Cummins Inc. stock research
FY2026 Q1
Cummins (CMI) Gross Margin & Quarterly History
Explore Cummins Inc. (CMI) gross margin from 2023 through the latest reported quarter, using SEC-sourced revenue, gross profit, and direct costs.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
In the current quarter, revenue was slightly lower than the prior quarter, but cost of revenue declined more sharply, resulting in higher gross profit and an improved gross margin. Compared to the same quarter last year, revenue was slightly higher while cost of revenue increased modestly, leaving gross profit nearly unchanged and gross margin slightly higher.
- The most observable driver of the gross margin improvement from the prior quarter was the reduction in cost of revenue, which outpaced the decline in revenue. This relationship directly boosted gross profit and margin.
- Gross margin was higher than both the prior quarter and the same quarter last year. The improvement from the prior quarter was more pronounced, while the year-over-year change was modest.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
26.7%
Gross profit
$2.2B
Revenue
$8.4B
Cost of revenue
$6.2B
Quarter-over-quarter change
+3.9 pts
Year-over-year change
+0.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $8.6B | $2.3B | $6.4B | 26.4% |
| Sep 30, 2025 | $8.3B | $2.1B | $6.2B | 25.6% |
| Dec 31, 2025 | $8.5B | $2.0B | $6.6B | 22.9% |
| Mar 31, 2026 | $8.4B | $2.2B | $6.2B | 26.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+3.9 pts
Year-over-year change
Mar 31, 2025
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the gross margin improvement from the prior quarter was the reduction in cost of revenue, which outpaced the decline in revenue. This relationship directly boosted gross profit and margin.
Gross margin was higher than both the prior quarter and the same quarter last year. The improvement from the prior quarter was more pronounced, while the year-over-year change was modest.
Monitor the relative movement of revenue and cost of revenue in future quarters to assess whether the gross margin improvement can be sustained.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Cummins Inc. (CMI) | 26.7% |