Cummins (CMI) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $9.438B, up 13% YoY; EBITDA reached a record $1.786B, or 18.9% of sales, and diluted EPS was $8.25.

• Strong Power Systems demand and improving North American truck markets supported growth, partly offset by weaker pickup demand.

• FY26 revenue growth guidance was revised to ~10%, while EBITDA margin guidance remains ~18.2%.

Financial highlights

• Sales were $9.438B versus $8.317B a year earlier; North America revenue increased 15% and international revenue rose 11%.

• Gross margin rose $486M to $2.615B, or 27.7% of sales; operating income increased 69% to $1.444B.

• Net income was $1.140B and diluted EPS was $8.25; Q3 included $75M of favorable discrete tax items, or $0.54 per diluted share.

• Operating cash flow was $1.405B versus $1.305B YoY; nine-month operating cash flow was $3.213B versus $2.087B.

• Nine-month sales increased 9% to $27.293B; net income attributable to shareholders rose 21% to $2.726B.

Outlook and guidance

• FY26 revenue growth is forecast at ~10%, revised from 10%–13%; EBITDA margin remains ~18.2%, within the prior 18%–18.5% range.

• FY26 North American heavy-duty truck demand is 240,000–250,000 units; medium-duty outlook is 125,000–130,000, and pickup engine shipments are 118,000–122,000.

• FY26 global power-generation revenue growth remains 15%–25%; most Q3 supply-delayed shipments, including ~$200M of revenue, are expected to shift into Q4.

• FY26 guidance includes a ~23% effective tax rate excluding discrete items, D&A of $1.1B–$1.2B, and capital expenditures of $1.35B–$1.45B.

• Q4 revenue is expected to rise from Q3 and set a new record; strong global power generation and North American heavy-duty truck demand remain supportive, while pickup demand stays weak.