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FY2026 Q1
Raised
Cummins Inc. earnings call
Buzzberg read
2026 revenue outlook raised to 8%-11% growth
Cummins reported a strong Q1 with revenue up 3%, though EBITDA was flat YoY excluding charges. Management raised full-year guidance across all segments, citing a faster-than-expected recovery in North American truck demand and an accelerating data-center-driven power generation market. The company also completed the sale of its low-pressure fuel cell business to Alstom and hinted at further capacity investments in power systems. Q1 revenue of $8.4B (+3% YoY) missed expectations; adjusted EBITDA margin of 17.7% was roughly flat YoY.
Buzzberg read 2026 revenue outlook raised to 8%-11% growth Cummins reported a strong Q1 with revenue up 3%, though EBITDA was flat YoY excluding charges. Management raised full-year guidance across all segments, citing a faster-than-expected recovery in North American truck demand and an accelerating data-center-driven power generation market. The company also completed the sale of its low-pressure fuel cell business to Alstom and hinted at further capacity investments in power systems. Q1 revenue of $8.4B (+3% YoY) missed expectations; adjusted EBITDA margin of 17.7% was roughly flat YoY. Read full analysisCollapse analysis
Cummins reported a strong Q1 with revenue up 3%, though EBITDA was flat YoY excluding charges. Management raised full-year guidance across all segments, citing a faster-than-expected recovery in North American truck demand and an accelerating data-center-driven power generation market. The company also completed the sale of its low-pressure fuel cell business to Alstom and hinted at further capacity investments in power systems. Q1 revenue of $8.4B (+3% YoY) missed expectations; adjusted EBITDA margin of 17.7% was roughly flat YoY.
- Raised FY2026 revenue growth guide to +8-11% (from +3-8%) and raised EBITDA margin guide to 17.75-18.5%.
- Increased North America heavy-duty truck industry forecast to 230-250k units (from 220-240k) and medium-duty to 125-135k units (from 110-120k).
- Global power generation revenue growth expectation raised to +15-25% (from +10-20%) on data-center demand.
Revenue$8.398B-2% QoQ
EPS$6.15+6% QoQ
Gross margin26.71%Reported
Operating margin11.3%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Margins
Power systems record first-quarter EBITDA margin of 29.5%
Demand
Data center demand drives power generation growth
Show 3 more callouts
Product Launch
B platform launch delayed to January 2028
Costs
Accelera losses improve after fuel cell sale
Macro
Tariffs expected to remain immaterial to EBITDA
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $8.398B | -2% QoQ |
| EPS | $6.15 | +6% QoQ |
| Gross margin | 26.71% | Reported |
| Operating margin | 11.3% | Reported |
| Free cash flow | $0.12B | Reported |
| Capex | $0.189B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Capex | FY2026 | $1.5B–$1.6B | $1.55B | Maintained |
| Operating margin | FY2026 | 17.75%–18.5%Above consensus | 18.125% | Raised |
| Revenue | FY2026 | $35.6B–$37.9BAbove consensus | $36.75B | Raised |
| RevenuePOWER_GENERATION | FY2026 | 15%–25%Above consensus | 20% | Raised |
| UnitsNORTH_AMERICA_HEAVY_DUTY | FY2026 | 230000–250000In line with consensus | 240000 | Raised |
| UnitsNORTH_AMERICA_MEDIUM_DUT | FY2026 | 125000–135000In line with consensus | 130000 | Raised |
AI, capex & demand read
Management read
Confident
Management raised full-year guidance across multiple segments and highlighted strong demand, particularly in power generation and data centers, while expressing confidence in achieving improved profitability.
Investment and capacity
Management is increasing capacity investments, such as adding a third shift at Rocky Mount and evaluating additional capacity for power generation, while total investments for 2026 are expected to be in the range of $1.35 to $1.45 billion.
all 4 named companies below
Companiesreturns since call
Customers
Customers
Jennifer Rumsey
Demand from Stellantis for engines is slightly up YoY, indicating stable pickup truck production levels.
Evidence
“We shipped 30,000 engines to Stellantis for use in their RAM pickups in the first quarter of 2026, up 4% from 2025 levels”
Customers
Mark Smith
Cummins completed the divestiture of its low-pressure fuel cell business to Alstom, reducing Accelera's future losses.
Evidence
“we completed the sale of the low pressure fuel cell business to Alstom”
Partners
Partners
Jennifer Rumsey
Cummins' hybrid retrofit for Komatsu's 300-ton haul truck is now commercially deployed, a milestone in mining electrification.
Evidence
“deployment of the world's first commercial hybrid electric ultra-class mining truck, now in operation and production at the Casaronas Open Pit Mine in Chile. This pilot represents our first retrofit of a 300-ton Komatsu haul truck”
Partners
Jennifer Rumsey
Cummins management stated they believe the 95-liter engine market is 'growing faster than supply' and that they 'continue to work toward additional capacity' given multi-year customer commitments. — Management hinted at further capacity investments in power systems, anticipating continued data-center demand.
Evidence
“Mack Truck announced the integration of the Cummins X10 engine into the Mack Granite chassis. This milestone reflects the strong collaboration between the Mack and Cummins teams”
External signals
Supply-chain alpha · 3returns since call
Cummins has added a third shift at its Rocky Mount (medium-duty) plant and is ramping capacity, pointing to stronger North American medium-duty demand in Q2.
Evidence
“right now we're adding a third shift at Rocky Mount. So we really saw medium duty demand improving starting in Q1 and quite strong here as we go to the second quarter.”
Cummins management stated they believe the 95-liter engine market is 'growing faster than supply' and that they 'continue to work toward additional capacity' given multi-year customer commitments.
Evidence
“we are continuing to look closely at longer-term demand expectations and if there's additional capacity investments we want to make across our plants and supply chain”
Canada and Mexico tariff policy changes are leading U.S. OEMs to ask for more US-built engines, potentially driving a structural shift in engine sourcing.
Evidence
“we're working really closely with the Department of Commerce to make sure they understand how do we meet our mutual goal of encouraging U.S. manufacturing and how the engine offset program is going to work”
Methodology & coverage
Management-only analysis. All 4 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.