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Columbus, Indiana-based Cummins Inc. (CMI) designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. Valued at $58.2 billion by market cap, the company offers products to original equipment manufacturers (OEMs), distributors, and dealers through a network of company-owned and independent distributor facilities. The global power solutions leader is expected to announce its fiscal third-quarter earnings for 2025 in the near future.
Ahead of the event, analysts expect CMI to report a profit of $4.70 per share on a diluted basis, down 16.1% from $5.60 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect CMI to report EPS of $21.65, up 1.3% from $21.37 in fiscal 2024. Its EPS is expected to rise 12.8% year over year to $24.41 in fiscal 2026.
CMI stock has outperformed the S&P 500 Index’s ($SPX) 13.5% gains over the past 52 weeks, with shares up 26.6% during this period. Similarly, it outperformed the Industrial Select Sector SPDR Fund’s (XLI) 8.9% rise over the same time frame.
CMI's strong performance is driven by robust demand for power generation products, especially for AI-driven data center investments, as the company emerges as a key supplier of essential power systems for the rapidly expanding data center infrastructure.
On Aug. 5, CMI shares closed up more than 3% after reporting its Q2 results. Its EPS of $6.43 beat Wall Street expectations of $4.99. The company’s revenue was $8.6 billion, exceeding Wall Street forecasts of $8.5 billion.
Analysts’ consensus opinion on CMI stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 20 analysts covering the stock, eight advise a “Strong Buy” rating, 11 give a “Hold,” and one recommends a “Strong Sell.” CMI’s average analyst price target is $429, indicating a potential upside of 1.5% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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