Cummins Q4 Earnings Beat Expectations Despite EPS Miss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 05 2026
0mins
Should l Buy CMI?
Source: seekingalpha
- Earnings Highlights: Cummins reported Q4 GAAP EPS of $4.27, missing estimates by $0.75, while revenue reached $8.5 billion, up 0.6% year-over-year, exceeding expectations by $400 million, indicating resilience in the market.
- Electrolyzer Business Impact: The fourth quarter results included $218 million in charges related to the Electrolyzer business within Accelera, reducing diluted EPS by $1.54, with $175 million being non-cash charges, reflecting initial challenges in new business ventures.
- Full-Year Overview: For 2025, total revenues are projected at $33.7 billion, with net income of $2.8 billion, or 8.4% of sales, and EBITDA at 16.0% of sales, demonstrating stable overall profitability for the company.
- Future Outlook: Revenues for 2026 are expected to grow between 3% and 8%, with EBITDA projected to range from 17.0% to 18.0% of sales, indicating a positive outlook for future growth, although the surge in Class 8 truck sales in December suggests uncertainty in full recovery.
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Analyst Views on CMI
Wall Street analysts forecast CMI stock price to fall
13 Analyst Rating
7 Buy
6 Hold
0 Sell
Moderate Buy
Current: 588.790
Low
385.00
Averages
538.00
High
653.00
Current: 588.790
Low
385.00
Averages
538.00
High
653.00
About CMI
Cummins Inc. is a global power solutions company. The Company’s segments are Components, Engine, Distribution, Power Systems, and Accelera. Components segment designs, manufactures, and supplies products which include axles, drivelines, brakes, and suspension systems. Engine segment manufactures and markets a range of diesel and natural gas-powered engines under the Cummins brand name, for on and off-highway markets. Distribution segment includes sale and support of a range of products and services, including power generation systems, high-horsepower engines, heavy and medium duty engines, and others. Power Systems segment is a power provider, which designs, manufactures and sells engines for industrial applications, prime power generator sets, alternators, and others. Accelera segment designs, manufactures, sells, and supports electrified power systems with components and subsystems, including battery, fuel cell and electric powertrain and hydrogen production technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Regulatory Termination Impact: The Trump administration officially terminates the 2009 'endangerment finding,' effectively dismantling the legal foundation for federal climate regulations, which immediately eliminates greenhouse gas emission standards for cars and trucks, signaling the end of the government-led push for mandatory electric vehicle transitions.
- Tesla Revenue Risk: With the EPA losing authority to enforce tailpipe standards, Tesla's reliance on selling billions in regulatory credits will vanish, and analysts estimate this rollback could erase margin revenue for Tesla as competitors no longer need to pay for compliance.
- Traditional Manufacturers Benefit: Traditional automakers like Ford and General Motors are projected to save over $2,400 per vehicle, providing them with an immediate competitive advantage to pivot capital from high-cost EV mandates back into their high-margin gas-powered SUV and truck lineups.
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- Legal Relief Options: Long-term shareholders of Cummins may qualify for court-approved financial incentive awards or other relief measures, thereby enhancing shareholder rights and company transparency.
- Importance of Participation: Shareholder involvement can improve company policies, practices, and oversight mechanisms, fostering a more transparent and effectively managed organization that enhances shareholder value.
- Global Investor Representation: Halper Sadeh LLC represents investors worldwide, focusing on implementing corporate reforms and recovering millions for victims of securities fraud and corporate misconduct, showcasing their expertise in protecting investor rights.
See More
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- Stock Sale Announcement: Director Miller Williams intends to sell 18,107 shares of its common stock on February 10.
- Market Value: The total market value of the shares to be sold is approximately $10.61 million.
See More
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- On-Demand Viewing: Presentations from the Small Cap Growth Virtual Investor Conference held on February 5, 2026, are now available for on-demand viewing for 90 days, enhancing investor engagement and understanding of participating companies.
- 1x1 Meeting Requests: Selected companies are accepting one-on-one management meeting requests until February 10, providing investors with direct access to executives, which could facilitate informed investment decisions and potential capital inflows.
- Diverse Company Participation: The conference featured presentations from various companies, including Betolar Oyj, Envoy Medical Inc., and C-COM Satellite Systems Inc., showcasing a wide range of investment opportunities in the small-cap growth sector, attracting diverse investor interest.
- Advantages of Virtual Conferences: Virtual Investor Conferences offer a real-time interactive platform that enhances connections between companies and investors, improving the investor experience and creating more efficient fundraising and marketing opportunities for participating firms.
See More
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- Market Impact: This adjustment reflects a positive outlook on Cummins' performance and market conditions.
See More
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