Revenue growth turned positive at 9.4% YoY in 2026Q2, with gross margin expanding to 26.1% and operating margin reaching 13.5%, though EPS was inflated by a $0.9B one-time gain.
Cummins Inc. (CMI) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 34.71B | 33.67B | 34.1B | 34.06B | 28.07B | 24.02B | 19.81B | 23.57B | 23.77B | 20.43B | 17.51B | 19.11B | 19.22B | 17.3B | 17.33B | 18.05B | 13.23B | 10.8B | 14.34B | 13.05B | 11.36B | 9.92B | 8.44B | 6.3B | 5.85B | 5.68B | 6.6B | 6.64B | 6.27B | 5.63B | 5.26B |
| Revenue Growth % | 2.93% | -1.27% | 0.11% | 21.34% | 16.87% | 21.25% | -15.95% | -0.84% | 16.36% | 16.67% | -8.38% | -0.58% | 11.1% | -0.19% | -3.96% | 36.46% | 22.46% | -24.7% | 9.92% | 14.84% | 14.56% | 17.54% | 34.02% | 7.57% | 3.03% | -13.89% | -0.63% | 5.95% | 11.4% | 7% | 0.23% |
| Cost of Goods Sold | 25.92B | 25.15B | 25.66B | 25.82B | 21.36B | 18.33B | 14.92B | 17.59B | 18.03B | 15.33B | 13.05B | 14.16B | 14.36B | 13.02B | 12.92B | 13.46B | 10.06B | 8.63B | 11.4B | 10.49B | 8.77B | 7.73B | 6.76B | 5.17B | 4.81B | 4.67B | 5.33B | 5.22B | 4.92B | 4.34B | 4.07B |
| COGS % of Revenue | - | 74.71% | 75.25% | 75.78% | 76.07% | 76.29% | 75.3% | 74.63% | 75.87% | 75.03% | 74.54% | 74.11% | 74.71% | 75.26% | 74.52% | 74.57% | 76.05% | 79.92% | 79.5% | 80.41% | 77.16% | 77.96% | 80.09% | 82.16% | 82.15% | 82.17% | 80.79% | 78.64% | 78.6% | 77.24% | 77.46% |
| Gross Profit | 8.79B | 8.52B | 8.44B | 8.25B | 6.72B | 5.7B | 4.89B | 5.98B | 5.74B | 5.1B | 4.46B | 4.95B | 4.86B | 4.28B | 4.42B | 4.59B | 3.17B | 2.17B | 2.94B | 2.56B | 2.6B | 2.19B | 1.68B | 1.12B | 1.04B | 1.01B | 1.27B | 1.42B | 1.34B | 1.28B | 1.19B |
| Gross Margin % | 25.32% | 25.29% | 24.75% | 24.22% | 23.93% | 23.71% | 24.7% | 25.37% | 24.13% | 24.97% | 25.46% | 25.89% | 25.29% | 24.74% | 25.48% | 25.43% | 23.95% | 20.08% | 20.5% | 19.59% | 22.84% | 22.04% | 19.91% | 17.84% | 17.85% | 17.83% | 19.21% | 21.36% | 21.4% | 22.76% | 22.54% |
| Gross Profit Growth % | - | 0.91% | 2.3% | 22.77% | 17.98% | 16.37% | -18.16% | 4.24% | 12.49% | 14.4% | -9.88% | 1.77% | 13.57% | -3.08% | -3.77% | 44.85% | 46.06% | -26.22% | 15.02% | -1.5% | 18.71% | 30.12% | 49.6% | 7.46% | 3.16% | -20.05% | -10.65% | 5.74% | 4.77% | 8.02% | -6.77% |
| Operating Expenses | 4.92B | 4.65B | 4.69B | 6.49B | 3.79B | 2.99B | 2.63B | 3.28B | 2.95B | 2.77B | 2.58B | 2.89B | 2.5B | 2.18B | 2.16B | 1.91B | 1.57B | 1.49B | 1.67B | 1.4B | 1.46B | 1.42B | 1.26B | 1.03B | 929M | 1.07B | 1.17B | 1.09B | 1.26B | 1B | 977M |
| OpEx % of Revenue | - | 13.81% | 13.75% | 19.05% | 13.5% | 12.44% | 13.25% | 13.92% | 12.41% | 13.54% | 14.72% | 15.12% | 12.99% | 12.59% | 12.47% | 10.57% | 11.84% | 13.77% | 11.63% | 10.71% | 12.89% | 14.35% | 14.89% | 16.36% | 15.87% | 18.78% | 17.78% | 16.36% | 20.09% | 17.85% | 18.58% |
| Selling, General & Admin | 3.31B | 3.13B | 3.27B | 3.33B | 2.69B | 2.37B | 2.13B | 2.45B | 2.44B | 2.43B | 2.1B | 2.09B | 2.1B | 1.82B | 1.81B | 1.84B | 1.49B | 1.24B | 1.45B | 1.3B | 1.28B | 1.15B | 1.01B | 830M | 736M | 721M | 773M | 781M | 787M | 744M | 725M |
| SG&A % of Revenue | - | 9.28% | 9.6% | 9.78% | 9.57% | 9.88% | 10.73% | 10.41% | 10.25% | 11.89% | 11.99% | 10.95% | 10.9% | 10.5% | 10.43% | 10.18% | 11.24% | 11.47% | 10.11% | 9.93% | 11.29% | 11.54% | 12.03% | 13.18% | 12.57% | 12.69% | 11.72% | 11.76% | 12.56% | 13.23% | 13.79% |
| Research & Development | 1.44B | 1.4B | 1.46B | 1.5B | 1.28B | 1.09B | 906M | 1B | 902M | 752M | 636M | 735M | 754M | 713M | 728M | 629M | 414M | 362M | 422M | 329M | 321M | 278M | 241M | 200M | 201M | 220M | 244M | 245M | 255M | 260M | 252M |
| R&D % of Revenue | - | 4.15% | 4.29% | 4.4% | 4.55% | 4.54% | 4.57% | 4.25% | 3.79% | 3.68% | 3.63% | 3.85% | 3.92% | 4.12% | 4.2% | 3.49% | 3.13% | 3.35% | 2.94% | 2.52% | 2.83% | 2.8% | 2.86% | 3.18% | 3.43% | 3.87% | 3.7% | 3.69% | 4.07% | 4.62% | 4.79% |
| Other Operating Expenses | 1000K | 130M | -49M | 1.66B | -175M | -475M | -406M | -175M | -388M | -417M | -158M | 63M | -353M | -351M | -374M | -558M | -335M | -114M | -204M | -227M | -140M | 0 | 0 | 0 | -8M | 126M | 154M | 60M | 217M | 0 | 0 |
| Operating Income | 3.86B | 3.87B | 3.75B | 1.76B | 2.93B | 2.71B | 2.27B | 2.7B | 2.79B | 2.33B | 1.88B | 2.06B | 2.37B | 2.1B | 2.25B | 2.68B | 1.6B | 682M | 1.27B | 1.16B | 1.13B | 763M | 424M | 93M | 116M | -54M | 94M | 332M | 82M | 276M | 208M |
| Operating Margin % | 11.13% | 11.48% | 11% | 5.17% | 10.43% | 11.27% | 11.45% | 11.45% | 11.72% | 11.43% | 10.74% | 10.76% | 12.3% | 12.14% | 13% | 14.85% | 12.11% | 6.31% | 8.87% | 8.87% | 9.95% | 7.69% | 5.02% | 1.48% | 1.98% | -0.95% | 1.42% | 5% | 1.31% | 4.91% | 3.96% |
| Operating Income Growth % | - | 3.07% | 112.95% | -39.88% | 8.24% | 19.26% | -15.96% | -3.09% | 19.37% | 24.15% | -8.6% | -13.02% | 12.57% | -6.79% | -15.93% | 67.35% | 134.9% | -46.38% | 9.84% | 2.39% | 48.23% | 79.95% | 355.91% | -19.83% | 314.81% | -157.45% | -71.69% | 304.88% | -70.29% | 32.69% | 5.05% |
| EBITDA | 4.97B | 4.97B | 4.82B | 2.79B | 3.71B | 3.37B | 2.94B | 3.37B | 3.4B | 2.92B | 2.41B | 2.57B | 2.82B | 2.51B | 2.62B | 3.01B | 1.92B | 1.01B | 1.59B | 1.45B | 1.43B | 1.06B | 690M | 309M | 331M | 173M | 334M | 565M | 281M | 434M | 357M |
| EBITDA Margin % | 14.33% | 14.76% | 14.12% | 8.18% | 13.23% | 14.02% | 14.85% | 14.31% | 14.29% | 14.28% | 13.76% | 13.45% | 14.67% | 14.5% | 15.09% | 16.66% | 14.53% | 9.33% | 11.06% | 11.1% | 12.56% | 10.66% | 8.18% | 4.91% | 5.66% | 3.05% | 5.06% | 8.51% | 4.48% | 7.72% | 6.79% |
| EBITDA Growth % | -4.88% | 3.22% | 72.89% | -24.99% | 10.24% | 14.48% | -12.75% | -0.74% | 16.46% | 21.04% | -6.26% | -8.83% | 12.44% | -4.09% | -13.01% | 56.4% | 90.67% | -36.44% | 9.53% | 1.47% | 35% | 53.19% | 123.3% | -6.65% | 91.33% | -48.2% | -40.88% | 101.07% | -35.25% | 21.57% | 4.69% |
| D&A (Non-Cash Add-back) | 1.11B | 1.1B | 1.06B | 1.02B | 784M | 662M | 673M | 672M | 611M | 583M | 530M | 514M | 455M | 407M | 361M | 325M | 320M | 326M | 314M | 290M | 296M | 294M | 266M | 216M | 215M | 227M | 240M | 233M | 199M | 158M | 149M |
| EBIT | 3.86B | 4.29B | 5.27B | 2B | 3.02B | 2.86B | 2.44B | 2.94B | 2.87B | 2.45B | 2B | 2.09B | 2.5B | 2.16B | 2.3B | 2.71B | 1.66B | 675M | 1.22B | 1.16B | 1.13B | 763M | 424M | 93M | 108M | 72M | 248M | 392M | 299M | 276M | 208M |
| Net Interest Income | -165M | -118M | -184M | -136M | -74M | -29M | -5M | -50M | -56M | -14M | -14M | -8M | -13M | 12M | 15M | 15M | -19M | -27M | -24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 156M | 211M | 186M | 239M | 125M | 82M | 95M | 59M | 58M | 67M | 64M | 66M | 63M | 63M | 62M | 75M | 21M | 8M | 18M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 321M | 329M | 370M | 375M | 199M | 111M | 100M | 109M | 114M | 81M | 69M | 65M | 64M | 41M | 32M | 44M | 40M | 35M | 42M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -15M | 98M | 1.15B | -135M | -110M | 45M | 69M | 134M | -33M | 31M | 50M | -32M | 69M | 18M | 17M | -10M | 15M | -42M | -94M | 1.15B | -48M | 35M | 8M | -27M | -75M | -95M | -100M | -111M | -88M | 10M | 6M |
| Pretax Income | 3.85B | 3.96B | 4.9B | 1.63B | 2.82B | 2.75B | 2.34B | 2.83B | 2.75B | 2.37B | 1.93B | 2.02B | 2.43B | 2.12B | 2.27B | 2.67B | 1.62B | 640M | 1.18B | 1.17B | 1.08B | 798M | 432M | 66M | 41M | -118M | 3M | 221M | -6M | 286M | 214M |
| Pretax Margin % | 11.09% | 11.77% | 14.38% | 4.77% | 10.04% | 11.45% | 11.8% | 12.02% | 11.58% | 11.58% | 11.02% | 10.6% | 12.66% | 12.25% | 13.1% | 14.8% | 12.23% | 5.93% | 8.21% | 8.96% | 9.53% | 8.05% | 5.12% | 1.05% | 0.7% | -2.08% | 0.05% | 3.33% | -0.1% | 5.08% | 4.07% |
| Income Tax | 1.02B | 1.01B | 835M | 786M | 636M | 587M | 527M | 566M | 566M | 1.37B | 474M | 555M | 698M | 531M | 533M | 725M | 477M | 156M | 360M | 381M | 324M | 216M | 56M | 12M | -38M | -42M | -19M | 55M | 4M | 74M | 54M |
| Effective Tax Rate % | 26.53% | 25.38% | 17.03% | 48.34% | 22.56% | 21.34% | 22.54% | 19.97% | 20.56% | 57.97% | 24.56% | 27.41% | 28.68% | 25.06% | 23.47% | 27.14% | 29.5% | 24.38% | 30.56% | 32.59% | 29.92% | 27.07% | 12.96% | 18.18% | -92.68% | 35.59% | -633.33% | 24.89% | -66.67% | 25.87% | 25.23% |
| Net Income | 2.71B | 2.84B | 3.95B | 735M | 2.15B | 2.13B | 1.79B | 2.26B | 2.14B | 999M | 1.39B | 1.4B | 1.65B | 1.48B | 1.65B | 1.85B | 1.04B | 428M | 755M | 739M | 715M | 550M | 350M | 50M | 82M | -102M | 8M | 160M | -21M | 212M | 160M |
| Net Margin % | 7.82% | 8.44% | 11.57% | 2.16% | 7.66% | 8.87% | 9.03% | 9.59% | 9.01% | 4.89% | 7.96% | 7.32% | 8.59% | 8.57% | 9.49% | 10.24% | 7.86% | 3.96% | 5.26% | 5.66% | 6.29% | 5.55% | 4.15% | 0.79% | 1.4% | -1.8% | 0.12% | 2.41% | -0.34% | 3.77% | 3.04% |
| Net Income Growth % | -7.68% | -27.95% | 436.87% | -65.83% | 0.94% | 19.12% | -20.84% | 5.56% | 114.31% | -28.34% | -0.36% | -15.26% | 11.33% | -9.85% | -10.98% | 77.69% | 142.99% | -43.31% | 2.17% | 3.36% | 30% | 57.14% | 600% | -39.02% | 180.39% | -1375% | -95% | 861.9% | -109.91% | 32.5% | -28.57% |
| Net Income (Continuing) | 2.83B | 2.96B | 4.07B | 840M | 2.18B | 2.16B | 1.81B | 2.27B | 2.19B | 994M | 1.46B | 1.47B | 1.74B | 1.59B | 1.74B | 1.95B | 1.14B | 484M | 818M | 788M | 759M | 582M | 376M | 54M | 79M | -103M | 14M | 166M | -10M | 212M | 160M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.06B | 1.06B | 1.04B | 1.05B | 1.25B | 927M | 927M | 958M | 911M | 905M | 299M | 344M | 344M | 360M | 371M | 339M | 326M | 247M | 250M | 293M | 254M | 225M | 208M | 123M | 92M | 83M | 72M | 74M | 62M | 53M | 0 |
| EPS (Diluted) | 19.59 | 20.50 | 28.37 | 5.15 | 15.12 | 14.61 | 12.01 | 14.48 | 13.15 | 5.97 | 8.23 | 7.84 | 9.02 | 7.91 | 8.67 | 9.55 | 5.28 | 2.16 | 3.84 | 3.70 | 3.55 | 2.75 | 1.85 | 0.32 | 0.53 | -0.67 | 0.05 | 1.03 | -0.14 | 1.37 | 1.00 |
| EPS Growth % | -8% | -27.74% | 450.87% | -65.94% | 3.49% | 21.65% | -17.06% | 10.11% | 120.27% | -27.46% | 4.97% | -13.08% | 14.03% | -8.77% | -9.21% | 80.87% | 144.44% | -43.75% | 3.78% | 4.23% | 29.09% | 48.65% | 478.13% | -39.62% | 179.1% | -1440% | -95.15% | 835.71% | -110.22% | 37% | -27.54% |
| EPS (Basic) | - | 20.62 | 28.55 | 5.19 | 15.20 | 14.74 | 12.07 | 14.54 | 13.20 | 6.00 | 8.25 | 7.86 | 9.04 | 7.93 | 8.69 | 9.58 | 5.29 | 2.17 | 3.87 | 3.72 | 3.75 | 3.11 | 2.07 | 0.32 | 0.53 | -0.67 | 0.05 | 1.04 | -0.14 | 1.39 | 1.01 |
| Diluted Shares Outstanding | 138.6M | 138.7M | 139.1M | 142.7M | 142.3M | 145.9M | 149M | 156.1M | 162.8M | 167.3M | 169.3M | 178.4M | 183.1M | 187.4M | 189.7M | 193.6M | 197.1M | 197.7M | 196.53M | 199.73M | 201.27M | 199.82M | 189.45M | 158M | 155.2M | 152.59M | 160M | 154.96M | 152.73M | 154.8M | 159.6M |
| Basic Shares Outstanding | 138.1M | 137.9M | 138.2M | 141.7M | 141.5M | 144.6M | 148.2M | 155.4M | 162.2M | 166.6M | 169M | 178M | 182.7M | 187M | 189.3M | 193M | 196.7M | 197.4M | 194.96M | 198.66M | 190.41M | 176.99M | 168.67M | 157.2M | 154.4M | 152.59M | 160M | 153.85M | 152.73M | 152.8M | 159.2M |
| Dividend Payout Ratio | - | 37.11% | 24.56% | 125.31% | 39.75% | 37.96% | 43.71% | 33.67% | 33.54% | 70.17% | 48.49% | 44.46% | 31.01% | 28.32% | 20.67% | 13.8% | 16.54% | 32.94% | 16.16% | 12.04% | 9.23% | 10.18% | 15.14% | - | 60.98% | - | 625% | 29.38% | - | 21.23% | 25% |
Quick answers to the most common questions about buying CMI stock.
For fiscal year 2025, Cummins Inc. (CMI) reported total revenue of $33.67B. This represents a 540.5% increase compared to $5.26B in 1996.
Cummins Inc. (CMI) is profitable, generating $2.84B in net income for the fiscal year ending 2025 with a net profit margin of 8.4%.
Cummins Inc. (CMI) reported an operating income of $3.87B, resulting in an operating profit margin of 11.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Cummins Inc. (CMI) generated $8.52B in gross profit for the year, representing a gross profit margin of 25.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Truck cycle and transition costs
Metrics are mathematically derived from official filings.
Mixed Signals in Revenue Trajectory
Revenue growth turned positive at 9.4% YoY in 2026Q2, reversing prior contractions, but the 10-quarter trend shows volatility, with recent strength likely driven by power generation and aftermarket demand.
After four consecutive quarters of negative YoY growth through 2025Q3, revenue rebounded to $9.5B in 2026Q2, a 9.4% increase from the prior year. This inflection appears concentrated in higher-margin segments like Power Systems and Distribution, as traditional truck volumes remain soft. The durability of this growth is uncertain, given the historical cyclicality of the heavy-duty truck market and the prior 34% production decline in Q3 2025.
Gross Margin Resilience Amid Mix Shift
Gross margin expanded to 26.1% in 2026Q2, up from 24.9% a year earlier, suggesting a favorable mix shift toward aftermarket and power generation, though still below peers like CAT and DE.
The 120 basis point YoY improvement in gross margin to 26.1% indicates that the revenue mix is tilting toward higher-margin service and power generation businesses, which may be offsetting weakness in lower-margin OEM engine sales. However, Cummins' gross margin remains structurally below Caterpillar's 32.3% and Deere's 36.5%, reflecting its higher exposure to cyclical truck OEMs. Investors should monitor whether this margin expansion is sustainable if truck volumes recover and dilute the mix.
Operating Leverage Amplifies Earnings
Operating income surged to $1.3B in 2026Q2, a 44% increase from the prior year, as operating margin expanded to 13.5% from 11.9%, demonstrating strong operating leverage on modest revenue growth.
The 44% YoY jump in operating income on just 9.4% revenue growth highlights significant operating leverage, with SG&A and R&D growing at a slower pace than gross profit. This suggests that the company is benefiting from fixed-cost absorption and disciplined expense control, particularly in the Distribution segment. However, the prior quarter's operating margin of 7.5% in 2025Q4 shows volatility, indicating that leverage can quickly reverse if volumes soften.
Earnings Quality Boosted by One-Time Items
Net income of $932M in 2026Q2 included a $0.9B gain from the Atmus spin-off, inflating EPS to $6.73; excluding this, EPS would have been around $4.70, closer to the prior year's level.
The reported EPS of $6.73 in 2026Q2 was significantly boosted by a one-time gain from the separation of Atmus, as evidenced by the $2.0B net income in 2024Q1 also including a similar gain. Adjusting for these non-operating items, underlying earnings appear more stable, with operating income growth driving the beat. Investors should focus on operating income trends rather than reported net income, as the latter is subject to volatility from divestiture gains and potential tax anomalies.
R&D Investment Pressures Near-Term Margins
R&D spending rose to $385M in 2026Q2, up 8.8% YoY, while SG&A grew only 4.5%, indicating a strategic focus on new powertrain technologies that may continue to weigh on operating margins.
The consistent increase in R&D, from $369M in 2024Q1 to $385M in 2026Q2, reflects Cummins' investment in zero-emission technologies and emissions compliance, which is necessary to maintain its competitive position but currently acts as a margin drag. SG&A growth has been more moderate, suggesting cost discipline in administrative areas. The challenge is that R&D intensity may need to remain elevated, potentially capping margin expansion unless revenue growth accelerates.
Truck Cycle and Transition Risks
Despite the strong 2026Q2 beat, revenue growth remains negative on a trailing basis, and the heavy-duty truck cycle's volatility—evidenced by a 34% production drop in Q3 2025—poses a significant risk to earnings sustainability.
Short-sellers could argue that the recent earnings strength is heavily reliant on data center power demand and aftermarket parts, which may not fully offset a renewed downturn in truck production. The 10-quarter data shows that operating margins can swing from 14.2% to 7.5% within a year, indicating high cyclicality. Additionally, the company's heavy investment in New Power (Accelera) has yet to generate positive returns, and any acceleration in zero-emission mandates could strand existing diesel assets, pressuring margins and returns.