• UBS raised its price target for Cummins Inc. (NYSE:CMI) to $565 from $500, indicating a potential upside of about 4.5%.
• Cummins reported record sales and profitability in its Distribution and Power Systems segments for the fourth quarter and full year of 2025.
• The company's strong market position and operational performance, especially in data center backup power, are key drivers of its success.

Cummins Inc. (NYSE:CMI) is a global leader in the design, manufacture, and distribution of engines, filtration, and power generation products. The company operates in various segments, including Engine, Distribution, Components, and Power Systems. Cummins faces competition from companies like Caterpillar and General Electric in the power systems market.

On February 6, 2026, UBS raised its price target for Cummins to $565 from $500. At the time, CMI was trading at $540.65, suggesting a potential upside of about 4.5%. This adjustment reflects confidence in Cummins' ability to capitalize on its strong market position and operational performance.

Cummins reported strong financial results for the fourth quarter and full year of 2025, despite challenges in the North American truck markets. The company achieved record sales and profitability in its Distribution and Power Systems segments. This success is attributed to disciplined execution and high demand for data center backup power, as highlighted by CEO Jennifer Rumsey.

The current price of CMI is $540.65, marking a decrease of 10.73% or $64.98. The stock has fluctuated between $527.41 and $569.83 today. Over the past year, CMI reached a high of $617.98 and a low of $260.02. The company's market capitalization is approximately $74.63 billion, with a trading volume of 2,983,508 shares on the NYSE.

Despite the recent price decrease, Cummins' strong financial performance and UBS's increased price target suggest potential growth. The company's focus on data center backup power and disciplined execution in its segments positions it well for future success.