Q3 Financial Performance: Cummins reported Q3 revenue of $8.317 billion, exceeding the consensus estimate of $7.99 billion, with notable growth in power systems and distribution segments.
Sales Breakdown: Engine sales decreased by 11% to $2.6 billion, components sales fell 15% to $2.3 billion, while distribution sales rose 7% to $3.2 billion and power systems sales increased 18% to $2.0 billion.
Strategic Review: The company is conducting a strategic review of its electrolyzer business within the Accelera segment due to non-cash charges and weaker demand prospects for hydrogen adoption.
CEO's Remarks: Jennifer Rumsey highlighted strong operating results driven by demand for backup power in data centers and effective cost management amid a decline in the North American truck market.
Wall Street analysts forecast CMI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CMI is 538.00 USD with a low forecast of 385.00 USD and a high forecast of 653.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
Wall Street analysts forecast CMI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CMI is 538.00 USD with a low forecast of 385.00 USD and a high forecast of 653.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Buy
6 Hold
0 Sell
Moderate Buy
Current: 576.230
Low
385.00
Averages
538.00
High
653.00
Current: 576.230
Low
385.00
Averages
538.00
High
653.00
Wolfe Research
Outperform
to
Peer Perform
downgrade
$540
2026-01-26
New
Reason
Wolfe Research
Price Target
$540
AI Analysis
2026-01-26
New
downgrade
Outperform
to
Peer Perform
Reason
Wolfe Research downgraded Cummins to Peer Perform from Outperform and removed the firm's prior $540 price target on the shares. Cummins has materially outperformed the past two years and while the firm still sees an improving fundamental backdrop and expects strong EPS growth the next two years, it is lowering its rating given more balanced risk/reward in what the analyst calls "more of a valuation downgrade than anything else."
Barclays
Overweight
maintain
$546 -> $610
2026-01-23
Reason
Barclays
Price Target
$546 -> $610
2026-01-23
maintain
Overweight
Reason
Barclays raised the firm's price target on Cummins to $610 from $546 and keeps an Overweight rating on the shares. The firm adjusted targets in the machinery and construction group as part of a Q4 preview. Companies benefiting from interest rate cuts "still reign supreme," the analyst tells investors in a research note. Barclays anticipates "conservative" initial outlooks for 2026.
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Wells Fargo
Overweight
maintain
$599 -> $630
2026-01-23
Reason
Wells Fargo
Price Target
$599 -> $630
2026-01-23
maintain
Overweight
Reason
Wells Fargo raised the firm's price target on Cummins to $630 from $599 and keeps an Overweight rating on the shares. The firm reiterates its positive outlook for the Machinery, Industrials & Environmental Services space heading into earnings. Wells argues the Machinery supply-driven recovery is broadening to new equipment, non-residential lead indicators are accelerating, and cash conversion is improving.
Wells Fargo
Buy
initiated
2026-01-05
Reason
Wells Fargo
Price Target
2026-01-05
initiated
Buy
Reason
Wells Fargo added Cummins to the firm's Q1 2026 Tactical Ideas List. Wells is a buyer of Cummins entering 2026 where it sees structurally improving earnings power from U.S. clean air regulations, undersupplied tier 1 generator market for data centers, and bottoming U.S. truck demand amid a spot rate inflection.
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.
