Cummins Inc
Q2 2026 Earnings
Market Reaction
Did CMI Beat Earnings? Q2 2026 Results
Cummins posted a mixed second quarter for 2026, beating revenue expectations while falling short on the bottom line, as surging data center demand lifted sales but higher incentive compensation weighed on margins. Revenue climbed 9.4% year-over-year to $9.46 billion, edging past the $9.34 billion consensus estimate by 1.29%, yet earnings per diluted share of $6.73 missed the $7.17 analyst forecast by 6.12%, even as net income rose to $932 million from $890 million a year ago. The standout story was the Power Systems segment, where sales jumped 19% to $2.25 billion on booming demand for data center power generation across the United States, China, and Asia Pacific, a trend also fueling the broader generator market. EBITDA margin contracted to 17.5% from 18.4% a year earlier, primarily due to higher incentive compensation tied to anticipated full-year performance. Looking ahead, Cummins raised its full-year 2026 revenue growth guidance to a range of 10% to 13%, up from 8% to 11% previously, while tightening its EBITDA margin outlook to 18.0% to 18.5%.
- Robust demand for standby power for data centers driving Power Systems and Distribution segment growth
- Improving North American truck markets boosting Engine and Components segment revenues
- Stronger construction demand in China driving 23% international sales growth in Engine segment
- Higher incentive compensation tied to expected record full-year results pressuring EBITDA margins year-over-year
- Disciplined execution across all segments amid complex macroeconomic environment
“Cummins delivered record second-quarter results, reflecting robust customer orders for standby power for data centers and improving North American truck markets. Rising demand and disciplined execution drove record performance as we continue to perform well in a complex macroeconomic environment. We are raising our expectations for full year performance and expect the second half of the year to be stronger than the first half. With greater regulatory clarity in on-highway markets in the U.S. and continued momentum across key markets, we are well positioned to deliver for our customers and generate profitable growth.”
Cummins CEO, on the earnings call
Forward Guidance & Outlook
Cummins raised its full-year 2026 revenue guidance to up 10% to 13% (from prior guidance of up 8% to 11%), driven by stronger demand across North America on-highway, China construction, and power generation markets. EBITDA is expected to be in the range of 18.0% to 18.5% of sales (improved from prior guidance floor of 17.75%), excluding charges related to the Q1 fuel cell business sale. The company expects the second half of 2026 to be stronger than the first half, with EBITDA percentage expected to be higher in H2 2026 and full year 2026 compared to the same periods in 2025. The effective tax rate for full-year 2026 is expected to approximate 23.0%, excluding discrete items. Cummins remains committed to returning 50% of operating cash flow to shareholders.
CMI YoY Financials
CMI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.