Cummins Q1 revenue rises 3%, raises FY guidance

Cummins

05/05/2026 12:40

Overview

U.S. engine and power systems maker's Q1 revenue rose 3%, slightly beating analyst expectations

Q1 adjusted EPS missed consensus, impacted by charges from fuel cell business sale

Company raised full-year 2026 revenue and EBITDA guidance on stronger demand

Outlook

Cummins raises 2026 revenue growth outlook to 8%-11%, up from 3%-8%

Company now expects 2026 EBITDA margin of 17.75%-18.50%, up from 17.0%-18.0%

Cummins sees stronger demand in North America on-highway and power generation markets in 2026

Result Drivers

POWER SYSTEMS GROWTH - Record performance in Power Systems segment driven by strong demand for data center backup power, especially in North America, China and Asia Pacific

SEGMENT DIVERGENCE - Engine and Components segments saw lower sales due to reduced medium- and heavy-duty truck demand in the U.S., while Distribution and Power Systems segments benefited from increased power generation demand

FUEL CELL BUSINESS CHARGES - Q1 included $199 mln in charges related to sale of low-pressure fuel cell business, reflecting lower hydrogen adoption expectations and focus on reducing losses in Accelera segment

Company press release: ID:nBw7jbss6a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Slight Beat*
$8.40 bln
$8.35 bln (16 Analysts)
Q1 EPS
Miss
$4.71
$5.59 (15 Analysts)
Q1 Net Income
$654 mln
Q1 EBITDA
$1.30 bln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

Wall Street's median 12-month price target for Cummins Inc is $665.00, about 1.3% above its May 4 closing price of $656.73

The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 22 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)