Cummins Inc. reported first‑quarter 2026 revenue of $8.4 billion, a 2.7% year‑over‑year increase, and basic earnings per share of $4.71. The company’s adjusted EPS of $6.15 beat consensus estimates of $5.60, while the GAAP figure fell short of the $5.60–$5.65 range due to a $199 million charge related to the sale of its low‑pressure fuel cell business. Management raised its full‑year revenue outlook to $33.5 billion–$34.0 billion, up from the prior $32.5 billion–$33.0 billion range, and lifted its 2026 EBITDA margin target to 17.75%–18.50% from 17.0%–18.0%.
The Power Systems segment led the quarter, generating $2.0 billion in sales—up 19% from $1.6 billion in Q1 2025—and $577 million in EBITDA, a 29.5% margin. The segment’s growth was driven by robust demand for data‑center backup power, especially in China, while the Engine and Components segments continued to experience softness in the North American truck market, with Engine sales at $2.8 billion and Components sales down 5% year‑over‑year. The Accelera segment recorded an EBITDA loss, reflecting ongoing challenges in the low‑pressure fuel cell market.
"Cummins delivered strong results in the first quarter, led by record performance in our Power Systems segment. Our teams executed with discipline to meet continued strong demand for data center backup power and North America truck markets began to improve from a cyclical low," said Chair and CEO Jennifer Rumsey. She added, "We also recorded charges related to the sale of our low‑pressure fuel cell business, reflecting lower hydrogen adoption expectations and our continued commitment to focusing investments and reducing losses within the Accelera segment."
"We raised our 2026 outlook for revenue and profitability as demand strengthens across several key markets. We see North America on‑highway markets improving, while demand for data center power generation across a range of our products continues to outpace expectations. Through the remainder of 2026, we are well‑positioned to deliver strong financial performance, invest in future growth and return cash to shareholders," Rumsey continued.
Investors responded positively to the raised guidance and adjusted EPS beat, while the GAAP EPS miss and fuel cell charge tempered enthusiasm. The company’s focus on high‑margin Power Systems growth and its confidence in a gradual recovery in truck markets signal a strategic shift toward more resilient revenue streams.
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