Cummins stock weighs record EBITDA against lower revenue outlook

Cummins reported strong third-quarter results on Thursday, November 5, but narrowed its full-year revenue outlook as North American pickup-truck demand weakened. The company's investor-relations release said revenue rose 13 percent from the same quarter a year earlier, while record EBITDA was supported by Power Systems and demand from data-center customers.

Cummins stock traded at 409.40 euros on Lang & Schwarz at 14:00 CET on Friday, November 6. The Cummins investor-relations release said the quarter ended September 30, 2026.

Power Systems drives earnings

Third-quarter revenue reached 9.438 billion US dollars, compared with 8.317 billion US dollars a year earlier. Net income attributable to Cummins more than doubled to 1.140 billion US dollars from 536 million US dollars, while diluted earnings per share increased to 8.25 US dollars from 3.86 US dollars. The prior-year quarter included 240 million US dollars of non-cash Accelera charges, and the latest diluted earnings-per-share figure included 0.54 US dollars of favorable discrete tax items.

EBITDA rose to 1.786 billion US dollars, or 18.9 percent of sales, from 1.187 billion US dollars, or 14.3 percent, in the prior-year quarter. Power Systems sales increased 15 percent to 2.3 billion US dollars, and its EBITDA margin advanced to 25.4 percent from 22.9 percent. Engine sales rose 20 percent to 3.1 billion US dollars, while Components sales gained 23 percent to 2.9 billion US dollars. Distribution sales increased 4 percent to 3.3 billion US dollars. Accelera sales declined 15 percent to 103 million US dollars and posted a 56 million US dollar EBITDA loss.

Revenue outlook moves lower

Cummins now expects full-year 2026 revenue growth of approximately 10 percent, compared with its previous guidance range of 10 percent to 13 percent. The company kept its EBITDA-margin outlook within the prior range, calling for approximately 18.2 percent versus earlier guidance of 18 percent to 18.5 percent. The margin outlook excludes charges connected with the sale of the low-pressure fuel-cell business in the first quarter.

Chief Executive Jennifer Rumsey said global power-generation demand remains exceptionally strong, driven by data-center construction, and that medium- and heavy-duty truck markets in the United States have strengthened. She also said pickup-truck orders have weakened. Cummins expects that pressure to persist through year-end, while forecasting a step-up in fourth-quarter revenue to a new record.

The outlook change gives investors two competing signals. Strong Power Systems demand and higher quarterly margins support the earnings profile, while the pickup-truck slowdown limits the pace of consolidated revenue growth. Cummins also returned 661 million US dollars to shareholders during the quarter through dividends and share repurchases.

For the broader U.S. market backdrop, see current S&P 500 market reports.

Investors can follow the real-time quote of Cummins stock as the market weighs resilient power-generation demand against the revised revenue outlook.

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