The raised full-year guidance (+10-13% revenue, 18.0-18.5% EBITDA) is the primary catalyst, signaling accelerating demand in data center power and North American truck markets. The EPS miss vs consensus is notable but likely secondary to the improved outlook. Monitor Q3 for confirmation of the 'stronger second half' thesis and execution on the raised guidance.
Price Chart
Executive Summary
Cummins reported record Q2 2026 revenue of $9.5B (+9% YoY) and GAAP diluted EPS of $6.73, missing consensus estimates of $7.17. The company raised full-year 2026 revenue guidance to +10-13% (from +8-11%) and EBITDA margin guidance to 18.0-18.5%, citing robust data center power demand and improving North American truck markets. Despite the EPS miss, the raised guidance and record revenue signal strong underlying demand momentum, particularly in Power Systems (+19% revenue). The stock will likely trade on the raised guidance offsetting the EPS miss, with focus on data center and truck cycle recovery.
Key Financial Metrics
Key Facts
- Record Q2 2026 revenue of $9.5 billion, up 9% YoY
- GAAP diluted EPS of $6.73 vs consensus $7.17 (miss of -3.2%)
- Full-year 2026 revenue guidance raised to +10-13% from +8-11%
- Full-year 2026 EBITDA margin guidance raised to 18.0-18.5% from 17.75-18.5%
- Power Systems segment revenue up 19% YoY, driven by data center demand
- Quarterly dividend increased from $2.00 to $2.20 per share
- Company returned $501 million to shareholders in Q2 via dividends and buybacks
- Operating cash flow of $1.5 billion in Q2, up from $785 million YoY
Financial Impact
Q2 revenue $9.5B, GAAP net income $932M, diluted EPS $6.73. Full-year guidance raised: revenue +10-13%, EBITDA 18.0-18.5%. Dividend increased 10% to $2.20/share.
Risk Factors
- EPS miss of 3.2% vs consensus may pressure near-term sentiment
- EBITDA margin declined YoY (17.5% vs 18.4%) due to higher incentive compensation
- Engine and Components segments saw EBITDA margin compression YoY
- Accelera segment remains loss-making (-$69M EBITDA)
- Macroeconomic uncertainty and tariff/trade disruption risks
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000026172-26-000026 |
| Document: cmi-20260804.htm | 0000026172-26-000026 |
| Document: 0000026172-26-000026-index-headers.html | 0000026172-26-000026 |
| Document: 0000026172-26-000026-index.html | 0000026172-26-000026 |
| Document: 0000026172-26-000026.txt | 0000026172-26-000026 |
| 8-K Data (Synthetic) | 0000026172-26-000026 |
Track record builds as more directional reports settle.
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| Type | Now | ||||
|---|---|---|---|---|---|
Aug 4, 2026 8w ago | 8-K | $635.96 $551.15 | ▼ −13.34% | ▼ −12.10% | $526.30 (−17.24%) |
May 14, 2026 20w ago | Insider Cluster | $715.24 $659.58 | ▼ −7.78% | ▼ −6.92% | $526.30 (−26.42%) |
May 8, 2026 21w ago | Insider Cluster | $679.55 $651.22 | ▼ −4.17% | ▼ −4.19% | $526.30 (−22.55%) |
May 8, 2026 21w ago | Insider Cluster | $679.55 $651.22 | ▼ −4.17% | ▼ −4.19% | $526.30 (−22.55%) |
May 8, 2026 21w ago | Insider Cluster | $677.23 $651.22 | ▼ −3.84% | ▼ −3.86% | $526.30 (−22.29%) |
May 8, 2026 21w ago | Insider Cluster | $707.96 $655.69 | ▼ −7.38% | ▼ −6.77% | $526.30 (−25.66%) |
May 8, 2026 21w ago | Insider Cluster | $677.23 $651.22 | ▼ −3.84% | ▼ −3.86% | $526.30 (−22.29%) |
May 8, 2026 21w ago | Insider Cluster | $677.23 $651.22 | ▼ −3.84% | ▼ −3.86% | $526.30 (−22.29%) |
May 8, 2026 21w ago | Insider Cluster | $677.23 $651.22 | ▼ −3.84% | ▼ −3.86% | $526.30 (−22.29%) |
May 8, 2026 21w ago | Insider Cluster | $677.23 $651.22 | ▼ −3.84% | ▼ −3.86% | $526.30 (−22.29%) |
US Market Status
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