A maker of diesel, natural gas, and gasoline engines and power-generation equipment, Cummins builds the powertrains and generators that move and power trucks, buses, and industrial machinery across the globe. It was founded in 1919 in Columbus, Indiana, when self-taught mechanic Clessie Cummins convinced his banker boss William Irwin to back his diesel-engine idea. To prove his engines worked, Clessie drove a Cummins-powered truck coast to coast in 1931, and his diesel race car became the first to finish the Indianapolis 500 without a single pit stop.
Q2 2026 revenue rose 9% to $9.5B on power generation demand, while net income grew 4% to $968M as Accelera losses narrowed.
Power generation demand drove the quarter, lifting to a record $9.5B even as truck markets stayed weak. Revenue rose 9.4% to $9,457M and held at 26.1%, while rose 4.3% to $968M as a narrower Accelera loss offset lower Engine profitability. The company is running two speeds — data center strength against a truck downturn — and the gap between them widened this quarter.
Key takeaways
Power Systems rose 28% to $552M on a 19% sales increase, driven by power generation demand in data center applications in China and North America.
Engine fell 4% to $386M despite a 6% sales gain, as higher compensation expenses and freight costs more than offset the lift from off-highway construction demand.
Accelera loss improved 31% to -$69M in the quarter, though the six-month loss widened to -$346M because of the $199M charge from the sale of the low-pressure fuel cell business recorded in Q1.
Section summaries
Management's Discussion and Analysis
Q2 2026 sales rose 9% to $9.5B on power generation and construction demand, while net income grew 5% to $932M.
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Consolidated increased 9% to $9.5B, driven by higher demand for power generation equipment, especially in data center applications, and international construction markets.
Power Systems surged 28% to $552M on a 19% sales increase, primarily from strong power generation demand in China and North America.
was $1,499M in Q2 and $1,808M for the first half, more than double the prior-year period, driven by lower requirements.
of 26.1% was down 0.3 points from a year ago and 0.6 points sequentially, as favorable pricing and mix were offset by higher compensation and freight costs.
Management warned that tariffs, trade disruptions, and regulatory changes could negatively impact future earnings, though tariff impacts were immaterial in the quarter.
What changed
Q1 2026 flagged Components sales and to watch for stabilization — the filing does not break out Components EBITDA for Q2, but Engine EBITDA fell 4% on higher costs, suggesting truck-linked segments remain under pressure.
The Q1 watch item on Accelera's next result after the $199M fuel cell exit is partially answered: the quarterly loss narrowed to -$69M from -$100M a year ago, though the half-year loss widened on the one-off charge.
The North American truck market inflection flagged in Q1 has not yet materialized — Engine sales rose 6% on off-highway construction, not on-highway truck recovery, and Engine still declined.
Tariff risk flagged in every recent filing remains a warning with no charge recorded yet, but management's language in this Q2 report ties it directly to potential future earnings impact.
What to watch
Q3 2026 Engine to see if the cost pressures that drove a 4% decline this quarter persist even as sales grow.
Components results in Q3 — not broken out in this Q2 narrative — to confirm whether axles and drivetrain demand stabilizes after multiple quarters of decline.
Any tariff or trade-disruption charge recorded in the second half, as management now explicitly warns of potential earnings impact.
Accelera's quarterly run rate after the fuel cell exit, to see if the Q2 improvement to -$69M is sustained or narrows further.
Engine declined 4% to $386M as higher compensation expenses and freight costs offset a 6% sales gain led by off-highway construction demand.
Accelera loss improved 31% to -$69M, though the six-month loss widened to -$346M due to a $199M charge from the sale of the low pressure fuel cell business.
for the first half of 2026 more than doubled to $1.8B, driven by lower requirements compared to the prior year.
The company expects strong Power Systems demand to continue but warns that tariffs, trade disruptions, and regulatory changes could negatively impact future earnings.
Quantitative and Qualitative Disclosures About Market Risk
A discussion of quantitative and qualitative disclosures about market risk may be found in Item 7A of our 2025 Form 10-K. There have been no material changes in this information since the filing of our 2025 Form 10-K.
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A discussion of quantitative and qualitative disclosures about market risk may be found in Item 7A of our 2025 Form 10-K. There have been no material changes in this information since the filing of our 2025 Form 10-K.
The matters described under “Legal Proceedings” in NOTE 11, “COMMITMENTS AND CONTINGENCIES,” to our Condensed Consolidated Financial Statements are incorporated herein by reference.
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The matters described under “Legal Proceedings” in NOTE 11, “COMMITMENTS AND CONTINGENCIES,” to our Condensed Consolidated Financial Statements are incorporated herein by reference.
In addition to other information set forth in this report, you should consider other risk factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, which could materially affect our business, financial condition…
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In addition to other information set forth in this report, you should consider other risk factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, which could materially affect our business, financial condition or future results. The risks described in our 2025 Annual Report on Form 10-K or the “CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION” in this Quarterly report are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently judge to be immaterial also may materially adversely affect our business, financial condition or operating results.