What is Zacks Research’s Forecast for Cummins Q3 Earnings?

Cummins Inc. (NYSE:CMI) – Equities researchers at Zacks Research upped their Q3 2027 earnings per share (EPS) estimates for shares of Cummins in a report released on Thursday, July 16th. Zacks Research analyst Team now expects that the company will earn $9.02 per share for the quarter, up from their prior estimate of $9.00. Zacks Research has a “Hold” rating on the stock. The consensus estimate for Cummins’ current full-year earnings is $29.35 per share.

Cummins (NYSE:CMI) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share for the quarter, beating analysts’ consensus estimates of $5.63 by $0.52. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The firm had revenue of $8.40 billion for the quarter, compared to analyst estimates of $8.37 billion. During the same quarter in the previous year, the firm posted $5.96 earnings per share. The business’s revenue was up 2.7% on a year-over-year basis.

A number of other equities analysts have also recently issued reports on CMI. UBS Group reiterated a “buy” rating on shares of Cummins in a report on Wednesday, June 17th. Argus lifted their target price on Cummins from $696.00 to $770.00 and gave the company a “buy” rating in a research report on Monday, June 1st. Weiss Ratings cut Cummins from a “buy (b)” rating to a “buy (b-)” rating in a research note on Wednesday, May 6th. Robert W. Baird set a $700.00 price target on shares of Cummins in a research note on Wednesday, May 6th. Finally, Morgan Stanley boosted their price objective on shares of Cummins from $675.00 to $752.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. Eleven investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Cummins presently has an average rating of “Moderate Buy” and an average target price of $739.43.

Cummins Trading Down 2.8%

Shares of NYSE:CMI opened at $647.26 on Friday. The firm has a market cap of $89.32 billion, a price-to-earnings ratio of 33.59, a PEG ratio of 1.63 and a beta of 1.22. The company has a quick ratio of 1.11, a current ratio of 1.71 and a debt-to-equity ratio of 0.50. Cummins has a 12 month low of $344.02 and a 12 month high of $737.76. The company’s fifty day simple moving average is $677.66 and its 200 day simple moving average is $614.02.

Institutional Investors Weigh In On Cummins

Several hedge funds have recently added to or reduced their stakes in CMI. Juno Financial Group LLC acquired a new position in shares of Cummins during the 4th quarter worth approximately $883,000. Truist Financial Corp increased its holdings in shares of Cummins by 4.8% during the fourth quarter. Truist Financial Corp now owns 64,005 shares of the company’s stock worth $32,671,000 after purchasing an additional 2,951 shares during the period. Nordea Investment Management AB raised its position in shares of Cummins by 103.8% in the fourth quarter. Nordea Investment Management AB now owns 546,540 shares of the company’s stock valued at $280,397,000 after buying an additional 278,350 shares in the last quarter. Smith Salley Wealth Management boosted its stake in shares of Cummins by 1,381.8% in the fourth quarter. Smith Salley Wealth Management now owns 21,768 shares of the company’s stock valued at $11,111,000 after buying an additional 20,299 shares during the period. Finally, Westfield Capital Management Co. LP bought a new stake in shares of Cummins in the fourth quarter valued at approximately $7,797,000. Institutional investors and hedge funds own 83.46% of the company’s stock.

Insider Buying and Selling

In other news, CAO Nicole Lamb-Hale sold 2,408 shares of the business’s stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $685.34, for a total transaction of $1,650,298.72. Following the transaction, the chief accounting officer directly owned 14,084 shares in the company, valued at $9,652,328.56. The trade was a 14.60% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Donald G. Jackson sold 730 shares of the firm’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $710.92, for a total transaction of $518,971.60. Following the completion of the sale, the vice president owned 8,316 shares of the company’s stock, valued at $5,912,010.72. This trade represents a 8.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 13,579 shares of company stock worth $9,377,684. Corporate insiders own 0.30% of the company’s stock.

Cummins Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Friday, August 21st will be paid a $2.20 dividend. This is an increase from Cummins’s previous quarterly dividend of $2.00. This represents a $8.80 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date is Friday, August 21st. Cummins’s dividend payout ratio is 41.52%.

Key Cummins News

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Zacks Research raised its Q3 2027 EPS estimate for Cummins to $9.02 from $9.00, signaling slightly better earnings expectations.
• Positive Sentiment: Earlier this week, Zacks Research upgraded Cummins to Buy and noted the company’s strong earnings surprise history, reinforcing optimism around the next quarterly report. Zacks Buy upgrade article
• Positive Sentiment: Another Zacks piece highlighted Cummins’ 10% dividend hike and rising AI data center power demand, both of which support the investment case. Dividend hike and AI demand article
• Neutral Sentiment: Zacks Research made only modest trims to some longer-dated earnings forecasts, including FY2027, Q1 2028, Q2 2028 and FY2028, while keeping a Hold rating overall.
• Neutral Sentiment: Recent articles also pointed to Cummins’ upcoming earnings report and a “fresh market test,” suggesting investors are waiting for the company to prove that demand and margins can hold up. Fresh market test article

About Cummins

Cummins Inc (NYSE: CMI) is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world’s leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company’s product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.