Cummins Q4 Earnings Exceed Expectations with Strong Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 05 2026
0mins
Should l Buy CMI?
Source: Benzinga
- Quarterly Revenue Growth: Cummins reported fourth-quarter revenue of $8.54 billion, reflecting a 1% year-over-year increase that surpassed Wall Street's estimate of $8.13 billion, demonstrating the company's ability to maintain stability despite weakness in the North American truck market.
- Adjusted EPS Performance: The company achieved an adjusted EPS of $5.81, exceeding analyst expectations of $5.11, which highlights its success in operational efficiency and cost control, thereby boosting investor confidence.
- Segment Performance Highlights: The Distribution segment generated $3.3 billion in revenue, up 7%, while the Power Systems segment saw an 11% increase to $1.9 billion, driven by robust demand for data center backup power, enhancing overall profitability.
- Strategic Transformation and Outlook: Cummins completed the acquisition of First Mode assets, expanding its portfolio with hybrid systems for mining and rail, and anticipates revenue growth of 3% to 8% by 2026, maintaining EBITDA margins between 17% and 18%, showcasing confidence in future growth prospects.
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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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- 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.
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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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- 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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