Cummins Inc. (CMI)

The modal Base scenario reflects management's updated 2026 guidance and consensus forward trajectory. Consolidated revenue expands 11.87% in FY2026 to $37.67B within the guided 10% to 13% range, reaching $41.34B in FY2027. Diluted EPS increases to $28.45 in FY2026 and $34.34 in FY2027. Operating margins expand to 12.8% in FY2026 and normalize at 13.5%, supported by Power Systems mix and steady Distribution aftermarket cash flow. Cash flows are discounted at the moderate Ke of 9.9414%, yielding the house fair value midpoint of $443.65.

• Consolidated revenue reaches $37.67B in FY2026 and $41.34B in FY2027
• Consolidated diluted EPS of $28.45 in FY2026 and $34.34 in FY2027
• Discounting at moderate cost of equity of 9.9414% with 2.5% terminal growth