Key facts
- Cummins reported second-quarter profit of $6.73 per share, missing analyst expectations of $7.23 per share.
- Quarterly net sales increased 9.4% to $9.46 billion, surpassing estimates of $9.33 billion.
- Demand for generators and North American truck markets remained strong.
- The company raised its 2026 revenue growth forecast to 10-13% from 8-11%.
- The Power Systems segment revenue grew 19% year-over-year.
Cummins, a U.S. truck engine maker, reported second-quarter profit that fell short of market expectations, despite robust demand for its generators and signs of improvement in the North American truck market. The company's shares declined as much as 8% in premarket trading following the announcement.
Despite strong demand, particularly for power-generation equipment driven by AI-related data-center investments, Cummins faced challenges in translating this demand into higher earnings. CEO Jennifer Rumsey highlighted the ongoing improvement in North American truck markets and sustained strong demand for data center power generation.
The company's Power Systems segment, which manufactures generators, saw a 19% increase in revenue to $2.3 billion year-over-year. The Distribution segment also experienced growth, rising 9% to $3.3 billion. Revenue from Accelera, which focuses on zero-emissions technologies, climbed 38% compared to the previous year.
For the quarter ended June 30, Cummins reported a profit of $6.73 per share, which was below the average analyst expectation of $7.23 per share, though an increase from the $6.43 per share reported a year earlier. Quarterly net sales, however, exceeded expectations, rising 9.4% to $9.46 billion against an estimate of $9.33 billion.
Looking ahead, Cummins revised its 2026 revenue forecast upwards, now projecting a 10-13% increase, an improvement from its previous guidance of 8-11% growth.