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Cummins Inc. (CMI) designs, manufactures, and distributes engines and related power solutions, including diesel and natural-gas engines, fuel systems, emission controls, and power generation systems for industrial, commercial, and automotive applications. Headquartered in Columbus, Indiana, the company serves customers through a global network of company-owned and independent distributors and dealers. Cummins plays a significant role in heavy equipment and powertrain markets worldwide with a market cap of $83 billion.
CMI has outpaced the broader market and its industrial peers. The stock has surged 62.7% over the past 52 weeks, easily outpacing the S&P 500 Index’s ($SPX) 11.8% climb. The rally continues in 2026, with CMI up 17.7% on a year-to-date (YTD) basis, outshining the SPX’s marginal decline.
Looking closer, CMI has been surging past the State Street Industrial Select Sector SPDR ETF (XLI), which has risen 26.3% over the past year and 12.3% on a YTD basis.
Cummins stock is seeing optimism amid diversified demand in its Power Systems and Distribution segments, which are heavily benefiting from demand for data center backup power, offsetting softer truck volumes. Investors are optimistic about a projected 3% to 8% revenue growth in 2026, driven by an anticipated recovery in North American on-highway truck markets, particularly in the second half of the year.
As of its fourth quarter 2025, Cummins reported $8.5 billion in revenue, up about 1% year-over-year, while adjusted EPS, came in at $5.81, above the consensus estimate.
For the current fiscal year, ending in December 2026, analysts expect CMI’s EPS to grow 9.6% YOY to $26.05 on a diluted basis. It beat the consensus estimate in each of the last four quarters.
Among the 21 analysts covering the stock, the consensus is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” and 11 “Holds.”
This configuration is more bullish than three months ago, when there was a “Strong Sell” rating.
Earlier this month, Raymond James raised its price target on Cummins to $675 from $585, maintaining an “Outperform” rating.
The stock has already surged past its mean price target of $582.39, while the Street-high price target of $703 suggests an upside potential of 17%.
