Power generation demand fuels top-line growth
The Power Systems segment saw sales jump 19%, with data center and commercial applications leading the way, particularly in North America and China.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Cummins Inc. delivered a 9% revenue increase in the second quarter of fiscal 2026, powered by surging demand for power generation equipment—particularly for data centers—and strength in international construction markets. Net income rose 5%, though higher compensation and freight costs eroded gross margin by 0.3 percentage points to 26.1%. Operating cash flow more than doubled in the first half to $1,808 million, underscoring strong working capital management. Management noted tariff impacts were immaterial during the quarter, but ongoing trade uncertainty remains a key risk.
Revenue
$9.46B
+9.42% YoY
EPS (Diluted)
$6.73
+4.67% YoY
Gross Margin
26.1%
-0.3 pts YoY
Operating Income
$1.28B
+4.32% YoY
Source: SEC XBRL
Cummins (CMI) reported Q2 FY2026 revenue of $9.46B, up 9.4% year over year. Operating margin was 13.5%, down 0.7 points from 14.2% a year earlier. CMI's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 6.94 | 7.30 | Miss -5.0% |
| Mar 2026 | 6.15 | 5.64 | Beat +9.0% |
| Dec 2025 | 4.27 | 5.16 | Miss -17.2% |
| Sep 2025 | 5.59 | 4.86 | Beat +15.0% |
Adjusted (non-GAAP) EPS of $6.94 versus the $7.30 analyst consensus — a -5.0% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $6.73.
5 reported segments · SEC XBRL
Segment revenue totals $9.46B, which is the $9.46B of consolidated revenue on the income statement.
Compiled by AI from 10-Q Item 2 of this filing
The Power Systems segment saw sales jump 19%, with data center and commercial applications leading the way, particularly in North America and China.
Source: 10-Q Item 2 MD&A
International sales (excluding U.S. and Canada) grew 12% in the quarter, accounting for 41% of total net sales, with China, Asia Pacific, and Europe as key contributors.
Source: 10-Q Item 2 MD&A
Gross margin dollars rose 8% but the margin rate declined 0.3 points to 26.1% as higher compensation and freight expenses offset volume and pricing benefits.
Source: 10-Q Item 2 MD&A
In the first quarter, Accelera sold its low-pressure fuel cell business, resulting in a $199 million net charge that impacted year-to-date results but not the second quarter.
Source: 10-Q Item 2 MD&A, Note 14
Operating cash flow for the first six months jumped 131% to $1.8 billion, enabling a 10% dividend increase to $2.20 per share and $468 million in share repurchases.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
A significant portion of recent revenue growth is tied to demand from data centers and power generation; any slowdown in data center construction or shift in energy policies could reduce sales.
Source: 10-Q Item 2 MD&A
Compensation, freight, and other input costs are rising faster than revenue, compressing margins. SG&A expenses jumped 15% in the quarter, outpacing the 9% revenue growth.
Source: 10-Q Item 2 MD&A
Over 40% of sales come from international markets, exposing Cummins to currency fluctuations and political instability, particularly in China and emerging markets.
Source: 10-Q Income Statement (geographic segments)
Although tariff impacts were immaterial in Q2, ongoing trade tensions and potential new tariffs could increase costs and disrupt supply chains.
Source: 10-Q Item 2 MD&A
The Accelera segment continues to incur losses as the company invests in electrification and hydrogen technologies; failure to achieve profitability or market acceptance could weigh on future results.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 9.46 $B | 8.64 $B | +9.42% |
Cost of Revenue $B | 6.99 $B | 6.36 $B | +9.90% |
Gross Profit $B | 2.47 $B | 2.28 $B | +8.07% |
Operating Income $B | 1.28 $B | 1.23 $B | +4.32% |
EPS (Basic) $ | 6.76 $ | 6.46 $ | +4.64% |
EPS (Diluted) $ | 6.73 $ | 6.43 $ | +4.67% |
R&D Expense $M | 385.00 $M | 357.00 $M | +7.84% |
SG&A Expense $M | 893.00 $M | 779.00 $M | +14.63% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
Cummins Inc. reported Q1 2026 revenue of $8.40B (+2.7% YoY), but operating income fell 16.3% to $949M and EPS dropped 21.0% to $4.71 diluted, reflecting higher SG&A costs and margin compression despite modest top-line growth.
CMI delivered a resilient FY2025 with operating income rising 7.3% to $4.03B despite a 1.3% revenue decline to $33.67B, while operating cash flow surged 143.5% to $3.62B and EPS fell 27.8% due to prior-year one-time items.
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