Argus Research has reaffirmed its positive outlook for Cummins Inc. (NYSE: CMI), citing the company’s robust global power and hydrogen initiatives as key catalysts for future growth. As one of the largest independent diesel engine manufacturers, Cummins remains well-positioned to capitalize on prevailing industry trends, including elevated refined and distillate fuel prices relative to natural gas and the tightening of environmental regulation worldwide.
In a recent analysis, Argus highlighted Cummins’ consistent ability to navigate challenging economic cycles—an attribute it views as especially valuable amid ongoing economic uncertainty. Although Cummins reported a year-over-year sales decline, largely due to waning demand for heavy trucks and fewer unit shipments, the company managed to offset these challenges with substantial gains in its power segment and an uptick in truck deliveries.
To further diversify its offerings and advance emissions reduction efforts, Cummins announced in October 2025 the successful test of a prototype hydrogen-powered internal combustion engine, developed in collaboration with Turkish bus manufacturer Anadolu Isuzu. The prototype, deployed in an intercity bus application, achieved emissions levels substantially below those of contemporary natural gas engines, reinforcing Cummins’ leadership in sustainable mobility technology.
In July 2025, Cummins unveiled a new, specialized turbocharger for hydrogen-fueled internal combustion engines. The company secured a supply contract with a major European original equipment manufacturer (OEM), expanding its footprint in the alternative powertrain sector. These developments underscore Cummins’ commitment to innovating beyond its traditional product lines, investing heavily in hydrogen as a pivotal part of its growth strategy. More information about the hydrogen turbocharger launch can be found in this announcement and industry analysis from Insider Monkey.
The company’s third-quarter 2025 financial results reflect these strategic moves. Cummins reported revenues of $8.3 billion and a GAAP net income of $536 million, which accounts for 6.4% of sales. Its Power Systems segment saw an 18% rise in revenue, buoyed by high data center backup power demand, while the Distribution segment posted a 7% increase thanks to ongoing aftermarket parts and service growth. These gains helped offset a softer North American truck market. Further demonstrating confidence in its financial health, Cummins increased its quarterly dividend to $2.00 per share, marking the 16th consecutive year of dividend growth. Details on these results are available in the company's third-quarter earnings release.
Alongside these operational and technological updates, Argus Research maintained its "Buy" recommendation for Cummins on November 25, 2025, reflecting sustained confidence in the company’s direction and portfolio diversification. The firm suggested that investors seeking undervalued equities benefiting from macroeconomic trends—such as the onshoring of manufacturing and evolving energy regulation—consider Cummins a strong candidate. A full summary of Argus’s analysis is available on Yahoo Finance.
CMI Stock Market Performance
Cummins Inc. currently trades at $507.81 per share, recording an intraday change of $6.28 (0.01%). The latest session opened at $500.69, with a trading volume of 676,664 shares. During the day, the stock reached a high of $508.26 and a low of $497.26. The most recent trade was posted at 16:15:00 PST on Wednesday, December 3.
As Cummins continues to evolve from a leading engine manufacturer to a diversified global power company, its ongoing investment in hydrogen and alternative energy technologies positions it at the forefront of the transition toward more sustainable industrial power solutions.