CMI · News · 20260805N

Operating Margin Drivers

CUMMINS INC · 2026-08-05 · Importance 58 · Surprise 42

Second-quarter 2026 adjusted EPS was reported at $6.94, below the $7.33 consensus estimate, despite revenue growth. Higher incentive compensation, research and development expense, freight, and tariff costs pressured profitability. Cummins reported record quarterly EBITDA of approximately $1.7 billion and raised its full-year EBITDA margin outlook to 18.0%-18.5%.

Key facts

• Company cited higher costs including incentive compensation, R&D, and freight as causes for missing earnings estimates. source