How did Cummins (NYSE:CMI) perform in Q1 2026?

Cummins reported Q1 2026 net sales of $8.4 billion, a 3% year-over-year increase. Net income for the quarter was $654 million, or $4.71 per diluted share, despite a $199 million one-time charge related to the sale of its low-pressure fuel cell business. The company’s international sales surged 16%, driven by a recovery in China, though North American sales dipped 6% due to a cyclical low in the truck market.

What was the impact of the divestiture on Cummins’ Q1 2026 results?

The $199 million one-time charge, or $1.44 per share, related to the completion of the sale of Cummins’ low-pressure fuel cell business to Alstom, negatively impacted net income for Q1 2026. The divestiture reflects a strategic pivot within Cummins’ Accelera zero-emissions segment to focus on higher-adoption hydrogen technologies and reduce losses in the fuel cell business.

What drove Cummins’ strong performance in Q1 2026?

Cummins’ strong performance in Q1 2026 was driven by record demand for its data center power systems. This contributed to international revenue growth, particularly in China, which surged 16%. Despite a dip in North American sales due to a cyclical downturn in the truck market, the company’s diversified operations helped mitigate the impact.

What is Cummins' updated full-year financial outlook for 2026?

Cummins raised its full-year 2026 revenue growth forecast to between 8% and 11%, up from its previous guidance of 3% to 8%. The company also increased its EBITDA margin forecast to a range of 17.75% to 18.50%, from the earlier estimate of 17.0% to 18.0%. This reflects confidence in continued strong demand, particularly in its international markets and data center power systems.

How did Cummins' international sales perform in Q1 2026?

Cummins’ international sales grew by 16% in Q1 2026, primarily driven by a recovery in China. This growth offset the 6% decline in North American sales, which was caused by a cyclical low in the truck market, highlighting the importance of global diversification to Cummins’ overall performance.

Tech

Cummins raises outlook on record data center power demand

Written by Mahathir BayenaPublished May. 5 2026Last Updated May. 5 2026

Cummins (NYSE:CMI) raised its full-year financial targets after record demand for data center power systems drove a strong first-quarter performance, allowing the engine maker to outpace its own growth expectations for the year.

The Columbus, Indiana-based company now projects full-year 2026 revenue to grow between 8% and 11%, a sharp increase from its previous guidance of 3% to 8%.

Cummins also lifted its EBITDA margin forecast to a range of 17.75% to 18.50%, up from the 17.0% to 18.0% range estimated earlier this year.

For the first quarter, Cummins reported net sales of $8.4 billion, a 3% increase over the prior year.

While North American sales dipped 6% due to a cyclical low in the truck market, international revenue surged 16%, led by a recovery in China.

Net income for the quarter was $654 million, or $4.71 per diluted share, compared to $824 million a year earlier.

The bottom line was impacted by $199 million in one-time charges, or $1.44 per share, related to the completion of the sale of its low-pressure fuel cell business to Alstom.

Management noted the exit reflects a strategic pivot within its Accelera zero-emissions segment to focus on higher-adoption hydrogen technologies and reduce losses.

Despite the charges, the company’s underlying operational strength was evident in its adjusted figures.

EBITDA for the quarter stood at 15.4% of sales, though it would have been significantly higher excluding the $199 million divestiture-related hit.