Zacks Research Has Negative Forecast for Cummins Q1 Earnings

Cummins Inc. (NYSE:CMI) – Zacks Research reduced their Q1 2026 earnings per share (EPS) estimates for shares of Cummins in a research note issued on Thursday, November 20th. Zacks Research analyst Team now anticipates that the company will earn $5.54 per share for the quarter, down from their prior estimate of $6.06. 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 $6.19 EPS, Q4 2026 earnings at $5.89 EPS, FY2026 earnings at $24.15 EPS, Q1 2027 earnings at $6.17 EPS and Q2 2027 earnings at $6.85 EPS.

Cummins (NYSE:CMI) last posted its quarterly earnings data on Thursday, November 6th. The company reported $5.59 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.83 by $0.76. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The firm had revenue of $8.32 billion for the quarter, compared to the consensus estimate of $7.97 billion. During the same period in the previous year, the firm earned $5.86 EPS. The business’s revenue for the quarter was down 1.6% compared to the same quarter last year.

Several other research firms have also commented on CMI. Melius Research upgraded shares of Cummins from a “hold” rating to a “buy” rating and set a $500.00 price objective for the company in a research note on Wednesday, September 3rd. Sanford C. Bernstein restated a “market perform” rating and set a $475.00 price target on shares of Cummins in a research report on Friday, November 7th. Wolfe Research upgraded shares of Cummins from a “hold” rating to an “outperform” rating in a report on Monday, August 11th. Evercore ISI reiterated an “outperform” rating on shares of Cummins in a research note on Tuesday, August 19th. Finally, Truist Financial increased their target price on shares of Cummins from $434.00 to $522.00 and gave the company a “hold” rating in a research report on Friday, November 7th. Ten research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $445.93.

Cummins Stock Up 1.5%

CMI opened at $472.35 on Monday. Cummins has a fifty-two week low of $260.02 and a fifty-two week high of $484.84. The firm has a market capitalization of $65.20 billion, a P/E ratio of 22.21, a PEG ratio of 2.05 and a beta of 1.07. The company’s 50-day moving average is $434.70 and its 200 day moving average is $382.01. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03.

Cummins Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 4th. Investors of record on Friday, November 21st will be paid a dividend of $2.00 per share. This represents a $8.00 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date is Friday, November 21st. Cummins’s dividend payout ratio is presently 41.52%.

Insider Activity at Cummins

In related news, CFO Mark Andrew Smith sold 13,110 shares of Cummins stock in a transaction that occurred on Thursday, November 6th. The shares were sold at an average price of $470.66, for a total value of $6,170,352.60. Following the completion of the transaction, the chief financial officer directly owned 31,582 shares in the company, valued at approximately $14,864,384.12. The trade was a 29.33% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Jennifer Rumsey sold 4,570 shares of the stock in a transaction on Tuesday, November 11th. The stock was sold at an average price of $473.89, for a total value of $2,165,677.30. Following the sale, the chief executive officer owned 42,880 shares in the company, valued at approximately $20,320,403.20. This represents a 9.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 34,960 shares of company stock valued at $15,715,060. 0.41% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Flagship Wealth Advisors LLC bought a new position in shares of Cummins in the third quarter valued at approximately $28,000. Accredited Wealth Management LLC purchased a new stake in Cummins in the 1st quarter worth approximately $31,000. Osterweis Capital Management Inc. bought a new position in Cummins in the 2nd quarter valued at $31,000. Guerra Advisors Inc purchased a new position in shares of Cummins during the 3rd quarter valued at $36,000. Finally, Salomon & Ludwin LLC grew its position in shares of Cummins by 1,333.3% during the 3rd quarter. Salomon & Ludwin LLC now owns 86 shares of the company’s stock valued at $37,000 after purchasing an additional 80 shares in the last quarter. Institutional investors own 83.46% of the company’s stock.

About Cummins

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.