CMI

Experienced investors often look for companies with consistent earnings growth as a marker of solid profitability. However, an even more compelling indicator is earnings acceleration, which can be a key driver for stock price gains. Studies have found that many top-performing stocks exhibit earnings acceleration before their share prices start to move northward. To that end, Cummins Inc. CMI, Atkore Inc. ATKR and Legacy Housing Corporation LEGH are showing strong earnings acceleration. Earnings acceleration refers to the incremental growth in a company’s earnings per share (EPS). Put simply, if a company’s quarter-over-quarter earnings growth rate increases over a given period, it can be called earnings acceleration. In the case of earnings growth, you pay for something that is already reflected in the stock price. However, earnings acceleration helps identify stocks that haven’t yet caught investors’ attention and, once secured, will invariably lead to a rally in share price. This is because earnings acceleration considers both the direction and magnitude of growth rates. An increasing percentage of earnings growth means that the company is fundamentally sound and has been on the right track for a considerable period. Meanwhile, a sideways percentage of earnings growth indicates a period of consolidation or slowdown, while a decelerating percentage of earnings growth may drag prices down. Look at stocks for which the last two quarter-over-quarter percentage EPS growth rates exceed the previous periods’ growth rates. The projected EPS growth rate for the upcoming quarter is expected to exceed that of prior periods. EPS % Projected Growth (Q1)/(Q0) greater than EPS % Growth (Q0)/(Q-1): The projected growth rate for the current quarter (Q1) over the completed quarter (Q0) has to be greater than the growth rate from the completed quarter (Q0) over one quarter ago (Q-1). EPS % Growth (Q0)/(Q-1) greater than EPS % Growth (Q-1)/(Q-2): The growth rate for the completed quarter (Q0) over one quarter ago (Q-1) has to be greater than the growth rate from one quarter ago (Q-1) over two quarters ago (Q-2). EPS % Growth (Q-1)/(Q-2) greater than EPS % Growth (Q-2)/(Q-3): The growth rate from one quarter ago (Q-1) over two quarters ago (Q-2) has to be greater than the growth rate from two quarters ago (Q-2) over three quarters ago (Q-3). In addition to this, we have added...

Cummins delivered a positive first quarter, as reflected by a 2.2% post-earnings stock move, with management attributing the results to strong power generation demand—especially from data centers—and solid growth in international markets. CEO Jennifer Rumsey highlighted, “Growth was driven primarily by higher demand in power generation markets, particularly from data centers.” However, North American heavy- and medium-duty truck volumes were a notable drag, offsetting some gains. Is now the time to buy CMI? Find out in our full research report (it’s free). Revenue: $8.40 billion vs analyst estimates of $8.32 billion (2.7% year-on-year growth, 0.9% beat) Adjusted EPS: $6.15 vs analyst estimates of $5.63 (9.3% beat) Adjusted EBITDA: $1.49 billion vs analyst estimates of $1.45 billion (17.7% margin, 3% beat) Operating Margin: 11.3%, down from 13.9% in the same quarter last year Market Capitalization: $96.96 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Angel Castillo (Morgan Stanley) asked about one-time cost benefits in Power Systems and expected margin cadence; CFO Mark Smith pointed to normal seasonality and strong first-half demand, with less margin variation expected later in the year. Kyle Menges (Citigroup) pressed for details on EPA 2027 engine launches and fuel efficiency benefits; CEO Jennifer Rumsey confirmed performance improvements and explained the delayed B platform, emphasizing ongoing collaboration with regulators. Jerry Revich (Wells Fargo Securities) questioned lead times and incremental margins in Power Systems and Engines; Rumsey and Smith highlighted recent capacity expansions and confidence in further margin growth as investment peaks subside. David Raso (Evercore ISI) queried why Distribution and Components margins would be lower relative to other segments; Smith cited mix shifts and tougher year-over-year comparisons due to prior pricing actions. Timothy Thein (Raymond James) inquired about the financial impact and compliance strategies for the delayed B Series engine and profit dynamics in China; Rumsey and Smith outlined plans to manage regulatory risk and underscored China’s data c...

Shareholders appeared unconcerned with Cummins Inc.'s (NYSE:CMI) lackluster earnings report last week. We did some digging, and we believe the earnings are stronger than they seem. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Importantly, our data indicates that Cummins' profit was reduced by US$454m, due to unusual items, over the last year. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. If Cummins doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming year. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Because unusual items detracted from Cummins' earnings over the last year, you could argue that we can expect an improved result in the current quarter. Based on this observation, we consider it likely that Cummins' statutory profit actually understates its earnings potential! And on top of that, its earnings per share have grown at 8.4% per year over the last three years. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. If you want to do dive deeper into Cummins, you'd also look into what risks it is currently facing. Case in point: We've spotted 1 warning sign for Cummins you should be aware of. Today we've zoomed in on a single data point to better understand the nature of Cummins' profit. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article...

Cummins Inc. reported past first-quarter 2026 results with sales of US$8,398 million, net income of US$654 million, and diluted earnings per share from continuing operations of US$4.71, compared with the prior year’s higher profitability. Despite lower quarterly earnings, Cummins raised its full-year 2026 revenue guidance to growth of 8%–11%, citing stronger demand in North America on-highway markets and data center-related power generation. We’ll now examine how Cummins’ upgraded full-year revenue outlook and resilient power generation demand affect its existing investment narrative. Invest in the nuclear renaissance through our list of 91 elite nuclear energy infrastructure plays powering the global AI revolution. To own Cummins today, you need to believe its traditional engine and component businesses can weather truck-cycle weakness while power generation, especially data center demand, helps support results. The raised 2026 revenue outlook suggests that, for now, resilient power markets are offsetting softer North American truck volumes, but persistent weakness in heavy and medium-duty demand remains the key short term risk to watch. Overall, this earnings update does not fundamentally change that near term risk/reward balance. The most relevant development is Cummins lifting its 2026 revenue guidance to 8%–11% growth, driven by stronger North America on-highway and power generation demand. This connects directly to the core catalyst that data center-led power systems and a sizeable backlog can help support revenue and margins even as truck orders stay subdued, buying management time to execute on product launches like EPA-compliant platforms and efficiency efforts in businesses such as Accelera. But despite that stronger outlook, investors should still pay attention to how prolonged weakness in North American truck demand could... Read the full narrative on Cummins (it's free!) Cummins' narrative projects $42.0 billion revenue and $4.8 billion earnings by 2029. This requires 7.6% yearly revenue growth and a $2.0 billion earnings increase from $2.8 billion today. Uncover how Cummins' forecasts yield a $643.36 fair value, a 8% downside to its current price. Before this report, the most optimistic analysts were banking on around US$40 billion of revenue and US$3.6 billion of earnings by 2028, which is a much rosier view than the truck-cycle and Accelera r...

COLUMBUS, Ind., May 12, 2026--(BUSINESS WIRE)--The Board of Directors of Cummins Inc. (NYSE: CMI) today declared a quarterly common stock cash dividend of 2.00 dollars per share. The dividend is payable on June 4, 2026, to shareholders of record on May 22, 2026. About Cummins Inc. Cummins Inc., a global power leader, is committed to powering a more prosperous world. Since 1919, we have delivered innovative solutions that move people, goods and economies forward. Our five business segments—Engine, Components, Distribution, Power Systems and Accelera™ by Cummins—offer a broad portfolio, including advanced diesel, electric and hybrid powertrains; integrated power generation systems; critical components such as aftertreatment, turbochargers, fuel systems, controls, transmissions, axles and brakes; and zero-emissions technologies like battery and electric powertrain systems. With a global footprint, deep technical expertise and an extensive service network, we deliver dependable, cutting-edge solutions tailored to our customers’ needs, supporting them through the energy transition with our Destination Zero strategy. We create value for customers, investors and employees and strengthen communities through our corporate responsibility global priorities: education, equity and environment. Headquartered in Columbus, Indiana, Cummins employs approximately 67,400 people worldwide and earned $2.8 billion on $33.7 billion in sales in 2025. Learn more at www.cummins.com. Forward-looking disclosure statement Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future. These forward-looking statements include, without limitation, statements relating to our plans and expectations for our revenues and EBITDA. Our actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to: any adverse consequences resulting from entering into agreements with the U.S. Environmental Protection Agency, California Air Resources Board, the Environmental and Natural Resources Division of the U.S. Department of Justice and the Calif...

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the first quarter's performance to a seasonally soft environment and extraordinarily cold weather, which impacted both production uptime and operational expenses. The 'logjam' for heavy-duty fleet conversions is reportedly breaking due to high diesel volatility, regulatory clarity for combustion engines, and successful testing of the Cummins X15N engine. Vertical integration is cited as a core competitive advantage, allowing the company to leverage its dispensing network to attract upstream partners while providing reliable RNG supply to downstream fleets. Operational improvements are focused on 'benchmarking' best practices across the 10-project landfill gas fleet to improve inlet gas utilization and debottleneck existing facilities. Management notes that while CNG/RNG currently holds only a 2% share of the 45 billion gallon diesel market, the industry is positioned for accelerating adoption in the untapped heavy-duty sector. The company is shifting its earnings profile to reduce sensitivity to commodity pricing by increasing contributions from contracted, volume-based tolling activity at OPAL-owned stations. Full-year 2026 guidance is maintained, with management expecting accelerating production growth and easier year-over-year comparisons starting in the second quarter. The company expects to bring online more than 2 million MMBtu of annual design capacity over the next year through the Cottonwood, Burlington, and CMS projects. Business development activity in 2026 is not expected to impact financial results until 2027 due to the 12-month lead time required for station construction after signing. Management anticipates allocating capital in 2026 toward new RNG projects and fueling station growth, supported by $233 million in current liquidity. Future growth in 2027 and beyond is expected to be driven by large-scale fleet deployments as equipment costs decrease and vendors scale production. A $3.4 million year-over-year decline in Adjusted EBITDA was primarily driven by a $0.30 decrease in realized D3 RIN prices. The company completed $288 million in financing transactions, including a $180 million preferred stock facility, to provide a runway for capital allocation. A $100 million mu...

As May began, astute investors started looking for companies demonstrating steady earnings growth as a sign of solid profitability. However, earnings acceleration is even more impactful and often serves as a stronger catalyst for driving stock prices higher. Studies indicate that top-performing stocks typically exhibit earnings acceleration before their share prices rise. To that end, ANI Pharmaceuticals, Inc. ANIP, Cummins Inc. CMI and Seadrill Limited SDRL are showing strong earnings acceleration this month. Earnings acceleration is the incremental growth in a company’s earnings per share (EPS). In other words, if a company’s quarter-over-quarter earnings growth rate increases within a stipulated time frame, it can be called earnings acceleration. In the case of earnings growth, you pay for something that is already reflected in the stock price. However, earnings acceleration helps identify stocks that haven’t yet caught investors' attention and, once secured, will invariably lead to a rally in share price. This is because earnings acceleration considers both the direction and magnitude of growth rates. An increasing percentage of earnings growth means that the company is fundamentally sound and has been on the right track for a considerable period. Meanwhile, a sideways percentage of earnings growth indicates a period of consolidation or slowdown, while a decelerating percentage of earnings growth may drag prices down. Look at stocks for which the last two quarter-over-quarter percentage EPS growth rates exceed the previous periods’ growth rates. The projected EPS growth rate for the upcoming quarter is expected to exceed that of prior periods. EPS % Projected Growth (Q1)/(Q0) greater than EPS % Growth (Q0)/(Q-1): The projected growth rate for the current quarter (Q1) over the completed quarter (Q0) has to be greater than the growth rate from the completed quarter (Q0) over one quarter ago (Q-1). EPS % Growth (Q0)/(Q-1) greater than EPS % Growth (Q-1)/(Q-2): The growth rate for the completed quarter (Q0) over one quarter ago (Q-1) has to be greater than the growth rate from one quarter ago (Q-1) over two quarters ago (Q-2). EPS % Growth (Q-1)/(Q-2) greater than EPS % Growth (Q-2)/(Q-3): The growth rate from one quarter ago (Q-1) over two quarters ago (Q-2) has to be greater than the growth rate from two quarters ago (Q-2) over three quarters ago (Q-3). In...

Interested in Clean Energy Fuels Corp.? Here are five stocks we like better. Clean Energy reported Q1 results broadly in line with expectations, delivering 67 million gallons of RNG, revenue of $117.6 million, Adjusted EBITDA of $16.6 million and a GAAP net loss narrowed to $12 million, while finishing the quarter with $126 million in cash (plus $46 million at JV dairy projects) and reiterating confidence in delivering >250 million gallons for the year. New CEO Clay Corbus is prioritizing growth, execution and a more technology-forward approach, arguing a recent sharp diesel price spike underscored RNG’s cost and emissions advantages, but he noted heavy‑duty trucking adoption (e.g., Cummins X15N) has been slower than expected due to higher upfront costs, regulatory uncertainty and long sales cycles. Upstream progress includes eight RNG projects operating and three under construction, and a regulatory win with CARB approving the Del Rio dairy pathway at roughly -300 carbon intensity, which roughly doubles LCFS credit generation and materially improves project economics as the company awaits an updated GREET model. Clean Energy Fuels Stock is Waking Up Clean Energy Fuels (NASDAQ:CLNE) reported first-quarter 2026 results that executives said were in line with expectations, while highlighting continued strength in renewable natural gas (RNG) volumes and the impact of commodity price volatility on fleet economics. During the company’s earnings call, newly appointed President and CEO Clay Corbus said he plans to focus on growth, execution, and operating discipline, while also pushing the company to be “more technology forward” through data and software to improve efficiency across operations and customer service. Corbus noted he has spent 19 years at the company and has been involved in major strategic shifts including early investments in RNG and the development of an integrated platform. → Berkshire Hathaway’s Record Cash Hoard: Why and What's Next? Corbus said Clean Energy delivered 67 million gallons of RNG in the quarter, generated $16.6 million of Adjusted EBITDA, and ended the period with $126 million of cash on the balance sheet. He described downstream performance across core markets as steady, with transit and refuse continuing to be consistent contributors supported by long-standing customer relationships. CFO Bob Vreeland said revenue rose to $117.6 mi...

Cummins Inc. CMI delivered adjusted earnings of $6.15 per share in the first quarter of 2026, up 3.2% year over year and 9.8% above the Zacks Consensus Estimate. Revenues of $8.40 billion rose 2.7% from the year-ago quarter and topped the consensus mark by 0.9%. The quarter reflected solid execution in key end markets, highlighted by an adjusted EBITDA margin of 17.7% of sales. Strength in power generation, particularly for data center-related demand, stood out as a meaningful contributor to results. CMI currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Cummins Inc. price-consensus-eps-surprise-chart | Cummins Inc. Quote CMI’s Engine segment posted sales of $2.67 billion, down 4% year over year amid the decline in lower medium-duty and heavy-duty truck demand in the United States, which more than offset stronger construction-related demand in China. Profitability in the segment was pressured as well. Segment EBITDA was $279 million (down from $458 million in the first quarter of 2025) and the margin declined to 10.4% (compared with 16.5% in the year-ago quarter), reflecting lower volumes and higher compensation costs. Cummins’ Components segment generated $2.53 billion of sales, a 5% decline from the prior-year period. The drop was tied primarily to softer heavy- and medium-duty demand in North America, while international demand improved in markets such as China and Brazil. Segment EBITDA totaled $337 million, translating to a 13.3% margin, down from $382 million or 14.3% of sales. Lower volumes weighed on the margin performance versus the year-ago quarter. CMI’s Distribution segment was a bright spot, with sales rising 7% year over year to $3.12 billion. Growth was driven by increased demand for power generation products, with particularly strong momentum tied to data center applications. Segment EBITDA increased to $444 million, and the margin expanded to 14.2% from 12.9% of sales. Higher volumes more than offset cost pressures, including higher compensation expense, supporting improved profitability. Cummins’ Power Systems segment delivered the sharpest acceleration in the quarter. Sales climbed 19% year over year to $1.96 billion, supported by increased power generation demand across North America and international markets, including China and the Asia Pacific. The segment also showed m...

Revenue growth of 3% was primarily driven by a 23% surge in North American power generation demand, specifically from data centers, which offset a 20% decline in heavy and medium-duty truck volumes. Record EBITDA in Power Systems reflects successful operational improvements and a strategic shift toward high-horsepower markets like data centers and mining. International growth of 16% was bolstered by a 19% revenue increase in China, fueled by accelerating data center demand and strong export activity by local OEMs. Management attributed the margin resilience to favorable pricing and increased joint venture income, which helped mitigate higher compensation expenses and lower North American production levels. The sale of the Low-pressure Fuel Cell business represents a strategic pivot to reduce operating losses in the Accelera segment and focus on higher-potential zero-emission technologies. Operational execution is shifting toward capacity expansion, including adding a third shift at the Rocky Mount plant to meet rapidly recovering medium-duty truck demand. Full-year revenue guidance was raised to 8% to 11% growth, up from the prior 3% to 8% range, reflecting stronger-than-anticipated momentum in North American truck markets. Management expects a modest prebuy in the second half of 2026 as customers prepare for the 2027 EPA regulatory changes, particularly in the heavy-duty segment. The launch of the B-series engine platform has been strategically delayed to January 2028 to align with evolving EPA regulations, while X15 and X10 launches remain on track for 2027. Global power generation revenue guidance was increased to 15% to 25% growth, supported by capacity additions brought online in late 2025 to meet data center needs. EBITDA margin guidance was raised to 17.75% to 18.5%, driven by improved profit outlooks across all business segments and reduced losses in Accelera. A $199 million net charge was recorded in the first quarter related to the divestiture of the Low-pressure Fuel Cell business to Alstom. Management noted that the net impact of tariffs on EBITDA was immaterial in Q1 and is expected to remain so for the rest of 2026 due to proactive supply chain mitigation. Variable compensation expenses increased in Q1, impacting margins across the Engine, Components, and Distribution segments. The company returned $519 million to shareholders in Q1, maintainin...

Image source: The Motley Fool. Tuesday, May 5, 2026 at 10 a.m. ET Chair and Chief Executive Officer — Jennifer Rumsey Chief Financial Officer — Mark Smith Vice President, Investor Relations — Nicholas Arens Jennifer Rumsey to kick us off. Jennifer Rumsey: Thank you, Nick. Good morning, everyone. I'll start with a summary of our first quarter accomplishments and financial results, then discuss our sales and end market trends by region. I will finish with a discussion of our outlook for 2026. Mark will then walk you through additional detail on our first quarter performance and our full year forecast. Before getting into the details of our performance, I want to highlight a few major events from the quarter. In February, Cummins marked a significant milestone with the deployment of the world's first Commercial Hybrid Electric Ultra-class Mining Truck, now in operation, in production at the Caserones open-pit mine in Chile. This pilot represents our first retrofit of a 300-ton Komatsu haul truck using First Mode hybrid technology in daily operations. It reflects our strategy of delivering solutions that reduce CO2 emissions today, while advancing our customers' long-term decarbonization goals. In March, Mack Trucks announced the integration of the Cummins X10 engine into the Mack Granite Chassis. This milestone reflects the strong collaboration between the Mack and Cummins teams and our shared commitment to delivering reliable, high-performing solutions for vocational customers. The X10 is well suited for demanding work applications and its integration into the Granite platform will provide customers with a compelling option in the vocational truck segment. Finally, during the quarter, we took targeted actions in our Accelera segment by completing the sale of our Low-pressure Fuel Cell business and related customer commitments for this business. This sale will enable continued improvement in our trajectory of our financial results in the Accelera segment. Together, these actions demonstrate how we are executing against our strategy across our businesses. Now I will turn to our overall company performance for the first quarter of 2026 and cover some of our key markets. Sales for the first quarter were $8.4 billion, an increase of 3% compared to the first quarter of 2025. Growth was driven primarily by higher demand in power generation markets, particularly from...

Cummins (CMI) came out with quarterly earnings of $6.15 per share, beating the Zacks Consensus Estimate of $5.6 per share. This compares to earnings of $5.96 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +9.79%. A quarter ago, it was expected that this engine maker would post earnings of $5.2 per share when it actually produced earnings of $5.81, delivering a surprise of +11.73%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Cummins, which belongs to the Zacks Automotive - Internal Combustion Engines industry, posted revenues of $8.4 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.92%. This compares to year-ago revenues of $8.17 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Cummins shares have added about 28.7% since the beginning of the year versus the S&P 500's gain of 5.2%. While Cummins has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Cummins was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks her...