Cummins Reports Record Second-Quarter 2026 Results, Raises Full-Year Outlook on Strong Demand Across Key Markets
Cummins Inc. delivered record financial results for the second quarter of 2026, driven by sustained demand for power generation equipment supporting data centers, improving North American truck markets, and continued growth in international operations. The company also raised its full-year financial guidance, citing stronger-than-expected market conditions and confidence in continued momentum through the remainder of the year.
Chair and Chief Executive Officer Jennifer Rumsey said the company’s performance reflects robust customer demand, disciplined execution, and the strength of Cummins’ diversified business portfolio.
“Our record second-quarter performance demonstrates the resilience of our business and the dedication of our global workforce,” Rumsey said. “Strong customer demand for standby power systems serving data centers, combined with improving North American truck markets, allowed us to deliver another quarter of exceptional results despite a complex macroeconomic environment. We now expect the second half of 2026 to be stronger than the first and have increased our full-year financial outlook accordingly.”
Revenue Climbs to Record $9.5 Billion
Cummins generated second-quarter revenue of $9.5 billion, representing a 9% increase compared with the same period in 2025.
Growth was broad-based across the company’s business segments and geographic regions.
North American sales rose 8%, supported by improving demand for heavy-duty trucks, expanding investments in power generation, and higher orders from commercial customers.
International markets delivered even stronger performance, with revenue increasing 12%, led by higher construction equipment demand in China and continued expansion in power generation markets across Asia Pacific.
The company continues to benefit from diversified exposure across transportation, industrial equipment, construction, mining, and power generation industries.
Net Income Reaches $932 Million
Cummins reported second-quarter net income attributable to shareholders of $932 million, compared with $890 million during the same period last year.
Diluted earnings per share improved to $6.73, up from $6.43 in the second quarter of 2025.
The quarter included an effective tax rate of 25.1%, reflecting approximately $29 million in unfavorable discrete tax items, equivalent to $0.21 per diluted share.
Despite these tax impacts, the company still achieved record profitability through strong operational execution and higher sales volumes.
EBITDA Remains Strong
Second-quarter EBITDA totaled approximately $1.7 billion, representing 17.5% of total sales.
Although EBITDA margin declined slightly from 18.4% recorded during the same quarter last year, management emphasized that the reduction was primarily due to significantly higher incentive compensation expenses tied to expected record annual financial performance.
Cummins expects EBITDA margins to improve during the second half of 2026 as higher production volumes, improved operating leverage, and continued pricing discipline offset these temporary cost increases.
Cummins Raises 2026 Financial Guidance
Reflecting stronger market conditions across multiple industries, Cummins increased its full-year financial outlook.
The company now expects 2026 revenue to increase between 10% and 13%, compared with previous guidance, supported by continued strength in:
- North American on-highway truck markets
- China construction equipment
- Global power generation
- Data center infrastructure investments
Cummins also increased its EBITDA guidance.
The company now forecasts EBITDA margins between 18.0% and 18.5%, excluding charges related to the previously announced sale of its fuel cell business during the first quarter.
Management believes favorable market conditions, improved customer demand, and increasing regulatory clarity will continue supporting profitable growth throughout the remainder of the year.
Commitment to Shareholder Returns
Cummins reaffirmed its long-standing capital allocation strategy.
The company plans to continue generating strong operating cash flow while returning approximately 50% of operating cash flow to shareholders over the long term.
Reflecting confidence in future earnings, the Board approved an increase in the quarterly cash dividend from $2.00 per share to $2.20 per share.
The increase marks the 17th consecutive year Cummins has raised its quarterly dividend, highlighting its commitment to delivering consistent shareholder value through varying economic cycles.
Strong Demand for Data Center Power Generation
One of the primary growth drivers during the quarter was continued investment in power infrastructure supporting artificial intelligence and hyperscale data centers.
Demand for reliable standby and prime power generation equipment remained exceptionally strong as operators continue expanding computing capacity to support rapidly growing AI workloads.
Cummins has become an increasingly important supplier of backup and primary power solutions for this expanding market.
Growing electricity requirements and grid reliability challenges continue driving customers toward integrated power systems capable of providing continuous, reliable energy.
Strategic Investment in Data Center Infrastructure
During June, Cummins announced an important agreement with Circe Energy to provide natural gas-powered generator sets supporting a scalable microgrid for a High-Performance Computing (HPC) data center in Texas.
The long-term agreement extends from 2026 through 2030 and includes delivery of the company’s advanced HSK78 and QSK60 generator platforms.
The project also incorporates Cummins’ integrated microgrid control technologies designed to improve system reliability, enable rapid response capabilities, and address electric grid constraints.
The agreement highlights the company’s expanding role in providing power infrastructure for AI-driven computing facilities, an industry expected to remain one of Cummins’ fastest-growing end markets.
Analyst Day Highlights Long-Term Growth Strategy
Earlier this year, Cummins hosted its 2026 Analyst Day, where management presented updated long-term financial objectives through 2030.
During the event, executives increased the company’s long-term financial targets, citing stronger competitive positioning, expanding market opportunities, and continued execution of strategic initiatives.
Management also announced additional investments in manufacturing capacity and product development, particularly across mining and power generation businesses.
These investments are intended to strengthen Cummins’ leadership in markets where long-term demand remains attractive.
Preparing for Model Year 2027
Cummins also announced updated launch plans for its North American Model Year 2027 on-highway engine lineup following proposed changes to EPA emissions regulations.
Rather than implementing a rapid transition, the company intends to introduce its next-generation X10 and X15 engines through a carefully managed production ramp while continuing limited production of selected legacy engine platforms throughout 2027.
Management believes this phased approach provides customers with greater production flexibility while allowing manufacturers sufficient time to adapt to changing regulatory requirements.
To support customer engagement, Cummins recently showcased these engines through its nationwide Forever Rising Tour, providing fleet operators and equipment manufacturers with opportunities to evaluate the latest powertrain technologies firsthand.
Engine Segment Delivers Higher Sales
The Engine business generated $3.1 billion in second-quarter revenue, representing a 6% increase compared with last year.
International demand proved particularly strong.
Sales outside North America increased 23%, primarily due to stronger construction equipment demand in China.
North American engine revenue increased 1%, reflecting gradual improvement in truck production and commercial transportation markets.
Segment EBITDA totaled $386 million, equal to 12.5% of sales, compared with $400 million, or 13.8% of sales, during the prior-year period.
The lower margin primarily reflected increased incentive compensation and investments supporting future product launches.
Components Segment Benefits from Truck Market Recovery
Cummins’ Components segment reported second-quarter revenue of $2.9 billion, up 7% year over year.
North American revenue increased 6%, while international sales rose 8%, supported by improving truck production in both the United States and China.
Segment EBITDA reached $381 million, representing 13.2% of sales, compared with $397 million, or 14.7% of sales, during the previous year.
Although profitability moderated slightly, the business continued benefiting from higher production volumes and healthy aftermarket demand.
Distribution Segment Expands Through Power Generation
The Distribution segment generated $3.3 billion in quarterly sales, representing a 9% increase from the previous year.
North American revenue rose 13%, while international revenue increased 1%.
Growth was primarily driven by rising demand for power generation equipment supporting commercial and industrial customers, particularly those investing in data center infrastructure.
Segment EBITDA improved to $451 million, although EBITDA margin declined modestly to 13.6% of sales compared with 14.6% during the prior-year period.
Power Systems Segment Produces Outstanding Results
The strongest performance across Cummins’ operating businesses came from the Power Systems segment.
Revenue surged 19% to $2.3 billion, reflecting exceptional demand for power generation equipment worldwide.
Both North American and international markets posted 19% growth, fueled by large orders supporting data centers throughout the United States, China, and the broader Asia-Pacific region.
Segment EBITDA climbed to $552 million, representing 24.5% of sales, compared with $430 million, or 22.8% of sales, one year earlier.
The results underscore Cummins’ growing leadership position within the rapidly expanding global power generation industry.
Accelera Continues Growth in Zero-Emission Technologies
Cummins’ Accelera business continued expanding despite ongoing investments.
Revenue increased 38% to $145 million, reflecting improving demand for electric mobility solutions.
The segment reported an EBITDA loss of $69 million, as the company continues investing in next-generation zero-emission technologies.
Management reiterated its commitment to the Destination Zero strategy while emphasizing a disciplined investment approach that focuses capital on the most promising commercial opportunities and aims to reduce long-term operating losses.
Positioned for Continued Growth
Looking ahead, Cummins expects demand to remain healthy across several strategic markets.
Improving North American truck production, continued infrastructure investment, accelerating AI-driven data center expansion, strengthening construction activity in China, and long-term opportunities in mining and power generation all provide favorable conditions for sustained growth.
Management believes Cummins’ diversified portfolio, global manufacturing footprint, technological leadership, and disciplined capital allocation strategy position the company to capitalize on these trends while delivering profitable growth and attractive shareholder returns.
With record quarterly revenue, higher earnings, increased dividend payments, stronger market demand, and an upgraded full-year outlook, Cummins enters the second half of 2026 with significant momentum and confidence in its ability to achieve another year of record financial performance.
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