Is Wall Street Bullish or Bearish on Cummins Stock?

With a market cap of $83.8 billion, Cummins Inc. (CMI) is a global power solutions company that designs, manufactures, distributes, and services a broad range of power technologies. Headquartered in Columbus, Indiana, Cummins operates through five key segments: Engine, Components, Distribution, Power Systems, and Accelera, its zero-emissions technology business. Its portfolio spans diesel, natural gas, electric, and hybrid powertrains, along with engines, generators, power-system components, and zero-emission technologies such as batteries, electric powertrains, hydrogen production systems, and fuel cells

CMI stock has climbed 49.7% over the past year, while the broader S&P 500 Index ($SPX) has rallied 19.5%. The stock has kept its foot on the accelerator in 2026, climbing 16.2% on a YTD basis, comfortably ahead of the broader benchmark’s 11.6% rise.

And the outperformance doesn’t stop there. Cummins has also flexed its muscle against the industrial sector, cruising past the State Street Industrial Select Sector SPDR ETF’s (XLI) 18.9% return over the past 52 weeks and 15.9% rally in 2026.

On Aug. 4, Cummins delivered a record-breaking second quarter for FY2026, but the market initially hit the brakes, sending shares down 2% after the results as its EPS of $6.73 fell short of market expectations. The dip didn’t last long, however, with CMI rebounding 2.3% in the following trading session as investors appeared to look past the earnings miss and focus on the strength of its topline performance.

Cummins generated a record $9.46 billion in revenue, up 9.4% year over year, fuelled by broad-based momentum across its markets. North American sales climbed 8%, while international revenue jumped 12%, led by strong growth in China. The real growth engine was booming demand for power-generation equipment, particularly from data centers and commercial applications, alongside solid international construction activity.

Cummins also rewarded shareholders with a 10% dividend hike to $2.20 per share, marking its 17th consecutive year of dividend increases. Management also grew more confident about the road ahead, lifting its full-year 2026 revenue growth outlook to 10%–13% and tightening its EBITDA margin guidance to 18.0%–18.5%

Looking ahead, Cummins appears poised to shift into a higher gear, with analysts expecting its fiscal 2026 EPS to jump 26.4% year over year to $30.06. But when it comes to delivering against Wall Street’s expectations, the company has been mostly impressive with one recent speed bump. Cummins beat consensus earnings estimates in three of the past four quarters, before falling short in the most recent quarter. 

Among the 20 analysts covering CMI, the consensus rating stands at a “Moderate Buy,” with 11 “Strong Buy” ratings, one “Moderate Buy,” and eight “Holds.” 

The bullish camp clearly remains in control but there’s a small crack in the armor as two months ago CMI had 12 “Strong Buy” recommendations. 

On June 17, Wells Fargo turned more bullish on Cummins, raising its price target to $874 from $794 while maintaining an “Overweight” rating. The upgrade was fueled by Cummins’ earlier-than-expected win with Circe Energy to supply prime-power solutions for high-performance computing data centers in West Texas, with Wells Fargo also seeing additional growth opportunities in Alberta. 

The mean price target of $767.31 represents a 29.3% premium to CMI’s current price levels. The Street-high price target of $894 suggests a 50.7% potential upside.