$CMI · CUMMINS INC
Cummins filed its Q3 FY2026 10-Q. Net sales rose 13.5% YoY to $9.438B, gross margin expanded to 27.7% from 25.6%, and operating income jumped 69% to $1,444M. Net income attributable to Cummins more than doubled to $1,140M ($8.25 diluted EPS) from $536M ($3.86). Nine-month net income attributable to Cummins reached $2,726M versus $2,250M. The quarter included a $199M net charge from Accelera actions, including a $175M payment tied to divesting its low-pressure fuel cell business.
- Q3 net sales $9.438B, up 13.5% YoY from $8.317B.
- Diluted EPS $8.25 vs $3.86 a year ago.
- Gross margin 27.7%, up 2.1 percentage points YoY.
- Operating income $1,444M, up 69% from $852M.
- Accelera actions produced a $199M net charge, including a $175M fuel-cell divestiture payment.
Shares fell 4.46% to $450.81 in the regular session despite the strong results, and are down 2.60% since filing, suggesting the market is weighing the Accelera charge or broader cyclical concerns over the earnings beat.
Cummins delivered a sharp earnings inflection with EPS more than doubling, even as a $199M Accelera charge and post-filing share decline temper the read-through.
Strong heavy-duty truck and power generation demand drove the beat, consistent with resilient North American commercial-vehicle and data-center power trends.
The $199M Accelera charge and fuel-cell divestiture highlight execution risk in zero-emissions investments; foreign currency translation was a $35M headwind in the quarter.