Current portion of accrued product warranty
Cummins Current portion of accrued product warranty decreased by 7.9% to $638M in Q1 2026 compared to the prior quarter. Year-over-year, this metric declined by 6.9%, from $685M to $638M. Over 5 years (FY 2020 to FY 2025), Current portion of accrued product warranty shows relatively stable performance with a 0.6% CAGR. This is a positive signal — lower values indicate better performance for this metric.
Analysis
How to read this metric
An increase may signal concerns regarding product quality or a larger installed base, while a decrease suggests improved product reliability or lower expected claims.
Detailed definition
This represents the estimated cost of fulfilling warranty obligations for products sold that are expected to be settled...
Peer comparison
Common in heavy machinery and automotive sectors; highly dependent on product reliability and warranty terms.
current_liabilities_product_warranty_accrual_classified_currentHistorical Data
| Q2 '21 | Q3 '21 | Q4 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $661M | $694M | $755M | $798M | $796M | $801M | $726M | $746M | $751M | $731M | $667M | $652M | $660M | $685M | $679M | $685M | $657M | $660M | $693M | $638M |
| QoQ Change | — | +5.0% | +8.8% | +5.7% | -0.3% | +0.6% | -9.4% | +2.8% | +0.7% | -2.7% | -8.8% | -2.2% | +1.2% | +3.8% | -0.9% | +0.9% | -4.1% | +0.5% | +5.0% | -7.9% |
| YoY Change | — | — | — | — | +20.4% | +15.4% | -3.8% | -6.5% | -5.7% | -8.7% | -8.1% | -12.6% | -12.1% | -6.3% | +1.8% | +5.1% | -0.5% | -3.6% | +2.1% | -6.9% |
Current portion of accrued product warranty at Other Companies
Frequently Asked Questions
- What is Cummins's current portion of accrued product warranty?
- Cummins (CMI) reported current portion of accrued product warranty of $638M in Q1 2026.
- How has Cummins's current portion of accrued product warranty changed year-over-year?
- Cummins's current portion of accrued product warranty decreased by 6.9% year-over-year, from $685M to $638M.
- What is the long-term trend for Cummins's current portion of accrued product warranty?
- Over 5 years (2020 to 2025), Cummins's current portion of accrued product warranty has grown at a 0.6% compound annual growth rate (CAGR), from $674M to $693M.
- What does current portion of accrued product warranty mean?
- The estimated cost of warranty claims the company expects to pay out within the next year.