Cummins Inc. (CMI) AI Stock Analysis

Cummins Inc. is a global provider of power solutions operating through five segments: Engine, Distribution, Components, Power Systems, and New Power. The company manufactures diesel and natural gas engines for heavy and medium-duty trucks, buses, automotive, construction, and marine markets. In addition to engines, Cummins provides power generation systems, high-horsepower units, remanufactured parts, and aftermarket repair services. Its components business specializes in emission solutions, turbochargers, filtration systems, electronic control modules, and fuel systems. Cummins also develops electrified power systems, battery technologies, and hydrogen production solutions to serve original equipment manufacturers, distributors, dealers, and end-users worldwide.

Cummins increased revenue from $24.02B in FY2021 to $28.07B in FY2022 and $34.06B in FY2023, followed by $34.10B in FY2024 before revenue fell 1.3% to $33.67B in FY2025. Between FY2020 and FY2025, revenue grew at a 5-year CAGR of 11.2%. Gross margin improved from 23.7% in FY2021 to 25.3% in FY2025, with FY2025 operating margin reaching 12.0%. Net income finished at $2.84B in FY2025 with diluted EPS of $22.06, down from $3.95B and $20.76 in FY2024. For the latest quarter ended June 30, 2026, quarterly revenue grew 9.4% year-over-year, while quarterly earnings increased 4.7%.

As of June 30, 2026, Cummins held $3.92B in cash and short-term investments against total debt of $8.29B, leaving net debt at $4.36B. Total assets were $35.63B and shareholders' equity was $12.85B, with a debt-to-equity ratio of 0.64 and a current ratio of 1.73. During FY2025, the company generated $3.62B in operating cash flow, which funded $1.24B in capital expenditures and produced $2.39B in free cash flow. Cash outlays included $1.05B in dividends paid, while the 5-year share count fell 2.7%.

Cummins closed at $531.33 on October 16, 2026, valuing the company at a trailing P/E of 27.2x and a forward P/E of 15.4x. These multiples compare to medians of 28.5x and 20.7x for its S&P 500 Industrials peers. The company's price-to-sales of 2.1x and EV-to-EBITDA of 14.5x also track below the peer group medians of 3.3x and 17.7x. Over the trailing 1-year period, Cummins shares gained 27.5%, outperforming the S&P 500 return of 16.8%. Over 5 years, Cummins returned 150.1% versus 83.0% for the index.

Cummins has paid dividends for 42 consecutive years. The forward annual dividend is $8.80 per share, delivering a dividend yield of 1.66% with a payout ratio of 36.0%. Over the past 5 years, dividend growth annualized at 7.7%. Payments are made on a quarterly schedule, with the last ex-dividend date on November 20, 2026.

Wall Street analysts hold 11 Strong Buy, 4 Buy, and 7 Hold ratings on Cummins, with no Sell or Strong Sell ratings. The mean price target is $716.66, representing a 34.9% premium over the last close of $531.33. For the fiscal year ending December 31, 2026, analysts estimate EPS of $28.45 on revenue of $37.67B. Cummins beat EPS estimates in 2 of the last 4 quarters, with its next earnings date scheduled for November 5, 2026.

This page is an AI-written research summary of Cummins Inc. (CMI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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