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Cummins CMI Distribution — Product Warranty Expense

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Other financials

Income statement

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Revenue$8.4B+2.7%
Gross profit$2.2B+4.1%
Operating income$949.0M-16.3%
Net income$680.0M-20.0%
EPS (diluted)$4.71-21.0%

Balance sheet

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Cash & equivalents$2.6B+70.6%
Total debt$8.0B+25.0%
Total equity$12.4B+13.1%
Total assets$34.4B+5.9%

Cash flow

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Operating cash flow$309.0M+10,400%
CapEx$189.0M+16.7%
Free cash flow$120.0M+173%

Valuation

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Market cap$91.71B+79.6%
Enterprise value$97.13B+69.8%
P/E32.9×+16.3×
P/S2.7×+1.2×

Profitability

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Gross margin25.4%+0.1pp
Operating margin11.3%-0.4pp
Net margin8.2%-0.3pp
FCF margin7.9%+7.9pp

Returns & leverage

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Return on equity23.9%-5.0pp
Debt / equity0.6×+0.1×
Current ratio1.7×+0.4×

Where this comes from

Reported directly by Cummins in its filing.

Tagged under the XBRL concept us-gaap:ProductWarrantyExpense.

The official record: Cummins’s 10-Q, filed May 5, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Cummins's distribution — product warranty expense?
Cummins (CMI) reported distribution — product warranty expense of $7M in Q1 2026.
How has Cummins's distribution — product warranty expense changed year-over-year?
Cummins's distribution — product warranty expense increased by 16.7% year-over-year, from $6M to $7M.
What is the long-term trend for Cummins's distribution — product warranty expense?
Over 3 years (2022 to 2025), Cummins's distribution — product warranty expense has grown at a 56.5% compound annual growth rate (CAGR), from $6M to $23M.
What does distribution — product warranty expense mean?
This metric represents the estimated costs the Distribution segment expects to incur for repairing or replacing products under warranty. It reflects the quality and reliability of the products distributed or serviced by the segment. High or rising warranty expenses can indicate quality control issues or a shift in the product mix toward less reliable items.