Cummins Q4 revenue beats on data center demand
Overview
Engine manufacturer Q4 revenue beat analyst expectations despite North America truck market weakness
Adjusted EPS for Q4 missed analyst expectations
Company recorded $218 mln in charges related to electrolyzer business
Outlook
Cummins projects 2026 revenue growth between 3% and 8%
Company expects 2026 EBITDA between 17.0% and 18.0% of sales
Cummins anticipates stronger demand in North America truck markets in 2026
Result Drivers
DISTRIBUTION AND POWER SYSTEMS - Record sales and profitability driven by demand for data center backup power, per CEO Jennifer Rumsey
ELECTROLYZER CHARGES - $218 mln in charges related to electrolyzer business within Accelera segment due to strategic review
ENGINE AND COMPONENTS DECLINE - Lower medium-duty and heavy-duty truck demand in North America led to decreased sales in Engine and Components segments
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Sales | Beat | $8.50 bln | $8.13 bln (15 Analysts) |
Q4 EPS | Miss | $4.27 | $5.11 (17 Analysts) |
Q4 Net Income |
| $593 mln |
|
Q4 EBITDA |
| $1.20 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"
Wall Street's median 12-month price target for Cummins Inc is $576.00, about 4.9% below its February 4 closing price of $605.63
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 18 three months ago
Press Release: ID:nBw1Qd3Hha
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
Related Articles
Warsh’s Fed Era Signals a Death Knell for QE, Jolting the $30 Trillion Treasury Market
With Warsh’s nomination, his past proposals for governing the Federal Reserve are being brought to the forefront. A central issue is the formulation of a new "1951 Accord" to restructure the relationship between the Fed and the Treasury. Analysts suggest such a move could impact the $30 trillion Tre
Amazon Stock Predictions for 2026 to 2030: Will They Exceed Expectations and Achieve Major Long-Term Goals?
TradingKey - As we head into 2026, many investors are questioning where Amazon (AMZN) fits into the technology world.
A Crash After a Surge: Why Silver Lost 40% in a Week?
TradingKey - Spot silver (XAGUSD) prices continue to decline. Silver plunged 20% on Thursday, breaking below $71 per ounce, with the sell-off intensifying on Friday as prices fell further below $64. Compared to the all-time high set on January 29, silver prices have retraced more than 40%, wiping out nearly all gains accumulated over the previous month.
USD Dollar Trend Forecast: Dollar Index Falls Below 97.0 to 4-Year Low, Will the Dollar Continue To Fall or Bottom Out in 2026?
TradingKey - In January 2026, the US Dollar Index continued its downward trend from 2025, officially breaking below the key 97.0 level and reaching a low of 95.5, marking a nearly four-year low since February 2022.
