Zacks Research Has Bearish Estimate for Cummins Q1 Earnings

Cummins Inc. (NYSE:CMI) – Equities researchers at Zacks Research reduced their Q1 2026 earnings per share (EPS) estimates for shares of Cummins in a research note issued on Thursday, February 19th. Zacks Research analyst Team now forecasts that the company will post earnings per share of $5.50 for the quarter, down from their previous estimate of $5.64. Zacks Research has a “Hold” rating on the stock. The consensus estimate for Cummins’ current full-year earnings is $22.54 per share. Zacks Research also issued estimates for Cummins’ Q3 2026 earnings at $6.59 EPS and Q4 2027 earnings at $8.02 EPS.

Several other analysts have also recently commented on the stock. Citigroup boosted their price target on shares of Cummins from $580.00 to $630.00 and gave the stock a “buy” rating in a research note on Tuesday, January 13th. Wall Street Zen upgraded Cummins from a “hold” rating to a “buy” rating in a research report on Saturday, November 15th. UBS Group set a $565.00 price target on Cummins and gave the company a “neutral” rating in a research note on Friday, February 6th. Barclays lifted their price objective on Cummins from $546.00 to $610.00 and gave the stock an “overweight” rating in a research note on Friday, January 23rd. Finally, Argus set a $696.00 price objective on Cummins in a report on Tuesday, February 10th. Eleven research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $588.93.

Cummins Stock Performance

CMI opened at $593.27 on Friday. The stock has a market capitalization of $81.97 billion, a price-to-earnings ratio of 28.91, a PEG ratio of 1.89 and a beta of 1.13. The company has a fifty day moving average of $558.23 and a 200 day moving average of $477.32. Cummins has a fifty-two week low of $260.02 and a fifty-two week high of $617.98. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.16 and a current ratio of 1.76.

Cummins (NYSE:CMI) last released its quarterly earnings data on Thursday, February 5th. The company reported $5.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.17 by $0.64. Cummins had a net margin of 8.44% and a return on equity of 25.71%. The firm had revenue of $8.54 billion for the quarter, compared to analysts’ expectations of $8.09 billion. During the same quarter last year, the business posted $5.16 earnings per share. The company’s revenue for the quarter was up 1.1% compared to the same quarter last year.

Hedge Funds Weigh In On Cummins

A number of large investors have recently made changes to their positions in the company. Nicolet Advisory Services LLC lifted its stake in Cummins by 1.6% in the fourth quarter. Nicolet Advisory Services LLC now owns 1,101 shares of the company’s stock worth $619,000 after purchasing an additional 17 shares during the last quarter. Frank Rimerman Advisors LLC boosted its stake in shares of Cummins by 0.5% during the fourth quarter. Frank Rimerman Advisors LLC now owns 3,738 shares of the company’s stock valued at $1,908,000 after purchasing an additional 18 shares during the period. Financial Consulate Inc. grew its holdings in shares of Cummins by 16.8% in the fourth quarter. Financial Consulate Inc. now owns 125 shares of the company’s stock worth $64,000 after purchasing an additional 18 shares during the last quarter. ICW Investment Advisors LLC grew its holdings in shares of Cummins by 2.6% in the fourth quarter. ICW Investment Advisors LLC now owns 723 shares of the company’s stock worth $369,000 after purchasing an additional 18 shares during the last quarter. Finally, Gilbert & Cook Inc. increased its stake in Cummins by 1.0% in the 4th quarter. Gilbert & Cook Inc. now owns 1,856 shares of the company’s stock worth $947,000 after buying an additional 19 shares during the period. 83.46% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other Cummins news, Director William I. Miller sold 18,107 shares of Cummins stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $597.10, for a total transaction of $10,811,689.70. Following the completion of the transaction, the director directly owned 34,243 shares of the company’s stock, valued at $20,446,495.30. The trade was a 34.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Brett Michael Merritt sold 1,450 shares of the business’s stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $489.32, for a total transaction of $709,514.00. Following the transaction, the insider owned 9,271 shares in the company, valued at $4,536,485.72. This trade represents a 13.52% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.41% of the stock is currently owned by insiders.

Cummins Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 5th. Stockholders of record on Friday, February 20th will be paid a $2.00 dividend. This represents a $8.00 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend is Friday, February 20th. Cummins’s dividend payout ratio (DPR) is presently 38.99%.

Cummins Company Profile

Cummins Inc (NYSE: CMI) is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world’s leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company’s product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.