Cummins Inc.

(New York Stock Exchange)
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Slightly Bearish -20

Cummins stock fell 1.38 percent as analysts cut targets

Analyst downgrade Earnings report AI-generated analysis

πŸ“‰ Cummins stock fell 1.38% to $517.84 on September 28, 2026, following fresh analyst target reductions.

πŸ“‰ JPMorgan cut its price target from $690 to $600 while maintaining a neutral rating on the industrial machinery giant.

πŸ“‰ Bank of America also lowered its target from $731 to $600, aligning with JPMorgan's revised valuation.

πŸ“ˆ Q2 2026 revenue rose 9% year-over-year to reach $9.46 billion, demonstrating solid top-line growth.

πŸ’° Diluted EPS for the quarter was $6.73, representing a year-over-year increase but missing the consensus estimate of $7.21.

πŸš€ Power Systems revenue surged 19% in the second quarter to total $2.30 billion.

πŸ“ˆ Cummins raised its full-year 2026 revenue growth guidance to 10%-13%, expanding from the prior 8%-11% range.

πŸ’° Full-year EBITDA guidance stands at 18%-18.5%, indicating maintained profitability expectations.

πŸ“Š The stock trades at $517.84, which is 29.88% below its 52-week high of $737.76.

🏭 Market capitalization was valued at $71.5 billion as of September 28, 2026.

Bullish Signals
  • Cummins reported Q2 revenue growth of 9% year-over-year, reaching $9.46 billion.
  • The company raised its full-year 2026 revenue guidance to a range of 10% to 13%, up from the previous 8% to 11% forecast.
  • Power Systems revenue increased significantly by 19% in the second quarter to $2.30 billion.
  • Diluted EPS grew to $6.73 compared to $6.43 a year ago, showing underlying earnings expansion despite missing analyst consensus.
  • Management maintained EBITDA guidance between 18% and 18.5%, signaling confidence in operational profitability.
Risk Factors
  • JPMorgan cut its price target from $690 to $600, contributing to the stock's decline.
  • Bank of America lowered its price target from $731 to $600, adding to the bearish analyst sentiment.
  • Q2 diluted EPS of $6.73 missed the consensus estimate of $7.21, creating a valuation disconnect.
  • The stock remains 29.88% below its 52-week high of $737.76, indicating significant downside from recent peaks.
Full Analysis
Cummins Inc. (CMI) shares declined 1.38% to $517.84 on September 28, 2026, following a wave of analyst target reductions despite reporting strong operational results. Major investment banks JPMorgan and Bank of America lowered their price targets to $600, contrasting with the broader market consensus of approximately $736. The stock remains significantly below its 52-week high, creating a divergence between current valuation metrics and recent performance data. Despite the negative analyst sentiment, Cummins delivered robust financial figures for the second quarter of 2026. Revenue increased by 9% year-over-year to reach $9.46 billion, while diluted earnings per share (EPS) rose to $6.73. Although this EPS figure missed the consensus estimate of $7.21, the company demonstrated resilience in its core Power Systems segment, which saw revenue surge 19% to $2.30 billion. The company has raised its full-year 2026 revenue growth guidance to a range of 10% to 13%, up from previous estimates of 8% to 11%. Additionally, management maintained EBITDA guidance between 18% and 18.5%. The immediate market challenge for Cummins is determining if these upgraded operational outlooks can eventually offset the pressure from lower analyst price targets and the recent miss in quarterly earnings expectations.