing regional operational resilience that partially offsets global headwinds. Cummins India’s quarterly profit rises on lower expenses
• Neutral Sentiment: Company materials: The earnings call transcript and slide deck provide management commentary on strategy, the Accelera review, and margin outlook—useful for assessing execution risk and the FY‑26 assumptions. Cummins Inc. (CMI) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Legal notice: A class action settlement reminder was announced—monitor for any potential cash or disclosure impacts, but this is procedural at this stage. The Rosen Law Firm Reminder of Proposed Class Action Settlement
• Negative Sentiment: Accelera charge: Cummins recorded a roughly $458M charge related to the Accelera strategic review—this one‑time hit reduces reported profitability and introduced execution uncertainty around that business. Cummins posts slight rise in revenue, records charges on Accelera strategic review
• Negative Sentiment: FY‑2026 guidance cautiousness: Management issued FY‑2026 revenue and margin guidance (revenue range ~$34.7B–$36.4B) that markets parsed as conservative on margins/earnings, sparking downward revision of near‑term expectations. Cummins (CMI) Is Down 7.4% After Issuing 2026 Revenue and Margin Guidance – What’s Changed
• Negative Sentiment: Mixed read on cash flow vs. results: Some analysts describe the quarter as “mixed” — beats offset by charges and guidance that leave free‑cash‑flow and margin trajectory uncertain for 2026. That narrative can pressure the stock until clarity returns. Cummins Q4: Mixed Results Overshadow Cash Flow Generation For The Year

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.