Cummins Inc.

(New York Stock Exchange)
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Somewhat Bearish -25

Wells Fargo cuts target for Cummins stock from USD 874.00 to USD 760.00

Analyst downgrade AI-generated analysis

πŸ“‰ Wells Fargo reduced its price target for Cummins stock from USD 874.00 to USD 760.00 following the company's second-quarter earnings report.

πŸ’° Cummins reported Q2 revenue of USD 9.46 billion, marking a 9.40% increase compared to the prior-year period.

πŸ“Š Adjusted earnings per share for the quarter reached USD 6.73, missing the analyst consensus estimate of USD 7.21 by USD 0.48.

πŸš€ The company is expanding its portfolio to include zero-emission products, battery solutions, and electric powertrain technologies.

πŸ“… Cummins is scheduled to release third-quarter results on November 5, 2026, with a dividend payment of USD 2.20 due on December 3, 2026.

🏒 The company operates in the Industrials sector as a specialty industrial machinery manufacturer with a market cap of USD 72.3 billion.

Bullish Signals
  • Cummins achieved strong revenue growth of 9.40% year over year, reaching USD 9.46 billion in the second quarter.
  • The company is actively expanding its business portfolio to include zero-emission products and electric powertrain solutions.
Risk Factors
  • Wells Fargo cut its price target for Cummins stock from USD 874.00 to USD 760.00 following the earnings miss.
  • Adjusted earnings per share of USD 6.73 fell short of the USD 7.21 consensus estimate, indicating a profit shortfall despite revenue growth.
Full Analysis
Cummins Inc. (CMI) reported second-quarter results showing revenue growth but a miss in adjusted earnings per share, prompting Wells Fargo to cut its price target from USD 874.00 to USD 760.00 while maintaining an Overweight rating. The company's Q2 revenue reached USD 9.46 billion, representing a 9.40% year-over-year increase, driven by its diverse portfolio of engines, generators, and power systems. Despite the strong top-line growth, adjusted earnings per share came in at USD 6.73, falling short of the USD 7.21 consensus estimate by USD 0.48. Analysts are closely watching whether Cummins can translate its expanding sales volume into proportional profit growth as it scales its power-generation and engine activities. The stock is currently trading around EUR 476.35 with a market capitalization of approximately USD 72.3 billion. Investors await the third-quarter results scheduled for November 5, 2026, which will provide further clarity on the company's ability to sustain profitability amidst its strategic expansion into zero-emission products and electric powertrain solutions.