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COLUMBUS, Ind.--(BUSINESS WIRE)--Cummins Inc. (NYSE: CMI) today announced updates to its Model Year 2027 North American on-highway product launch plans following its review of the U.S. Environmental Protection Agency's recently proposed changes to upcoming emissions regulations. Based on the proposed rule, Cummins intends to use the implementation flexibilities outlined by EPA to support a measured transition to its new HELM™ engine platforms. The approach is designed to maintain regulatory com.

Posted by Defense World Staff on Jul 21st, 2026

Bessemer Group Inc. grew its holdings in shares of Cummins Inc. (NYSE:CMI – Free Report) by 24.5% in the first quarter, according to its most recent filing with the SEC. The firm owned 7,975 shares of the company’s stock after acquiring an additional 1,569 shares during the quarter. Bessemer Group Inc.’s holdings in Cummins were worth $4,292,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently modified their holdings of the company. Juno Financial Group LLC bought a new position in Cummins during the fourth quarter valued at about $883,000. Truist Financial Corp boosted its stake in shares of Cummins by 4.8% during the 4th quarter. Truist Financial Corp now owns 64,005 shares of the company’s stock worth $32,671,000 after acquiring an additional 2,951 shares in the last quarter. Smith Salley Wealth Management boosted its stake in shares of Cummins by 1,381.8% during the 4th quarter. Smith Salley Wealth Management now owns 21,768 shares of the company’s stock worth $11,111,000 after acquiring an additional 20,299 shares in the last quarter. Westfield Capital Management Co. LP acquired a new position in shares of Cummins during the 4th quarter valued at about $7,797,000. Finally, Comprehensive Financial Consultants Institutional Inc. raised its stake in shares of Cummins by 643.0% in the 4th quarter. Comprehensive Financial Consultants Institutional Inc. now owns 7,311 shares of the company’s stock valued at $3,732,000 after acquiring an additional 6,327 shares in the last quarter. Institutional investors own 83.46% of the company’s stock.

Insiders Place Their Bets In related news, insider Brett Michael Merritt sold 701 shares of the business’s stock in a transaction on Monday, May 11th. The shares were sold at an average price of $688.75, for a total transaction of $482,813.75. Following the transaction, the insider owned 10,404 shares of the company’s stock, valued at approximately $7,165,755. The trade was a 6.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP Jennifer Mary Bush sold 5,000 shares of the company’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $696.21, for a total transaction of $3,481,050.00. Following the transaction, the vice president owned 11,986 shares of the company’s stock, valued at approximately $8,344,773.06. The trade was a 29.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 13,579 shares of company stock valued at $9,377,684 in the last 90 days. 0.30% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth CMI has been the subject of several analyst reports. Morgan Stanley boosted their target price on Cummins from $752.00 to $761.00 and gave the stock an “overweight” rating in a report on Friday. Argus lifted their price target on shares of Cummins from $696.00 to $770.00 and gave the company a “buy” rating in a research report on Monday, June 1st. UBS Group reissued a “buy” rating on shares of Cummins in a research report on Wednesday, June 17th. Sanford C. Bernstein restated a “market perform” rating on shares of Cummins in a research note on Friday, May 22nd. Finally, Evercore reaffirmed an “outperform” rating and set a $845.00 price objective on shares of Cummins in a report on Monday, May 11th. Eleven investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $740.07.

Check Out Our Latest Analysis on CMI

Cummins Price Performance NYSE CMI opened at $640.10 on Tuesday. The stock has a 50-day simple moving average of $675.79 and a 200 day simple moving average of $615.85. Cummins Inc. has a twelve month low of $344.02 and a twelve month high of $737.76. The stock has a market capitalization of $88.33 billion, a PE ratio of 33.22, a P/E/G ratio of 1.58 and a beta of 1.22. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71.

Cummins (NYSE:CMI – Get Free Report) last released its earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.63 by $0.52. The firm had revenue of $8.40 billion for the quarter, compared to analyst estimates of $8.37 billion. Cummins had a return on equity of 25.25% and a net margin of 7.89%.The company’s revenue was up 2.7% on a year-over-year basis. During the same quarter last year, the firm posted $5.96 EPS. Research analysts anticipate that Cummins Inc. will post 29.34 EPS for the current year.

Cummins Increases Dividend The business also recently disclosed 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. The ex-dividend date is Friday, August 21st. 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 1.4%. Cummins’s dividend payout ratio is 45.67%.

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.

Further Reading Five stocks we like better than Cummins The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding CMI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cummins Inc. (NYSE:CMI – Free Report).

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If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Cummins (CMI - Free Report) . This company, which is in the Zacks Automotive - Internal Combustion Engines industry, shows potential for another earnings beat.

This engine maker has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 10.78%.

For the last reported quarter, Cummins came out with earnings of $6.15 per share versus the Zacks Consensus Estimate of $5.6 per share, representing a surprise of 9.82%. For the previous quarter, the company was expected to post earnings of $5.2 per share and it actually produced earnings of $5.81 per share, delivering a surprise of 11.73%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for Cummins. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Cummins currently has an Earnings ESP of +0.43%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on August 4, 2026.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Cummins (CMI - Free Report) Cummins Inc. is a leading global designer, manufacturer and distributor of diesel and natural gas engines and powertrain-related component products. Powertrain components include fuel systems, turbochargers, transmissions, batteries and electrified power systems, among others. Headquartered in Columbus, IN, the company offers products to original equipment manufacturers (OEMs), distributors and dealers through a network of roughly 650 company-owned and independent distributor facilities in over 19,000 dealer locations in more than 190 countries and territories.

CMI is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. CMI has a Growth Style Score of B, forecasting year-over-year earnings growth of 23.3% for the current fiscal year.

For fiscal 2026, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.25 to $29.33 per share. CMI boasts an average earnings surprise of +17.2%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CMI should be on investors' short list.

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, July 8th:

Cimpress (CMPR - Free Report) : This company, which is an online supplier of high-quality graphic design services and customized printed products to small businesses and consumers, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.3% over the last 60 days.

Cimpress' shares gained 23.4% over the last three month compared with the S&P 500’s gain of 10.6%. The company possesses a Momentum Score of A.

Northern Trust (NTRS - Free Report) : This company, which provides services from sovereign wealth funds to the wealthiest families, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.5% over the last 60 days.

Northern Trust's shares gained 20.1% over the last three month compared with the S&P 500’s gain of 10.6%. The company possesses a Momentum Score of A.

Cummins (CMI - Free Report) : This company, which is a leading global designer, manufacturer and distributor of diesel and natural gas engines and powertrain-related component products, has a Zacks Rank #1, and witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.4% over the last 60 days.

Cummins' shares gained 11% over the last three month compared with the S&P 500’s gain of 10.6%. The company possesses a Momentum Score of A.

See the full list of top ranked stocks here

Learn more about the Momentum score and how it is calculated here.

COLUMBUS, Ind.--(BUSINESS WIRE)--Cummins Inc. has begun updating certain engine calibrations to give operators more time to complete needed repairs and help minimize unnecessary downtime related to diesel exhaust fluid (DEF) inducements. The updates continue to support emissions compliance and the performance of selective catalytic reduction technology, with a focus on the people and businesses that depend on this equipment to do their jobs every day.Following updated guidance from the U.S. Envi.

For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Cummins (CMI - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Auto-Tires-Trucks peers, we might be able to answer that question.

Cummins is one of 104 companies in the Auto-Tires-Trucks group. The Auto-Tires-Trucks group currently sits at #13 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Cummins is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for CMI's full-year earnings has moved 12.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, CMI has returned 33.7% so far this year. Meanwhile, the Auto-Tires-Trucks sector has returned an average of -5.5% on a year-to-date basis. As we can see, Cummins is performing better than its sector in the calendar year.

Another Auto-Tires-Trucks stock, which has outperformed the sector so far this year, is Commercial Vehicle Group (CVGI - Free Report) . The stock has returned 236.8% year-to-date.

In Commercial Vehicle Group's case, the consensus EPS estimate for the current year increased 51.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Cummins belongs to the Automotive - Internal Combustion Engines industry, a group that includes 1 individual stocks and currently sits at #1 in the Zacks Industry Rank. This group has gained an average of 32.4% so far this year, so CMI is performing better in this area.

Commercial Vehicle Group, however, belongs to the Automotive - Original Equipment industry. Currently, this 52-stock industry is ranked #171. The industry has moved +4.7% so far this year.

Investors with an interest in Auto-Tires-Trucks stocks should continue to track Cummins and Commercial Vehicle Group. These stocks will be looking to continue their solid performance.

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, June 25:

Amtech Systems, Inc. (ASYS - Free Report) : This manufacturer of essential equipment and consumables used in the semiconductor and automotive industries has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 28% over the last 60 days.

Amtech’s shares gained 70.1% over the last three months compared with the S&P 500’s advance of 13.6%. The company possesses a Momentum Score of B.

Rogers Corporation (ROG - Free Report) :This engineered materials and components company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.5% over the last 60 days.

Rogers’ shares gained 48.3% over the last three months compared with the S&P 500’s advance of 13.6%. The company possesses a Momentum Score of B.

Cummins Inc. (CMI - Free Report) : This global power solutions provider has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 12.6% over the last 60 days.

Cummins’ shares gained 31.1% over the last three months compared with the S&P 500’s advance of 13.6%. The company possesses a Momentum Score of B.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Learn more about the Momentum score and how it is calculated here.

Whether you're a growth, value, income, or momentum-focused investor, building a successful investment portfolio takes skill, research, and a little bit of luck.

But what's the best way to find the right combination of stocks? Because funding things like your retirement, your kids' college tuition, or your short- and long-term savings goals will definitely require significant returns.

Enter the Zacks Rank.

What is the Zacks Rank?The Zacks Rank is a unique, proprietary stock-rating model that utilizes earnings estimate revisions to help investors build a winning portfolio.

There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise.

Agreement is the extent to which all brokerage analysts are revising their earnings estimates in the same direction. The greater the percentage of analysts revising their estimates higher, the better chance the stock will outperform.

Magnitude is the size of the recent change in the consensus estimate for the current and next fiscal years.

Upside is the difference between the most accurate estimate, which is calculated by Zacks, and the consensus estimate.

Surprise is made up of a company's last few quarters' earnings per share surprises; companies with a positive earnings surprise are more likely to beat expectations in the future.

Each factor is given a raw score, which is recalculated every night and compiled into the Zacks Rank. Utilizing this data, stocks are put into five different groups: Strong Buy, Buy, Hold, Sell, and Strong Sell.

The Power of Institutional InvestorsThe Zacks Rank also allows individual investors, or retail investors, to benefit from the power of institutional investors.

Institutional investors are responsible for managing the trillions of dollars invested in mutual funds, hedge funds, and investment banks. Research has shown that these investors can and do move the market due to the large amount of money they deal with, and thus, the market tends to move in the same direction as them.

These investors are known for designing valuation models that focus on earnings and earnings expectations in order to figure out the fair value of a company and its shares. If earnings estimates are raised, it puts a higher value on a company.

Institutional investors will use these changes to help in their decision-making, typically buying stocks with rising estimates and selling those with falling estimates. Higher earnings expectations can translate into a rise in stock price and bigger gains for the investor.

Since it can often take weeks, if not months, for an institutional investor to build a position (given their size), retail investors who get in at the first sign of upward earnings estimate revisions have a distinct advantage over these larger investors, and can benefit from the expected institutional buying that will follow.

Not only can the Zacks Rank help you take advantage of trends in earnings estimate revisions, but it can also provide a way to get into stocks that are highly sought after by professionals.

How to Invest with the Zacks RankThe Zacks Rank is known for transforming investment portfolios. In fact, a portfolio of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 32 years, with an average annual return of +24%.

Moreover, stocks with a new #1 (Strong Buy) ranking have some of the biggest profit potential, while those that fell to a #4 (Sell) or #5 (Strong Sell) have some of the worst.

Let's take a look at Cummins (CMI - Free Report) , which was added to the Zacks Rank #1 list on June 25, 2026. Cummins Inc. is a leading global designer, manufacturer and distributor of diesel and natural gas engines and powertrain-related component products. Powertrain components include fuel systems, turbochargers, transmissions, batteries and electrified power systems, among others. Headquartered in Columbus, IN, the company offers products to original equipment manufacturers (OEMs), distributors and dealers through a network of roughly 650 company-owned and independent distributor facilities in over 19,000 dealer locations in more than 190 countries and territories.

Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $3.28 to $29.31 per share. CMI also boasts an average earnings surprise of 17.2%.

Earnings are expected to grow 23.3% for the current fiscal year, while revenue is projected to increase 10.6%.

CMI has been moving higher over the past four weeks as well, up 4.1% compared to the S&P 500's loss of 1.4%.

Bottom LineWith a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Cummins should be on investors' shortlist.

If you want even more information on the Zacks Ranks, or one of our many other investing strategies, check out the Zacks Education home page.

Discover Today's Top StocksOur private Zacks #1 Rank List, based on our quantitative Zacks Rank stock-rating system, has more than doubled the S&P 500 since 1988. Applying the Zacks Rank in your own trading can boost your investing returns on your very next trade. See Today's Zacks #1 Rank List >>

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Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Cummins (CMI - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Cummins currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for CMI that show why this engine maker shows promise as a solid momentum pick.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For CMI, shares are up 1.28% over the past week while the Zacks Automotive - Internal Combustion Engines industry is up 4.78% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 7.15% compares favorably with the industry's 6.23% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Cummins have increased 29.71% over the past quarter, and have gained 127.87% in the last year. In comparison, the S&P 500 has only moved 11.07% and 25.39%, respectively.

Investors should also take note of CMI's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now CMI is averaging 1,004,598 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with CMI.

Over the past two months, 8 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost CMI's consensus estimate, increasing from $26.03 to $29.29 in the past 60 days. Looking at the next fiscal year, 8 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineGiven these factors, it shouldn't be surprising that CMI is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Cummins on your short list.

On June 16, 2026, we delve into the DCF analysis for Cummins Inc CMI , a company that has shown remarkable price performance over the past year with a 116.1% increase. However, despite this impressive growth, our analysis indicates potential overvaluation based on intrinsic value calculations.

DCF Earnings-based intrinsic value of $261.55 vs current price of $679.71 (margin of safety: -159.9%) DCF FCF-based intrinsic value of $222.06 vs current price (second opinion margin of safety: -206.1%) GF Score™ of 84/100, indicating a reliable basis for the DCF inputs What Is CMI Worth? DCF Earnings-Based Model The DCF earnings-based model for Cummins Inc utilizes a two-stage approach to estimate intrinsic value. The first stage involves a growth phase lasting ten years, where we expect earnings per share (EPS) to grow at a rate of 5.8% annually. The second stage is a terminal phase, where growth slows to a 4% terminal rate for the following ten years. The discount rate applied to both stages is 11%, derived from the risk-free rate and equity risk premium.

Parameter Value Current EPS (TTM, excl. non-recurring) $21.52 10-Year Growth Rate 5.8% 10-Year Treasury Rate 4.44% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the growth stage, the EPS is projected to grow at 5.8% per year for ten years, resulting in a present value of $166.84 per share. Following this, the terminal stage reflects a 4% growth rate for another ten years, yielding a present value of $94.71 per share. The combined intrinsic value from both stages amounts to $261.55.

Stage Description Value Growth Stage (Years 1-10) EPS growing at 5.8%, discounted at 11% $166.84 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $94.71 Intrinsic Value Growth + Terminal $261.55 With the current price at $679.71, Cummins Inc is significantly overvalued, reflecting a margin of safety of -159.9%. It is important to note that GuruFocus employs EPS without non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For further details, visit the CMI DCF Calculator.

What Does the Free Cash Flow DCF Say? When we consider the Free Cash Flow (FCF) DCF model, the intrinsic value is calculated at $222.06. This value is lower than the earnings-based intrinsic value of $261.55, indicating a divergence in the two models. Both models suggest that Cummins Inc is significantly overvalued, with the FCF-based model reflecting a margin of safety of -206.1%.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for Cummins Inc stands at $324.62, providing a third perspective on valuation. GF Value™ is GuruFocus' proprietary measure, calculated from historical trading multiples, past business growth, and future performance estimates. All three models—DCF earnings, DCF FCF, and GF Value™—indicate that Cummins Inc is overvalued. For more information, visit the GF Value™ page.

What Does CMI's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have historically generated higher long-term returns (backtested from 2006 to 2021).

Metric Rating GF Score™ 84/100 Financial Strength 7/10 Profitability 9/10 Growth 10/10 Valuation 1/10 Momentum 9/10 With a predictability rank of 1 out of 5 stars, it is important to note that higher predictability ratings generally lead to more reliable DCF estimates for stocks. For additional insights, visit the CMI stock page.

Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as Cummins Inc, produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not reflect future market conditions accurately.

What This Means for Investors In conclusion, the analysis of Cummins Inc using the DCF earnings model, DCF FCF model, and GF Value™ indicates a clear consensus of overvaluation. Investors should approach this stock with caution, as all three valuation models suggest that the current price significantly exceeds intrinsic values. For the full DCF analysis, visit the CMI DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is CMI's intrinsic value based on DCF?

earnings-based $261.56, FCF-based $222.06

Is CMI overvalued or undervalued?

Based on the DCF and GF Value™ consensus, CMI is overvalued.

How reliable is the DCF model for CMI?

The predictability rank of 1/5 indicates that the DCF model is less reliable for CMI.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

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Cummins to supply natural gas, prime power solution for Circe Energy’s West Texas AI campus development, a turn-key power generation data center campus, demonstrating the increasing demand for on-site technologies to power data centers across North America.

COLUMBUS, Ind.--(BUSINESS WIRE)--Cummins Inc. announced an agreement with Circe Energy to provide a series of high-powered, high-efficiency natural gas generator sets to support a scalable, behind-the-meter, prime power microgrid solution for their High-Performance Computing (HPC) data center located in Texas. Deliveries are scheduled from 2026 through 2030 and will include Cummins’ HSK78 (C2000N6CD) and QSK60 (C1400N6) generator set platforms.

The announcement reflects Cummins’ expanding role in supporting the North American data center market with natural gas-fueled generator sets and integrated microgrid controls designed to address power grid constraints, improve reliability and enable fast-start response capabilities in an era of unprecedented AI demand.

The power system will support Circe’s behind-the-meter power need for their AI HPC data center campuses, including its West Texas campus development, by utilizing Cummins’ HSK78 (C2000N6CD) and QSK60 (C1400N6) high-horsepower natural gas generator sets as the primary power source - without reliability on the grid.

As demand for artificial intelligence and other power-intensive digital infrastructure accelerates, data center developers are increasingly evaluating on-site power generation as part of their energy strategy. When integrated with microgrid controls and utility interconnection planning, natural gas solutions can provide a flexible pathway to support phased energization, redundancy, cost-competitive power delivery, and long-term grid integration.

“Data center customers are navigating a new power reality where speed, reliability, and availability are just as critical as capacity—and downtime is not an option,” said Susan Cleaver, Executive Director of Cummins Global Power Generation business. “Cummins natural gas power solutions help customers meet unprecedented growth in data demand while closing utility power gaps with dependable on-site generation for large, power-intensive facilities.”

Natural gas generation for data center applications

Across North America, utility interconnection timelines and grid constraints are creating challenges for data center developers seeking to bring capacity online quickly and reliably. Cummins’ natural gas solutions directly support Circe Energy’s on-site power model by providing dependable, scalable generation assets that can be deployed in phases as customer demand grows. This helps Circe deliver dependable prime power for data center applications, giving customers a practical path to bring capacity online sooner while maintaining flexibility for future growth.

For data center and AI campus applications, Cummins supports customers with:

Natural gas power generation systems Microgrid architecture and integrated system controls AI/High-Performance Computing (HPC)-focused microgrid design Operational data sharing and system refinement System performance pre-configuration, validation, and testing through Cummins’ Power Integration Center (PIC) microgrid laboratory Technical project coordination with developers, engineers and operators Long-term service support through Cummins’-owned and operated North American service network Cummins power generation solutions and technologies are designed to help data center customers evaluate practical pathways for reliable power during an era of unprecedented growth.

Supporting Circe Energy’s West Texas development

Circe Energy’s West Texas campus is designed as a modular deployment platform capable of phased energization beginning in 2027.

The platform combines mission-critical microgrid architecture with HPC-ready powered shell facilities designed for high-density AI compute, liquid cooling compatibility, and long-term scalability.

Cummins is providing the power generation equipment and technical validation support, while Circe and its engineer-of-record retain responsibility for final system design and implementation.

“AI infrastructure depends on both power availability and delivery timing,” said Dagan Baroco, Chief Commercial Officer of Circe Energy. “Securing prime power natural gas generation solutions from Cummins, combined with our microgrid architecture and powered shell design, enables Circe to deliver scalable AI campus infrastructure on a predictable timeline while providing customers with a reliable and cost-competitive alternative to traditional grid-dependent development.”

Powering the next phase of digital infrastructure

This specific project reflects a broader trend in the North American data center market: customers are seeking power solutions that combine efficient and resilient power generation capacity, technical system integration, and advanced technical lifecycle service support.

“With growing demand from AI and high-performance computing, the data center industry needs energy strategies that are both reliable and adaptable,” said Zach Gillen, Vice President - Distribution Business Sales & Service North America. “Cummins brings over 100 years of power generation expertise and is uniquely positioned to help customers deploy reliable, scalable energy solutions. From natural gas generator sets and microgrids to system integration and technical support, Cummins helps bring complex power systems online faster and with greater confidence.”

About Circe Energy

Circe Energy develops scalable behind-the-meter power and powered shell infrastructure platforms for AI, HPC and mission-critical applications. By integrating secured generation supply, advanced microgrid architecture, natural gas supply, land, and HPC-optimized building design, Circe delivers predictable, reliable energization pathways that mitigate grid risk and enable accelerated deployment timelines.

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.

More News From Cummins Inc.

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The Auto-Tires-Trucks group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Cummins (CMI - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Cummins is a member of the Auto-Tires-Trucks sector. This group includes 100 individual stocks and currently holds a Zacks Sector Rank of #13. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Cummins is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for CMI's full-year earnings has moved 12.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, CMI has moved about 29.2% on a year-to-date basis. In comparison, Auto-Tires-Trucks companies have returned an average of -7.5%. As we can see, Cummins is performing better than its sector in the calendar year.

One other Auto-Tires-Trucks stock that has outperformed the sector so far this year is Custom Truck One Source, Inc. (CTOS - Free Report) . The stock is up 85.1% year-to-date.

Over the past three months, Custom Truck One Source, Inc.'s consensus EPS estimate for the current year has increased 389.9%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Cummins is a member of the Automotive - Internal Combustion Engines industry, which includes 1 individual companies and currently sits at #7 in the Zacks Industry Rank. On average, this group has gained an average of 28.1% so far this year, meaning that CMI is performing better in terms of year-to-date returns.

In contrast, Custom Truck One Source, Inc. falls under the Automotive - Original Equipment industry. Currently, this industry has 52 stocks and is ranked #147. Since the beginning of the year, the industry has moved +6.2%.

Investors interested in the Auto-Tires-Trucks sector may want to keep a close eye on Cummins and Custom Truck One Source, Inc. as they attempt to continue their solid performance.

COLUMBUS, Ind.--(BUSINESS WIRE)--The Board of Directors of Cummins Inc. (NYSE: CMI) today declared a quarterly common stock cash dividend of 2.00 dollars per share. The dividend is payable on June 4, 2026, to shareholders of record on May 22, 2026.

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.

More News From Cummins Inc.

On May 19, 2026, we conducted a discounted cash flow (DCF) analysis for Cummins Inc CMI , which has shown impressive price performance over the past year with a 106.4% increase. The current price stands at $677.87, reflecting significant market interest. Here are some key points from our analysis:

DCF Earnings-based intrinsic value of $261.55 vs price of $677.87 (margin of safety: -159.2%) DCF FCF-based intrinsic value of $222.06 vs price of $677.87 (margin of safety: -205.3%) GF Score™ of 85/100, indicating a reliable assessment of the DCF inputs What Is CMI Worth? DCF Earnings-Based Model To determine the intrinsic value of Cummins Inc, we utilized a two-stage DCF model. The first stage considers a growth phase over the next 10 years, where we expect the earnings per share (EPS) to grow at a rate of 5.8% annually. In the second stage, we apply a terminal growth rate of 4% for the following 10 years. The discount rate applied to both stages is 11%, which is derived from the risk-free rate and equity risk premium.

Parameter Value Current EPS (TTM, excl. non-recurring) $21.52 10-Year Growth Rate 5.8% 10-Year Treasury Rate 4.33% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The calculation summary for the two-stage model is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 5.8%, discounted at 11% $166.84 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $94.71 Intrinsic Value Growth + Terminal $261.55 Comparing the current price of $677.87 to the intrinsic value of $261.55, we find that Cummins Inc is significantly overvalued, with a margin of safety of -159.2%. It is important to note that GuruFocus uses EPS excluding non-recurring items because research shows that stock prices correlate more closely with earnings than with free cash flow. For further analysis, you can visit the CMI DCF Calculator.

What Does the Free Cash Flow DCF Say? In addition to the earnings-based DCF model, we also evaluated Cummins Inc using a free cash flow (FCF) DCF model. The FCF-based intrinsic value is calculated to be $222.06. When comparing this to the earnings-based intrinsic value of $261.55, both models indicate that Cummins Inc is significantly overvalued, with a margin of safety of -205.3%.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for Cummins Inc is calculated at $321.43, providing a third perspective on valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. All three models—DCF earnings, DCF FCF, and GF Value™—agree that Cummins Inc is significantly overvalued at its current price. For more insights, visit the GF Value™ page.

What Does CMI's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021). The current GF Score™ for Cummins Inc is 85/100, indicating strong fundamentals. Here is a breakdown of the GF Score™ metrics:

Metric Rating GF Score™ 85/100 Financial Strength 7/10 Profitability 9/10 Growth 10/10 Valuation 1/10 Momentum 9/10 With a predictability rank of 1/5 stars, it indicates that the DCF model may be less reliable for this stock. For more details, visit the CMI stock page.

Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as Cummins Inc, produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not reflect future market conditions accurately.

What This Means for Investors In summary, all three valuation models—DCF earnings, DCF FCF, and GF Value™—indicate that Cummins Inc is significantly overvalued at its current price of $677.87. Investors should exercise caution when considering this stock. For the full DCF analysis, visit the CMI DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is CMI's intrinsic value based on DCF?

[Answer: earnings-based $261.56, FCF-based $222.06]

Is CMI overvalued or undervalued?

[Answer using DCF + GF Value™ consensus]

How reliable is the DCF model for CMI?

[Answer using predictability rank 1/5]

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

COLUMBUS, Ind.--(BUSINESS WIRE)--At a meeting with analysts and shareholders today, members of the leadership team of Cummins Inc. (NYSE: CMI), shared the Company’s plans to raise its long-term financial expectations for growth and profitability, relative to its prior Analyst Day, and deliver increasing returns to shareholders.

“Over the past two years, Cummins has navigated significant complexity while continuing to execute with discipline and deliver record performance,” said Jennifer Rumsey, Chair and Chief Executive Officer. “Since our last Analyst Day, we have continued to strengthen our position and execute on both our strategy and financial commitments, even as market conditions shifted. As a result, I am pleased to share we are raising our 2030 financial targets.”

“Cummins is able to succeed with our strategy because of our broad portfolio of innovative technologies and capabilities, trusted customer partnerships, global presence, experienced people and financial strength that allows us to invest in our future. All of this positions us to win in key markets.”

Brett Merritt, Engine Business President, highlighted the continued momentum of the Engine Business. "Profitable growth will be driven by factors we have visibility to — new product content, customer wins and a growing aftermarket — and the investment to support this growth is now in place. Our foundation is strong: leading products, long-standing customer partnerships, scale and a distribution network no one else can match."

Jenny Bush, Power Systems Business President, spoke to the segment’s operational transformation, capacity investments, and expanded portfolio. “Demand for reliable power is accelerating at an unprecedented pace, and we’ve positioned our Power Systems business to lead. Through disciplined investment, expanded capacity, deep vertical integration, and expansion into prime power, we’re scaling to meet that demand while consistently delivering value for our customers and investors.”

Lastly, Mark Smith, Chief Financial Officer, summarized the Company’s plans for growth, margin expansion and capital allocation. “Cummins has a proven track record of raising performance cycle over cycle, and we look forward to building upon our market leadership, global presence and financial strength in the coming years. Since our prior Analyst Day, we have continued to deliver top-quartile return on invested capital and generate meaningful returns for our shareholders. We are raising our expectations for revenue growth and margin expansion with significant opportunities ahead of us across businesses and regions.”

Webcast information

A copy of the presentation used in the meeting and a replay on the webcast is available at investor.cummins.com.

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.

More News From Cummins Inc.

Cummins CEO Jennifer Rumsey discusses the company's 2030 revenue targets of $45 to $50 billion and data center expansion plans on ‘The Claman Countdown.' #fox #media #breakingnews #us #usa #new #news #breaking #foxbusiness #theclamancountdown #cummins #datacenter #technology #ai #power #energy #manufacturing #business #markets #wallstreet #infrastructure #economy #jenniferrumsey #stocks #industry

On May 26, 2026, Cummins Inc CMI shares rose 4.6% today, closing at $668.75. This performance falls within a 52-week range of $307.91 to $718.08, reflecting a significant increase over the past year.

GF Value™ verdict: CMI's current price is $668.75, which is 107.7% above its GF Value™ estimate of $322.02.GF Score™: CMI has a strong GF Score™ of 85/100, indicating solid fundamentals.Most notable signal: Insiders have sold $12.1 million worth of stock in the last three months, with no purchases reported. Is CMI Overvalued or Undervalued? Based on the current price of $668.75 compared to the GF Value™ estimate of $322.02, Cummins Inc appears to be significantly overvalued, with a margin of safety of -107.7%. The GF Valuation label indicates that the stock is significantly overvalued, suggesting that current market conditions may not support such a high price. This level of overvaluation presents risks for potential investors, as the price may be subject to correction if future projections do not align with market expectations.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the disparity between the current price and the GF Value™, it is crucial for potential investors to consider whether the high valuation reflects genuine growth prospects or whether it is driven by market speculation.

How Does CMI's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 34.7x 16.0x Forward P/E 22.9x N/A The current P/E (TTM) ratio of 34.7x is significantly above its 5-year median P/E of 16.0x, indicating that CMI is trading at a premium compared to its historical valuation. This aligns with the GF Value™ verdict, suggesting that while the company's growth may be strong, the valuation is not supported by past performance metrics.

What Does CMI's GF Score™ Tell Us? Metric Rating GF Score™ 85 Financial Strength 7/10 Profitability 9/10 Growth 10/10 Valuation 1/10 Momentum 9/10 CMI's GF Score™ of 85/100 reflects strong fundamentals, particularly in areas such as Growth (10/10) and Profitability (9/10). However, the Valuation rank is notably low at 1/10, indicating that despite solid operational metrics, the stock is considered overvalued. The Financial Strength score of 7/10 suggests that the company is in a relatively healthy position, while the high Momentum rank of 9/10 indicates positive price performance in recent months.

What Are Insiders Doing with CMI Stock? Recent insider activity reveals that insiders have sold a total of $12.1 million in Cummins stock over the last three months, without any purchasing activity. This pattern may suggest a lack of confidence among insiders regarding the current valuation or potential for future growth. Typically, significant insider selling can be interpreted as a negative signal, indicating that those closest to the company may not believe the stock is a good buy at current prices.

What This Means for Investors Based on the analysis of GF Value™, Cummins Inc is currently deemed overvalued. The substantial premium over its intrinsic value raises caution for potential investors, suggesting that the current market price may not be sustainable.

For the complete analysis, visit the Cummins Inc CMI stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is CMI's GF Score™?

CMI's GF Score™ is 85/100, indicating strong fundamentals and a likelihood of generating higher long-term returns based on backtested data.

Is CMI overvalued or undervalued?

CMI is considered overvalued, with its current price significantly exceeding the GF Value™ estimate.

What is CMI's P/E ratio?

CMI's P/E (TTM) ratio is 34.7x, which is well above its 5-year median P/E of 16.0x, confirming that it is trading at a premium compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

For decades, investors have viewed Cummins (CMI +0.59%) as a bellwether for the heavy-duty truck market and the broader economy. While that connection to the traditional engine business will always exist, Cummins is undergoing a fundamental shift, fueled by a source of demand that is far less cyclical than truck sales.

The company's power systems segment, which manufactures large diesel and natural gas generators, has become the company's primary growth driver. This was evident in the first quarter, when Cummins beat earnings estimates and raised its full-year guidance despite a slowdown in its legacy engine business.

Image source: Getty Images.

Powering the AI boom Growth for this segment and its distribution segment is being driven by the need for many more data centers in this artificial intelligence (AI) era. To ensure continuous uptime and meet regulatory requirements, these facilities require reliable backup power. A typical 100-megawatt data center needs between 120 and 200 megawatts of backup generation, creating plenty of demand for Cummins.

In the first quarter, power systems revenue grew 19% year over year to $2 billion. More importantly, the segment's earnings before interest, taxes, depreciation, and amortization (EBITDA) margin reached a record 29.5%, and contributed 39% of the company's total EBITDA. Management expects margins to settle between 25% and 26% for the full year, well above historical levels.

The strength of this business and its distribution segment is supported by a durable advantage. In a supply-constrained market, Cummins' ability to manufacture and distribute its own engines and generators gives it a key edge over competitors. With an order backlog that now extends into 2028, the company has gained significant earnings visibility. 

A more balanced business The growth in power generation has offset the cyclical weakness in the North American truck market. In the first quarter, unit sales of heavy-duty trucks fell 16% year over year, resulting in a 4% decline in engine segment revenue. Yet, thanks to the strength in power systems, the company raised its 2026 revenue guidance to 8% to 11% growth.

Management also increased its long-term targets at its Analyst Day last week. The company now expects annual revenue growth of 6% to 9%, reaching $45 billion to $50 billion by 2030, with EBITDA margin above 20%. To meet this demand, Cummins announced a $450 million investment to expand its high-horsepower engine and generator capacity by 20 gigawatts.

The diversified revenue streams make Cummins more resilient than it's been in past truck cycles. Currently, the company is winding down from a heavy investment period as it prepares to launch its new truck engines before EPA27 regulations take effect. Meanwhile, its growing aftermarket business provides stable recurring revenue from parts and service.

Today's Change

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The stock currently trades for around 22 times forward earnings, which is a bit rich for Cummins. The stock's price-to-earnings multiple has averaged around 14 over the past five years, but there's no denying the business has improved. Long-term investors should be in for a nice ride if data center demand holds up until the North American truck market takes a turn for the better.

On May 29, 2026, Cummins Inc CMI shares fell 3.3% today to a current price of $646.63. This decline comes amidst a 52-week range of $307.91 to $718.08, reflecting significant volatility in the stock's performance over the past year.

GF Value™ verdict: The current price of $646.63 is 100.5% above the GF Value™ estimate of $322.51, indicating the stock is significantly overvalued.GF Score™: CMI holds a strong GF Score™ of 84/100, suggesting solid fundamentals.Most notable signal: Insider activity shows that insiders have sold $12.1 million worth of shares in the last three months, with no buying activity reported. Is CMI Overvalued or Undervalued? The current market price of Cummins Inc CMI at $646.63 stands in stark contrast to the GF Value™ estimate of $322.51, reflecting a substantial overvaluation of 100.5%. This disparity indicates a significant margin of safety for potential downside risk. The GF Valuation label categorizes CMI as "Significantly Overvalued," which suggests that investors may be paying a premium for the stock that is not supported by its intrinsic value.

Given the current valuation, investors should be cautious, as the risk of a price correction could have implications for those who hold or are considering purchasing the stock. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates, and in this case, it portrays a cautionary stance towards CMI's valuation.

How Does CMI's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 33.6x 16.0x Forward P/E 22.1x N/A Currently, Cummins Inc's P/E (TTM) stands at 33.6x, which is 109% above its 5-year median P/E of 16.0x. The forward P/E of 22.1x also suggests that the stock is trading above its historical valuation. This P/E analysis aligns with the GF Value™ verdict of being significantly overvalued, reinforcing the notion that the stock may not be a sound investment at its current price point.

What Does CMI's GF Score™ Tell Us? Metric Rating GF Score™ 84 Financial Strength 7/10 Profitability 9/10 Growth 10/10 Valuation 1/10 Momentum 9/10 The GF Score™ of 84/100 indicates a well-rounded company with strong fundamentals. Notably, Cummins excels in Growth (10/10) and Profitability (9/10), suggesting a robust operational performance. However, the Valuation rank of 1/10 highlights significant concerns regarding the stock's current price relative to its intrinsic value, marking it as the weakest area. This juxtaposition suggests that while the company has strong growth and profitability potential, the current valuation appears overly inflated.

What Are Insiders Doing with CMI Stock? In the last three months, insider activity at Cummins Inc indicates a lack of confidence among executives, with insiders selling a total of $12.1 million in stock and no reported buying activity. This selling may suggest a belief that the stock is currently overvalued, as insiders are opting to liquidate their holdings rather than invest further. Such patterns can be a red flag for prospective investors, indicating a possible lack of confidence in the near-term prospects of the company.

What This Means for Investors Based on the current analysis, Cummins Inc CMI is considered significantly overvalued in relation to its GF Value™ estimate. The substantial gap between the market price and the intrinsic value suggests that investors should exercise caution and consider potential risks associated with the stock's current price level.

For the complete analysis, visit the Cummins Inc CMI stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is CMI's GF Score™?

CMI has a GF Score™ of 84/100, indicating strong fundamentals and the potential for higher long-term returns based on historical performance.

Is CMI overvalued or undervalued?

CMI is significantly overvalued, with a current price of $646.63 compared to a GF Value™ estimate of $322.51, reflecting a 100.5% premium.

What is CMI's P/E ratio?

CMI's P/E (TTM) is 33.6x, which is 109% above its 5-year median P/E of 16.0x, further indicating that the stock is overvalued based on historical valuation metrics.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

A month has gone by since the last earnings report for Cummins (CMI - Free Report) . Shares have lost about 4.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Cummins due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.

Cummins' Q1 Earnings Beat on Strong Power Systems ResultsCummins delivered adjusted earnings of $6.15 per share in the first quarter of 2026, up 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. Strength in power generation, particularly for data center-related demand, stood out as a meaningful contributor to results.

CMI’s Engine Results Soften on North America DemandCMI’s Engine segment posted sales of $2.67 billion, down 4% year over year amid the decline in lower medium-duty and heavy-duty truck demand in the United States, which more than offset stronger construction-related demand in China.

Profitability in the segment was pressured as well. Segment EBITDA was $279 million (down from $458 million in the first quarter of 2025) and the margin declined to 10.4% (compared with 16.5% in the year-ago quarter), reflecting lower volumes and higher compensation costs.

Cummins’ Components Segment Faces Volume HeadwindsCummins’ Components segment generated $2.53 billion of sales, a 5% decline from the prior-year period. The drop was tied primarily to softer heavy- and medium-duty demand in North America, while international demand improved in markets such as China and Brazil.

Segment EBITDA totaled $337 million, translating to a 13.3% margin, down from $382 million or 14.3% of sales. Lower volumes weighed on the margin performance versus the year-ago quarter.

CMI’s Distribution Business Benefited From Power DemandCMI’s Distribution segment was a bright spot, with sales rising 7% year over year to $3.12 billion. Growth was driven by increased demand for power generation products, with particularly strong momentum tied to data center applications.

Segment EBITDA increased to $444 million, and the margin expanded to 14.2% from 12.9% of sales. Higher volumes more than offset cost pressures, including higher compensation expense, supporting improved profitability.

Cummins’ Power Systems Segment Drove UpsideCummins’ Power Systems segment delivered the sharpest acceleration in the quarter. Sales climbed 19% year over year to $1.96 billion, supported by increased power generation demand across North America and international markets, including China and the Asia Pacific.

The segment also showed meaningful operating leverage. EBITDA rose to $577 million from $389 million in the year-ago quarter, and the margin improved to 29.5%, helped by higher volumes, favorable pricing, and the benefit of tariff recoveries cited in the company’s quarterly materials.

CMI’s Accelera Charge Masked Underlying ProgressWithin Accelera, sales were $101 million, down 2% year over year. The segment incurred a $199 million charge tied to completing the sale of its low-pressure fuel cell business. Excluding the charge, Accelera’s EBITDA loss was $78 million, with losses driven by costs associated with developing electric powertrains, fuel cells and electrolyzers, as well as products supporting battery-electric vehicles.

Cummins’ Financial PositionCummins ended the quarter with $2.61 billion in cash and cash equivalents. Marketable securities were $568 million, taking total cash, cash equivalents and marketable securities to $3.18 billion. Long-term debt was $6.73 billion as of March 31, 2026.

Cash generation improved year over year, with operating cash flow of $309 million in the quarter. Cummins returned $519 million in the first quarter through dividends and share repurchases.

Cummins Raises 2026 OutlookCummins raised its full-year 2026 outlook, thanks to strengthening demand across several markets, particularly North America on-highway and power generation. The company now expects 2026 revenues to increase 8-11% (up from the prior forecast of 3-8% growth year over year) and anticipates an EBITDA margin of 17.75% to 18.5% (up from 17-18% guided earlier), excluding first-quarter fuel cell-related charges.

How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.

The consensus estimate has shifted 13.56% due to these changes.

VGM ScoresCurrently, Cummins has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. 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. It comes with little surprise Cummins has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

On June 11, 2026, Cummins Inc CMI shares rose 4.0% to a current price of $655.69. The stock is trading within a 52-week range of $307.91 to $718.08, reflecting significant volatility over the past year.

GF Value™ verdict: Current price of $655.69 is 102.4% overvalued compared to the GF Value™ of $324.00.GF Score™ of 84/100 indicates a strong overall ranking among stocks.Most notable signal: Insiders sold $9.8 million worth of shares in the last three months, indicating a lack of buying interest. Is CMI Overvalued or Undervalued? The current price of Cummins Inc CMI shares at $655.69 is significantly above the GF Value™ estimate of $324.00, resulting in a valuation that is 102.4% overvalued. This disparity suggests that the stock may be trading at a premium compared to its intrinsic value, which presents a risk for potential investors. The GF Valuation label categorizes CMI as "Significantly Overvalued," highlighting the need for caution when considering investments at this price point.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The substantial margin between the current price and GF Value™ serves as a warning signal that CMI may not be a safe investment at this time.

How Does CMI's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 34.0x 16.0x Forward P/E 22.7x N/A Currently, Cummins Inc's P/E (TTM) of 34.0x is significantly above its 5-year median P/E of 16.0x, indicating that the stock is trading at a premium compared to its historical valuation metrics. The forward P/E of 22.7x also suggests that the stock remains elevated in comparison to historical averages. This P/E analysis aligns with the GF Value™ verdict, reinforcing the conclusion that CMI is overvalued at its current price.

What Does CMI's GF Score™ Tell Us? Metric Rating GF Score™ 84/100 Financial Strength 7/10 Profitability 9/10 Growth 10/10 Valuation 1/10 Momentum 9/10 The GF Score™ of 84/100 indicates that Cummins Inc is positioned well compared to its peers, with particularly strong ratings in Profitability (9/10) and Growth (10/10). However, the Valuation score of 1/10 highlights a significant weakness in its current pricing, which is not supported by underlying fundamentals. The Financial Strength score of 7/10 and Momentum score of 9/10 suggest that the company has a solid financial foundation and positive price trends, but the valuation concerns cannot be overlooked.

What Are Insiders Doing with CMI Stock? In recent months, insider activity for Cummins Inc has shown a trend of selling, with insiders liquidating $9.8 million in shares without any reported purchases. This pattern of selling may suggest a lack of confidence among company executives regarding the stock's future performance or the current valuation. In the absence of any buying activity, it raises further caution for potential investors who may interpret this as a negative signal about the company's outlook.

What This Means for Investors Based on the analysis, Cummins Inc CMI is currently overvalued with a GF Value™ of $324.00 compared to its trading price of $655.69. The significant margin of overvaluation, coupled with recent insider selling, suggests that potential investors should exercise caution when considering an investment in this stock.

For the complete analysis, visit the Cummins Inc CMI stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is CMI's GF Score™?

CMI's GF Score™ is 84/100, indicating strong overall performance relative to its peers and suggesting potential for higher long-term returns.

Is CMI overvalued or undervalued?

CMI is currently overvalued, with a GF Value™ of $324.00 compared to its trading price of $655.69, indicating a significant premium over intrinsic value.

What is CMI's P/E ratio?

CMI's P/E (TTM) ratio is 34.0x, which is considerably higher than its 5-year median P/E of 16.0x, reinforcing the conclusion that the stock is overvalued relative to its historical standards.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].