U.S. truck engine maker Cummins reported second-quarter earnings that missed market forecasts on Tuesday, despite notable strength in demand for generator equipment and signs of recovery in North American truck markets. The earnings shortfall sent Cummins shares down as much as 8% in premarket trading.
The company said it had benefited from AI-driven investments in data center power infrastructure and from improving conditions in the truck market, but those tailwinds did not prevent earnings per share from coming in below analyst expectations.
Quarterly results and segments
For the quarter ended June 30, Cummins reported profit of $6.73 per share, up from $6.43 per share a year earlier. Analysts, on average, had been expecting $7.23 per share, according to data compiled by LSEG. Quarterly net sales rose 9.4% to $9.46 billion, topping estimates of $9.33 billion.
Segment performance showed marked gains. The Power Systems unit, which manufactures generators, saw sales increase 19% to $2.3 billion year-on-year. The Distribution segment recorded a 9% rise to $3.3 billion. Revenue at Accelera climbed 38% from a year earlier, a gain the company attributed to higher sales of zero-emissions technologies.
Outlook and management comments
Chief Executive Jennifer Rumsey highlighted ongoing improvements in truck markets and persistent strength in demand for data center power generation, saying, "North American truck markets continue to improve, while demand for data center power generation remains robust." Reflecting the companys expectations for continued top-line momentum, Cummins raised its 2026 revenue growth forecast to a 10-13% increase, up from its prior projection of 8-11% growth.
Market reaction and analysis
While revenue gains across multiple segments demonstrate demand durability for Cummins' products - including generators tied to data center buildouts and zero-emissions technologies - the company nonetheless faced difficulty converting that demand into earnings per share above analysts' projections for the quarter. The mixed results underscore the challenge of turning strong equipment orders and end-market recovery into immediate earnings beats.
Note: All figures and statements are those provided by the company and referenced analysts. No additional or external data have been introduced.