Cummins Inc. CMI

Revenue Intelligence Report • 70 quarters of SEC filing data • Updated 2026-03-15

Revenue is driven by disciplined investment in R&D and SG&A, with long-run revenue returns of $10.77 per $1 spent on R&D and $11.22 per $1 spent on SG&A. The linear model, trained on 70 quarters of data, achieves 4.3% MAPE and, in holdout testing, predicted $8.1B versus actual $8.5B (5.4% error), indicating reasonable forecasting reliability. Latest quarterly revenue was $8.536B. For the full year, a forecast of about $30B revenue implies a -11.7% YoY decline, signaling a cautious near-term outlook with potential upside from efficiency gains or cyclical recovery.

Investment Thesis

The econometric model achieves strong accuracy (4.3% MAPE), suggesting Cummins Inc.'s revenue trajectory is well-characterized by its spending patterns. Every $1 of R&D investment is associated with $10.77 of revenue, indicating efficient capital deployment in innovation. Each $1 of SG&A spending generates $11.22 in revenue, reflecting strong commercial efficiency.

Next FY Revenue
$29.7B
-11.7% YoY
R&D Multiplier
$10.77 per $1
SG&A Multiplier
$11.22 per $1
Model Accuracy
4.3% MAPE
Holdout validation: The model predicted $8.1B vs the actual $8.5B — an error of 5.4%.

Revenue Forecast

CMI Revenue Forecast

Quarterly Detail

QuarterModel ForecastActual95% RangeYoY GrowthStatus
Q4 2025 $8.1B $8.5B $7.6B – $8.6B -4.4% ✓ In range
Q1 2026 $7.7B $7.0B – $8.5B -5.2%
Q2 2026 $7.5B $6.6B – $8.4B -13.4%
Q3 2026 $7.3B $6.3B – $8.3B -11.9%
Q4 2026 $7.2B $6.0B – $8.3B -15.9%

Seasonal Factors

Multiplicative seasonal adjustment: These factors capture Cummins Inc.'s systematic quarterly revenue patterns relative to the trend model. A factor of 1.05 means that quarter typically runs 5% above the underlying trend; 0.95 means 5% below. Factors are computed as the median of (actual / fitted) across all available quarters.
Fiscal QuarterSeasonal Factorvs TrendInterpretationObs.
FQ1 (Sep–Nov) 0.9784 -2.2% In line with trend 17
FQ2 (Dec–Feb) 1.0057 +0.6% In line with trend 17
FQ3 (Mar–May) 1.0038 +0.4% In line with trend 16
FQ4 (Jun–Aug) 1.0296 +3.0% In line with trend 16

How Spending Drives Revenue

CMI Spending Timing
Reading this chart: Each line shows the cumulative revenue generated per $1 spent over subsequent quarters. The effect builds over 4-5 quarters as investments mature.

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