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?
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].
REDWOOD CITY, Calif.--(BUSINESS WIRE)--C3.ai, Inc. (NYSE: AI), the Enterprise AI application software company, today announced that on May 19, 2026, a jury in the Superior Court of the State of Delaware returned a unanimous verdict in favor of C3 AI in its lawsuit against Cummins Inc. (NYSE: CMI), finding that Cummins misappropriated C3 AI’s trade secrets.
C3 AI brought the case in November 2023, alleging that its licensee, Columbus, Indiana-based Cummins, misappropriated trade secrets. C3 AI became aware of this scheme when a Cummins employee inadvertently shared internal meeting notes documenting Cummins’ plan with C3 AI.
C3 AI made repeated attempts to resolve the matter amicably with Cummins management. C3 AI placed calls that Cummins did not return, sent a formal demand letter, and twice agreed to meet in person. Cummins twice cancelled.
“We are grateful to the members of the jury for their service, their attention, and their care,” said Thomas M. Siebel, Chairman and Chief Executive Officer of C3 AI. “We placed our faith in the United States justice system, and the justice system worked. The jurors heard the evidence, applied the law, and unanimously concluded that Cummins misappropriated C3 AI’s trade secrets. This verdict is a rebuke of Cummins’ actions that reflect poorly on Cummins’ executive management.”
This is not an isolated event. In December 2023, the U.S. Department of Justice issued a press release stating: “The Justice Department reached an initial agreement with Cummins Inc. to settle claims that, over the past decade, the company unlawfully altered hundreds of thousands of engines to bypass emissions tests in violation of the Clean Air Act. As part of the agreement, the Justice Department will require Cummins to pay $1.675 billion, the largest civil penalty we have ever secured under the Clean Air Act.” This same Cummins now stands unanimously adjudged by a jury in Delaware to have engaged in misappropriation of intellectual property.
“I respectfully suggest that the Board of Directors of Cummins take a long and hard look at the ethical grounding and core values of its senior management, including its CEO,” Mr. Siebel said. “Cummins was an iconic American company. Its founder, Clessie Cummins, built it on innovation, quality, and integrity. The Cummins workforce, the Cummins shareholders, and the Cummins legacy deserve better.”
About C3.ai, Inc.
C3 AI is the Enterprise AI application software company. C3 AI delivers a family of fully integrated products including the C3 Agentic AI Platform, an end-to-end platform for developing, deploying, and operating Enterprise AI applications and C3 AI applications, a portfolio of industry-specific SaaS Enterprise AI applications that enable the digital transformation of organizations globally, and C3 Generative AI, a suite of domain-specific generative AI offerings for the enterprise. Learn more at: www.c3.ai.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the federal securities laws, including statements regarding the anticipated outcome of post-trial proceedings, the pursuit of enhanced damages, attorneys’ fees, and costs, and the litigation generally. Actual results may differ materially. Statements regarding the conduct of Cummins Inc. and its executive leadership reflect the verdict returned by the jury, the public record of the trial, and the publicly reported consent decree entered into by Cummins with the United States Department of Justice and the United States Environmental Protection Agency. Opinions expressed by Mr. Siebel are his own. C3 AI assumes no obligation to update any forward-looking statements except as required by law.
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.
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].
Applied Digital chairman and CEO Wes Cummins joins CNBC's 'Squawk on the Street' discuss the company's new $7.5 billion hyperscaler lease, the demand for hyperscaler and spending trends.
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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Current Price
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659.58
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.
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 100 individual stocks in the Auto-Tires-Trucks sector. Collectively, these companies sit at #12 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics 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 13% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, CMI has moved about 30.8% on a year-to-date basis. At the same time, Auto-Tires-Trucks stocks have lost an average of 1.5%. This shows that Cummins is outperforming its peers so far this year.
Another stock in the Auto-Tires-Trucks sector, Custom Truck One Source, Inc. (CTOS - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 69.8%.
For Custom Truck One Source, Inc., the consensus EPS estimate for the current year has increased 322.9% 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, which includes 1 individual stocks and currently sits at #10 in the Zacks Industry Rank. This group has gained an average of 29.8% so far this year, so CMI is performing better in this area.
Custom Truck One Source, Inc., however, belongs to the Automotive - Original Equipment industry. Currently, this 52-stock industry is ranked #106. The industry has moved +5.5% so far this year.
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.
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].
Cummins (CMI) delivered strong Q1'26 results, with Power Systems EBITDA margin reaching a record 29.5% and full-year guidance raised across revenue and margins. CMI's truck market recovery is materializing faster than expected, driving improved outlooks for Engines and Components, but margin compression in Engines remains a key concern. Power Systems benefits from durable data center demand, supporting higher valuation multiples, yet the stock trades at a demanding 14x forward EV/EBITDA versus historical 7-10x.
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].
Release integrates more motor control components, improves diagnostics and simplifies control panel design
, /PRNewswire/ -- Rockwell Automation, Inc. (NYSE: ROK), the world's largest company dedicated to industrial automation and digital transformation, today announced new capabilities of its EtherNet/IP™ In-cabinet Solution, expanding support for additional motor control and protection devices. The update enables manufacturers to connect more components inside the control panel, simplify wiring and gain deeper diagnostic insight, without redesigning their existing architecture.
Rockwell Automation expands EtherNet/IP In-cabinet Solution with new motor control and power connection capabilities As manufacturers work to increase productivity and reduce downtime, they often face challenges related to limited data access and complex panel installations. The EtherNet/IP In-cabinet Solution addresses these issues by streamlining communication between devices inside the panel, improving real-time data availability and making it easier to install, scale and maintain motor control systems over time.
The expanded release adds a supplemental power tap and extends EtherNet/IP connectivity to additional motor control components, including 140ME Motor Protective Switching Devices and E100 Electronic Overload Relays through a 100-E Contactor communication module. These enhancements help manufacturers build smarter, more connected control panels while improving diagnostics and overall system visibility.
"The EtherNet/IP In‑cabinet Solution continues to transform how customers design and deploy control panels," said Kelly Passineau, product manager at Rockwell Automation. "With the addition of a supplemental power tap and connections for additional panel components, we're giving them even more ways to reduce installation time, improve diagnostics and build intelligent, data- driven systems with less complexity."
Key benefits of this new release include:
Supplemental power tap: Helps maintain stable performance as device counts increase, reducing the need for oversized power supplies or additional interposing relays and enabling scalable motor control architectures. Expanded smart motor control capabilities: Extends EtherNet/IP communication to 140ME Motor Protective Switching Devices and E100 Electronic Overload Relays using a 100-E Contactor communication module. Faster installation: In certain case studies, EtherNet/IP In-cabinet Solution has been shown to reduce wiring time by up to 80% compared to traditional hard-wired installations when implemented according to recommended standards. Optimized space: Compact components allow more devices to fit within the same footprint, helping reduce overall panel size. Improved data access: Real-time communication between devices boosts productivity and supports smarter decision making. With expanded connectivity across more components, users gain access to more data and meaningful insights. Scalability: Easily adapts to future networking needs without major redesigns or infrastructure changes. "The EtherNet/IP In-cabinet Solution isn't just a product—it's a growing portfolio designed to evolve alongside your system," said Jimmy Alvarez, director of Portfolio and Business Management at Rockwell Automation. "This release is the next step on our roadmap that includes expanding support for additional panel components, deeper data access and richer diagnostic capabilities that enhance visibility and performance over time. As your operational needs change, the solution is built to scale with you, offering a flexible, long-term path toward smarter, connected in-cabinet architectures."
Learn more about the EtherNet/IP In-cabinet Solution on Rockwell's website.
What's new in the latest EtherNet/IP In‑cabinet Solution release?
This release adds a supplemental power tap and expands connectivity to additional motor control and protection devices, including 140ME Motor Protective Switching Devices and E100 Electronic Overload Relays.
Who is this solution for?
This portfolio is designed for panel builders, manufacturers and OEMs looking to streamline industrial networking, simplify in-panel wiring and gain better diagnostics from their control panels with more connected devices.
How does this help manufacturers?
The EtherNet/IP In-cabinet Solution reduces wiring time and complexity, improves access to real‑time data and allows manufacturers to scale systems without major redesign.
About Rockwell Automation
Rockwell Automation, Inc. (NYSE: ROK) is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 26,000 problem solvers dedicated to our customers in more than 100 countries as of fiscal year end 2025. To learn more about how we are bringing the Connected Enterprise® to life across industrial enterprises, visit www.rockwellautomation.com.
2026 State of Smart Manufacturing Report shows manufacturers scaling AI, strengthening operations and focusing on measurable outcomes
, /PRNewswire/ -- Rockwell Automation, Inc, (NYSE: ROK), the world's largest company dedicated to industrial automation and digital transformation, today released findings from its 11th annual "State of Smart Manufacturing" report. The global study of more than 1,500 manufacturers across 17 countries shows a shift in industry focus: manufacturers are no longer debating whether to adopt digital technologies, but how to execute, scale and deliver measurable value from them.
90% of manufacturers say digital transformation is now essential, according to new global study The report reflects an inflection point for the industry, as many manufacturers move beyond experimentation and toward broader deployment of digital capabilities. Fewer organizations are operating in pilot mode, while more report active use of smart manufacturing technologies to support day-to-day operations.
The study found that 90% of manufacturers now say digital transformation is essential to staying competitive, reflecting its evolution into a baseline business requirement.
"Across the industry, manufacturers are facing more complexity and pressure than at any point in the last decade," said Blake Moret, chairman & CEO, Rockwell Automation. "What stands out in this year's research is not just the challenges, but how leaders are responding - by making digital transformation a core operating priority. The organizations that are seeing results are those that connect technology, people and processes to turn insight into better decisions, stronger performance and greater resilience."
Key findings from the "2026 State of Smart Manufacturing" report include:
Manufacturers are moving from pilots to scale:
6 in 10 manufacturers (59%) report actively using smart manufacturing technologies to support operations, while only 18% remain in pilot mode, marking the decline of the pilot-heavy phase that dominated previous years.
AI is becoming the engine of industrial advantage:
One-third of operations (34%) are AI-augmented today, supporting functions such as quality, cybersecurity and process optimization. Manufacturers expect more than half of operations to be AI-supported by 2030, reinforcing AI's role as a core operational capability.
Operational intelligence is now a competitive divider:
While organizations continue to collect growing volumes of data, only 43% is being used effectively, highlighting execution — not data availability — as a constraint on performance.
Cybersecurity is an operational reality:
Nearly half of manufacturers (46%) experienced at least one cyber incident in the past year, reflecting rising exposure as operations become more connected and autonomous. Secure, integrated IT/OT architectures are now foundational to scaling AI and advanced automation.
The report also finds that manufacturers are targeting transformation investments toward measurable outcomes – improving quality, reducing cost, lowering operational risk and increasing overall equipment effectiveness. One-third of operating budgets remain dedicated to industrial technology, signaling sustained, execution-focused investment rather than short-term experimentation.
The 2026 State of Smart Manufacturing Report draws on more than a decade of global research to highlight the capabilities shaping modern industrial operations, including intelligence, resilience, adaptability and workforce transformation.
The complete 2026 "State of Smart Manufacturing" report is available here.
Methodology
This report analyzes feedback from 1,560 respondents across 17 of the top manufacturing countries representing roles from management through C-suite and was conducted by Sapio Research in association with Rockwell Automation. The survey sampled from a range of industries including Consumer Packaged Goods, Food & Beverage, Automotive, Semiconductor, Energy, Life Sciences, and more. With a balanced distribution of company sizes with revenues spanning $100 million to over $30 billion, it offers a wide breadth of manufacturing business perspectives.
About Rockwell Automation
Rockwell Automation, Inc. (NYSE: ROK), is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 26,000 problem solvers dedicated to our customers in more than 100 countries. To learn more about how we are bringing the Connected Enterprise® to life across industrial enterprises, visit www.rockwellautomation.com.
/PRNewswire/ -- Rockwell Automation, Inc. (NYSE: ROK), das weltweit größte Unternehmen für industrielle Automatisierung und digitale Transformation, hat heute
Le rapport 2026 sur la situation de la fabrication intelligente montre comment les fabricants déploient l'IA, renforcent leurs opérations et se concentrent sur des résultats mesurables
, /PRNewswire/ -- Rockwell Automation, Inc. (NYSE : ROK), un leader mondial de l'automatisation industrielle et de la transformation numérique, a publié les conclusions de la 11e édition annuelle du « Rapport sur la situation de la fabrication intelligente ». Cette étude mondiale menée auprès de plus de 1 500 fabricants répartis dans 17 pays révèle un changement d'orientation dans le secteur : les fabricants ne s'interrogent plus sur la nécessité d'adopter les technologies numériques, mais plutôt sur la manière de les exécuter, de les déployer et d'en obtenir des résultats mesurables.
90% of manufacturers say digital transformation is now essential, according to new global study Ce rapport témoigne d'un tournant pour le secteur, car de nombreux fabricants passent de la phase d'expérimentation à un déploiement plus large des capacités numériques. Moins d'entreprises opèrent en mode pilote et elles sont de plus en plus nombreuses à déclarer utiliser activement les technologies de fabrication intelligente pour leurs opérations quotidiennes.
L'étude révèle que 90 % des fabricants considèrent désormais la transformation numérique comme essentielle pour rester compétitifs, reflétant ainsi son évolution vers une exigence commerciale fondamentale.
« Dans l'ensemble du secteur, les fabricants sont confrontés à une complexité et à une pression sans précédent depuis la dernière décennie », déclare Blake Moret, président-directeur général de Rockwell Automation. « Ce qui ressort de l'étude de cette année, ce ne sont pas seulement les défis rencontrés, mais aussi la manière dont les dirigeants les relèvent, en faisant de la transformation numérique une priorité opérationnelle fondamentale. Les entreprises qui obtiennent des résultats sont celles qui associent la technologie, les personnes et les processus pour transformer les informations en meilleures décisions, en performances plus solides et en résilience accrue. »
Principales conclusions du rapport sur la « Situation de la fabrication intelligente 2026 » :
Les fabricants passent de la phase pilote aux applications concrètes :
6 fabricants sur 10 (59 %) déclarent utiliser activement les technologies de fabrication intelligente pour optimiser leurs opérations, tandis que seulement 18 % restent en phase pilote, soulignant ainsi le net recul de la phase qui prédominait au cours des années précédentes.
L'IA devient le moteur de l'avantage concurrentiel :
Un tiers des opérations (34 %) sont aujourd'hui augmentées par l'IA, notamment pour des fonctions telles que la qualité, la cybersécurité et l'optimisation des procédés. Les fabricants prévoient que plus de la moitié des opérations seront prises en charge par l'IA d'ici à 2030, renforçant ainsi le rôle de l'IA comme capacité opérationnelle fondamentale.
L'intelligence opérationnelle est désormais un facteur de différenciation concurrentielle :
Alors que les entreprises continuent de collecter des volumes croissants de données, seules 43 % sont utilisées efficacement, ce qui met en évidence que l'exécution, et non la disponibilité des données, constitue un frein à la performance.
La cybersécurité est une réalité opérationnelle :
Près de la moitié des fabricants (46 %) ont subi au moins un cyberincident au cours de l'année écoulée, ce qui témoigne d'une exposition croissante à mesure que les opérations deviennent plus connectées et autonomes. Des architectures IT/OT sécurisées et intégrées sont désormais essentielles au déploiement à grande échelle de l'IA et de l'automatisation avancée.
Le rapport révèle également que les fabricants orientent leurs investissements dans la transformation vers des résultats mesurables : amélioration de la qualité, réduction des coûts, diminution des risques opérationnels et augmentation du taux de rendement synthétique. Un tiers des budgets d'exploitation reste consacré aux technologies industrielles, ce qui indique des investissements soutenus et axés sur l'exécution plutôt que sur des expérimentations à court terme.
Le rapport 2026 sur la situation de la fabrication intelligente s'appuie sur plus d'une décennie de recherches mondiales pour mettre en évidence les capacités qui façonnent les opérations industrielles modernes, notamment l'intelligence, la résilience, l'adaptabilité et la transformation de la main-d'œuvre.
Le rapport 2026 complet « Situation de la fabrication intelligente » est disponible ici.
Méthodologie
Ce rapport, réalisé par Sapio Research en association avec Rockwell Automation, analyse les réponses de 1 560 personnes dans 17 des principaux pays manufacturiers, occupant des fonctions allant de la gestion à la direction. L'enquête a été menée auprès d'un échantillon couvrant divers secteurs, notamment les produits de grande consommation, l'agroalimentaire, l'automobile, les semi-conducteurs, l'énergie, les sciences de la vie, etc. Grâce à une répartition équilibrée de la taille des entreprises et des revenus allant de 100 millions à plus de 30 milliards de dollars, elle offre un large éventail de perspectives pour les entreprises manufacturières.
À propos de Rockwell Automation
Rockwell Automation, Inc. (NYSE : ROK), est un leader mondial dans les domaines de l'automatisation industrielle et de la transformation numérique. Nous connectons l'imagination de nos talents avec le potentiel de la technologie afin d'élargir le champ du possible, pour un monde plus productif et plus durable. Rockwell Automation, dont le siège social se trouve à Milwaukee (Wisconsin), emploie près de 26 000 personnes au service de ses clients dans plus de 100 pays (chiffres de l'exercice 2025). Pour découvrir comment nous donnons vie à la solution « Connected Enterprise® » dans les entreprises industrielles, rendez-vous sur le site www.rockwellautomation.com.
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MILWAUKEE--(BUSINESS WIRE)--Rockwell Automation, Inc. (NYSE: ROK) SVP, Intelligent Devices, Tessa Myers, and VP, Investor Relations and Market Strategy, Aijana Zellner, will present at Baird's 2026 Global Consumer, Technology & Services Conference on Tuesday, June 2, in New York.
The fireside chat will be webcast beginning at approximately 10:15 a.m. EDT and will be available on the Rockwell Automation Investor Relations website at www.rockwellautomation.com/en-us/investors.html.
About Rockwell Automation
Rockwell Automation, Inc. (NYSE: ROK), is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 26,000 problem solvers dedicated to our customers in more than 100 countries as of fiscal year end 2025. To learn more about how we are bringing the Connected Enterprise to life across industrial enterprises, visit www.rockwellautomation.com.
Everyone’s talking about Vistra (NYSE:VST | VST Price Prediction) right now because retail investors have decided the merchant power producer is the cleanest way to bet on AI data center electricity demand. But here’s what you should actually be watching.
Vistra is a single-commodity bet. Its earnings power tracks wholesale power prices, and the bull case leans heavily on long-dated power purchase agreements with hyperscalers that haven’t all been signed yet. You’re paying up for a narrative. Meanwhile, the companies actually shipping the turbines, transformers, switchgear, and cooling systems into those data centers have hard order books you can read in their filings. That’s the trade a retirement-focused investor should care about.
The cleanest redirect is GE Vernova (NYSE:GEV), the electrification and power equipment business spun out of GE last year. Three reasons it deserves the seat VST currently occupies.
First, the backlog is enormous and accelerating. Q1 2026 orders hit $18.30 billion, up 71% organically, with backlog expanding by more than $13 billion quarter-over-quarter. The Electrification segment alone booked $2.4 billion in data center equipment orders in Q1, exceeding all of 2025 combined. Total backlog hit a record $150 billion at the end of Q4 2025. These are signed contracts visible in the filings.
Second, management is raising guidance. The 2026 outlook now calls for revenue of $44.5–$45.5 billion, adjusted EBITDA margin of 12%–14%, and free cash flow of $6.5–$7.5 billion. CEO Scott Strazik told investors, “Demand is accelerating for our Power and Electrification solutions… backlog growing by more than $13 billion quarter-over-quarter.” That language signals confidence in the orders already on the books.
Third, valuation is reasonable for the growth on offer. GEV trades around 31x trailing and 37x forward earnings on a roughly $282 billion market cap, with a consensus analyst target near $1,217. Yes, the stock is up 55% year to date, but the backlog and guidance have moved with it.
If you want a basket instead of a single name, three more industrial AI picks fill out the bench. Vertiv (NYSE:VRT) is the pure-play data center power and cooling shop, with a $15 billion backlog, up 109% year over year, and Q4 2025 organic orders that grew 252% YoY. It is richer at 55x forward earnings, but the orders justify a look. Eaton (NYSE:ETN) booked a record $3.51 billion in Electrical Americas revenue in Q4 2025, up 21% YoY, at 24.9% segment margins, with a pending $9.5 billion Boyd Thermal acquisition for liquid cooling. Rockwell Automation is the factory-automation and industrial AI software angle, with Software & Control organic growth of 19% and segment operating margin of 31.2% in Q1 FY26.
Honeywell (NASDAQ:HON) rounds out the list as an optional catalyst pick. Building Automation grew 11% organically on data center and hospitality demand, backlog sits at $38.3 billion, and the aerospace spin-off completes June 29, 2026, creating a forced re-rating event for the remaining automation business.
Vistra might keep working for a stretch because momentum trades do. But it has one input: power prices. GE Vernova, Vertiv, Eaton, and Rockwell have signed orders stacked years deep, raised guidance in writing, and margin expansion already showing up in the segment data. That is the visibility a retirement-focused portfolio is supposed to demand.
The takeaway: GE Vernova deserves a top spot on any industrial AI research list, with the order book and guidance to back the thesis.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several 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 includes access to the Zacks Style Scores as well.
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.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
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 ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
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, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
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As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Rockwell Automation (ROK - Free Report) Based in Milwaukee, WI, Rockwell Automation provides industrial automation and information solutions worldwide. The company has a wide network spanning more than 100 countries. The United States generates around 50% of the company’s total sales. Outside the United States, the company’s primary markets are Canada, China, Mexico, Italy, and the United Kingdom.
ROK is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. ROK has a Momentum Style Score of A, and shares are up 3% over the past four weeks.
Nine analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.61 to $12.74 per share. ROK boasts an average earnings surprise of +10.2%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, ROK should be on investors' short list.
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 popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
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.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow 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 +23.7% 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.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
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.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Rockwell Automation (ROK - Free Report) Based in Milwaukee, WI, Rockwell Automation provides industrial automation and information solutions worldwide. The company has a wide network spanning more than 100 countries. The United States generates around 50% of the company’s total sales. Outside the United States, the company’s primary markets are Canada, China, Mexico, Italy, and the United Kingdom.
ROK is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. ROK has a Growth Style Score of B, forecasting year-over-year earnings growth of 21.9% for the current fiscal year.
Nine analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.71 to $12.84 per share. ROK also boasts an average earnings surprise of +10.2%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ROK should be on investors' short list.
MILWAUKEE--(BUSINESS WIRE)--Rockwell Automation, Inc. (NYSE: ROK) SVP, Software & Control, Matheus Bulho, and VP, Investor Relations and Market Strategy, Aijana Zellner, will present at the 2026 Wells Fargo Industrials & Materials Conference on Thursday, June 11, in Chicago.
The fireside chat will be webcast beginning at approximately 10:15 a.m. CDT and will be available on the Rockwell Automation Investor Relations website at www.rockwellautomation.com/en-us/investors.html.
About Rockwell Automation
Rockwell Automation, Inc. (NYSE: ROK), is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 26,000 problem solvers dedicated to our customers in more than 100 countries as of fiscal year end 2025. To learn more about how we are bringing the Connected Enterprise to life across industrial enterprises, visit www.rockwellautomation.com.
Rockwell Automation to Present at Wells Fargo Industrials & Materials Conference Rockwell Automation, Inc. (NYSE: ROK) SVP, Software & Control, Matheus Bulho, and VP, Investor Relations and Market Strategy, Aijana Zellner, will present at the 2026 Wells Fargo Industrials & Materials Conference on Thursday, June 11, in Chicago.
The fireside chat will be webcast beginning at approximately 10:15 a.m. CDT and will be available on the Rockwell Automation Investor Relations website at www.rockwellautomation.com/en-us/investors.html.
About Rockwell Automation
Rockwell Automation, Inc. (NYSE: ROK), is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 26,000 problem solvers dedicated to our customers in more than 100 countries as of fiscal year end 2025. To learn more about how we are bringing the Connected Enterprise to life across industrial enterprises, visit www.rockwellautomation.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260528374680/en/
Investors with an interest in Electronics - Miscellaneous Products stocks have likely encountered both Daikin Industries (DKILY) and Rockwell Automation (ROK). But which of these two companies is the best option for those looking for undervalued stocks?
Executives share perspectives from leading machine builders on designing, deploying and optimizing machines across the lifecycle
, /PRNewswire/ -- Rockwell Automation, the world's largest company dedicated to industrial automation and digital transformation, today announced it has released a new season of ROKStudios, its thought leadership video series featuring in‑depth interviews with executives from leading machine builders and industry associations.
Olaf Clemens (right), CEO of SN Maschinenbau, discusses the role of cybersecurity and secure data integration in enabling resilient, connected machinery. In this conversation, he shared his perspective on how OEMs are approaching long-term lifecycle value through secure, data-ready machine design. His interview is part of a new season ROKStudios, an executive thought leadership series from Rockwell Automation, highlighting how machine builders are responding to evolving performance, connectivity and operational requirements. The latest season shares perspectives from across the global packaging and manufacturing ecosystem, with each interview exploring how OEMs are evolving their strategies to deliver value across the full machine lifecycle – from initial design through commissioning and long‑term operation.
"These discussions share how machine builders are redefining success around lifecycle value," said Fabrizio Scovenna, regional vice president, OEM, EMEA, Rockwell Automation. "Across these conversations, we see a consistent shift toward strategies that integrate design, secure data and services to improve performance, resilience and long‑term outcomes."
Each episode provides a distinct perspective on how OEMs are responding to changing customer expectations, increasing complexity and new performance requirements:
Olaf Clemens, CEO, SN Maschinenbau: Explores the growing role of cybersecurity as a foundation for connected machinery, enabling secure data integration, resilient operations, and long-term lifecycle value.
Gian Paolo Crasta, director general, UCIMA: Shares an industry‑wide perspective on how packaging machinery OEMs are redesigning machines for flexibility, digital services, and measurable lifecycle performance while balancing sustainability and productivity goals.
Alessandro Rocca, vice president of global sales, Cama Group: Examines how robotics and standardized architectures are helping OEMs accelerate deployment, improve repeatability, and deliver scalable lifecycle performance in high‑mix production environments.
Luis Villegas, president, AMEC Envasgraf: Provides an industry association perspective on how OEMs are rethinking the machine lifecycle – from design through delivery and operation – in response to digitalization, sustainability pressures, and skills challenges.
Steve Rackham, group technical manager, Bradman Lake Group: Discusses how modular design and integrated "process‑to‑pallet" strategies are enabling OEMs to manage SKU complexity, improve uptime, and build more flexible, future‑ready packaging lines.
Michael Lampe, innovation manager, Meurer Verpackungssysteme GmbH: Explores how OEMs are adapting to sustainability requirements, including the shift to new materials, while maintaining efficiency, flexibility, and lifecycle performance.
Bino Bastian, head of sales, ECONO-PAK: Discusses how digital twins are evolving beyond virtual commissioning into lifecycle assets that support engineering efficiency, collaboration and post‑startup optimization, while addressing cybersecurity, compliance, and traceability requirements.
Piers Lamb, sales director UK and Ireland, Universal Pack: Highlights how data‑ready machine design is enabling traceability, compliance, and service‑led business models, while improving commissioning speed and long‑term operational performance.
Piyush Bhandari, Area Sales Head, Clearpack Group: Shares how OEMs are evolving from standalone machines to intelligent, connected systems to meet changing consumer demands while maintaining secure and resilient operations.
Davide Furini, Area Sales Manager, CT Pack: Discusses how digital tools, connectivity, and data are enabling more resilient machine performance, helping OEMs meet evolving lifecycle requirements and operational demands.
Across all interviews, a consistent theme emerges: OEMs are moving beyond project‑based delivery toward lifecycle‑driven strategies that integrate design, data and ongoing services.
Machine builders are increasingly recognizing that decisions made during early design stages can significantly impact commissioning efficiency, uptime and long‑term serviceability.
Recorded at the recent Interpack 2026 in Düsseldorf, Germany, the new videos – alongside others featuring executives and domain specialists from Rockwell Automation – join more than 150 previous recordings at the ROKStudios portal.
About Rockwell Automation
Rockwell Automation, Inc. (NYSE: ROK), is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 26,000 problem solvers dedicated to our customers in more than 100 countries as of fiscal year end 2025. To learn more about how we are bringing the Connected Enterprise® to life across industrial enterprises, visit www.rockwellautomation.com.
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A month has gone by since the last earnings report for Rockwell Automation (ROK - Free Report) . Shares have added about 0.5% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Rockwell Automation due for a pullback? 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 drivers.
Rockwwell Automation Beats Q2 Earnings Estimates on Higher Volume, Hikes FY26 ViewRockwell Automation has delivered adjusted earnings of $3.30 per share in the second quarter of fiscal 2026, up 32% from the year-ago quarter’s $2.50. The figure beat the Zacks Consensus Estimate of $2.89.
Quarterly revenues rose 11.9% year over year to $2.24 billion and topped the consensus mark of $2.11 billion by 6.3%. Results have reflected solid execution as organic sales increased 9%. Our model predicted organic growth to rise 5.3% in the quarter.
Rockwell Automation's Growth Broadens With Organic Gains & FX TailwindsRockwell Automation’s fiscal second quarter featured a healthier demand backdrop across more end markets. Currency translation increased 3% year over year, surpassing our prediction of 0.7% growth.
The company also highlighted momentum in recurring revenues. Total Annual Recurring Revenue (ARR) increased 6% year over year, with software ARR up in the high-single digits, reinforcing the shift toward more durable revenue streams.
Rockwell Automation’s Segment Mix Supports Profit ExpansionSegmental performance was led by the two higher-margin platforms. Intelligent Devices posted sales of $1 billion compared with $0.9 billion a year ago, whereas Software & Control increased to $684 million from $568 million.
The Intelligent Devices segment posted operating earnings of $211 million in the fiscal second quarter, which marked a year-over-year increase of 32.7%, while Software & Control’s operating earnings improved 39.8% to $239 million.
Lifecycle Services was comparatively steady, with sales of $547 million compared with $537 million in the prior-year quarter. The segment posted operating earnings of $80 million compared with $78 million in the prior-year quarter. However, the segment continues to report negative organic sales growth.
ROK’s Margin Upside Reflects Pricing & Operating LeverageThe cost of sales increased 8.3% year over year to $1.11 billion. The gross profit grew 15.8% to $1.12 billion. Selling, general and administrative expenses moved up 1.9% to $478 million.
Profitability improved sharply as Rockwell Automation converted higher volumes into stronger margins. The enterprise operating margin increased 350 basis points year over year to 22.5% in the quarter, alongside a pretax margin of 19.7%.
At the segment level, Intelligent Devices delivered a 20.9% operating margin, up 320 basis points year over year, and Software & Control reached 34.9%, up 480 basis points. Lifecycle Services was essentially flat year over year at 14.6%.
Rockwell Automation’s Cash Position & Balance Sheet UpdatesCash generation strengthened alongside earnings. Cash provided by operating activities was $320 million in the quarter compared with $199 million in the year-ago period.
The free cash flow improved to $275 million from $171 million. Rockwell Automation’s adjusted income was $373 million and free cash flow conversion was 74% for the quarter.
Cash and cash equivalents were $423 million at the quarter end, down from $468 million at the end of fiscal 2025.
Long-term debt stood at $2.57 billion, modestly below $2.61 billion at the end of fiscal 2025. The balance sheet positioning gives Rockwell Automation flexibility as it navigates portfolio actions, including the Sensia dissolution-related impacts discussed in its materials.
Raises FY26 Earnings ViewThe company lifted its full-year outlook following the strong quarter. ROK raised both its reported and organic sales growth view to 5-9% year over year and expects an Enterprise operating margin of 21.5%, up from the prior mentioned 20%.
Rockwell Automation also increased its adjusted earnings guidance to $12.50-$13.10 per share from $11.40-$12.20. The updated view reflects broadening demand and execution, while the company noted the guidance does not include sales, earnings or cash flows related to the divested Sensia joint venture businesses in the second half of fiscal 2026.
How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 7.47% due to these changes.
VGM ScoresAt this time, Rockwell Automation has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Rockwell Automation has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerRockwell Automation belongs to the Zacks Electronics - Miscellaneous Products industry. Another stock from the same industry, Teradyne (TER - Free Report) , has gained 7.1% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Teradyne reported revenues of $1.28 billion in the last reported quarter, representing a year-over-year change of +87%. EPS of $2.56 for the same period compares with $0.75 a year ago.
Teradyne is expected to post earnings of $1.99 per share for the current quarter, representing a year-over-year change of +249.1%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Teradyne. Also, the stock has a VGM Score of F.
Enhanced capabilities help manufacturers stay resilient, secure remote connectivity, and operationalize cybersecurity with continuous professional support
, /PRNewswire/ -- Rockwell Automation, Inc. (NYSE: ROK), the world's largest company dedicated to industrial automation and digital transformation, today announced the launch of three enhanced offerings within the SecureOT™ solution suite: OT Cybersecurity Assessment Suite, SecureOT Platform Managed Services and Managed Secure Remote Access (MSRA).
Rockwell Automation Expands SecureOT Portfolio with Cybersecurity Assessment and Managed Service Capabilities Facing an increasing volume of alerts and limited visibility into operational technology (OT) assets, cybersecurity teams are under pressure to detect and respond quickly. SecureOT's industrial cybersecurity solution suite enables industrial enterprises to stay proactive and resilient without the need to add infrastructure or specialized staff.
"Understanding the current state of the OT environment is the foundation for defining the future," said Maria Else, senior global product manager, Cybersecurity Projects, Rockwell Automation. "Manufacturers are under increasing pressure to strengthen cybersecurity without slowing production. With SecureOT, we combine clarity, prioritized action plans and managed expertise to help industrial organizations secure what matters while keeping plants running safely and efficiently. We also leverage technologies such as artificial intelligence (AI) to identify vulnerabilities, automation to maintain efficiency and advanced intelligence to support analysis and understand the latest risks."
OT Cybersecurity Assessment Suite
The OT Cybersecurity Assessment Suite features a structured, modular approach tailored to the unique operational realities of industrial environments at every stage of their security journey. Combining OT-specific data collection with business-ready insights, the cybersecurity assessment delivers a clear path to building resilience.
Built for OT environments by OT professionals, the assessment offerings leverage new proprietary AI and machine learning models to help streamline analysis and standardize evaluation to deliver results and actions in an efficient manner.
SecureOT Platform Managed Services
SecureOT Platform is Rockwell Automation's risk and vulnerability management solution. Rockwell is now layering its deep industry knowledge on top of the platform to deliver SecureOT Platform Managed Services focused on continuous, professionally managed risk prioritization.
The latest update brings managed platform updates, providing the latest features and capabilities, management of the ongoing asset discovery and inventory, and drives programmatic discussions through technical account managers with the customer so security teams can quickly address cybersecurity exposure while minimizing downtime.
Managed Secure Remote Access (MSRA) and Beyond
Rockwell's new MSRA service connects OT assets, helping to reduce risks, improve efficiency and simplify operations in a vendor-neutral, Rockwell-managed and identity-driven environment. The cloud-routed remote access layer supports OT assets and enables customers to get up and running quickly with turnkey deployment, identity security and reduced workload for internal teams. MSRA enables faster troubleshooting and safer collaboration with vendors, delivered as a scalable service that adapts to each facility.
This latest update also introduces Rockwell's refreshed OT Cybersecurity Policy & Procedures offering. Built by Rockwell's OT Governance, Risk and Compliance (GRC) professionals and aligned with international standards, frameworks and best practices, the service provides a comprehensive set of documents to guide and strengthen security programs across the OT environment.
Now available for manufacturing and critical infrastructure organizations, these enhancements expand on Rockwell's SecureOT solution suite, a comprehensive industrial cybersecurity offering designed to help manufacturers assess, protect and continuously improve their OT security posture.
SecureOT solution suite is supported by Rockwell Automation's broader commitment to industrial cybersecurity, including product security protections embedded across the automation lifecycle and backed by its IEC 62443-4-1 Maturity Level 4 certification – the highest level for the secure product development lifecycle. Combined with capabilities such as assessment, managed services and secure remote access, this approach gives manufacturers a stronger foundation for managing OT risk and improving resilience.
To learn more about SecureOT and Rockwell's latest cybersecurity offerings, visit rockwellautomation.com/en-us/capabilities/industrial-cybersecurity.
About Rockwell Automation
Rockwell Automation, Inc. (NYSE: ROK), is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 26,000 problem solvers dedicated to our customers in more than 100 countries as of fiscal year end 2025. To learn more about how we are bringing the Connected Enterprise® to life across industrial enterprises, visit www.rockwellautomation.com.
MILWAUKEE--(BUSINESS WIRE)--The Board of Directors of Rockwell Automation, Inc. (NYSE: ROK), following its regular review, today authorized the company to expend up to an additional $1 billion to repurchase shares of Rockwell Automation common stock. This is in addition to the authorization on Sept. 5, 2024, to repurchase $1 billion worth of common stock, of which approximately $215 million was remaining as of May 31, 2026.
The Board also declared a quarterly dividend of $1.38 per share on its outstanding common stock, payable Sept. 10, 2026, to shareowners of record at the close of business on Aug. 17, 2026.
“We remain committed to returning value to our shareholders,” said Blake Moret, Rockwell Automation Chairman and CEO. “Over the past five years, we have returned more than $4.6 billion to shareowners through dividends and share repurchases. This underscores our strong financial position and confidence in our long-term growth strategy, while maintaining a disciplined approach to capital allocation.”
About Rockwell Automation
Rockwell Automation, Inc. (NYSE: ROK), is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 26,000 problem solvers dedicated to our customers in more than 100 countries as of fiscal year end 2025. To learn more about how we are bringing the Connected Enterprise to life across industrial enterprises, visit www.rockwellautomation.com.
Automotive tier 2 zinc die-casting manufacturer adopts cloud-based MES, QMS, EDI and analytics to provide real-time visibility, traceability and quality across a new greenfield facility
, /PRNewswire/ -- Rockwell Automation, the world's largest company dedicated to industrial automation and digital transformation, today announced that Zinkteknik, a global automotive tier 2 zinc die-casting manufacturer based in Sweden, has selected the Plex Smart Manufacturing Platform to support a new greenfield manufacturing operation and establish a scalable digital foundation for future expansion.
Zinkteknik will initially deploy Plex manufacturing execution system (MES), quality management system (QMS), electronic data interchange (EDI) and analytics and operations (A&O) at its new Monterrey, Mexico, site. The implementation will be delivered in collaboration with Cumulus, a gold-level system integrator in Rockwell's PartnerNetwork™ ecosystem.
"Zinkteknik approached this project with a laser focus on business outcomes from the very beginning," said Sarah Dana, director of enterprise software sales, northern Europe, Rockwell Automation. "They wanted a platform that could support a new greenfield operation, deliver immediate visibility and quality control and scale globally over time. Plex was selected because it provides an integrated, real-time foundation that aligns with Zinkteknik's operational priorities and long-term growth strategy."
Zinkteknik is a family-owned manufacturer specializing in high-volume, high-precision zinc die-cast components for the automotive, electronics and industrial markets. The company operates advanced, highly automated production facilities in Sweden and Bosnia and serves customers worldwide with a strong focus on quality and traceability.
The Plex Smart Manufacturing Platform provides a single, integrated system of record that connects people, machines and processes across the plant and enterprise. With Plex MES, Zinkteknik will gain real-time insight into work in progress, material movement and production performance, helping teams make faster, more informed decisions. Integrated Plex QMS embeds quality checks directly into production workflows, supporting compliance with automotive standards and enabling closed-loop corrective actions.
Plex EDI will streamline communication with customers and partners, while analytics and operations capabilities will provide role-based dashboards and performance metrics to support continuous improvement initiatives. Because Plex is delivered as a cloud-native, single-instance platform, Zinkteknik can standardize processes across facilities while maintaining flexibility to adapt to local requirements as the business grows.
From Zinkteknik's perspective, the decision to adopt Plex reflects a broader commitment to digitalization and operational excellence. By serving as the digital foundation for Zinkteknik's new facility, the Plex Smart Manufacturing Platform will help the company reduce manual processes, improve data accuracy and support faster ramp-up. As Zinkteknik expands its use of Plex to additional sites, the platform will enable greater alignment across operations, helping the company continue to meet the demanding requirements of the global automotive supply chain
About Rockwell Automation
Rockwell Automation, Inc. (NYSE: ROK), is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 26,000 problem solvers dedicated to our customers in more than 100 countries as of fiscal year end 2025. To learn more about how we are bringing the Connected Enterprise® to life across industrial enterprises, visit www.rockwellautomation.com.
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SummaryCompaniesPotential deal could create $10 billion food ingredients giantTate & Lyle shares surge 55% after news, Ingredion shares dip 2.8%Ingredion's proposal values Tate & Lyle at 615p/shareIngredion has June 11 deadline to make firm offer or walk away under UK rulesU.S. firm sees major significant benefits for shareholders from potential dealMay 14 (Reuters) - U.S. food ingredients maker Ingredion (INGR.N), opens new tab is in talks with British rival Tate & Lyle (TATE.L), opens new tab over a possible takeover of the London-listed firm in a 2.74 billion pound ($3.7 billion) deal, the British company said on Thursday, sending its shares 55% higher.
A deal between Tate & Lyle, known for its artificial sweeteners used in Coca-Cola (KO.N), opens new tab drinks, and Ingredion, could create a food and beverage ingredients giant worth more than $10 billion, at a time when consumers are increasingly opting for low-calorie drinks and diets.
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Under the proposal, Tate & Lyle said its shareholders would receive up to 615 pence per share - comprising 595 pence in cash and up to 20 pence in dividends - a 64% premium to its closing price on Wednesday.
"This is a level that the board would have to consider .... This disclosure will act as a price discovery mechanism to see if a deal can be struck,” Lucinda Guthrie, head of Mergermarket, told Reuters.
Shares in Tate & Lyle, which supplies ingredients to food companies including Unilever (ULVR.L), opens new tab and Nestle (NESN.S), opens new tab , rose to as much as 580 pence, their highest level in nearly a year.
British food ingredients firm Tate & Lyle's shares spiked sharply after it received a 615 pence per share conditional cash proposal from U.S. rival Ingredion."Ingredion believes a potential transaction would deliver significant benefits to customers, consumers, employees and Ingredion shareholders," the U.S. firm said in a statement.
Tate & Lyle has faced declining revenue and profit amid weak U.S. bakery demand, lower European pricing and rising costs, while Ingredion has seen softer demand for its legacy starches and sweeteners as consumers shift toward healthier and plant-based options.
Tate & Lyle in 2024 acquired U.S.-based CP Kelco, gaining plant‑based products such as pectin and speciality gums derived from citrus peel and seaweed.
Ingredion shares fell 2.8% on Thursday. It has until June 11 to make a firm offer or walk away, under UK takeover rules.
Tate & Lyle's shares against Ingredion's buyout proposal.In 2024, private equity firm Advent International was reportedly preparing a takeover offer for Tate & Lyle, but no bid materialised.
Tate & Lyle sold its sugar business to American Sugar Refining in 2010, ending its long association with refined sugar production, but it licensed the “Tate & Lyle Sugar” name to ASR to ensure the familiar brand remained on supermarket shelves.
($1 = 0.7399 pounds)
Reporting by Yamini Kalia, Raechel Thankam Job and Prerna Bedi in Bengaluru; Writing by Yadarisa Shabong; Editing by Vijay Kishore and Hugh Lawson
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Ingredion Incorporated (INGR) remains a Buy, supported by strong financials and robust cash generation despite recent operational setbacks and macro pressures. Q1 results were weak due to Argo facility issues, leading to reduced 2026 guidance and highlighting operational and cost risks. Potential acquisition of Tate & Lyle could transform INGR, expanding geographic reach significantly and helping to diversify into higher-growth segments.
WESTCHESTER, Ill., May 20, 2026 (GLOBE NEWSWIRE) -- Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions, announced today that its board of directors declared a quarterly dividend of $0.82 per share on the Company’s common stock.
The quarterly dividend will be payable on July 21, 2026, to stockholders of record at the close of business on July 1, 2026.
For more information about Ingredion Incorporated, including investor relations, financial updates and upcoming announcements, visit ir.ingredionincorporated.com.
About Ingredion
Ingredion Incorporated (NYSE: INGR), headquartered in the suburbs of Chicago, is a leading global ingredient solutions provider serving customers in more than 120 countries. With 2025 annual net sales of approximately $7.2 billion, the Company turns grains, fruits, vegetables and other plant-based materials into value-added ingredient solutions for the food, beverage, animal nutrition, brewing and industrial markets. With Ingredion’s Idea Labs® innovation centers around the world and more than 11,000 employees, the Company co-creates with customers and fulfills its purpose of bringing the potential of people, nature and technology together to make life better. Visit ingredion.com for more information and the latest Company news.
CONTACTS:Investors: Noah Weiss, 773-896-5242Media: Rick Wion, 708-209-6323
WESTCHESTER, Ill., May 27, 2026 (GLOBE NEWSWIRE) -- Ingredion Incorporated (NYSE: INGR), a leading provider of ingredient solutions, announced a new milestone, more than 96% of its tier 1 priority crops are now sustainably sourced.
“Five years ago, sustainable sourcing for corn, tapioca, potato, stevia and pulses measured just 25%,” said Larry Fernandes, senior vice president, chief commercial and sustainability officer. “This progress demonstrates that sustainability can scale quickly when it’s embedded into business decisions and operations, not treated as a separate initiative.”
Ingredion follows industry standards for sustainable sourcing that include verified measurement methods to ensure that the crops it buys meet specific environmental and social thresholds in how they were planted, grown, harvested and processed.
“Reaching over 96% sustainably sourced priority crops didn’t happen by setting distant goals; it’s a product of how we work across regions, disciplines and how we partner with growers, suppliers and customers every day,” said Fernandes.
This achievement was published in Ingredion’s 2025 sustainability report “The Power of Us.” The report outlines progress toward the Company’s 2030 sustainability goals under its “All Life” strategy and reinforces the Company’s purpose to bring the potential of people, nature and technology together to make life better.
Operational waste: Diverted 95% of total waste from landfills and achieved zero waste to landfills¹ at 16 manufacturing facilitiesHuman rights: Strengthened human rights governance by launching Ingredion’s first stand-alone Human Rights Policy and expanding the All Life Partners (ALP) Responsible Sourcing ProgramNew product launches: Expanded our upcycled ingredients portfolio, one of the fastest-growing areas in consumer sustainability, to now include more than 50 products verified as Upcycled Certified.Sustainable innovation: Launched a new end-to-end sustainable innovation program in 2025 that embeds sustainability tools and measurement from seed science to regenerative agriculture to plant-based packaging.Customer collaboration: Worked with our customers to reduce emissions, reformulate products and improve packaging, helping them deliver on their sustainability commitments without compromising cost, functionality or consumer experience. The full 2025 Sustainability Report is available here.
About Ingredion
Ingredion Incorporated (NYSE: INGR), headquartered in the suburbs of Chicago, is a leading global ingredient solutions provider serving customers in more than 120 countries. With 2025 annual net sales of approximately $7.2 billion, the Company turns grains, fruits, vegetables, and other plant-based materials into value-added ingredient solutions for the food, beverage, animal nutrition, brewing and industrial markets. With Ingredion Idea Labs® innovation centers around the world and more than 11,000 employees, the company co-creates with customers and fulfills its purpose of bringing the potential of people, nature, and technology together to make life better. Visit ingredion.com for more information and the latest Company news.
CONTACT:
Media: Rick Wion, 708-209-6323
_________________________
¹ Ingredion defines Zero Waste as <0.5% of the plant’s solid waste going to landfill or waste incineration without energy recovery.
WESTCHESTER, Ill., May 28, 2026 (GLOBE NEWSWIRE) -- Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions for food, beverage, pharma and industrial markets, announced a joint venture with Sanstar Limited and an equity stake in Sanstar, India’s leading manufacturer of corn-based specialty products. The partnership combines local expertise with global formulation and innovation capabilities to serve high growth pharma and food ingredient verticals in India.
“India represents an increasingly important growth market for Ingredion. Our partnership with Sanstar expands our presence with a reputable local partner that complements our existing businesses in India with the opportunity to scale a broad specialty ingredients platform,” said Jim Zallie, chairman, president and CEO of Ingredion. “Sanstar's sourcing and manufacturing capabilities, combined with Ingredion's formulation and go-to-market expertise, create the opportunity to offer food and pharma customers differentiated offerings to serve the rapidly evolving needs of Indian consumers while also providing export opportunities from India.”
India's specialty starch and functional ingredients market is among the fastest-growing in the Asia-Pacific region, driven by expanding domestic consumption, rising pharmaceutical exports and increasing regulatory focus on clean-label and sustainable formulations.
This venture will quickly establish a local platform for vertically integrated, science-led specialty ingredients and solutions for customers across food, beverage, pharmaceutical, home and beauty categories.
Through the agreement, Ingredion will form a joint venture with Sanstar and make a 9% equity investment in the company. The companies will commission a green field construction project to manufacture a diversified portfolio of specialty pharmaceutical and other ingredient products for high-value end-use markets.
About Ingredion
Ingredion Incorporated (NYSE: INGR), headquartered in the suburbs of Chicago, is a leading global ingredient solutions provider serving customers in more than 120 countries. With 2025 annual net sales of approximately $7.2 billion, the Company turns grains, fruits, vegetables and other plant-based materials into value-added ingredient solutions for the food, beverage, animal nutrition, brewing, pharmaceutical and industrial markets. With Ingredion’s Idea Labs® innovation centers around the world and more than 11,000 employees, the Company co-creates with customers and fulfills its purpose of bringing the potential of people, nature and technology together to make life better. Visit ingredion.com for more information and the latest Company news.
About Sanstar Limited
Sanstar Limited is one of India's leading corn-based specialty products and ingredient solutions companies, engaged in the manufacture of starch, glucose, modified starches, dextrose and other corn derivatives. Listed on BSE (544289) and NSE (SANSTAR), the Company operates state-of-the-art manufacturing facilities and serves a diverse range of industries including food & beverage, pharmaceuticals, animal nutrition, paper, and textiles. Sanstar is committed to sustainable, responsible manufacturing and consistently investing in technology-led growth.
WESTCHESTER, Ill., June 02, 2026 (GLOBE NEWSWIRE) -- Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions for the food, beverage and industrial markets, announced the acquisition of Benicaros®, a patented, prebiotic fiber made from upcycled carrot pomace clinically shown to support immune health.
“As we expand our functional ingredients offering, Benicaros’ versatility and health benefits makes it a perfect fit for our portfolio,” said Nate Yates, Ingredion’s vice president & general manager of sugar reduction and fiber fortification. “This highly differentiated prebiotic carrot fiber addresses the limitations of traditional prebiotic fibers that require high daily intake, have tolerance issues and formulation challenges.”
Benicaros stimulates beneficial gut bacteria, resulting in immune health benefits at extremely low dosage. It is water-soluble with minimal effect on taste, texture or odor. This makes it versatile for use in functional foods, beverages, and dietary supplements.
Additionally, Benicaros addresses multiple consumer demands by being plant-based, clean-label, kosher, halal, gluten-free, upcycled and sustainable.
“The benefits list of Benicaros is quite long, and the fact that it comes from upcycling carrot juice production, supporting sustainability and a circular-economy, is all the more exciting,” Yates added.
The acquisition is an asset deal that includes full ownership of all intellectual property, trademarks, human clinical trials, and know-how related to manufacturing the product.
About Ingredion
Ingredion Incorporated (NYSE: INGR), headquartered in the suburbs of Chicago, is a leading global ingredient solutions provider serving customers in more than 120 countries. With 2025 annual net sales of approximately $7.2 billion, the Company turns grains, fruits, vegetables and other plant-based materials into value-added ingredient solutions for the food, beverage, animal nutrition, brewing and industrial markets. With Ingredion’s Idea Labs® innovation centers around the world and more than 11,000 employees, the Company co-creates with customers and fulfills its purpose of bringing the potential of people, nature and technology together to make life better. Visit ingredion.com for more information and the latest Company news.
A bank employee counts pound notes at Kasikornbank in Bangkok, Thailand October 12, 2010. REUTERS/Sukree Sukplang/File Photo Purchase Licensing Rights, opens new tab
SummaryCompaniesDeal values Tate & Lyle at £3.8 billion including debtCombined firm targets $130 million in synergiesExpects 15% earnings boost from year oneTate & Lyle shares up nearly 13%June 8 (Reuters) - U.S. group Ingredion (INGR.N), opens new tab has struck a deal to buy Britain's Tate & Lyle (TATE.L), opens new tab for £2.7 billion ($3.6 billion) in cash to create a leading speciality food and beverage ingredients company.
The deal underscores how food companies are reshaping portfolios to tap demand for lower-sugar, higher-protein and functional products with added health and nutrition benefits, even as weak consumer sentiment weighs on near-term growth.
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Tate & Lyle shareholders will receive 595 pence per share in cash, a premium of nearly 59% to the last closing before talks were disclosed in mid-May, plus 20 pence in dividends. The deal values the British group at £3.8 billion including debt.
Tate & Lyle shares, up more than 30% since the talks became public, were up 12.7% to 554 pence at 0811 GMT. The deal will end Tate & Lyle's 87-year listing in London, marking another loss of a household name for the UK market.
The sweetener maker was underperforming its U.S.-based rival until talks were disclosed in MayA wave of foreign bids has put Britain on track for a record year for dealmaking in 2026, with buyers attracted in part by comparatively cheap UK valuations.
UK's Tate & Lyle shares have lagged offer price in recent pastFLAVOURS AND HEALTHTate & Lyle, which started as a sugar refinery in the 1850s, sold its eponymous sugar brand in 2010 to ASR Inc. to focus on sweeteners such as the zero-calorie Splenda brand used by Coca-Cola (KO.N), opens new tab. Its 2024 acquisition of CP Kelco expanded it into plant-based ingredients.
Combined with Ingredion, the business will be worth about $9.9 billion and focus on ingredients that improve texture, cut sugar and boost nutrients, as food makers target demand for flavour and fibre, including amid the rise of GLP-1 weight-loss drugs.
Ingredion makes sweeteners and starches, as well as ingredients used in paper, cosmetics and pharmaceuticals.
In 2024, private equity firm Advent, opens new tab International was reported to be preparing a takeover bid for Tate & Lyle, but no offer materialised.
($1 = 0.7504 pounds)
Reporting by Prerna Bedi in Bengaluru. Editing by Louise Heavens and Mark Potter
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Creates a scaled global provider of specialty ingredient solutions for a healthier, tastier and more sustainable future of food Broadens Ingredion’s specialty ingredients platform across texturants, sugar reduction, and fortification, adding complementary capabilities in multi-ingredient systems and recipe developmentExpands Ingredion’s ability to address customer needs across a wider range of end use categories and applicationsBrings together complementary geographic supply networks across the Americas, Europe, the Middle East and Africa, and Asia Pacific to deliver faster, more reliable and cost-effective ingredients and solutions for customers and consumers worldwide WESTCHESTER, Ill., June 08, 2026 (GLOBE NEWSWIRE) -- Ingredion Incorporated (NYSE: INGR) (“Ingredion”), a leading global provider of ingredient solutions to the food and beverage and industrial segments, today announced a recommended all-cash offer for the acquisition of Tate & Lyle PLC (“Tate & Lyle”), a global leader in mouthfeel, sweetening and fortification (the “Acquisition”). The transaction implies a total enterprise value of approximately £3.7B ($5.0B), based on the pound sterling to U.S. dollar exchange rate on June 5, 2026.
The Acquisition represents a compelling opportunity to bring together two complementary businesses with a shared commitment to innovation, customer partnership and scientific excellence. Together, the combined group will be better positioned to help customers address evolving consumer needs by delivering products that are nutritious and affordable, with the taste, texture and quality that consumers expect. By combining complementary ingredient portfolios, technical expertise and geographic supply networks, the Acquisition will accelerate Ingredion’s ongoing transformation and enhance its ability to support customers as they address the trends reshaping the global food and beverage industry.
“Combining Ingredion and Tate & Lyle’s complementary portfolios establishes a global leader in ingredient solutions with the innovation expertise and geographic reach that will help create the future of food,” said Jim Zallie, chairman, president and CEO of Ingredion. “The combined business will be better positioned to serve customers’ needs for the development of great-tasting, healthier and affordable food products that consumers demand. This compelling combination will create exciting new possibilities for employees and generate significant value for all stakeholders.”
Commenting on today’s announcement, David Hearn, chair of Tate & Lyle said: “Over the last few years, Tate & Lyle has been successfully repositioned as a leading global specialty food and beverage solutions business aligned to growing consumer demand for healthier, more nutritious and sustainable food and drink. I would like to recognise the exceptional contribution of the team at Tate & Lyle for their talent, insight and commitment which has been a key driver of this transformation and the business we have built. Looking forward, we believe the next chapter with Ingredion will create a business with even greater potential, greater scale, and increased investment in innovation in support of customers. The Board of Tate & Lyle believes Ingredion's offer represents an attractive opportunity for shareholders to crystalise value in cash, and that it will be an excellent steward of Tate & Lyle. The Board therefore unanimously recommends Ingredion's offer to Tate & Lyle’s shareholders.”
Compelling Strategic Rationale
The Acquisition offers strategic, operational and financial benefits, including:
Bolstering Ingredion’s portfolio and creating significant strategic growth opportunities
Broadens Ingredion’s specialty ingredients platform across texturants, sugar reduction, and fortification.Adds complementary capabilities in multi-ingredient systems and recipe development.Expands Ingredion’s ability to address customer needs across a wider range of end use categories and applications. Creating a complementary and differentiated portfolio in texture and sugar reduction
Combines Ingredion’s texture and sugar reduction capabilities with Tate & Lyle’s expertise in mouthfeel, sweetening, and fortification.Positions the combined group to better help customers address growing consumer demand for food and beverage products that are safe, high quality, affordable, great tasting, and healthier. Diversifying Ingredion’s global platform with critical scale in North America, Europe and Emerging Markets
Brings together complementary geographic supply networks across the Americas, Europe, the Middle East and Africa, and Asia Pacific.Delivers faster, more reliable and cost-effective solutions for customers and consumers worldwide.Enhances local market insights to better anticipate regional customer needs and consumer preferences. Delivering solutions for diverse consumer needs across the value chain
Combines applications expertise, customer-led formulation capabilities and expanded customer-centric data insights to deliver more integrated, higher-value ingredient solutions at an affordable price for end consumers.Enables closer partnership with customers – from concept development through to commercialization – by building cost-effective bespoke ingredient solutions to meet customer needs, and by deepening Ingredion’s innovation and formulation capabilities while accelerating and optimizing speed-to-market. Enhancing IP and technological capabilities to drive innovation
Unifies two respected brands, each with over a century of history and known for innovation, quality, service, and trust in the ingredients space.Combines complementary IP, technology, talent and applications capabilities to support faster innovation and next-generation ingredient systems development.Enhances the ability to develop systems-based solutions across mouthfeel, sweetening, and fortification, including solutions that support healthier product offerings. Delivering significant financial benefits and value creation under a prudent financial structure
The integration is expected to deliver significant run-rate net cost synergies of approximately $130 million, which are expected to be fully realized by the end of 2030. The one-time costs to achieve these annual cost savings are expected to amount to approximately $175 million in aggregate by the end of 2030.The Acquisition is expected to be adjusted EPS accretive to Ingredion shareholders in the first year following transaction completion, and is expected to enhance the long-term growth profile and earnings potential of the combined group. Transaction Details
Under the terms of the transaction, Tate & Lyle shareholders will be entitled to receive 595 pence per share, representing an approximate 59% premium to Tate & Lyle’s closing share price as of May 13, 2026. In addition, Tate & Lyle shareholders will be entitled to receive a final dividend in relation to the financial year ended March 31, 2026 of no greater than 13.2 pence per ordinary Tate & Lyle share and an interim dividend in relation to the six-month period ending September 30, 2026 of no greater than 6.8 pence per ordinary Tate & Lyle share.
Ingredion intends to finance the Acquisition through a combination of existing cash resources, new debt financing and, to the extent required, a drawdown on a fully committed bridge financing facility. Ingredion expects pro forma net leverage at completion of the Acquisition to be approximately 3.0x net debt-to-adjusted EBITDA (as calculated under Ingredion’s credit agreements). Ingredion remains committed to maintaining a strong investment-grade credit profile and expects to reduce leverage to approximately 2.5x net debt-to-adjusted EBITDA within approximately 18 months following completion of the transaction.
It is intended that the Acquisition will be implemented by means of a court-sanctioned scheme of arrangement under Part 26 of the United Kingdom Companies Act 2006 (the “Scheme”), although Ingredion reserves the right to effect the Acquisition by way of a takeover offer, subject to the consent of the UK Panel on Takeovers and Mergers and the terms of the co-operation agreement between Ingredion and Tate & Lyle.
Timing and Approvals
Completion of the Acquisition is subject to the satisfaction of various conditions, including, among others, approval by Tate & Lyle shareholders, sanction of the Scheme by the High Court of Justice in England and Wales (the “Court”), and the satisfaction or waiver of the antitrust conditions. The transaction has been unanimously approved by Ingredion’s Board of Directors. Tate & Lyle’s Board of Directors intends to recommend unanimously that the Tate & Lyle shareholders vote in favor of the Scheme at the shareholder meetings to be convened by order of the Court for the purpose of, or on any shareholders’ resolutions prepared with respect to, approving the Scheme and related matters.
Ingredion has received an irrevocable undertaking from Huber Equity Corporation to vote in favor of the Scheme at the meeting of Tate & Lyle shareholders and the resolutions to be proposed at the general meeting of Tate & Lyle shareholders (and if Ingredion, with the consent of the Panel and subject to the terms of the co-operation agreement, subsequently structures the Acquisition as a takeover offer, to accept any takeover offer by Ingredion) in respect of a total of 75,000,000 Tate & Lyle Shares representing, in aggregate, approximately 16.8% of Tate & Lyle’s existing issued ordinary share capital as of June 5, 2026.
Completion of the Acquisition is expected to take place in the second half of 2027.
Investor Presentation and Conference Call
Ingredion management will host a conference call for investors and analysts today at 7 a.m. CT / 8 a.m. ET / 1 p.m. BST to discuss the transaction. A live webcast and accompanying presentation will be available at https://ir.ingredionincorporated.com/events-and-presentations. A replay will be available following the call.
The full terms and conditions of the transaction are set out in the announcement issued today by Ingredion and Tate & Lyle under Rule 2.7 of the UK City Code on Takeovers and Mergers, which is available on Ingredion’s dedicated microsite (https://www.ingredion.com/na/en-us/legal/offer-communications), subject to certain access restrictions. Additional information about the transaction will be made available from time to time on the microsite. Further information about the Rule 2.7 announcement will be provided in Ingredion’s current report on Form 8-K to be filed with the Securities and Exchange Commission.
Advisors
J.P. Morgan Securities LLC is serving as financial advisor to Ingredion, and Hogan Lovells (being Hogan Lovells International LLP and Hogan Lovells US LLP) is serving as legal counsel. Goldman Sachs International and Greenhill & Co. International are serving as joint lead financial advisors to Tate & Lyle and Bank of America and Citi are serving as joint financial advisors and corporate brokers to Tate & Lyle. Linklaters LLP is serving as legal counsel.
Further Information; No Offer or Solicitation
This release is for information purposes and is not intended to and does not constitute, or form part of, an offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of any securities, or the solicitation of any vote or approval in any jurisdiction, pursuant to the Acquisition, or otherwise, nor shall there be any sale, issuance or transfer of securities of Tate & Lyle in any jurisdiction in contravention of applicable law. The Acquisition will be made solely by means of a Scheme (or, if the Acquisition is implemented by way of a takeover offer, as such term is defined in the UK Companies Act (the “Takeover Offer”), the offer document), which will contain the full terms and conditions of the Acquisition, including details of how to vote in respect of the Scheme. Any vote in respect of the Scheme or other response in relation to the Acquisition should be made only on the basis of the information contained in the Scheme document (or, if the Acquisition is implemented by way of a Takeover Offer, the offer document). Tate & Lyle shareholders are urged to read the Scheme document when it becomes available, because it will contain important information relating to the Acquisition.
Additional Information
The Acquisition is being made to acquire the shares of an English company by means of a scheme of arrangement provided for under English law. A transaction effected by means of a scheme of arrangement is not subject to the tender offer rules or the proxy solicitation rules under the U.S. Securities Exchange Act of 1934, as amended (“Exchange Act”). Accordingly, the Scheme will be subject to disclosure requirements and practices applicable in the United Kingdom to schemes of arrangement, which are different from the disclosure requirements of the U.S. tender offer and proxy solicitation rules. The financial information included in this release and the Scheme document has been or will have been prepared in accordance with accounting standards applicable in the United Kingdom and thus may not be comparable to financial information of U.S. companies or companies whose financial statements are prepared in accordance with generally accepted accounting principles in the United States. If Ingredion exercises its right to implement the Acquisition by way of a Takeover Offer, such offer will be made in compliance with applicable U.S. laws and regulations.
Forward-Looking Statements
This press release contains or may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. Ingredion intends these forward-looking statements to be covered by the safe harbor provisions for such statements.
All statements other than statements of historical facts therein are forward-looking statements. Forward-looking statements in this press release include statements about Ingredion’s expected pro forma net leverage and potential synergies and other benefits of the Acquisition, including statements regarding plans, objectives, intentions and expectations in respect of future operations and financial results of the combined group. Forward-looking statements also include, among others, any other statements regarding Ingredion’s prospects and its future operations, financial condition, volumes, cash flows, expenses or other financial items, including management’s plans or strategies and objectives for any of the foregoing and any assumptions, expectations, or beliefs underlying any of the foregoing. These statements can sometimes be identified by the use of forward-looking words such as “may,” “will,” “should,” “anticipate,” “assume,” “believe,” “plan,” “project,” “estimate,” “expect,” “intend,” “continue,” “pro forma,” “forecast,” “outlook,” “opportunities,” “potential,” or other similar expressions or the negative thereof.
These statements are based on current circumstances or expectations, but are subject to certain inherent risks and uncertainties, many of which are difficult to predict and beyond Ingredion’s control. Although Ingredion believes its expectations reflected in these forward-looking statements are based on reasonable assumptions, investors are cautioned that no assurance can be given that Ingredion’s expectations will prove correct.
The following factors relating to the Acquisition, among others, could cause actual results to differ materially from those expressed in or implied by forward-looking statements: the possibility that the Acquisition is not completed when expected or at all because of a failure to satisfy conditions or for other reasons; the risk that the benefits of the Acquisition may not be fully realized or may take longer to realize than expected, including as a result of the risks and uncertainties discussed below; any failure promptly and effectively to integrate the businesses of Ingredion and Tate & Lyle; and the diversion of management’s attention and time to the Acquisition from ongoing business operations and other opportunities.
Additional risks and uncertainties that could cause actual results and developments to differ materially from the expectations expressed in or implied by forward-looking statements include, among others: changes in consumer practices, preferences, price sensitivity, behaviors, demand and perceptions; the impact of geopolitical developments, tensions, threats or conflicts on the availability and prices of raw materials and energy supplies, supply chains and foreign exchange and interest rates; the impact of global business and economic conditions on demand for Ingredion’s products or Ingredion’s access to global credit and equity markets; Ingredion’s reliance on certain industries for a significant portion of Ingredion’s sales; operating difficulties at Ingredion’s manufacturing facilities and liabilities relating to product safety and quality; Ingredion’s ability to keep pace with technological developments in research and development and continue to offer innovative products; competitive pressures that may adversely affect Ingredion’s market share, revenue and profitability; market volatility that may adversely affect Ingredion’s ability to pass through potential increases in the cost of corn and other raw materials to customers, to purchase quantities of corn and other raw materials at prices sufficient to sustain or increase Ingredion’s profitability, or to supply product quantities and meet shipment delivery requirements that Ingredion’s customers demand; the impact on inputs to Ingredion’s procurement, production processes and delivery channels, such as raw materials, energy, and freight and logistics, of price fluctuations, supply chain interruptions, tariffs, duties, and shortages; Ingredion’s ability to contain costs, manage working capital, and achieve budgets, including completion of planned maintenance and investment projects on time and on budget; global climate change and legal, regulatory or market measures to address climate change; Ingredion’s ability to identify and complete acquisitions, divestitures or strategic alliances on favorable terms or achieve anticipated synergies; the economic, political and other risks inherent in conducting operations in foreign countries and with foreign currencies; Ingredion’s ability to maintain satisfactory labor relations; Ingredion’s ability to attract, develop, retain, motivate and maintain good relationships with Ingredion’s workforce, including key personnel; the impact of legal and regulatory proceedings; the risks associated with pandemics; the impact of any impairment charges on intangible assets and goodwill; global and regional economic policies and changes to existing laws and regulations; changes in Ingredion’s tax rates or exposure to additional income tax liabilities; increases in interest rates that could increase Ingredion’s borrowing costs; risks affecting Ingredion’s ability to raise funds at reasonable rates and other factors affecting Ingredion’s access to sufficient funds for future growth and expansion; risks relating to the use of artificial intelligence and other advanced technologies, and Ingredion’s reliance on third-party technology providers; interruptions, security incidents or failures with respect to information technology systems, processes and sites; risks affecting the continuation of Ingredion’s dividend policy; and Ingredion’s ability to maintain effective internal control over financial reporting.
Ingredion’s forward-looking statements speak only as of the date on which they are made, and Ingredion does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the statement as a result of new information or future events or developments or otherwise. If Ingredion does update or correct one or more of these statements, investors and others should not conclude that it will make additional updates or corrections. For a further description of these and other risks, see “Risk Factors” and other information included in Ingredion’s Annual Report on Form 10-K for the year ended December 31, 2025, and in Ingredion’s subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission.
About Ingredion
Ingredion Incorporated (NYSE: INGR), headquartered in the suburbs of Chicago, is a leading global ingredient solutions provider serving customers in more than 120 countries. With 2025 annual net sales of approximately $7.2 billion, Ingredion turns grains, fruits, vegetables and other plant-based materials into value-added ingredient solutions for the food, beverage, animal nutrition, brewing, pharmaceutical and industrial markets. With Ingredion’s Idea Labs® innovation centers around the world and more than 11,000 employees, Ingredion co-creates with customers and fulfills its purpose of bringing the potential of people, nature and technology together to make life better. Visit ingredion.com for more information and the latest Ingredion news.
About Tate & Lyle PLC:
Supported by over 165-years of ingredient innovation, we partner with customers to provide consumers with healthier and tastier choices when they eat and drink. We are proud that millions of people around the world consume products containing our ingredients and solutions every day.
Through our leading expertise in sweetening, mouthfeel and fortification, we develop ingredients and solutions which reduce sugar, calories and fat, add fibre and protein, and provide texture and stability to food and drink in categories including beverages, dairy, bakery, snacks, soups, sauces, and dressings.
Tate & Lyle has approximately 5,000 employees working in around 70 locations in 37 countries, serving customers in more than 120 countries. Science, Solutions, Society is our brand promise and how we will achieve our purpose of Transforming Lives through the Science of Food. By living our purpose, we believe we can successfully grow our business and have a positive impact on society. We live our purpose in three ways, by supporting healthy living, building thriving communities and caring for our planet.
Tate & Lyle is listed on the London Stock Exchange under the symbol TATE.L. American Depositary Receipts trade under TATYY. For the year ended 31 March 2026 Tate & Lyle revenue from continuing operations totalled £2.0 billion. For more information, please visit www.tateandlyle.com or follow Tate & Lyle on LinkedIn, X (Twitter), Facebook or YouTube.
Contacts:
Media Relations:
In the U.S.:
Jayne Rosefield / Dave Carlson
+1 312 800 8120
In the U.K.:
Charles Pretzlik / Ed Brown / David Blackburn
+44 20 7404 5959
Ingredion offered the equivalent of $7.94 for each Tate & Lyle share, a 59% premium to the last closing price before takeover talks were disclosed last month.
Editor’s Note: The future prices of benchmark tracking ETFs, and the headline were updated in the story.
U.S. stock futures rose on Monday, as the Nasdaq 100 and S&P 500, and Dow Jones indices rose, following Thursday's sharp declines.
Additionally, this week, investors will be eyeing May’s CPI and PPI data.
Meanwhile, the 10-year Treasury bond yielded 4.58%, and the two-year bond was at 4.19%. The CME Group's FedWatch tool‘s projections show markets pricing a 98% likelihood of the Federal Reserve leaving the current interest rates unchanged during June’s meeting.
IndexPerformance (+/-)Dow Jones0.26%S&P 5000.72%Nasdaq 1001.31%Russell 20001.34%Stocks In FocusRiskified Riskified Ltd. (NYSE:RSKD) was 1.26% higher in premarket on Monday after it disclosed a $75 million buyback plan. Benzinga’s Edge Stock Rankings indicate that RSKD maintains a weak price trend in the long term but a strong trend in the medium and short terms. Nebius Group Nebius Group NV (NASDAQ:NBIS) was 2.11% higher after it announced a announced a $2.3 billion or £1.7 billion investment to build out four AI data center sites in the UK. Benzinga’s Edge Stock Rankings indicate that NBIS maintains a strong price trend in the short, long, and medium terms, with a poor value score. Ingredion Ingredion Inc. (NYSE:INGR) was 1.95% higher as Tate & Lyle agreed to £2.7 billion or $3.6 billion takeover by INGR. Benzinga’s Edge Stock Rankings indicate that INGR maintains a weak price trend in the long, short, and medium terms, with a solid growth score. Advanced Micro Devices Advanced Micro Devices Inc. (NASDAQ:AMD) was 1.81% higher as it announced a £2 billion or $2.66 billion investment in the UK to enhance AI research, infrastructure, and workforce development over five years. Benzinga’s Edge Stock Rankings indicate that AMD maintains a strong price trend in the long, medium, and short terms, with good quality score. Benzinga’s Edge Stock Rankings indicate that SKM maintains a strong price trend in the short, long, and medium terms, with a poor growth score. Cues From Last SessionSectors on the S&P 500 closed mixed on Friday as consumer staples, utilities, real estate, health care, and financial rose, while information technology, consumer discretionary, material, energy, communication services, and industrials fell.
Insights From AnalystsA historic two-month surge in the S&P 500 has triggered a rare, historically flawless bullish signal pointing to massive year-ahead gains.
The S&P 500 recently logged an explosive 19.5% advance over two months. According to Carson Group's Ryan Detrick, this is “one of the best two-month rallies ever”.
Data shows this has only happened seven other times since 1950, and stocks were “never lower 1 month, 3 months, 6 months, or a year later”. Instead, they averaged a massive 40% gain a year later. Looking at the data, Detrick noted, “My oh my”.
Though the S&P 500 just fell 2.6% for its “worst day of the year so far”, Detrick urges calm. “Good time to remember that even the best years have a bad day or two (or more)”, he posted, noting that 22 times the index gained 20% in a year, the average worst day was 3.5%.
Market health remains resilient. Even with a 2.5% weekly drop, “6 sectors were green and more stocks on the S&P 500 gained than fell last week”. History proves temporary volatility rarely derails historic bull runs; in 1997, the index fell nearly 7% in a day but still “gained more than 30% for the year.”
Upcoming Economic DataHere's what investors will be keeping an eye on this week.
Commodities, Crypto, And Global Equity MarketsCrude oil futures were trading lower in the early New York session by 4.37% to hover around $94.50 per barrel.
Gold Spot US Dollar fell 0.93% to hover around $4,288.99 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.08% higher at the 100.1480 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.51% higher at $63,145.40 per coin, as per the last 24 hours.
Asian markets closed lower on Monday, as Hong Kong's Hang Seng, India’s Nifty 50, Japan's Nikkei 225, Australia's ASX 200, South Korea's Kospi, and China’s CSI 300 indices fell. European markets were also lower in early trade.
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WESTCHESTER, Ill., June 11, 2026 (GLOBE NEWSWIRE) -- Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions for food, beverage and industrial applications, today announced that Kenneth Escoe has been appointed to its board of directors, effective July 1.
“Kenneth will be a great addition to Ingredion’s board of directors,” said Jim Zallie, chairman, president and CEO, announcing Escoe’s election. “His track record of success leading capital-intensive businesses and transforming complex global operations across a range of commodity and specialty businesses will be a tremendous asset as we navigate our long-term growth strategy.”
T. Kenneth Escoe is executive vice president of Specialty Products at Illinois Tool Works Inc. (ITW), a Fortune 500 global industrial manufacturer, a role he has held since 2020. Since joining Illinois Tool Works in 2014 he has led different commercial and operational functions, including roles in food and beverage packaging with a focus on improving profitability, strengthening execution and building organizational capability.
“Kenneth is a proven, standout leader. His experience working with large food and beverage customers combined with his multifunctional experience in operations, commercial, strategy and M&A will strengthen our Board’s perspectives and decision making,” said Victoria Reich, lead director of the Ingredion board.
Before his ITW tenure, Kenneth co-founded Energy Growth Partners in 2011 and was managing partner through 2014. Immediately prior, as vice president of business development at Apex Tool Group — a $1.4 billion joint venture of Danaher Corporation and Cooper Industries — he led the global M&A program that transformed a $600 million private-label tools manufacturer into a $1.2 billion diversified house of branded tool properties through targeted acquisitions, organic innovation investment and global expansion. His earlier career includes more than six years at Danaher Corporation, where he held commercial and marketing leadership roles.
Kenneth is a member of the Board of Directors of United Way of Metropolitan Chicago. He also serves on the advisory board of the George W. Woodruff School of Mechanical Engineering at the Georgia Institute of Technology. He was recognized by Savoy magazine as one of the Most Influential Black Executives in Corporate America in 2018 and 2022.
Kenneth holds a Bachelor of Science in Mechanical Engineering from North Carolina Agricultural and Technical State University, a Master of Science in Mechanical Engineering from the Georgia Institute of Technology and a Master of Business Administration from Harvard Business School.
About Ingredion
Ingredion Incorporated (NYSE: INGR) headquartered in the suburbs of Chicago, is a leading global ingredient solutions provider serving customers in more than 120 countries. With 2025 annual net sales of approximately $7.2 billion, the Company turns grains, fruits, vegetables, and other plant-based materials into value-added ingredient solutions for the food, beverage, animal nutrition, brewing and industrial markets. With Ingredion Idea Labs® innovation centers around the world and more than 11,000 employees, the company co-creates with customers and fulfills its purpose of bringing the potential of people, nature, and technology together to make life better. Visit for more information and the latest Company news.
CONTACTS:
Investors: Noah Weiss, 773-896-5242
Media: Rick Wion, 708-209-6323
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Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Tyson Foods (TSN - Free Report) . TSN is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.
Investors should also note that TSN holds a PEG ratio of 0.70. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TSN's PEG compares to its industry's average PEG of 1.60. TSN's PEG has been as high as 0.94 and as low as 0.30, with a median of 0.72, all within the past year.
We should also highlight that TSN has a P/B ratio of 1.03. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. TSN's current P/B looks attractive when compared to its industry's average P/B of 1.52. Within the past 52 weeks, TSN's P/B has been as high as 1.24 and as low as 1.01, with a median of 1.11.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TSN has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.67.
Finally, our model also underscores that TSN has a P/CF ratio of 7.77. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.55. Within the past 12 months, TSN's P/CF has been as high as 12.12 and as low as 7.59, with a median of 8.75.
These are just a handful of the figures considered in Tyson Foods's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TSN is an impressive value stock right now.
