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FY2026 Q2
Raised
Cummins Inc. earnings call
Buzzberg read
Raised 2026 revenue growth guidance to 10-13%
Cummins reported strong Q2 2026 results with record revenues, raised full-year guidance across multiple segments, and detailed its phased 2027 emissions transition. Core themes are relentless data center power demand, capacity constraints in gensets, and a broadening energy portfolio (backup + prime). Total revenue up 9% Y/Y to $9.5B; power systems revenue up 19%.
Buzzberg read Raised 2026 revenue growth guidance to 10-13% Cummins reported strong Q2 2026 results with record revenues, raised full-year guidance across multiple segments, and detailed its phased 2027 emissions transition. Core themes are relentless data center power demand, capacity constraints in gensets, and a broadening energy portfolio (backup + prime). Total revenue up 9% Y/Y to $9.5B; power systems revenue up 19%. Read full analysisCollapse analysis
Cummins reported strong Q2 2026 results with record revenues, raised full-year guidance across multiple segments, and detailed its phased 2027 emissions transition. Core themes are relentless data center power demand, capacity constraints in gensets, and a broadening energy portfolio (backup + prime). Total revenue up 9% Y/Y to $9.5B; power systems revenue up 19%.
- Full-year revenue outlook raised to +10-13%, with EBITDA now guided to 18-18.5%.
- EPA 2027 transition to be phased via limited production through 2027, smoothing OEM launch.
- Strong China demand, with power generation equipment sales up 88% in the quarter.
Revenue$9.457B+13% QoQ
EPS$6.73+9% QoQ
Gross margin26.07%Reported
Operating margin13.52%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Demand
Signed multi-year hyperscaler backup power agreement
Supply
Power generation demand still outpaces supply capacity
Show 3 more callouts
Regulation
2027 engine transition to be smoother, less abrupt
Margins
Incentive comp reset to provide ~$200M tailwind next year
Demand
Power generation backlog extended into second half 2028
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $9.457B | +13% QoQ |
| EPS | $6.73 | +9% QoQ |
| Gross margin | 26.07% | Reported |
| Operating margin | 13.52% | Reported |
| Free cash flow | $1.25B | Reported |
| Capex | $0.249B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Operating margin | FY2026 | 18%–18.5% | 18.25% | Raised |
| Revenue | FY2026 | 10%–13% | 11.5% | Raised |
| RevenuePOWER_SYSTEMS | FY2026 | 14%–19% | 16.5% | Maintained |
AI, capex & demand read
Management read
Upbeat
Management expressed strong confidence in demand, raised full-year guidance for the second time, and highlighted record sales, backlog strength, and strategic wins in data center power and regulatory clarity.
Investment and capacity
Management raised capital investments to $1.35-$1.45 billion for 2026 to support growth, including expanding power generation capacity and developing the new 130-liter natural gas genset platform. They highlighted significant capacity expansion investments, with new capacity coming online in 2027 and a larger step-up in 2028.
External signals
Supply-chain alpha · 3returns since call
Cancellations and lead times for large data center gensets are still constrained; new orders are being booked out to the second half of 2028.
Evidence
“If you want a new one, it's going to be the second half of 2028.”
Cummins is ramping 130-liter natural gas gensets for prime power, backed by a Texas data center deal.
Evidence
“We are also seeing some Prime Demand for the products that we have while we work on developing the new 130 liter.”
China power generation equipment sales were up 88% in Q2 due to data center demand, a major swing factor.
Evidence
“Sales of power generation equipment in China increased 88% in the second quarter due to accelerating data center demand.”
Methodology & coverage
Management-only analysis. All 0 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.