Cummins Raises 2026 Revenue Growth Forecast to 13% After Record Quarterly Revenue
Key Facts
On August 4, Cummins raised its forecast for 2026 revenue growth to a range of 10%–13%, from its previous estimate of 8%–11%, after recording record second-quarter revenue of $9.5 billion. The company said the guidance revision reflected improved demand in several markets, particularly North American trucks, construction in China and power generation. It announced the change alongside second-quarter results, with revenue up 9% year over year. Cummins also raised its full-year EBITDA margin forecast to 18.0%–18.5%, from a previous range of 17.75%–18.5%. The revision puts expected annual revenue growth at the higher end of its previous estimate, while the company widened its range for operating performance.
Net income attributable to Cummins in the second quarter was $932 million, or $6.73 per diluted share, compared with $890 million and $6.43 per share in the corresponding period of 2025. Quarterly sales rose 9% from a year earlier to the record level reported by the company. Chief Executive Jennifer Rumsey said the company was raising its full-year performance outlook, adding: "We expect the second half of the year to be stronger than the first half." Rumsey tied that expectation to continued strong power demand from data centers and an improving North American truck market. The outlook indicates the company expects momentum to continue through the rest of the year, with its next official update due alongside third-quarter results.
Power Systems was among the leading growth drivers in the second-quarter results, with sales rising 19% to $2.3 billion. Cummins attributed the increase primarily to demand for power generation, particularly in data center markets in the United States, China and the Asia-Pacific region. Segment revenue grew 19% in North America, while international sales also increased 19%. That places data center activity among a broader group of markets supporting the company's power business, alongside the demand it cited in its annual guidance. In May, Cummins said it was expanding investment in capacity and products to strengthen its position in mining and power generation markets.
Also in May, Cummins announced higher financial targets for 2030, saying stronger market positions, rising demand and disciplined investment supported the move. The company wrote in its announcement: "I am pleased to announce that we are raising our 2030 financial targets." It also said it was increasing capacity and product investment in mining and power generation. These targets provide a longer-term context for its investments in markets contributing to business growth, while the August guidance reflects its assessment of performance for the current year. The 2026 forecast revision thus followed its earlier announcement of 2030 targets and came after a quarter of record revenue and growth in the power segment.
The agreement announced with Circe Energy was a separate announcement made in June, concerning the supply of natural gas-powered generator sets for a high-performance computing center in Texas. Cummins specified deliveries for the period from 2026 to 2030, including HSK78 and QSK60 platforms for generator sets. This does not match the claim of a new multiyear supply agreement with an unnamed hyperscale cloud provider; the deal announced in June named its counterparty, Circe Energy. Cummins shares rose 3% on June 16 following the agreement announcement, according to Investing.com. That was a dated move following the earlier data center-related deal, not a reaction to a new revision of the company's forecast in October.
Cummins scheduled its third-quarter 2026 results conference for November 5, from 10 to 11 a.m. Eastern Time. The conference is expected to be the next near-term opportunity for the company to present quarterly performance and updates to its annual guidance. In August, the company tied its improved outlook to stronger demand across multiple markets, with particular focus on North American trucks, construction in China and power generation. Rumsey also said the second half was expected to be stronger than the first, with data center power demand continuing and the truck market improving. Markets are awaiting the results on the scheduled date in November.