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Cummins Inc. (CMI) Stock Analysis

By Nova Skye | AltStation.io | Updated October 05, 2026

Price

$526.62

Change

+1.86%

Market Cap

$72.50B

Avg Volume

1.0M

Company Overview

Cummins Inc. is a Columbus, Indiana-based manufacturing powerhouse operating in the Specialty Industrial Machinery industry within the Industrials sector. Founded in 1919, the company develops and delivers power solutions across five operating segments: Engine, Distribution, Components, Power Systems, and Accelera. Their catalog spans diesel and natural gas engines, drivetrain axles and brakes, turbochargers, aftertreatment emissions systems, and standby power generators. They sell this hardware alongside repair and maintenance services directly to original equipment manufacturers, dealers, and global distributors.

Cummins holds an entrenched market-leader position in heavy-duty commercial propulsion and industrial power generation. Decades of proprietary engineering, deep OEM integration, and a massive global distribution network give the company a formidable competitive moat. The primary threat to this position is tightening emissions mandates and the broader industry transition away from fossil fuels. That regulatory pressure demands continuous capital allocation into cleaner component systems to keep legacy platforms compliant.

Right now, Cummins is actively executing a strategic pivot to diversify beyond traditional internal combustion engines. Through its Accelera segment, the company is scaling electrified power systems, including commercial batteries, fuel cells, battery energy storage systems, and electric powertrains. The playbook is clear: leverage steady cash flow from legacy diesel, natural gas, and generator segments to fund the commercialization of alternative sustainable fuel technologies.

Key Financials

Market Cap

$72.50B

Revenue

$34.71B

EBITDA

$5.02B

Gross Margin

25.8%

Profit Margin

7.8%

Revenue Growth

9.4%

Total Cash

$3.92B

Total Debt

$8.29B

Free Cash Flow

$2.23B

52-Week Price Performance Analysis

Price Statistics

P/E Ratio

26.95

Forward P/E

15.23

Beta

1.23

52-Week High

$737.76

52-Week Low

$400.72

EPS

$19.54

50-Day Avg

$583.47

200-Day Avg

$603.29

Price/Book

5.64

Technical Analysis

CMI trades at $526.62, 39% of the way from its 52-week low of $394.95 to its 52-week high of $735.02. The stock is 28.12% below that high but remains 33.77% above the low. Price is below the 20-day moving average of $533.97, with the supplied data placing it 1.06% under that average. Momentum improved 0.62% over the last five trading days, but the 20-day reading remains negative at 3.15%. Near-term support is $516.57, while $587.68 is the resistance level CMI needs to break.

Recent News and Developments

Cummins lands 1-gigawatt EquipmentShare agreement

EquipmentShare signed a multiyear agreement for Cummins natural-gas power systems, adding 1 gigawatt of generation capacity to its fleet. The deployment will support temporary power, microgrids and battery storage, including C1400N6C generator sets producing 1,400 to 1,750 kilovolt-amperes. Source: Equipment Finance News

Cummins expands its hybrid-bus lineup

Cummins introduced a B7.2 engine rating for 60-foot hybrid transit buses, expanding beyond its existing 40-foot application. The company will also display its X10 engine, delivering up to 350 horsepower and 1,150 pound-feet of torque for transit buses, at APTA EXPO. Source: Cummins Inc.

Cummins adds $100,000 incentive to emissions recall

Cummins launched a $100,000 sweepstakes for eligible owners of 2013-2018 Ram 2500 and 3500 trucks who complete Emissions Recall 67A by December 31, 2026. The software update reduces tailpipe nitrogen-oxide emissions, while eligible owners can also receive a $500 prepaid Mastercard and extended warranty coverage. Source: Cummins Inc.

Market Sentiment and Analyst Recommendations

Bull Case

Revenue is $34.71 billion and growing 9.4%, giving the business meaningful expansion despite its size. The multiyear EquipmentShare agreement adds 1 gigawatt of natural-gas generation capacity across temporary power, microgrids, and battery-storage applications. Cummins is also expanding its hybrid-transit offering with the B7.2 engine for 60-foot buses and an X10 engine producing up to 350 horsepower and 1,150 pound-feet of torque. Analysts rate CMI a buy, based on recommendations from 20 analysts. Their average target of $741.26 is 40.76% above the current $526.62 price. The stock is also 28.12% below its 52-week high, creating a credible recovery setup if growth and execution remain strong.

Bear Case

CMI trades at 26.95 times earnings, so the market is already charging a substantial price for its growth. Revenue growth of 9.4% must remain strong enough to justify that multiple. Total debt is $8.29 billion against $3.92 billion in cash, leaving debt $4.37 billion above cash. The stock remains below its $533.97 20-day moving average, and 20-day momentum is negative at 3.15%. Analyst expectations are unusually wide, ranging from $530.00 to $894.00, and the low target offers only 0.64% upside from $526.62. The emissions recall also requires a $100,000 sweepstakes, a $500 prepaid Mastercard for eligible owners, and extended warranty coverage, while the total financial impact is not provided.

What to Watch

The first technical test is whether CMI holds the $516.57 near-term support level and recovers above its $533.97 20-day moving average. A move through $587.68 would clear the stated 30-day resistance, while a break below $516.57 would weaken the setup. Investors should track whether the EquipmentShare agreement translates its 1-gigawatt commitment into stronger revenue performance. Adoption of the B7.2 engine in 60-foot hybrid buses and the X10 engine will show whether the expanded transit lineup gains traction. Recall participation through the December 31, 2026 deadline matters because eligible owners are being offered a $500 prepaid Mastercard, extended warranty coverage, and entry into a $100,000 sweepstakes. Fundamentally, the key test is whether revenue growth can hold near 9.4% and support the 26.95 P/E ratio.

Analyst Consensus

BUY

Based on 20 analyst opinions

Low Target

$530.00

Mean Target

$741.26

High Target

$894.00

Earnings and Financial Data

Sector

Industrials

Industry

Specialty Industrial Machinery

Employees

67,400

Earnings & Dividends

Next Earnings

Nov 05, 2026

EPS (Trailing)

$19.54

Dividend Yield

170.0%

Payout Ratio

40.9%

Frequently Asked Questions

Is CMI a good stock to buy?

The recommendation is buy based on 20 analysts, and revenue growth is 9.4%. The stock still carries a 26.95 P/E, so the clear takeaway is that CMI offers growth and analyst support but is not cheaply valued.

What is CMI’s price target?

The average analyst target is $741.26, compared with a current price of $526.62. The target range is $530.00 to $894.00, so the clear takeaway is that analysts see upside but disagree sharply on its size.

Is CMI stock overvalued?

CMI trades at 26.95 times earnings and has revenue growth of 9.4%. The clear takeaway is that buyers are paying a meaningful premium and need continued growth to justify it.

How much cash and debt does Cummins have?

Cummins has $3.92 billion in total cash and $8.29 billion in total debt. The clear takeaway is that debt exceeds cash by $4.37 billion.

What are CMI’s support and resistance levels?

Near-term support is $516.57, and near-term resistance is $587.68. The clear takeaway is that those are the key 30-day levels to watch around the current $526.62 price.

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Disclaimer: This report is for informational purposes only and does not constitute financial advice. The analysis and opinions expressed are those of AltStation.io and should not be relied upon as the sole basis for investment decisions. Always conduct your own research and consult with a qualified financial advisor before making investment decisions. Past performance does not guarantee future results. Updated October 05, 2026.