With a market cap of $92.4 billion, Cummins Inc. (CMI) is a global power solutions company that designs, manufactures, and services diesel and natural gas engines, power generation systems, drivetrain and electrified power technologies for a wide range of industries worldwide. It operates through five segments: Engine; Distribution; Components; Power Systems; and Accelera, serving OEMs, distributors, dealers, and aftermarket customers.
Shares of the Columbus, Indiana-based company have surpassed the broader market over the past 52 weeks. CMI stock has climbed 102% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 25.1%. Moreover, shares of the company have surged 31.2% on a YTD basis, compared to SPX’s 8.6% rise.
More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.
Focusing more closely, shares of Cummins have outpaced the State Street Industrial Select Sector SPDR ETF’s (XLI) 18.8% return over the past 52 weeks.
www.barchart.com Shares of Cummins rose 2.8% on May 5 after the company reported strong Q1 2026 results and raised its full-year outlook, driven by robust demand in North America truck markets and data center power generation. The company posted Q1 revenue of $8.4 billion, up 3% year-over-year, with standout performance from its Power Systems segment, where sales surged 19% to $2 billion and EBITDA jumped to $577 million, or 29.5% of sales, fueled by accelerating data center demand across North America, China, and Asia Pacific.
Investors were also encouraged by Cummins raising its 2026 revenue growth guidance to 8% - 11% and increasing EBITDA guidance to 17.75% - 18.5%, despite recording $199 million in charges related to the sale of its low-pressure fuel cell business.
For the fiscal year ending in December 2026, analysts expect CMI’s EPS to grow 19.4% year-over-year to $28.39. The company's earnings surprise history is promising. It topped the consensus estimates in the last four quarters.
Among the 20 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, one “Moderate Buy,” and eight “Holds.”
www.barchart.com On May 7, Citi raised its price target on Cummins to $770 and maintained a “Buy” rating.
The mean price target of $692.53 represents a 3.4% premium to CMI’s current price levels. The Street-high price target of $845 suggests a 26.1% potential upside.
On the date of publication, Sohini Mondal 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.
More news from Barchart
As AI Infrastructure Heats Up, Stay on the Sidelines With CoreWeave Stock Eco Wave Power Stock Got a Major Nvidia AI Catalyst. Brace for More Volatility Ahead. Cerebras Just Got Fast-Tracked Into the S&P 500. Here’s What It Means for Investors PayPal Stock Just Got a Vote of Confidence From Michael Burry. That Doesn’t Change Its Broader, Lumpy Trajectory.