At a glance
Cummins Inc is worth $68.91B, about 24 times its fiscal 2025 earnings. Revenue fell 1.3% to $33.67B in fiscal 2025, with 8.4% kept as profit; over 5 years it has grown 11.2% a year. It pays a 1.64% dividend yield, raised every year for at least 9 years, and returned $6.38B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +16.0% over the past year with dividends reinvested and +18.3% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 38.6% in the 2020 crash (S&P 500: 33.7%) and 20.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 4 months after the lows.
The business in plain English
Cummins makes engines and the parts and power equipment that go with them. Founded in 1919 in Columbus, Indiana, as Cummins Engine Company, it builds diesel, natural gas and gasoline engines for heavy- and medium-duty trucks, buses, pickups and off-highway machines used in construction, farming and mining. It also makes power generation systems; components such as aftertreatment (equipment that cleans engine exhaust), turbochargers, fuel systems, transmissions, axles and brakes; and battery and electric drive systems.
Its main customers are equipment makers. Truck makers PACCAR, Traton and Daimler use its heavy-duty engines, and Stellantis uses its diesel engines in North American pickups. Cummins also earns money after the sale from parts and repairs, through about 640 distributor locations and more than 13,000 certified dealer locations in about 190 countries and territories. Many truck makers also build their own engines, so Cummins has to keep winning their business.
Revenue was $33.67 billion in fiscal 2025, which ended December 31, 2025. Measured before sales between its own segments are netted out, Distribution (sales, parts and service) supplied 30% of the total, Engine 26%, Components 25% and Power Systems 18%. Accelera, the smallest segment, had about $460 million of sales. By region, the United States made up about 56% of revenue, China about 10% and India about 5%.
Price history
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CMI +16.0% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By product or service
| On-highway (EBU market) | $7.02B | 20.9% |
| Power Generation (DBU product line) | $4.93B | 14.6% |
| Drivetrain and braking systems [CBU business] | $3.98B | 11.8% |
| Emission solutions (CBU business) | $3.03B | 9% |
| Medium-duty truck and bus (EBU market) | $2.55B | 7.6% |
| Power Generation (PSBU product line) | $2.23B | 6.6% |
| Light-duty automotive (EBU market) | $1.93B | 5.7% |
| Service (DBU product line) | $1.80B | 5.3% |
| Engine (DBU product line) | $1.59B | 4.7% |
| Industrial (PSBU product line) | $1.24B | 3.7% |
| Engine Components and Software [CBU business] | $1.20B | 3.6% |
| Off-highway (EBU market) | $1.08B | 3.2% |
| Generator technologies (PSBU product lines) | $647.0M | 1.9% |
| Automated Transmission [CBU business] | $423.0M | 1.3% |
By business segment
| Distribution | $12.40B | 36.8% |
| Engine | $10.88B | 32.3% |
| Components | $10.15B | 30.1% |
| Accelera | $460.0M | 1.4% |
By geography
| UNITED STATES | $18.97B | 56.4% |
| OTHER INTERNATIONAL | $9.68B | 28.7% |
| CHINA | $3.30B | 9.8% |
| INDIA | $1.72B | 5.1% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $9.46B, up 9.4% from a year earlier, and net income was $932.0M (+4.7%).
- For fiscal 2025, revenue was $33.67B (-1.3% year over year; +11.2% a year from FY2020 to FY2025) with a 8.4% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +11.2% good |
|---|---|
| Operating margin | 12% watch |
| Free cash flow margin | 7.1% watch |
| Return on equity (FY2025) | 23% good |
| Return on assets (FY2025) | 8.4% good |
| Net cash (cash minus debt) | $-3.31B watch |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $19.81B | $1.79B | $2.19B |
| FY2021 | $24.02B | $2.13B | $1.52B |
| FY2022 | $28.07B | $2.15B | $1.05B |
| FY2023 | $34.06B | $735.0M | $2.75B |
| FY2024 | $34.10B | $3.95B | $279.0M |
| FY2025 | $33.67B | $2.84B | $2.39B |
Valuation snapshot
| Market value | $68.91B |
|---|---|
| P/E ratio | 24.4 |
| Dividend yield | 1.64% |
Rank among 1514 US companies
Market value at each year end
Cummins’s market value went from $23.00B at the end of 2016 to $68.91B on Nov 2, 2026, about 3.0 times as much; since the end of 2025 it is down 2%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $68.91B | -2.2% |
| 2025 | $70.46B | +47.3% |
| 2024 | $47.82B | +40.8% |
| 2023 | $33.96B | -0.6% |
| 2022 | $34.17B | +10.0% |
| 2021 | $31.07B | -7.3% |
| 2020 | $33.53B | +22.3% |
| 2019 | $27.42B | +27.8% |
| 2018 | $21.46B | -26.8% |
| 2017 | $29.32B | +27.5% |
| 2016 | $23.00B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| CMI price data to Nov 2, 2026 | -0.9% | +16.0% | +34.6% | +18.3% | +18.2% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -0.9% |
| 2025 | +49.4% |
| 2024 | +48.9% |
| 2023 | +1.7% |
| 2022 | +14.1% |
| 2021 | -1.7% |
| 2020 | +30.5% |
| 2019 | +38.1% |
| 2018 | -22.1% |
| 2017 | +32.8% |
| 2016 | +60.7% |
| 2015 | -37.2% |
| 2014 | +4.3% |
| 2013 | +32.5% |
| 2012 | +25.2% |
| 2011 | -18.9% |
| 2010 | +142.7% |
| 2009 | +75.3% |
| 2008 | -57.4% |
| 2007 | +118.5% |
| 2006 | +33.0% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 71.2% over that stretch · deepest drop along the way 75.6%, back to its old high 17.2 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 38.3% over that stretch · deepest drop along the way 38.6%, back to its old high 2.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 1.4% over that stretch · deepest drop along the way 20.7%, back to its old high 3.9 months after the low |
Insider activity
Form 4 filings from 2025-10-27 to 2026-10-27 (25 read): 0 open-market purchases and 28 sales ($12.5M), 6 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| May 12, 2026 | Jennifer Mary Bush VP & Pres. - Power Systems | sell | $1.3M |
| Mar 3, 2026 | Amy Rochelle Davis VP & Pres. - Accelera and Com | sell (plan) | $949K |
| May 8, 2026 | Nicole Lamb-Hale VP, CAO & Corporate Secretary | sell | $808K |
| May 12, 2026 | Jennifer Mary Bush VP & Pres. - Power Systems | sell | $805K |
| May 8, 2026 | Marvin Boakye VP - CHRO | sell | $755K |
Who owns it
Large shareholders (13G filings)
| Vanguard Capital Management | 7.5% | Mar 31, 2026 |
| Vanguard Portfolio Management | 5.44% | Mar 31, 2026 |
| STATE STREET CORPORATION | 5% | Jun 30, 2026 |
ETFs with the most weight in CMI
| LOPP Gabelli Love Our Planet & People ETF | 3.7% |
| MADE iShares U.S. Manufacturing ETF | 3.44% |
| SAMM Strategas Macro Momentum ETF | 3.17% |
| MDLV Morgan Dempsey Large Cap Value ETF | 2.65% |
| CTEX ProShares S&P Kensho Cleantech ETF | 2.54% |
| HYDR Global X Hydrogen ETF | 2.21% |
| CNRG SPDR S&P Kensho Clean Power ETF | 2.13% |
| LEAD Siren DIVCON Leaders Dividend ETF | 1.63% |
What could go wrong
- Emissions settlement fallout is not over. Cummins paid $1.9 billion in 2024 to settle US regulators' claims over emissions certification of pickup-truck engines. It still faces lawsuits, penalties if it breaches the deal, and possible reviews by regulators abroad.
- Big earnings from China joint ventures. Cummins earns significant profits from partly owned businesses it does not control, and more than half of those earnings come from China. A slowdown there, or decisions by local partners, could hurt results.
- Truck makers could build engines in-house. PACCAR, Daimler and Traton are major customers that already make some of their own engines. If big customers stop outsourcing, hit financial trouble or change owners, Cummins could lose significant sales.
- Diesel limits and the energy transition. Future bans or limits on diesel vehicles, or faster adoption of new technologies, could shrink demand for its core engines. Its battery and electric products may not win enough customers to make up the difference.
- Shifting emission rules cut both ways. Stricter, uneven standards across countries raise development costs. But deregulation or delayed enforcement could waste money spent on cleaner products and erase the edge Cummins gains from meeting tough rules.
- Cyclical demand, tariffs and capacity planning. Truck and equipment orders swing with the economy and interest rates, and tariffs add uncertainty. Cummins must match factory capacity to demand; misjudging it raises costs or leaves orders unfilled.
Recent events
- Quarterly results released
- Shareholder vote results
- Quarterly results released
- Quarterly results released
- Quarterly results released
For income and retirement investors
Cummins has raised its dividend at least nine years in a row, through fiscal 2025. The dividend per share rose from $5.28 in 2020 to $7.64 in 2025, about 7.7% a year. In 2025 dividends took about 37% of earnings and 44% of free cash flow (cash left after running and investing in the business). In 2024, the year of the $1.9 billion emissions settlement payment, free cash flow of $279 million fell short of the dividend. The yield was a modest 1.54% as of October 28, 2026. Buybacks totaled about $1.8 billion over fiscal 2021–2025, with none in 2023 or 2024.
The shares have swung hard in downturns. They fell about 76% in 2008 and took about 17 months to recover. In the 2020 COVID crash they dropped about 39% but regained their peak in about two months. In 2022 they fell about 21% before recovering by October. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Cummins make money?
Cummins makes money by supplying engines, components and power generation equipment to truck and equipment makers, and by providing parts and repair service through its distribution network. Revenue was $33.67 billion in fiscal 2025. Measured before sales between segments are netted out, Distribution supplied 30%, Engine 26%, Components 25% and Power Systems 18%. Major customers include PACCAR, Daimler, Traton and Stellantis. The United States accounted for about 56% of revenue.
Does Cummins raise its dividend every year?
Yes, for at least nine years in a row. Every fiscal year from 2016 through 2025 shows an increase, and the streak may be longer. The dividend per share grew from $5.28 in 2020 to $7.64 in 2025, about 7.7% a year, and dividends used about 37% of 2025 earnings. Past increases do not guarantee future ones, and the yield was a modest 1.54% as of October 28, 2026.
What was the Cummins emissions settlement about?
It resolved US regulators' claims about how Cummins certified certain engines, mainly used in pickup trucks, for emissions compliance. The agreement with the EPA, the California Air Resources Board, the Justice Department and California's attorney general was reached in principle in December 2023 and became final in April 2024. Cummins took a $2.0 billion charge and paid $1.9 billion in the second quarter of 2024. It still faces related shareholder and consumer lawsuits and further penalties if it breaks the terms.
How much does Cummins depend on China?
More than its revenue figure suggests. China made up about 10% of revenue in fiscal 2025, roughly $3.3 billion. But Cummins also earns significant profits from partly owned businesses it does not control, and more than half of those earnings come from ones based in China. Its joint ventures include Dongfeng Cummins Engine and Beijing Foton Cummins Engine. Weaker Chinese demand or decisions by partners there could hurt results.
How much has Cummins stock fallen in market crashes?
Sharply. Cummins shares fell about 76% between June and November 2008 and took about 17 months to recover. In the 2020 COVID crash they dropped about 39% but recovered in about two months. In 2022 they fell about 21% from their January peak and recovered by October. In the year to October 28, 2026, the deepest drop was about 29%, and a one-year beta of 1.57 means the shares tended to move about 1.6 times as much as the broad market.