New York, Feb 5, 2026, 21:10 EST — Market closed.
- Cummins shares plunged following the release of fourth-quarter results and charges linked to its Accelera unit
- CEO highlights consistent demand for data-center backup power; North American truck markets expected to improve by late 2026
- Investors eye tariff-related margin squeezes and await updates on Accelera’s strategic review
Cummins Inc. shares fell roughly 10.7% Thursday, ending at $540.38, following a day when the stock hit all-time highs. The drop came as investors weighed the latest quarterly earnings alongside new setbacks in the company’s clean-energy segment.
Cummins has turned into a popular play on the data-center boom, fueled by rising demand for backup power systems. That’s happening even as its core engine segment struggles with a weak North American truck market. Investors are now trying to gauge how sustainable this balance will be heading into 2026, and how heavily the company will continue investing in hydrogen.
Management has reinstated tariffs as a concern. CFO Mark Smith told analysts the existing tariff setup might shave roughly 50 basis points—0.50 percentage points—off annual margins. It’s a modest hit, but it stacks up quickly with big industrial sales.
Cummins reported a 1% increase in fourth-quarter revenue to $8.5 billion, with diluted earnings hitting $4.27 per share. The gains came on the back of record sales and strong profits in Distribution and Power Systems.
The quarter saw $218 million in charges linked to the electrolyzer business within Accelera, Cummins’ zero-emissions division. These electrolyzers, used to generate hydrogen, were hit by a strategic review prompted by changing forecasts for hydrogen adoption.
CEO Jennifer Rumsey said North America on-highway truck demand should be “slightly better” in 2026, especially in the latter half of the year, with ongoing strength in data-center power generation markets. Cummins Inc.
During the earnings call, Rumsey noted that customers are booking diesel backup power orders “well into 2028.” This highlights how heavily the company relies on data centers to counteract softer demand for engines and components. Reuters
Jefferies analysts pointed out that although Power Systems sales rose 11% year-on-year, they fell short of the elevated expectations set through 2025. This gap—strong results but even stronger forecasts—played a key role in driving the selloff.
Cummins projects full-year 2026 revenue to rise between 3% and 8%, with EBITDA — a cash-flow proxy standing for earnings before interest, taxes, depreciation, and amortization — expected to hit 17% to 18% of sales.
Bulls face the risk that the data-center cycle might slow down or clients push back on spending, while the truck market struggles to bounce back. Accelera adds another layer of uncertainty: further restructuring, asset write-downs, or a slump in hydrogen demand could weigh on earnings, even if top-line revenue remains steady.
Cummins tumbled amid a broader Wall Street selloff, driven by fresh doubts over the returns from huge AI spending.
Next week, attention turns to follow-up analyst calls and updates on Accelera’s review. Macro traders are also on edge as key U.S. data releases have been pushed back: the January jobs report is now due Feb. 11, while January’s CPI figures are set for Feb. 13.
