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Business Segments · Product Warranty Expense

Components — Product Warranty Expense

Cummins Components — Product Warranty Expense decreased by 27.0% to $27M in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 3.8%, from $26M to $27M. Over 3 years (FY 2022 to FY 2025), Components — Product Warranty Expense shows an upward trend with a 23.3% CAGR. This is a positive signal — lower values indicate better performance for this metric.

Analysis

StatementSegment
CategoryRisk
SignalLower is better
VolatilityModerate
First reportedQ1 2022
Last reportedQ1 2026May 5, 2026
Rolls up toWarranty expense

How to read this metric

Decreasing warranty expenses generally signal improved product quality, while rising expenses may indicate manufacturing defects or reliability issues.

Detailed definition

This represents the estimated costs the Components segment expects to incur for repairs, replacements, or service under...

Peer comparison

Standard operating expense for durable goods manufacturers with long-term product warranties.

Metric ID: cmi_segment_components_product_warranty_expense

Historical Data

17 periods
 Q1 '22Q2 '22Q3 '22Q4 '22Q1 '23Q2 '23Q3 '23Q4 '23Q1 '24Q2 '24Q3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Value$16M$16M$16M$16M$34.5M$34.5M$34.5M$34.5M$62M$66M$37M$8M$26M$28M$29M$37M$27M
QoQ Change+0.0%+0.0%+0.0%+115.6%+0.0%+0.0%+0.0%+79.7%+6.5%-43.9%-78.4%+225.0%+7.7%+3.6%+27.6%-27.0%
YoY Change+115.6%+115.6%+115.6%+115.6%+79.7%+91.3%+7.2%-76.8%-58.1%-57.6%-21.6%+362.5%+3.8%
Range$8M$66M
CAGR+14.0%
Avg YoY Growth+61.0%
Median YoY Growth+79.7%

Frequently Asked Questions

What is Cummins's components — product warranty expense?
Cummins (CMI) reported components — product warranty expense of $27M in Q1 2026.
How has Cummins's components — product warranty expense changed year-over-year?
Cummins's components — product warranty expense increased by 3.8% year-over-year, from $26M to $27M.
What is the long-term trend for Cummins's components — product warranty expense?
Over 3 years (2022 to 2025), Cummins's components — product warranty expense has grown at a 23.3% compound annual growth rate (CAGR), from $64M to $120M.
What does components — product warranty expense mean?
The cost of fulfilling warranty obligations for products sold by the segment.