Stock Markets May 5, 2026 08:31 AM

Cummins Raises 2026 Revenue Forecast as Generator Sales Remain Strong

Higher annual revenue outlook backed by robust power-generation demand and signs of recovery in North America on-highway truck markets

By Nina Shah CMI
Cummins Raises 2026 Revenue Forecast as Generator Sales Remain Strong
CMI

Cummins increased its 2026 revenue growth guidance to 8%-11% from a prior range of 3%-8%, driven by sustained demand for generators linked to data-center expansion and an uptick in North American truck markets. First-quarter revenue climbed to $8.4 billion and EPS was $4.71, including a $1.44 per-share charge tied to the sale of its low-pressure fuel cell business. Shares rose in premarket trading following the outlook revision.

Key Points

  • Company increased 2026 revenue growth forecast to 8%-11% from 3%-8%.
  • Power Systems segment sales jumped 19% in the first quarter; Distribution sales rose 7%.
  • First-quarter revenue was $8.4 billion and EPS was $4.71, including $1.44 per-share charges related to the low-pressure fuel cell business sale.

Cummins on Tuesday raised its full-year 2026 revenue growth forecast, citing continued strength in its power-generation business and improving conditions in North American on-highway vehicle markets. The Indiana-based engine maker now expects 2026 revenue to increase 8% to 11%, an upward revision from its prior outlook of 3% to 8% growth.

Investors reacted positively; the company’s shares were up about 4% in premarket trading after the announcement. Management pointed to sustained purchases of generators as a key driver of demand, noting that sales in that area have been supported by expansion of data centers tied to artificial intelligence workloads.

"North America truck markets began to improve from a cyclical low" during the quarter, CEO Jennifer Rumsey said, a shift from earlier quarters in which Cummins had highlighted weakness in the North American trucking sector. The company previously had cited lower freight volumes and margin pressure as headwinds that weighed on fleet investment and engine orders.

Operationally, Cummins’ Power Systems segment, which produces generators, reported a 19% increase in first-quarter sales. Its Distribution segment recorded a 7% rise in sales during the period.

On the income statement, Cummins reported quarterly earnings of $4.71 per share for the three months ended March 31. That figure includes charges totaling $1.44 per diluted share associated with completing the sale of its low-pressure fuel cell business. By comparison, the company posted earnings of $5.96 per share in the same quarter a year earlier.

Revenue for the quarter rose 2.7% year-over-year to $8.4 billion. That figure was slightly above the consensus analysts’ expectation of $8.35 billion, based on LSEG-compiled data.

The company’s updated revenue outlook reflects management’s view that power-generation demand and a recovering North American on-highway market will support growth through 2026. Market participants will likely watch upcoming quarters for confirmation that truck market improvement and generator demand remain durable.


Summary: Cummins raised its 2026 revenue growth guidance to 8%-11%, citing strong generator demand tied to AI-driven data-center expansion and an improving North America on-highway truck market. First-quarter revenue rose to $8.4 billion and EPS was $4.71, which included $1.44 per-share charges related to the sale of its low-pressure fuel cell business.

Risks

  • North American trucking demand had been weak, with lower freight volumes and margin pressures previously weighing on fleet investments and engine orders - this still poses a risk to on-highway engine sales (trucking, manufacturing sectors).
  • A meaningful portion of generator sales is tied to data-center expansion related to AI workloads; any slowdown in that demand could affect Power Systems revenue (power-generation, data-center sectors).
  • The quarter’s EPS was reduced by $1.44 per diluted share in charges tied to the sale of the low-pressure fuel cell business, indicating transactional items can materially affect reported earnings (financial reporting, investor returns).

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