This paper conducted both numerical and theoretical studies to investigate the composite action of notched circular concrete-filled steel tubular (CFT) stub columns under axial compression and established a theoretical method to predict their ultimate bearing capacity. 3D finite element (FE) analysis was conducted to simulate the composite action and the results were in good agreement with experimental results on circular CFT stub columns with differently oriented notches in steel tubes. Parametric study was conducted to understand the effects of different parameters on the mechanical behavior of circular CFT stub columns and also the composite action between the steel tube and the core concrete. Based on the results, a theoretical formula was proposed to calculate the ultimate bearing capacity of notched CFT stub columns under compression with consideration of the composite action between the steel tube and the core concrete.