In part due to that growing revenue source that has fueled more investor interest, Cummins shares have climbed some 42% in value over the past 12 months. In comparison, the S&P 500 is up a bit of over 18% in the same period. While AI power demand shows no signs of slowing, there's still more to consider about Cummins as a potential investment.
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Multiple data center power solutions
Cummings offers a variety of power solutions, ranging from truck engines and vehicle components to generators and power systems. It's the generators and power systems that have investors excited about this stock, as energy demands from power-hungry data centers show no signs of slowing down.According to research from Goldman Sachs Group, the share of total U.S. peak summer power demand from data centers is expected to climb from 4.1% in 2025 to 8.5% by 2027. U.S. data center is forecast to increase from 31 gigawatts (GW) in 2025 to 66 GW by 2027. That can allow Cummins to continue to benefit from increasing demand, and it's currently capturing opportunities that are in front of it.
In June, Cummins announced a deal with Circe Energy to serve as the primary power solution for its West Texas AI data center campus. It will provide generator sets for behind-the-meter power solutions, allowing power to flow directly to the data center campus and helping bypass reliance on the traditional grid.
Cummins announced in August that it had been selected to supply battery energy storage systems (BESS) for a large U.S. data center project. While few specifics were provided, this is a win for the company's BESS division, which was launched in May 2025. "The future of data center growth depends on finding smarter, faster ways to deploy and manage power. BESS is quickly becoming a critical part of the modern data center power strategy," Jenny Bush, president of Cummins' Power Systems business, said in a press release.
That demand for power generation solutions is also not just about future deals, as it is currently showing up in the earnings results. For Cummins' 2026 second-quarter earnings, it reported record revenue of $9.5 billion. In addition, it boosted its 2026 full-year revenue guidance.
