Cummins CMI Q3 2026: Data Center Strength Meets Pickup Truck Drag

Cummins posted third-quarter 2026 revenue of $9.44 billion, up 13.5% year over year, missing Wall Street's $9.87 billion estimate. Earnings per share came in at $8.25, missing the $8.28 consensus. Important moving parts sit beneath that modest EPS miss.

The standout performer was Power Systems, where surging demand for data center power equipment across the U.S., China, and Asia Pacific drove the segment's EBITDA margin to a record 18.9% companywide. Power Systems EBITDA margin for that segment specifically rose to 25.4% from 22.9% a year earlier, while the Engine segment improved its margin to 13.5% from 10.0%. Net income more than doubled year over year, rising 112.7% to $1.14 billion, though that comparison is flattered by the absence of $240 million in Accelera non-cash charges that weighed on the prior-year period.

The drag came from North American pickup trucks. CEO Jennifer Rumsey stated plainly: 'Customer orders in the pickup truck market have weakened,' and management expects that softness to persist through year-end. That pressure was enough to force a guidance cut: Cummins now targets full-year 2026 revenue growth of approximately 10%, narrowed from a prior range of 10% to 13%. The EBITDA margin outlook of approximately 18.2% held within its prior 18% to 18.5% range.

The EPS figure also benefited from $0.54 per diluted share of net favorable discrete tax items, primarily $38 million of favorable uncertain tax position adjustments and $37 million of favorable return-to-provision adjustments, which pulled the quarterly effective tax rate down to 17.7% from 32.7% a year ago. Investors will want to strip those items out when judging the underlying earnings quality.

On the product side, Cummins is preparing to launch its HELM engine platforms, including the 2027 X15, and conducted its 2026 Forever Rising Tour to give more than 500 customers and dealers hands-on experience with the new engines. The company was also selected to supply battery energy storage systems for a large U.S. data center project, described as its largest BESS deployment to date. Management expects fourth-quarter revenue to step up from Q3 levels and set a new record, with global power generation and North American heavy-duty truck demand cited as the supporting pillars.

Cummins raised its quarterly common stock dividend from $2.00 to $2.20 per share in July, extending its streak to 17 consecutive years of dividend increases. The company also reaffirmed its commitment to returning 50% of operating cash flow to shareholders, against a backdrop of $1.41 billion in operating cash flow generated in the quarter and $303 million in capital expenditures.