CUMMINS INC Earnings Summary — Q1 2026

• Revenue grew 2.74% year-over-year to $8.40 billion, reflecting stable demand in core heavy-duty markets.
• Operating income rose to $949 million, showing recovery from Q4 2025 despite slight seasonal revenue contraction.
• Net income of $680 million represents a 20% decline YoY, though this follows a prior year period bolstered by non-recurring items.
• Cost of revenue decreased by approximately $430 million sequentially, driving a notable improvement in quarterly gross margin.
• The company maintains a significant scale in its industrial engine units while supporting its high-growth Accelera zero-emissions segment.
• Research & Development spending remained consistent at $358 million, underscoring the ongoing 'Destination Zero' decarbonization strategy.

Management continues to focus on its 'Destination Zero' strategy, aiming to transition the legacy diesel portfolio toward zero-emissions technology while maintaining current core profitability and operational discipline.

Improving

Quarterly operating margins show recovery from late 2025 levels, and the successful navigation of past regulatory settlements has cleared the path for core operational growth.

The outlook is focused on scaling the Accelera brand while leveraging dominant market share in the cyclical heavy-duty truck industry. Geopolitical and commodity sensitivity remains, but operational efficiency in core 'Engine' and 'Distribution' units is high.