Akcie Cummins po posledních výsledcích za měsíc klesly asi o 15,3 %, i když tržby ve 2. čtvrtletí vzrostly o 9,4 % na 9,46 miliardy USD. Firma zároveň zvýšila výhled tržeb pro rok 2026 na 10–13 %.
A month has gone by since the last earnings report for Cummins (CMI - Free Report) . Shares have lost about 15.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Cummins due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Cummins Inc. before we dive into how investors and analysts have reacted as of late.
Cummins Q2 Earnings Miss EstimatesCummins reported second-quarter 2026 adjusted earnings of $6.94 per share, which missed the Zacks Consensus Estimate of $7.33 by 5.3%. Higher incentive compensation, research and development spending, freight costs and product coverage expenses put pressure on profitability.
Revenues increased 9.4% year over year to $9.46 billion and topped the consensus mark of $9.33 billion by 1.38%. Growth was led by global power generation demand, international construction markets and improving North American truck activity.
Engine Margin Falls on Higher CostsEngine segment sales increased 6% year over year to $3.08 billion. Total engine shipments rose 9.7% to 161,200 units. North American revenues rose 1%, while international sales jumped 23%, primarily on stronger construction demand in China.
Segment EBITDA declined to $386 million from $400 million, while margin contracted to 12.5% from 13.8%. Higher research and development and freight costs outweighed benefits from stronger North American medium-duty truck volumes, China construction demand and improved tariff recovery.
Components Sales Gain on Truck DemandComponents segment sales advanced 7% to $2.89 billion. Revenues increased 6% in North America and 8% internationally, reflecting stronger truck demand in the United States and China.
Segment EBITDA decreased to $381 million from $397 million, with margin falling to 13.2% from 14.7%. Higher product coverage costs were partly offset by favorable pricing, stronger North American truck volumes and increased China on- and off-highway activity.
Distribution Margin Faces Cost PressureDistribution segment sales rose 9% to a record $3.33 billion. North American revenues climbed 13%, while international revenues increased 1%, driven by demand for power generation products, particularly for data center applications.
Segment EBITDA increased slightly to $451 million from $445 million, but margin declined to 13.6% from 14.6%. Higher incentive compensation and freight expenses more than offset increased power generation volumes. Slower parts growth relative to power generation also limited margin expansion.
Power Systems Delivers Margin ExpansionPower Systems sales surged 19% to a record $2.26 billion. Revenues increased 19% in both North America and international markets, supported by data center power demand in the United States, China and Asia Pacific.
Segment EBITDA climbed to $552 million from $430 million, while margin expanded to 24.5% from 22.8%. Strong global power generation volumes were the primary driver. Higher China joint venture earnings, favorable production efficiency and pricing boosted results. Power generation sales jumped to $1.54 billion from $1.21 billion, while industrial sales increased to $538 million.
Accelera Loss Narrows on Cost ActionsAccelera segment sales increased 38% to $145 million, driven by higher electrified powertrain and electrolyzer sales.
The segment posted a negative EBITDA loss of $69 million, narrowing from a loss of $100 million a year earlier. The improvement reflected targeted cost-reduction actions previously implemented as Cummins focused zero-emissions investments on its most promising opportunities.
Cash Flow Supports Capital ReturnsCummins generated record second-quarter operating cash flow of $1.5 billion, up from $785 million. Capital expenditures increased to $249 million from $231 million.
Cash, cash equivalents and marketable securities totaled $3.92 billion at quarter-end, compared with $3.61 billion at the end of 2025. Long-term debt declined to $6.74 billion from $6.79 billion. The company returned $501 million through $276 million in dividends and $225 million in share repurchases.
Cummins also increased its quarterly dividend to $2.20 per share from $2.00, marking its 17th consecutive annual dividend increase.
Cummins Raises 2026 OutlookCummins now expects full-year 2026 revenues to increase 10-13%, up from its prior projection of 8-11%. The revision reflects stronger demand in North American on-highway markets, China construction and power generation. Management expects the second half of 2026 to be stronger than the first half. The company raised the low end of its EBITDA margin outlook to 18%, resulting in a new range of 18.0-18.5%, excluding first-quarter fuel cell business sale charges.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 5.07% due to these changes.
VGM ScoresAt this time, Cummins has a strong Growth Score of A, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Cummins has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Beacon Pointe Advisors LLC acquired a new position in shares of Cummins Inc. (NYSE:CMI – Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor acquired 13,411 shares of the company’s stock, valued at approximately $9,561,000.
Other institutional investors have also recently bought and sold shares of the company. Kimelman & Baird LLC purchased a new position in shares of Cummins in the 2nd quarter worth $143,000. Livforsakringsbolaget Skandia Omsesidigt acquired a new stake in Cummins during the second quarter worth about $36,750,000. Rakuten Investment Management Inc. purchased a new position in shares of Cummins in the 2nd quarter worth about $15,605,000. RB Capital Management LLC acquired a new position in shares of Cummins in the 2nd quarter valued at about $429,000. Finally, Orion Capital Management LLC purchased a new stake in shares of Cummins during the 2nd quarter worth about $176,000. 83.46% of the stock is currently owned by hedge funds and other institutional investors.
Analysts Set New Price Targets Several research analysts recently commented on CMI shares. Wells Fargo & Company raised their price target on shares of Cummins from $794.00 to $874.00 and gave the company an “overweight” rating in a report on Wednesday, June 17th. UBS Group reduced their target price on shares of Cummins from $850.00 to $835.00 and set a “buy” rating on the stock in a report on Wednesday, August 5th. CICC Research started coverage on shares of Cummins in a research report on Sunday, August 23rd. They set an “outperform” rating for the company. Morgan Stanley raised their price objective on Cummins from $752.00 to $761.00 and gave the company an “overweight” rating in a research report on Friday, July 17th. Finally, Robert W. Baird set a $700.00 target price on Cummins in a research report on Wednesday, May 6th. Twelve analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $745.64.
Read Our Latest Report on Cummins Cummins Stock Down 1.6% CMI stock opened at $564.61 on Friday. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.73 and a quick ratio of 1.13. The firm has a market cap of $77.72 billion, a PE ratio of 28.85, a P/E/G ratio of 1.37 and a beta of 1.24. Cummins Inc. has a 12 month low of $389.52 and a 12 month high of $737.76. The firm has a 50 day simple moving average of $647.45 and a 200 day simple moving average of $627.90.
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). The company had revenue of $9.46 billion during the quarter, compared to the consensus estimate of $9.33 billion. Cummins had a net margin of 7.82% and a return on equity of 25.29%. Cummins’s quarterly revenue was up 9.4% on a year-over-year basis. During the same period in the prior year, the company posted $6.43 EPS. Equities research analysts forecast that Cummins Inc. will post 30.06 earnings per share for the current fiscal year.
Cummins Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Friday, August 21st will be issued a dividend of $2.20 per share. This is a positive change from Cummins’s previous quarterly dividend of $2.00. This represents a $8.80 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend is Friday, August 21st. Cummins’s dividend payout ratio (DPR) is currently 44.97%.
Insider Buying and Selling at Cummins In related news, VP Earl Newsome sold 698 shares of Cummins stock in a transaction dated Monday, August 24th. The stock was 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 approximately $2,562,973.38. This trade represents a 13.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.30% of the stock is owned by company insiders.
Cummins Profile (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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Cummins těží z AI boomu: ve 2. čtvrtletí mu tržby Power Systems vzrostly o 19 % meziročně díky silné poptávce po záložním napájení datacenter. S&P Global čeká, že hyperscale firmy letos utratí za AI zhruba 750 miliard USD.
Data centers can't simply shut down when the grid fails. That's why these facilities require enormous backup generators capable of providing electricity almost immediately.
That's exactly what Cummins (CMI -0.51%) provides. The company best known for diesel engines also happens to be a major supplier of backup power for data centers, and that's becoming increasingly valuable as AI spending soars.
S&P Global estimates that Alphabet (GOOG +1.22%)(GOOGL +1.37%), Amazon (AMZN -0.39%), Meta Platforms (META +0.70%), Microsoft (MSFT +0.34%), and Oracle (ORCL +3.38%) will collectively spend approximately $750 billion on capital expenditures in 2026, equal to about 38% of their combined revenue. Much of that spending is being driven by AI and the data centers required to support it. Cummins is already cashing in.
Not a one-quarter phenomenon During the second quarter, Cummins' Power Systems sales jumped 19% year over year, driven by strong global demand for data center power equipment. Segment EBITDA margin also reached 24.5%, up from 22.8% a year earlier.
This isn't just a one-quarter phenomenon, either. Cummins says its growth in the data center market is being driven partly by sales of diesel and natural gas generator sets used for backup power, as AI racks are becoming more power-hungry.
Cummins says traditional data center racks averaged around 12 kilowatts, while next-generation AI racks could reach 600 kilowatts or more. The more electricity these facilities consume, the more backup generating capacity they need when the grid goes down.
Image source: Getty Images.
Cummins is moving beyond backup power Cummins is also starting to sell generators that don't simply wait around for an outage. In June, the company announced an agreement with Circe Energy to provide high-powered natural gas generators for a large high-performance-computing data center in West Texas. Those generators will be part of a behind-the-meter microgrid providing primary power, with deliveries scheduled from 2026 through 2030.
That's a huge opportunity. Grid connections can take years, and AI developers don't necessarily want to wait. Cummins can now potentially sell generators both as emergency backup and as a bridge, or even alternative, to traditional grid power.
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An industrial stock riding the AI boom Make no mistake: Cummins isn't an AI pure play. Trucks, engines, components, and industrial equipment remain major parts of its business. But AI is also serving as a catalyst for a new form of revenue generation for the company.
The truth is, you don't have to bet on which AI model wins or which semiconductor eventually replaces today's graphics processing units. The world's largest technology companies are spending hundreds of billions of dollars building computing infrastructure, and every one of those facilities requires reliable backup power. Cummins already sells the equipment that provides it. It's pretty much a no-brainer.
If hyperscalers really spend around $750 billion this year, Cummins only needs a small piece of that infrastructure build-out for data centers to become a much bigger part of its business.
Jeff Siegel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Cummins, Meta Platforms, Microsoft, and Oracle. The Motley Fool has a disclosure policy.
Allworth Financial LP ve 2. čtvrtletí koupila nový podíl v Cummins za 22,087 milionu USD. Firma zároveň oznámila vyšší čtvrtletní dividendu na 2,20 USD na akcii.
Allworth Financial LP purchased a new stake in shares of Cummins Inc. (NYSE:CMI – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund purchased 30,969 shares of the company’s stock, valued at approximately $22,087,000.
Several other institutional investors and hedge funds have also bought and sold shares of CMI. Juno Financial Group LLC bought a new position in shares of Cummins during the fourth quarter valued at approximately $883,000. Truist Financial Corp boosted its position in shares of Cummins by 4.8% in the 4th quarter. Truist Financial Corp now owns 64,005 shares of the company’s stock worth $32,671,000 after purchasing an additional 2,951 shares in the last quarter. Kepler Cheuvreux Suisse SA bought a new stake in shares of Cummins in the 4th quarter worth approximately $7,869,000. Westfield Capital Management Co. LP purchased a new stake in shares of Cummins in the 4th quarter worth approximately $7,797,000. Finally, Comprehensive Financial Consultants Institutional Inc. increased its position in Cummins by 643.0% during the 4th quarter. Comprehensive Financial Consultants Institutional Inc. now owns 7,311 shares of the company’s stock valued at $3,732,000 after buying an additional 6,327 shares in the last quarter. 83.46% of the stock is currently owned by hedge funds and other institutional investors.
Cummins Price Performance NYSE CMI opened at $593.12 on Friday. Cummins Inc. has a one year low of $389.52 and a one year high of $737.76. The stock has a 50-day moving average of $662.30 and a 200 day moving average of $628.59. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.13 and a current ratio of 1.73. The company has a market capitalization of $81.65 billion, a price-to-earnings ratio of 30.31, a PEG ratio of 1.45 and a beta of 1.24.
Cummins (NYSE:CMI – Get Free Report) last posted its 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 net margin of 7.82% and a return on equity of 25.29%. 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 prior year, the company posted $6.43 EPS. Cummins’s revenue was up 9.4% on a year-over-year basis. On average, sell-side analysts forecast that Cummins Inc. will post 30.06 EPS for the current year. Cummins Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Friday, August 21st will be given a $2.20 dividend. This is a boost from Cummins’s previous quarterly dividend of $2.00. The ex-dividend date of this dividend is Friday, August 21st. This represents a $8.80 dividend on an annualized basis and a yield of 1.5%. Cummins’s payout ratio is presently 40.88%.
Analyst Upgrades and Downgrades A number of research analysts have issued reports on CMI shares. Argus lifted their price objective on Cummins from $696.00 to $770.00 and gave the company a “buy” rating in a research note on Monday, June 1st. Sanford C. Bernstein restated a “market perform” rating and set a $700.00 price target on shares of Cummins in a report on Wednesday, August 5th. UBS Group lowered their price target on Cummins from $850.00 to $835.00 and set a “buy” rating for the company in a research report on Wednesday, August 5th. Citigroup upped their price target on shares of Cummins from $770.00 to $790.00 and gave the stock a “buy” rating in a research note on Tuesday, July 14th. Finally, Truist Financial set a $894.00 price objective on shares of Cummins in a research report on Wednesday, August 5th. Eleven analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, Cummins has an average rating of “Moderate Buy” and an average target price of $745.64.
View Our Latest Analysis on Cummins
About Cummins (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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Bridgewater Advisors Inc. acquired a new stake in shares of Cummins Inc. (NYSE:CMI – Free Report) in the second quarter, according to the company in its most recent disclosure with the SEC. The firm acquired 6,125 shares of the company’s stock, valued at approximately $3,973,000.
Other large investors have also added to or reduced their stakes in the company. Elevation Wealth Partners LLC increased its holdings in shares of Cummins by 91.7% during the second quarter. Elevation Wealth Partners LLC now owns 46 shares of the company’s stock valued at $33,000 after acquiring an additional 22 shares in the last quarter. Cedar Mountain Advisors LLC boosted its stake in Cummins by 1,500.0% in the 1st quarter. Cedar Mountain Advisors LLC now owns 48 shares of the company’s stock worth $26,000 after purchasing an additional 45 shares in the last quarter. Activest Wealth Management boosted its stake in Cummins by 537.5% in the 4th 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. Wellington Shields Capital Management LLC purchased a new stake in Cummins during the 4th quarter valued at about $27,000. Finally, Key Financial Inc raised its holdings in Cummins by 62.5% in the first quarter. Key Financial Inc now owns 52 shares of the company’s stock worth $28,000 after buying an additional 20 shares during the last quarter. Hedge funds and other institutional investors own 83.46% of the company’s stock.
Wall Street Analysts Forecast Growth A number of research firms have recently commented on CMI. Barclays increased their price target on shares of Cummins from $610.00 to $760.00 and gave the company an “overweight” rating in a report on Wednesday, May 6th. Weiss Ratings reiterated a “buy (b-)” rating on shares of Cummins in a research note on Monday, August 3rd. Robert W. Baird set a $700.00 target price on Cummins in a report on Wednesday, May 6th. Citigroup boosted their price target on Cummins from $770.00 to $790.00 and gave the stock a “buy” rating in a research note on Tuesday, July 14th. Finally, JPMorgan Chase & Co. increased their price objective on Cummins from $600.00 to $725.00 and gave the company a “neutral” rating in a research report on Wednesday, May 6th. Eleven analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $745.64.
View Our Latest Stock Analysis on Cummins
Cummins Price Performance Shares of CMI opened at $631.81 on Friday. The firm has a market cap of $86.98 billion, a PE ratio of 32.28, a P/E/G ratio of 1.50 and a beta of 1.24. The company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48. The firm has a fifty day simple moving average of $665.58 and a two-hundred day simple moving average of $627.15. Cummins Inc. has a 1-year low of $389.52 and a 1-year high of $737.76.
Cummins (NYSE:CMI – Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported $6.73 earnings per share for the quarter, missing the consensus estimate of $7.21 by ($0.48). The firm had revenue of $9.46 billion for the quarter, compared to the consensus estimate of $9.33 billion. Cummins had a net margin of 7.82% and a return on equity of 25.29%. Cummins’s quarterly revenue was up 9.4% compared to the same quarter last year. During the same period in the previous year, the company earned $6.43 earnings per share. On average, equities analysts anticipate that Cummins Inc. will post 30.15 EPS for the current year.
Cummins Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Friday, August 21st will be issued a $2.20 dividend. This is a positive change from Cummins’s previous quarterly dividend of $2.00. This represents a $8.80 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend is Friday, August 21st. Cummins’s dividend payout ratio is currently 40.88%.
Cummins Company Profile (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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Cummins ve 2. čtvrtletí zvýšil tržby o 9 % na rekordních 9,5 miliardy USD a upravil celoroční výhled růstu tržeb na 10 % až 13 %. Tahounem byla poptávka po energetických systémech pro datová centra.
Generac’s AI Power Pivot Raises a Bigger Question About Data Center DemandCummins NYSE: CMI reported record second-quarter sales and EBITDA for 2026, driven by continued demand for power generation equipment used in data centers, improving North American truck markets and stronger activity in China.
Second-quarter revenue rose 9% year over year to a record $9.5 billion. EBITDA increased to $1.7 billion, although EBITDA margin declined to 17.5% of sales from 18.4% a year earlier. Net income was $932 million, or $6.73 per diluted share, compared with $890 million, or $6.43 per share, in the prior-year quarter.
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3 Picks-and-Shovels Ways to Invest in AI Without Betting on ChipmakersChair and CEO Jennifer Rumsey said higher global power-generation demand, especially from data centers, and international construction-market strength supported the quarter. The company raised its full-year revenue outlook, now expecting 2026 sales growth of 10% to 13%, up from prior guidance for 8% to 11% growth. Cummins also lifted the midpoint of its full-year EBITDA margin outlook to a range of 18% to 18.5%.
Data Center Demand Supports Power Systems Power Systems revenue climbed 19% to a record $2.3 billion in the quarter, while segment EBITDA margin rose to 24.5% from 22.8% a year earlier. Rumsey said demand remained particularly strong for backup power systems supporting data centers in the U.S., China and Southeast Asia.
Engines to AI: Cummins’ Surprising Growth DriverThe company recently signed a multiyear agreement with an existing global hyperscaler customer, providing visibility into several gigawatts of future backup-power generator demand. Cummins also announced an agreement with Circe Energy to supply natural-gas generator sets and integrated microgrid technology for a behind-the-meter prime-power solution serving a high-performance-computing data center in Texas.
Cummins is expanding its global production capacity and developing a 130-liter natural-gas generator platform for the prime-power market. However, Rumsey said 2026 growth will remain constrained by available capacity for larger generator-set configurations. CFO Mark Smith said the company is generally selling new power-generation equipment into the second half of 2028.
For the full year, Cummins maintained its forecast for Power Systems revenue growth of 14% to 19%. The company expects segment EBITDA margin of 25% to 25.75%, reflecting strong performance as well as higher investments in the second half to develop its natural-gas platform and expand its prime-power position.
Truck and China Outlook Improves Cummins raised its outlook for North American heavy-duty truck production to 240,000 to 250,000 units in 2026, compared with its previous range of 230,000 to 250,000 units. The company cited stronger recent orders, improved fleet profitability and better visibility into second-half demand.
Its North American medium-duty truck outlook increased to 130,000 to 140,000 units, from a prior range of 125,000 to 135,000 units. Cummins attributed the revision to stronger expected second-half demand, improving OEM outlooks and a modestly higher pre-buy following recent emissions-regulation clarification.
Second-quarter North American revenue rose 8%. Industry heavy-duty truck production declined 4% to 60,000 units, while Cummins’ heavy-duty unit sales increased 2% to 23,000 units. North American Power Systems revenue increased 19%, supported by data-center demand and manufacturing capacity added late in 2025.
International revenue increased 12%, led by China. Revenue in China, including joint ventures, rose 30% to $2.3 billion as data-center demand accelerated and on-highway and construction markets improved. Power-generation equipment sales in China surged 88%.
The company now expects China revenue, including joint ventures, to increase about 15% in 2026, up from its prior outlook for a 10% increase. Cummins also improved its expectation for China medium- and heavy-duty truck demand to a range of down 5% to up 5%, compared with prior guidance of down 10% to flat, citing export demand in Africa and Southeast Asia.
EPA Transition Expected to Smooth 2027 Demand Rumsey said the Environmental Protection Agency’s proposed rule regarding North American on-highway 2027 emissions requirements provides greater clarity for the industry. Cummins plans to use proposed implementation flexibilities to phase in its new HELM engine platforms while continuing to make certain current products available.
Limited production of the model-year 2027 X15 and X10 engines is expected to begin in January 2027, with full X10 production expected in the third quarter and full X15 production expected in the fourth quarter, based on OEM launch plans. The company expects current X12 and L9 engines used in truck and transit-bus applications to remain available during the transition. Its next-generation B platform remains scheduled for a January 2028 launch, while the current B platform is expected to be available throughout 2027.
Rumsey said the phased approach should produce a smoother demand transition than the company had previously anticipated. Smith said Cummins expects to pass non-conformance penalties associated with current products through to the market and does not anticipate a significant financial impact from them. He added that research and development costs will remain elevated for longer because of the staggered transition.
Cash Returns and Segment Results Operating cash flow reached a record $1.5 billion for a second quarter, compared with $785 million a year earlier, primarily due to improved working capital. Cummins returned $501 million to shareholders through $225 million in share repurchases and $276 million in dividends. Its board approved a 10% quarterly dividend increase, marking the company’s 17th consecutive year of dividend growth.
Engine segment revenue rose 6% to $3.1 billion, while EBITDA margin fell to 12.5% from 13.8% amid higher research, development and freight costs. Components revenue increased 7% to $2.9 billion, with EBITDA margin declining to 13.2% from 14.7%. Distribution revenue rose 9% to a record $3.3 billion, while EBITDA margin decreased to 13.6% from 14.6%, partly due to incentive compensation and freight expenses. Accelera revenue increased 38% to $145 million, and its EBITDA loss improved to $69 million from a $100 million loss a year earlier. Smith said incentive compensation expense increased as Cummins projected record full-year financial performance, but the run rate should be lower in each of the final two quarters than it was in the second quarter. The company expects full-year capital investments of $1.35 billion to $1.45 billion and an effective tax rate of about 23%, excluding discrete items.
About Cummins (NYSE:CMI)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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Cummins (CMI - Free Report) came out with quarterly earnings of $6.94 per share, missing the Zacks Consensus Estimate of $7.33 per share. This compares to earnings of $6.43 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -5.32%. A quarter ago, it was expected that this engine maker would post earnings of $5.6 per share when it actually produced earnings of $6.15, delivering a surprise of +9.82%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Cummins, which belongs to the Zacks Automotive - Internal Combustion Engines industry, posted revenues of $9.46 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.38%. This compares to year-ago revenues of $8.64 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Cummins shares have added about 27.1% since the beginning of the year versus the S&P 500's gain of 11%.
What's Next for Cummins?While Cummins has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Cummins was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $8.05 on $9.66 billion in revenues for the coming quarter and $29.39 on $37.3 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Internal Combustion Engines is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Auto-Tires-Trucks sector, BorgWarner (BWA - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.
This auto parts supplier is expected to post quarterly earnings of $1.26 per share in its upcoming report, which represents a year-over-year change of +4.1%. The consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level.
BorgWarner's revenues are expected to be $3.58 billion, down 1.5% from the year-ago quarter.
Cummins zveřejní výsledky za 2. čtvrtletí 4. srpna; konsensus čeká EPS 7,33 USD a tržby 9,33 miliardy USD. Firma po silném 1. čtvrtletí zvýšila celoroční výhled pro Distribution, Power Systems, Engine i Components.
Key Takeaways Cummins reports Q2 2026 results on Aug. 4, with consensus EPS of $7.33 and revenues of $9.33 billion.CMI raised FY2026 outlooks for Distribution, Power Systems, Engine and Components after strong Q1.CMI is expected to post growth in Engine and Power Systems, while Components and Accelera may decline. Cummins Inc. (CMI - Free Report) is slated to release second-quarter 2026 results on Aug. 4, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at $7.33 and $9.33 billion, respectively.
For the second quarter, the consensus estimate for Cummins’ earnings has moved down 15 cents over the past 30 days. Its bottom-line estimates imply growth of 14% from the year-ago reported numbers.
The Zacks Consensus Estimate for CMI's quarterly revenues implies a year-over-year rise of 7.9%. The company's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 17.15%. This is depicted in the graph below:
Q1 HighlightsCummins delivered adjusted earnings of $6.15 per share in the first quarter of 2026, which increased 3.2% year over year and 9.8% above the Zacks Consensus Estimate. Revenues of $8.40 billion rose 2.7% from the year-ago quarter and topped the consensus mark by 0.9%. The quarter reflected solid execution in key end markets, highlighted by an adjusted EBITDA margin of 17.7% of sales.
Things to NoteCummins continues to benefit from rising demand for backup power in data centers and other mission-critical settings, which is supporting the Distribution and Power Systems segments. In first-quarter 2026, Distribution revenues increased and Power Systems delivered record EBITDA dollars, reflecting higher volumes, pricing and operational execution, because of which the company raised its full-year 2026 outlook for the Distribution and Power Systems segments.
The company now expects Distribution revenues to grow 9-14%, up from the previous estimate of 5-10%. CMI expects Power Systems revenues to grow 14-19%, up from the previous estimate of 12-17%. It also lifted Power Systems & Distribution EBITDA margin guidance to about 25-26% and 13.7-14.7%, up from the previous estimate of 23-24% and 13.25-14.25%, respectively.
For full-year 2026, the company also increased its Engine business revenue growth forecast to 7-12% compared with its earlier outlook of flat to 5% growth. It raised its EBITDA margin projection to a range of 12.5-13.5%, representing a 50-basis-point increase at the midpoint. It has raised its forecast for the Components business for 2026 and expects revenues now to be up 5% to 10%, up from prior guidance of flat to up 5%. The stronger outlook is primarily supported by improved expectations for North America heavy- and medium-duty truck demand, particularly in the first half of the year.
Expected growth across Distribution, Power Systems, Engine and Components segments in full-year 2026 is likely to have boosted Cummins’ performance in the second quarter.
Let’s have a look at our estimates for CMI’s segmental performance.
We expect Engine revenues to be $3.22 billion, suggesting an 11.2% year-over-year increase. For the Power Systems segment, we project sales of $2.1 billion, indicating an 11.2% year-over-year increase. We expect Components sales to be $2.67 billion, suggesting a decline of 1.5% year over year. For the Distribution segment, we project sales of $3.3 billion, indicating a 7.5% year-over-year increase. We expect Accelera revenues to be $71 million, implying a 32.4% year-over-year decline.
Our estimate for the Engine segment’s EBITDA is $454 million, which suggests a rise of 13.6% year over year. We expect the Power Systems segment’s EBITDA to be $519 million, suggesting a rise of 20.7% year over year. Our estimate for the Component segment’s EBITDA is pegged at $385.9 million, suggesting a decline of 2.8% year over year. We expect the Distribution segment’s EBITDA to be $485.9 million, indicating a 9.2% year-over-year decline.
Earnings WhispersOur proven model predicts an earnings beat for Cummins for the quarter to be reported, as it has the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is the case here.
Earnings ESP: CMI has an Earnings ESP of +0.78%. This is because the Most Accurate Estimate is pegged higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings Releases From Auto SpaceGeneral Motors Company (GM - Free Report) reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. Strong pricing, lower costs and disciplined incentives supported results. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.
Tesla, Inc. (TSLA - Free Report) reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years.
Genuine Parts (GPC - Free Report) reported second-quarter 2026 adjusted earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.10 by 2.38%. The bottom line increased 2.4% from $2.10 in the year-ago quarter. Revenues rose 6% year over year to $6.54 billion and surpassed the consensus estimate of $6.39 billion by 2.36%. Genuine Parts reaffirmed its 2026 adjusted earnings guidance of $7.50-$8 per share and total sales growth outlook of 3-5.5%. Genuine Parts ended June with $2.3 billion of liquidity, including $559 million in cash.
COLUMBUS, Ind.--(BUSINESS WIRE)--The Board of Directors of Cummins Inc. (NYSE: CMI) approved on July 12, 2026 an increase in the company’s quarterly common stock cash dividend of 10% from 2.00 dollars per share to 2.20 dollars per share. The dividend is payable on September 3, 2026, to shareholders of record on August 21, 2026. Cummins has increased the quarterly common stock dividend to shareholders for 17 consecutive years.
About Cummins Inc.
Cummins Inc., a global power leader, is committed to powering a more prosperous world. Since 1919, we have delivered innovative solutions that move people, goods and economies forward. Our five business segments—Engine, Components, Distribution, Power Systems and Accelera™ by Cummins—offer a broad portfolio, including advanced diesel, electric and hybrid powertrains; integrated power generation systems; critical components such as aftertreatment, turbochargers, fuel systems, controls, transmissions, axles and brakes; and zero-emissions technologies like battery and electric powertrain systems. With a global footprint, deep technical expertise and an extensive service network, we deliver dependable, cutting-edge solutions tailored to our customers’ needs, supporting them through the energy transition with our Destination Zero strategy. We create value for customers, investors and employees and strengthen communities through our corporate responsibility global priorities: education, equity and environment. Headquartered in Columbus, Indiana, Cummins employs approximately 67,400 people worldwide and earned $2.8 billion on $33.7 billion in sales in 2025. Learn more at www.cummins.com.
Forward-looking disclosure statement
Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future. These forward-looking statements include, without limitation, statements relating to our plans and expectations for our revenues and EBITDA. Our actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to: any adverse consequences resulting from entering into agreements with the U.S. Environmental Protection Agency, California Air Resources Board, the Environmental and Natural Resources Division of the U.S. Department of Justice and the California Attorney General's Office to resolve certain regulatory civil claims regarding our emissions certification and compliance process for certain engines primarily used in pick-up truck applications in the U.S., which became final and effective in April 2024, including required additional mitigation projects, adverse reputational impacts and potential resulting legal actions; increased scrutiny from regulatory agencies, as well as unpredictability in the adoption, implementation and enforcement of emission standards around the world; evolving environmental and climate change legislation and regulatory initiatives; any adverse consequences from changes in tariffs and other trade disruptions; changes in international, national and regional trade laws, regulations and policies; emissions deregulation; changes in taxation; global legal and ethical compliance costs and risks; future bans or limitations on the use of diesel-powered products; raw material, transportation and labor price fluctuations and supply shortages; aligning our capacity and production with our demand; the actions of, and income from, joint ventures and other investees that we do not directly control; large truck manufacturers' and original equipment manufacturers' customers discontinuing outsourcing their engine supply needs or experiencing financial distress, or change in control; product recalls; variability in material and commodity costs; the development of new technologies that reduce demand for our current products and services or not successfully developing new technologies and products to effectively address the energy transition; lower than expected acceptance of new or existing products or services; product liability claims; our sales mix of products; climate change, global warming, more stringent climate change regulations, accords, mitigation efforts, greenhouse gas regulations or other legislation designed to address climate change; our plan to reposition our portfolio of product offerings through exploration of strategic acquisitions, divestitures or exiting the production of certain product lines or product categories and related uncertainties of such decisions; increasing interest rates; challenging markets for talent and ability to attract, develop and retain key personnel; exposure to potential security breaches or other disruptions to our information technology environment and data security; the use of artificial intelligence in our business and in our products, services and features, and challenges with properly managing its use; political, economic and other risks from operations among, between and within numerous countries including political, economic and social uncertainty and the evolving globalization of our business; competitor activity; increasing competition, including increased global competition among our customers in emerging markets; failure to meet sustainability expectations or standards, or achieve our sustainability goals; labor relations or work stoppages; foreign currency exchange rate changes; the performance of our pension plan assets and volatility of discount rates; the price and availability of energy; continued availability of financing, financial instruments and financial resources in the amounts, at the times and on the terms required to support our future business; and other risks detailed from time to time in our SEC filings, including particularly in the Risk Factors section of our 2025 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the SEC, which are available at https://www.sec.gov or at https://www.cummins.com in the Investor Relations section of our website.
