Cummins raises FY2026 outlook on record second quarter revenue of $9.5B, despite an EPS miss.

Cummins reported record second quarter revenues of $9.5 billion, a 9% increase year-over-year that beat analyst expectations. However, the company's diluted EPS of $6.73 missed consensus estimates. Despite the mixed results, management raised its full-year 2026 revenue guidance from a range of 8-11% growth to 10-13% growth, citing continued strong demand across key markets.

Key Highlights

• Full-year 2026 revenue guidance was raised to 10-13% growth, an improvement from the previous forecast of 8-11%.
• The Power Systems segment was a key driver, with revenue surging 19% year-over-year to $2.3 billion, primarily due to strong demand for data center power generation.
• Cummins returned $501 million to shareholders through dividends and share repurchases and announced a 10% increase in its quarterly cash dividend to $2.20 per share.