CUMMINS INC (CMI): Results of Operations and Financial Condition
CUMMINS INC (CMI) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99 August 4, 2026 Cummins Reports Strong Second Quarter 2026 Results; Raises Full-Year Outlook • Record second-quarter revenues of $9.5 billion; GAAP 1 Net Income of $932 million, or 9.9% of sales • EBITDA 2 in the second quarter was 17.5% of sales; Diluted EPS of $6.73 •
How this was made
The 30-second read
Why it matters
The key tradable update is the guidance raise (revenue growth and EBITDA margin range) alongside segment-level demand commentary, which can drive estimate revisions and positioning ahead of subsequent quarters.
Market read
Guidance raise plus strong data center standby power and improving truck markets narrative can shift forward earnings expectations and support bullish positioning.
What to watch
The outlook update references regulatory clarity and proposed EPA emissions changes; any delays or customer production schedule disruptions could pressure the ramp assumptions for 2027 engines.
Cummins Reports Strong Second Quarter 2026 Results; Raises Full-Year Outlook
Record second-quarter revenues of $9.5 billion rose 9%, net income attributable to Cummins increased to $932 million, Power Systems sales rose 19%, and the company raised full-year revenue guidance to up 10% to 13%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenuesGAAP | $9.5 billion | – | increased 9% |
| Net income attributable to CumminsGAAP | $932 million | – | – |
| Diluted EPSGAAP | $6.73 per diluted share | – | – |
| Tax rateGAAP | 25.1% | – | – |
| Unfavorable discrete tax itemsGAAP | $29 million, or $0.21 per diluted share | – | – |
| EBITDAother | $1.7 billion, or 17.5% of sales | – | – |
| Engine Segment EBITDAother | $386 million, or 12.5% of sales | – | – |
| Components Segment EBITDAother | $381 million, or 13.2% of sales | – | – |
| Distribution Segment EBITDAother | $451 million, or 13.6% of sales | – | – |
| Power Systems Segment EBITDAother | $552 million, or 24.5% of sales | – | – |
| Accelera Segment EBITDA lossother | $69 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Engine SegmentRevenues in North America increased 1% and international sales increased 23% due to stronger construction demand in China. | $3.1 billion | – | up 6% |
| Components SegmentRevenues in North America increased 6% and international sales increased 8% primarily due to stronger truck demand in the United States and China. | $2.9 billion | – | up 7% |
| Distribution SegmentRevenues in North America increased 13% and international sales increased 1% driven by increased demand for power generation products, particularly for data center applications. | $3.3 billion | – | up 9% |
| Power Systems SegmentRevenues in North America increased 19% and international sales increased 19% driven primarily by increased power generation demand, particularly for data center markets in the United States, China and Asia Pacific. | $2.3 billion | – | up 19% |
| Accelera SegmentRevenues increased due to stronger eMobility demand. | $145 million | – | up 38% |
full-year 2026 outlook
- Revenueup 10% to 13%
- NoteEBITDA is expected to be in the range of 18.0% to 18.5%, excluding the charges related to the sale of the fuel cell business in the first quarter.
- NoteThe company expects the second half of the year to be stronger than the first half.
- NoteEBITDA percentage for the company is expected to be higher in the second half and full year 2026 compared to the same periods in 2025.
Capital returns
- The company returned $501 million to shareholders in the second quarter in the form of cash dividends and share repurchases.
- Cummins announced an increase in the quarterly common stock cash dividend from $2.00 to $2.20 per share.
- Cummins is committed to its long-term strategic goal of returning 50% of operating cash flow back to shareholders.
What drove it
- Sales in North America increased 8% while international revenues, led by growth in China, increased 12%.
- Robust customer orders for standby power for data centers and improving North American truck markets supported results.
- Power generation demand, particularly for data center markets in the United States, China and Asia Pacific, drove Power Systems growth.
- Stronger construction demand in China supported Engine Segment international sales.
- Stronger truck demand in the United States and China supported Components Segment sales.
Concerns
- EBITDA was 17.5% of sales, compared to 18.4% of sales a year ago.
- EBITDA percentage for the company and some individual segments declined year-over-year, primarily due to higher incentive compensation tied to expected record full year results.
- The tax rate included $29 million, or $0.21 per diluted share, of unfavorable discrete tax items.
- Accelera reported a Segment EBITDA loss of $69 million.
What to watch
- Whether demand for data center power generation remains robust.
- North American truck market improvement and stronger demand in China construction.
- Execution of the measured production ramp for the new X10 and X15 engines while maintaining select legacy product availability in 2027.
- Progress in reducing the rate of ongoing EBITDA losses at Accelera.
- Whether EBITDA percentage is higher in the second half and full year 2026 compared to the same periods in 2025.
Analysis
Cummins reported record second-quarter 2026 revenues of $9.5 billion, up 9% from the same quarter in 2025. Sales growth spanned North America, where sales increased 8%, and international markets, where revenues increased 12% led by China. Net income attributable to Cummins was $932 million, or $6.73 per diluted share, compared with $890 million, or $6.43 per diluted share, in 2025.
Growth was broad across the operating segments, led by Power Systems, where sales were $2.3 billion, up 19%. The release attributed Power Systems growth to power generation demand, particularly for data center markets in the United States, China and Asia Pacific. Distribution sales rose 9% to $3.3 billion on power generation demand for data center applications. Engine sales were $3.1 billion, up 6%, supported by stronger construction demand in China, while Components sales rose 7% to $2.9 billion on stronger truck demand in the United States and China. Accelera sales increased 38% to $145 million on stronger eMobility demand.
Profitability was strong in absolute dollars but mixed on margin. Company EBITDA was $1.7 billion, or 17.5% of sales, compared with $1.6 billion, or 18.4% of sales, a year ago. The company said the year-over-year decline in company and some segment EBITDA percentages was primarily due to higher incentive compensation tied to expected record full year results. Power Systems was the margin exception, with segment EBITDA of $552 million, or 24.5% of sales, compared with $430 million, or 22.8% of sales. The tax rate was 25.1%, including $29 million, or $0.21 per diluted share, of unfavorable discrete tax items. Accelera remained loss-making, reporting a Segment EBITDA loss of $69 million.
Management raised full-year 2026 revenue guidance to up 10% to 13% from prior guidance of up 8% to 11%, citing stronger demand across markets, particularly North America on-highway, China construction and power generation. EBITDA is expected to be 18.0% to 18.5%, compared with prior guidance of 17.75% to 18.5%, excluding charges related to the sale of the fuel cell business in the first quarter. The company expects the second half to be stronger than the first half and expects EBITDA percentage to be higher in the second half and full year 2026 than in the same periods in 2025.
Capital returns totaled $501 million in the second quarter through cash dividends and share repurchases. Cummins also increased its quarterly common stock cash dividend from $2.00 to $2.20 per share and reiterated its long-term strategic goal of returning 50% of operating cash flow to shareholders. The filing did not provide reported operating cash flow, free cash flow, cash, debt, gross margin, operating income, or a detailed repurchase amount.
Management, verbatim
Cummins delivered record second-quarter results, reflecting robust customer orders for standby power for data centers and improving North American truck markets.
Jennifer Rumsey, Chair and CEO of Cummins
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.
Jennifer Rumsey, Chair and CEO of Cummins
We’re raising our financial outlook for 2026 as demand continues to outpace expectations across several key markets.
Jennifer Rumsey, Chair and CEO of Cummins
Not in the filing
stated, not guessed- Period-end date
- Gross margin
- Operating income
- Non-GAAP net income and non-GAAP EPS
- Prior-quarter comparisons
- Operating cash flow
- Free cash flow
- Cash and cash equivalents
- Debt
- Detailed share-repurchase amount
- Detailed dividend cash amount
- Full-year gross-margin, operating-expense, and tax-rate guidance
- Prior outlook section for formal actual-versus-prior-guidance comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Cummins filed an SEC 8-K (Item 2.02) with Q2 2026 results and updated full-year 2026 guidance, including margin expectations and shareholder return actions.
Ticker impact
Cummins reported Q2 2026 results and raised full-year revenue guidance to up 10% to 13%, plus EBITDA margin guidance to 18.0% to 18.5%.
Likely positive bias for the stock into the next earnings cycle, with focus on whether margin guidance (EBITDA %) holds in 2H.
The filing is a primary disclosure (8-K) with specific, updated quantitative guidance and segment demand drivers, which typically re-rates forward estimates and reduces uncertainty versus prior guidance.
Market effects
Signals strength in standby power/data center generator demand and improving on-highway truck markets, supportive for heavy-duty powertrain and power systems supply chains.
Highlights North America and China as key growth contributors, which may influence regional industrial demand expectations.
Improved guidance tied to global construction/power and HPC data center power needs can affect broader industrial cyclicals sentiment.
Counterpoint
EBITDA margin declined year-over-year in Q2 due to higher incentive compensation, so the raised margin range may still face execution or cost-pressure risk.
Key entities
- public_companyCummins Inc.
Reported Q2 2026 results, raised full-year 2026 revenue and EBITDA guidance, increased the quarterly dividend, and described demand drivers across Engine, Components, Distribution, Power Systems, and Accelera.
- counterpartyCirce Energy
Agreed to provide natural gas generator sets for a scalable behind-the-meter prime power microgrid for a Texas HPC data center, with deliveries scheduled 2026-2030.
