Cummins Q4 revenue beats on data center demand

Cummins

05/02/2026 12:39

Overview

Engine manufacturer Q4 revenue beat analyst expectations despite North America truck market weakness

Adjusted EPS for Q4 missed analyst expectations

Company recorded $218 mln in charges related to electrolyzer business

Outlook

Cummins projects 2026 revenue growth between 3% and 8%

Company expects 2026 EBITDA between 17.0% and 18.0% of sales

Cummins anticipates stronger demand in North America truck markets in 2026

Result Drivers

DISTRIBUTION AND POWER SYSTEMS - Record sales and profitability driven by demand for data center backup power, per CEO Jennifer Rumsey

ELECTROLYZER CHARGES - $218 mln in charges related to electrolyzer business within Accelera segment due to strategic review

ENGINE AND COMPONENTS DECLINE - Lower medium-duty and heavy-duty truck demand in North America led to decreased sales in Engine and Components segments

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$8.50 bln
$8.13 bln (15 Analysts)
Q4 EPS
Miss
$4.27
$5.11 (17 Analysts)
Q4 Net Income
$593 mln
Q4 EBITDA
$1.20 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "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 $576.00, about 4.9% below its February 4 closing price of $605.63

The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nBw1Qd3Hha

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(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.)