Cummins Inc. offers various power solutions worldwide. The company operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. It offers diesel and natural gas-powered engines; and drivetrain systems, including axles, drivelines, brakes, and suspension systems; and on- and off-highway, and other products. The company also provides aftertreatment technology and solutions comprising custom engineering systems and integrated controls, oxidation catalysts, particulate filters, and selective catalytic reduction systems, as well as engineered components, including dosers; turbochargers, fuel systems, and valvetrain technologies; electronic control modules, sensors, and supporting software; and automated manual transmissions, and automatic transmissions for internal combustion engines. In addition, it sells and offers support services power generation systems, high-horsepower engines, and heavy-duty and medium-duty engines; offers application engineering services, custom-designed assemblies, and in-shop and field-based repair services; and retail and wholesale aftermarket parts. Further, the company offers standby and prime power generators, controls, paralleling systems, and transfer switches; turnkey solutions for distributed generation and energy management applications using natural gas, diesel, battery energy storage systems, and newer alternative sustainable fuels; diesel and natural gas high-speed, high-horsepower engines; and A/C generator/alternator products. Additionally, it provides electrified power systems, including batteries, fuel cells, and electric powertrain technologies. It sells its products to original equipment manufacturers, distributors, dealers, and other customers. The company was formerly known as Cummins Engine Company and changed its name to Cummins Inc. in 2001. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.
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Industrial Giants Caterpillar, Cummins, Ford Pivot to AI Data Centers
US manufacturing rose to its highest level since 2022 last month, driven mainly by demand from AI data centers, with industrial giants including Caterpillar, Cummins, and Ford shifting their businesses to capture the opportunity. Caterpillar's electricity generators have become its most profitable segment, and the company is investing $725 million to expand generator production at an Indiana plant while converting a Kansas plant to produce turbine engines and resuming production of 10-megawatt generators. Cummins is investing $450 million to expand generator production on top of a $200 million expansion completed last year, and expects data center-related sales to rise 80% to $9 billion by 2030. Ford was also named among manufacturers pivoting toward AI-data-center-adjacent opportunities, though it revealed fewer specific investment figures. Both Caterpillar and Cummins are now more exposed to a single fast-moving market than they've ever been, and any slowdown in AI infrastructure spending would hit their generator segments.
Cummins Sees Data Center Backup Power Sales Surge on AI Spending
Cummins is emerging as a key beneficiary of the AI infrastructure boom, with its Power Systems segment sales jumping 19% year over year in the second quarter, driven by strong global demand for data center power equipment. S&P Global estimates that Alphabet, Amazon, Meta Platforms, Microsoft, and Oracle will collectively spend approximately $750 billion on capital expenditures in 2026, equal to about 38% of their combined revenue, much of it on AI data centers. Cummins says traditional data center racks averaged around 12 kilowatts, while next-generation AI racks could reach 600 kilowatts or more, increasing the need for backup generating capacity. In June, the company announced an agreement with Circe Energy to provide high-powered natural gas generators for a large high-performance-computing data center in West Texas, with deliveries scheduled from 2026 through 2030, positioning Cummins to sell generators both as emergency backup and as a bridge or alternative to traditional grid power.
Caterpillar and Cummins Post Record Quarters on AI Power Demand
Caterpillar and Cummins both reported record quarterly results driven by surging demand for data center power generation and strong North American construction activity. Caterpillar's second-quarter 2026 sales rose 24% year-over-year to $20.5 billion, with adjusted earnings per share of $8.17, far exceeding the $6.20 analyst average, and it raised its full-year revenue growth outlook to mid- to high-teens percentage from low-double-digits. Cummins posted record revenue of $9.5 billion, GAAP net income of $932 million, and diluted earnings per share of $6.73, while lifting its 2026 revenue growth forecast to 10-13% from 8-11% and its full-year EBITDA margin guidance to 18.0-18.5% from 17.75-18.5%. Caterpillar also reduced its full-year tariff cost estimate to approximately $2.2 billion and secured $392 million in tariff recoveries under the International Emergency Economic Powers Act. The article notes Caterpillar trades at a forward P/E of 26.07x versus Cummins at 18.50x, and suggests Cummins may offer better risk-adjusted value for new investors.
Cummins Lands Largest Battery Storage Project for U.S. Data Center
Cummins has been selected to supply battery energy storage systems for a large U.S. data center project, marking the company's largest BESS deployment to date. The contract was awarded to its Power Generation business. Despite the announcement, Cummins shares have fallen 3.17% in one day and 7.32% over 90 days, though the stock is up 18.92% year-to-date with a 56.82% one-year total shareholder return. Analysts at Simply Wall St estimate the stock is 17.1% undervalued, with a fair value of $748.81 versus the current price of $620.81, based on expectations of sustained power demand and higher margins.
US data center construction could hit 35 GW by 2030, Bernstein says
Bernstein analysts project U.S. annual data center construction could rise from 12 gigawatts in 2026 to 35 GW by 2030, but shortages of specialised mechanical, electrical and plumbing workers will set the industry's speed limit. The projection assumes recruitment across the three trades remains near peak rates recorded during the past three years, allowing annual construction to increase by about 6 GW each year, or roughly 30% compound annual growth. The estimated 35 GW ceiling would support market consensus of 25 GW to 35 GW in annual capacity additions by 2030, yet fall short of the 40 GW Bernstein estimates is needed to justify planned manufacturing capacity for mid-scale power generators. This creates a potential overbuild risk for power-equipment suppliers, with Caterpillar and Cummins identified as the most exposed. Bernstein said modular construction could help the industry move past this labour ceiling by transferring more work from building sites to factories, potentially benefiting vertically integrated manufacturers and contractors such as Eaton, Schneider Electric, Vertiv, Quanta Services, Comfort Systems USA and EMCOR.
Cummins Q2 Earnings Call Reveals Analyst Questions on Margins and Demand
Cummins reported second-quarter revenue of $9.46 billion, beating analyst estimates by 1.6%, but adjusted EPS of $6.73 missed expectations by 6.3%, prompting a negative market reaction. CEO Jennifer Rumsey highlighted surging power generation demand from data centers and a major agreement with a global hyperscaler, while CFO Mark Smith attributed margin pressure to tariffs and higher variable compensation tied to record full-year earnings projections. During the earnings call, analysts pressed management on the EPA 2027 phased transition, with Smith estimating next year's incentive compensation could drop by $200 million and Rumsey noting the staggered rollout would smooth demand and reduce disruptive prebuy activity. Smith also said the company expects to recover nonconforming penalty costs through pricing, while R&D expenses will stay elevated but manageable during the transition.
Cummins raises 2026 revenue growth outlook to 10-13% on strong data center and truck demand
Cummins raised its full-year 2026 revenue growth forecast to 10% to 13%, up from a prior range of 8% to 11%, after reporting record second-quarter sales of $9.5 billion, a 9% increase from a year ago. Second quarter revenues in China, including joint ventures, were $2.3 billion, an increase of 30% year-over-year, driven by accelerating data center demand and improving on-highway and construction markets. The company also lifted the midpoint of its EBITDA margin guidance to 18% to 18.5%, citing stronger North America on-highway markets and continued high demand in power generation. During the quarter, Cummins signed a multiyear agreement with a global hyperscaler for several gigawatts of future backup power genset demand and announced plans to use EPA implementation flexibilities for a phased transition to its new helm engine platforms starting in January 2027. The board approved a 10% increase in the quarterly cash dividend, marking the 17th consecutive year of dividend growth.
Cummins Inc. reported higher second-quarter earnings, with net income rising to $932 million, or $6.73 per share, from $890 million, or $6.43 per share, in the same period last year. Revenue increased 9.4% to $9.457 billion from $8.643 billion a year ago. The company provided full-year revenue guidance of 10% to 13% growth and expects EBITDA in the range of 18.0% to 18.5%.
Cummins updates 2027 engine launch timeline after EPA's proposed rule
Cummins announced updated plans for its Model Year 2027 North American on-highway engine launch after the U.S. EPA proposed changes to upcoming emissions rules. The company will use the proposed regulatory flexibility to gradually roll out its new HELM engine platforms, beginning limited production of its new X10 and X15 engines in January 2027, with full production expected by the third and fourth quarters of 2027, respectively. During the transition, Cummins will continue producing its current X15, X12, and L9 engines, and it reaffirmed plans to launch its next-generation B platform in January 2028 while the current B6.7 engine remains in production through 2027. CEO Jennifer Rumsey said the company's long-term product strategy remains unchanged, adding that the phased rollout is intended to improve the transition while maintaining product quality. The company also noted the production timeline may change once the EPA issues its final rule. Cummins shares were trading slightly lower, down around 0.1 percent, near 659.01 dollars in premarket trading.
Cummins declares 10% dividend hike to $2.20 per share
Cummins announced a 10% increase in its quarterly common stock cash dividend, raising it from $2.00 to $2.20 per share. The board of directors approved the hike on July 12, with the dividend payable on September 3 to shareholders of record as of August 21. This marks the 17th consecutive year that Cummins has increased its quarterly common stock dividend.
GE Vernova leads power generation equipment stocks lower after Siemens Energy downgrade
GE Vernova fell 7.3% in Tuesday's trading, leading power generation equipment stocks including Caterpillar and Cummins lower, which Barron's attributes at least partially to a downgrade of competitor Siemens Energy. Barclays cut Siemens Energy to Sell from Hold, warning the company's €145 billion market capitalization is pricing in indefinite peak-cycle economics. The bank models a 25% earnings per share compound annual growth rate through 2030 for Siemens Energy, forecasting adjusted EPS rising to €9.20 in fiscal 2028 from €4.26 in fiscal 2026, with revenue projected to grow to €57.41 billion in fiscal 2028 from €43.24 billion in fiscal 2026, a compound annual growth rate of 13.7%. Despite the upward earnings trajectory, Siemens Energy should de-rate because peak conditions across gas turbines, supply-demand tightness, and free cash flow are all expected to arrive simultaneously in 2026, Barclays believes. Investors are increasingly nervous about the AI trade, and the big moves in the sector show that fears of peak AI-related spending remain top of mind, Barron's writes.
Wells Fargo, Argus raise price targets on Cummins, citing data center and natural gas demand
Wells Fargo raised its price target for Cummins Inc. to $874 from $794 while maintaining an Overweight rating, citing a behind-the-meter prime power award with Circe Energy for high-performance computing data centers in West Texas that occurred more than a year ahead of expectations. Argus also raised its price target on Cummins to $770 from $696 and reiterated a Buy rating, pointing to favorable natural gas economics and tightening environmental regulations. The company designs and manufactures diesel, natural gas, electric, and hybrid powertrains, as well as hydrogen production and fuel cell systems through its Accelera zero-emissions business.
Cummins Fair Value Estimate Raised to US$748.81 as Analysts Lift Targets on Power Demand
Analysts have raised the fair value estimate for Cummins to US$748.81, up from US$643.36, reflecting stronger conviction in the company's growth prospects. Truist set a target of US$901, Wells Fargo US$874, UBS US$850, Argus US$770, and Raymond James US$745, citing power, data center, truck, and infrastructure demand. Wells Fargo highlighted a US$20 billion total addressable market expansion tied to prime power awards and a behind-the-meter data center award in West Texas as an early proof point. UBS pointed to an improving truck market, double-digit growth in the power business, and new engines with greater content per unit. The updated fair value incorporates a revenue growth assumption raised to 9.29% from 7.64%, a net profit margin refined to 12.04% from 11.44%, and a target future P/E multiple adjusted to 24.85x from 23.80x.
ATI Named Top Industrials Pick While Cummins and Crown Holdings Flagged as Sells
StockStory identifies ATI as a buy among industrials trading near 52-week highs, citing 11.1% annual revenue growth over five years, 24.8% annual EPS growth boosted by buybacks, and a 21.7 percentage point free cash flow margin expansion. The firm flags Cummins and Crown Holdings as sells, pointing to Cummins’ flat sales, below-peer 24.7% gross margin, and diminishing returns on capital, and Crown Holdings’ 1.4% annual revenue growth, 20.3% gross margin, and 3.8% annual EPS growth. ATI trades at $185 per share or 41.8 times forward P/E, Cummins at $662.53 or 22.4 times, and Crown Holdings at $113.28 or 13.7 times.
Zacks Adds Five Stocks to Strong Buy List on July 2nd
Zacks Investment Research added five stocks to its Zacks Rank #1 (Strong Buy) List today. Cummins Inc. saw its current-year earnings consensus estimate rise 12.6% over the last 60 days. Analog Devices, Inc. experienced an 11.6% increase in its current-year earnings estimate. WidePoint Corporation's estimate climbed 25%, Concrete Pumping Holdings, Inc. surged 41.7%, and Clear Secure, Inc. gained 9.9% over the same period.
Cummins Inc. (CMI) Bullish Thesis Highlights AI-Driven Power Demand and Structural Re-Rating
A bullish thesis on Cummins Inc. argues the company is being re-rated from a cyclical diesel engine manufacturer into a vertically integrated global power solutions platform, anchored by a high-margin aftermarket and accelerating AI-driven power demand. The Power Systems segment is emerging as a key AI infrastructure beneficiary, with data center demand driving 19% year-over-year revenue growth and EBITDA margins nearing 30%. Cummins has raised its long-term framework to $45–50 billion in revenue with a target 20% EBITDA margin by 2030, implying meaningful upside if AI-driven power demand and microgrid adoption continue accelerating. The company's 2.2 million engine installed base and 15 to 25 year aftermarket revenue stream materially smooth cyclicality, while the 2022 Meritor acquisition and 2024 separation of Atmus have sharpened portfolio focus.
StockStory highlights LSI and Vitesse Energy as profitable stocks to watch, questions Cummins
StockStory identified two profitable stocks for further research and one to avoid. LSI, a lighting and display solutions provider, posted 16.7% annual revenue growth over five years and 35.2% annual earnings per share growth, with its free cash flow margin expanding by 8.9 percentage points. Vitesse Energy, which holds non-operated stakes in oil and gas wells, boasts an 80% gross margin and strong free cash flow. In contrast, engine maker Cummins faces stagnating sales, a 24.7% gross margin pressured by high input costs, and diminishing returns on capital.
Navan Selected by Cummins to Support Global Business Travel
Navan has been selected by Cummins to support the business travel needs of more than 60,000 employees across over 60 countries and three global regions. The announcement follows a review of the business travel landscape by Cummins. This partnership comes one day after Navan announced a similar deal with Enbridge to transform its travel program. BMO Capital recently raised its price target on Navan to $30 from $22, citing strong Q1 results and accelerating growth in travel bookings and payments.
Cummins has climbed to fresh 52-week highs after securing a 2-gigawatt supply agreement with Circe Energy for their West Texas data center campus, signaling its evolution into a utility-scale power provider for AI infrastructure. Over the past year, the stock captured 188% of the S&P 500's upside on positive days while absorbing only 119% of losses, and its five-year risk-adjusted return metric of 0.85 outpaces the index's 0.61. Management projects 15% to 25% revenue growth in the global power generation segment this year, driven by accelerating data center demand, even as the company navigates a major product transition to meet 2027 EPA regulations, including a delay of its medium-duty engine platform to January 2028. The analysis notes that with a 0.6 correlation to the S&P 500 over five years, Cummins acts more as an amplifier of market exposure than a diversifier.
Cummins Q1 Revenue Beats Estimates at $8.40 Billion
Cummins reported first-quarter revenues of $8.40 billion, a 2.7% year-on-year increase that exceeded analysts' expectations by 0.9%. The heavy transportation equipment company, whose engines power more than half of the heavy-duty truck market, posted a mixed quarter with a decent beat on EBITDA estimates but a miss on adjusted operating income. Among the 12 heavy transportation equipment stocks tracked, Douglas Dynamics delivered the best performance with a 19.8% revenue jump and the highest full-year guidance raise, while Greenbrier was the slowest with a 22.9% revenue decline and guidance that missed expectations. Allison Transmission achieved the fastest revenue growth in the group at 83.6%, and Trinity saw a 16% revenue drop. Since reporting, Cummins' stock has risen 10.1% to $722.95.
Data Center Generators Market to Reach $9.79 Billion by 2031
The global data center generators market is projected to grow from USD 8.57 billion in 2026 to USD 9.79 billion in 2031 at a CAGR of 2.7%, according to a new report by MarketsandMarkets. North America is expected to hold the largest market share, while the above 3 MW generator segment is forecast to grow at the highest CAGR of 5.4%. Diesel generators are estimated to account for USD 5,789.6 million in 2026, and bi-fuel generators are anticipated to see the fastest growth due to emission-reduction pressures. Key drivers include the expansion of edge computing, AI-driven data centers, and the shift toward hydrogen-ready and hybrid power solutions. Leading vendors such as Caterpillar, Cummins, Rolls-Royce, Generac Power Systems, and Kohler Energy are expanding capacity and developing next-generation technologies for hyperscale and colocation facilities.
A $1000 Investment in Cummins a Decade Ago Would Be Worth $6,175.30 Today
A $1000 investment in Cummins made in June 2016 would be worth $6,175.30 as of June 17, 2026, representing a gain of 517.53% excluding dividends but including price increases. Over the same period, the S&P 500 returned 261.47% and gold returned 220.80%. Cummins continues to benefit from rising demand for backup power in data centers and has raised its outlook for the Engine and Components segments on improved North American heavy- and medium-duty truck demand. The company is also advancing long-term growth through strategic investments in clean energy technologies and a collaboration with Komatsu to develop hybrid powertrains for heavy mining equipment.