Cummins beats quarterly revenue estimates on surging power generation demand
The company's power generation products, such as generators, have seen strong demand from AI-driven investments towards data centers.
Cummins also said it would not reinstate its full-year revenue and profit forecast, citing persistent economic uncertainty that continues to cloud visibility into customer demand and global market conditions.
The company had withdrawn its outlook last quarter, and said those challenges remain unchanged.
Its power systems segment rose 19% to $1.89 billion in the quarter, driven by strong demand across data centers and mission-critical markets.
In contrast, the components segment fell 9%, while the engine segment declined 8%, reflecting softer demand in economically sensitive sectors such as trucking.
Cummins posted second-quarter revenue of $8.64 billion, as compared to $8.8 billion a year earlier. Analysts, on average, had expected $8.44 billion, according to data compiled by LSEG.
The Indiana-based company reported a net income of $890 million or $6.43 per share, compared to $726 million or $5.26 per share a year ago.
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