Cummins Q3 Earnings Call Highlights Power Demand and Truck Weakness

CMI trimmed its 2026 revenue growth outlook to 10% from a prior 10-13% range, citing softer North American pickup truck demand, while holding its EBITDA margin forecast at roughly 18.2%.

The guidance cut is the headline, but the margin hold is the detail that matters. Management is signaling that weaker truck volumes will hit the top line without denting profitability.

Data center strength is carrying the story. Power Systems posted $2.3 billion in quarterly revenue at a 25.4% EBITDA margin, well above the company-wide 18.2% target. Orders in that business extend into late 2028, which gives CMI multi-year visibility on the demand side. CMI also plans capacity expansion through 2028.

Timing is another factor. CMI expects to recover about $200 million in delayed shipments in Q4. Interpretation: that recovery could cushion near-term revenue, but it also means Q4 results lean on execution rather than new demand.

The mix shift is clear from the numbers: a high-margin power business growing against a cyclically weak truck segment. The guidance reduction reflects the drag from trucks, not a deterioration in the power franchise.