New York, Feb 6, 2026, 21:38 (EST) — Market closed
Cummins Inc finished Friday up 6.8% at $577.73, erasing Thursday’s earnings-fueled slide as U.S. markets wrapped for the week.
Why does the two-session swing matter? Cummins is caught between two shifting forces: a shaky North American truck market and surging demand for standby generators from data centers. Monday (Feb. 9) brings a choice for investors—stick with the power narrative, or start worrying again about trucks.
Cummins reported a modest 1% uptick in fourth-quarter revenue, reaching $8.54 billion, and is projecting revenue growth between 3% and 8% for 2026. The company recorded a $218 million charge related to its Accelera unit’s electrolyzer business—hydrogen production equipment—dragging profit down to $4.27 a share, including $1.54 a share reflecting the charge. Shares tumbled nearly 9% early. CEO Jennifer Rumsey said generator demand stretches “well into 2028.” CFO Mark Smith flagged around 50 basis points—0.5 percentage point—of annual margin drag from tariffs. Jefferies noted Power Systems sales up 11%, though still short of expectations for 2025. 1
Cummins pointed to “robust demand for data center backup power” as the engine behind record performance in its Distribution and Power Systems segments, though North America truck markets continued to lag. For 2026, the company projected EBITDA in the range of 17% to 18% of sales—using the typical operating profit measure that strips out interest, taxes, depreciation and amortization. 2
Cummins released its quarterly numbers in an 8-K submitted on Feb. 5, according to a regulatory filing. 3
Analysts couldn’t agree. Truist bumped its Cummins price target up to $703 from $653, sticking with a Buy and highlighting “strong performance across the portfolio.” Even so, Power Systems numbers fell short of consensus. 4
Industrial names caught a bid Friday. Caterpillar jumped nearly 7% during the session. Paccar, for its part, barely moved. Cummins saw trading volume surge past its usual level, hinting at both quick-money players and more patient investors reacting to the earnings move. 5
The risk is pretty clear. Data-center spending hopes keep climbing, but that kind of generator demand can fade fast if major builds get delayed or money dries up. Flip to trucks: should the North American market remain weak later this year, the favorable mix that’s propped up numbers so far could prove shaky.
Next session, eyes will be on Cummins to see if shares can stay above the post-earnings low. Analyst notes could go either way—some might highlight that Power Systems backlog, others could dig into potential costs tied to the Accelera review. Tariffs still loom large over margins.
Investors now look to Cummins’ 2026 Analyst Day, set for May 21 in New York. More clarity is anticipated on Power Systems capacity, Accelera’s roadmap, and management’s read on 2026 following the first-quarter reset. 6
