CMI climbs over 3% after record Q3 results and upbeat dividend announcement

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Cummins surges 3.18% today on strong results

Highlights

Cummins reported record third-quarter revenue of $9.44 billion, up 13% year over year, with earnings per share of $8.25 slightly above consensus.
The company narrowed its full-year and 2026 revenue outlook citing softer North American pickup demand and supply chain issues in Power Systems.
Shares of Cummins remain below key moving averages as downside momentum persists, with a forecasted five-day trading range of $430.13 to $499.42.

Guidance narrowed as demand shifts and supply constraints persist

Cummins Inc reported record third-quarter results, achieving $9.44 billion in revenue, a 13% year-over-year increase, backed by strong demand in truck engines and data center power products. The company narrowed its full-year and 2026 revenue outlook due to softer North American pickup truck engine demand and continued supply chain challenges in its Power Systems segment. Cummins posted earnings per share of $8.25, slightly above consensus, and announced a quarterly dividend of $2.20 per share to be paid on December 3, 2025, to shareholders of record as of November 20.

Anton Kharitonov, expert at Traders Union, notes Cummins delivered strong earnings but sees ongoing weakness in trend and momentum. He points out that the rally is technical in nature and occurs despite bearish signals from all major indicators. The narrowing of full-year and 2026 guidance raises concern about future demand and supply chain headwinds. Kharitonov views the persistent bearish alignment in moving averages as a warning for traders. He states, "Even with today's bounce, I see Cummins facing more downside unless key resistances are reclaimed decisively."

Viktoras Karapetjanc, expert at Traders Union, believes Cummins demonstrates remarkable resilience by posting record quarterly revenue and earnings growth. He sees robust demand in truck engines and data center segments as signals of enduring business strength. Karapetjanc highlights management's continued dividend commitment and recognizes temporary headwinds as manageable. He adds, "Strong results and sector leadership suggest the bullish structure remains intact, so I expect further growth once momentum stabilizes."

Jainam Mehta, market strategist, finds Cummins at a tactical crossroads. He considers the sharp upside gap and intraday high as signals of short-term volatility, yet underlying momentum remains weak. Mehta suggests traders watch for a potential contrarian bounce if the oversold technicals trigger. He concludes, "I’m watching for a potential breakout above $465.55 — but any failure to hold support could reopen downside to $430.13."

Bearish momentum persists as price tests key resistance

Cummins is trading below all its key moving averages, with the current price at $464.78 remaining under the MA-20 ($512.85), MA-50 ($526.61), and MA-200 ($600.48). This positioning reflects continued downward pressure across short, medium, and long-term trends, with a bearish long-term alignment confirmed. The nearest resistance is at $465.55 (today’s high), and immediate support is at $455.93 (today’s low). Momentum signals stay bearish: the MACD and Average Directional Index (ADX) both signal strong downside, and the Awesome Oscillator aligns with this view. The Relative Strength Index (RSI), Stochastic RSI, and Commodity Channel Index (CCI) all read firmly in oversold territory, indicating potential for a rebound but not a confirmed reversal. Bull/Bear Power (BBP) remains negative, showing sellers dominate intraday. Cummins is up $14.34 or 3.18% today after an upside gap of approximately $8.79, with the price near the day’s high. Intraday volatility stands at 2.11%, reflecting strong upward momentum throughout the session. This rally is occurring against persistent momentum weakness, showing a divergence between price action and underlying signals.

Previously it was reported that Cummins remained under sustained technical pressure with analysts confirming a persistent bearish outlook despite increased shareholder returns. The current article reinforces this negative bias, with bearish momentum signals still dominant and downside risk remaining elevated if support at $455.93 fails to hold.

Source of Data: CMI Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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