Investing.com -- Cummins Inc (NYSE: CMI) reported second-quarter results that missed earnings expectations despite beating revenue estimates, as higher incentive compensation weighed on profitability.

The company posted adjusted earnings per share of $6.73, falling short of the analyst consensus of $7.26. Revenue reached a record $9.5 billion, up 9% YoY and exceeding the $9.33 billion analyst estimate. Net income attributable to Cummins was $932 million, or 9.9% of sales, compared to $890 million in the same quarter last year. EBITDA came in at 17.5% of sales, down from 18.4% a year ago, primarily due to higher incentive compensation tied to expected record full-year results.

Shares fell 8.2% Tuesday following the earnings miss.

"Cummins delivered record second-quarter results, reflecting robust customer orders for standby power for data centers and improving North American truck markets," said Jennifer Rumsey, Chair and CEO of Cummins. "Rising demand and disciplined execution drove record performance as we continue to perform well in a complex macroeconomic environment."

The company raised its full-year 2026 revenue guidance to up 10% to 13%, compared to prior guidance of up 8% to 11%, citing stronger demand across several markets. The midpoint of 11.5% growth exceeds typical market expectations. EBITDA is now expected to range from 18.0% to 18.5%, compared to prior guidance of 17.75% to 18.5%.

Sales in North America increased 8% while international revenues grew 12%, led by China. The Power Systems segment showed particular strength, with revenues up 19% driven by data center power generation demand in the United States, China and Asia Pacific.

Cummins returned $501 million to shareholders during the quarter through dividends and share repurchases, and increased its quarterly dividend from $2.00 to $2.20 per share.