Engines & power · No.2 in datacenter backup power
Cummins
An engine and power-generation firm re-rated through a side door — AI-datacenter backup gensets. As the world No.2 after Caterpillar, standby-power demand lifted Power Systems revenue to $2.0B (+18%) with backlog stretching into 2026-27. Hyperscalers' AI-datacenter buildout (Microsoft, Amazon) is the demand axis, while on-highway truck (PACCAR) and mining (Komatsu) engines are the stable core. The re-rating axis is how large and durable that backup-power annuity becomes.
CMI Updated Jul 12, 2026 2 AI consumers
Per the valuechain.wiki graph, Cummins is directly linked to 4 companies (0 supply, 4 revenue relationships) and reaches 24 companies within two hops; the links are backed by 4 dated sources, 2 of them primary filings (as of 2026-07-12).
Financials & Segments
- Total revenue · Power Systems $2.0B (+18%)
- Customer concentration · World No.2 in datacenter backup power.
- Segments · Power generation (gensets) · Engines · Distribution
Revenue from
- Hyperscalers · data centers (backup power generation) High confidence· Revenue ~$2B · 2025 · Power Systems segment revenue (+18%)
Supplies backup gensets to hyperscalers (world No.2, backlog into 2026-27). - Komatsu High confidence
Sells engines for Komatsu ultra-class mining trucks, including Dual Fuel retrofits. - PACCAR (엔진 조달 고객) High confidence
PACCAR sources engines it does not build from Cummins; a key truck-OEM customer for Cummins on-highway engines. - Industrial · transport (engines · power generation) Medium confidence
Engines and power for industrial and transport. - Microsoft Medium confidence
Supplies backup gensets to Microsoft's AI datacenters — essential infrastructure guarding large compute against outages, so Microsoft's datacenter buildout pace directly drives Cummins Power Systems demand. - Amazon Medium confidence
Supplies backup gensets to AWS datacenters — with Cummins and Caterpillar oligopolizing hyperscale backup power, Amazon is a flagship demand source.
Pays to
- Components · engines · manufacturing (undisclosed) Low confidence
Engine/genset parts and manufacturing. - Engines · fuel systems (undisclosed) Low confidence
Engine and fuel-system parts.
Value-chain ripple (2 tiers)
Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.
| Company | Chain | '21 | '22 | '23 | '24 | '25 | YTD |
|---|---|---|---|---|---|---|---|
| Datadog | lead2 | +80.9 | -58.7 | +65.1 | +17.7 | -4.8 | +89.4 |
| Palo Alto Networks | lead2 | +56.7 | -24.8 | +111.3 | +23.4 | +1.2 | +76.9 |
| Aurora Innovation | lead2 | · | -89.3 | +261.2 | +44.2 | -39 | +66.1 |
| CrowdStrike | lead2 | -3.3 | -48.6 | +142.5 | +34 | +37 | +59.7 |
| Illumina | lead2 | +2.8 | -46.9 | -31.1 | -1.3 | -1.8 | +45 |
| Starbucks Corp | lead2 | +11.1 | -13.2 | -1.2 | -2.5 | -5.3 | +27.4 |
| Johnson Controls | lead2 | +77.4 | -19.3 | -7.6 | +39.8 | +53 | +20 |
| Snowflake | lead2 | +20.4 | -57.6 | +38.6 | -22.4 | +42.1 | +19.2 |
| Airbnb Inc | lead2 | · | -48.6 | +59.2 | -3.5 | +3.3 | +9.5 |
| Costco Wholesale | lead2 | +51.8 | -19 | +49 | +39.6 | -5.4 | +6.6 |
| Walmart Inc | lead2 | +2 | -0.5 | +12.9 | +74 | +24.5 | +2.6 |
| Schrodinger | lead2 | -56 | -46.3 | +91.5 | -46.1 | -7.3 | -7.8 |
| MercadoLibre, Inc. | lead2 | -19.5 | -37.2 | +85.7 | +8.2 | +18.5 | -8 |
| Uber | lead2 | -17.8 | -41 | +149 | -2 | +35.5 | -8.8 |
| The Walt Disney Company | lead2 | -14.5 | -43.9 | +4.3 | +24.4 | +3.3 | -15.3 |
| Coupang | lead2 | · | -49.9 | +10.1 | +35.8 | +7.3 | -20.3 |
| Netflix | lead2 | +11.4 | -51.1 | +65.1 | +83.1 | +5.2 | -21.7 |
| ServiceNow | lead2 | +17.9 | -40.2 | +82 | +50.1 | -27.7 | -29.7 |
| Paccar | lead1 | +5.6 | +17 | +55 | +10.8 | +8 | +14.4 |
| Komatsu | lead1 | +0.5 | +17.4 | +40.1 | +16.4 | +30.5 | +9.5 |
| Amazon | lead1 | +2.4 | -49.6 | +80.9 | +44.4 | +5.2 | +6.3 |
| Microsoft | lead1 | +52.5 | -28 | +58.2 | +12.9 | +15.6 | -20 |
| Cummins | node | -1.7 | +14.1 | +1.7 | +48.9 | +49.4 | +33.3 |
YTD as of 2026-07-10 · source: Yahoo Finance
Cummins's thesis is 'an engine leader re-rated through the AI-power side door.' With Caterpillar it effectively oligopolizes hyperscale backup power (world No.2), and AI-datacenter standby demand lifted Power Systems +18% with backlog into 2026-27 — Microsoft and Amazon are flagship customers. The core on-highway business runs through PACCAR (which sources from Cummins the engines it does not build), while mining provides stable cash via Komatsu ultra-class truck engines (Dual Fuel). The key is whether backup-power demand's scale and durability become a growth axis that offsets cyclical truck engines; the risks are the datacenter-capex cycle and engine-parts supply.
Analysis generated from returns as of 2026-07-09Analyst ratings
Consensus: Buy 3 · Hold 0 · Sell 0 · Avg. target $875 · Price $675.95 (07-10) · Upside +29%
| Broker | Rating | Target | Published | |
|---|---|---|---|---|
| Truist Securities | Buy | $901 | Jul 2, 2026 | Report ↗ |
| Wells Fargo | Overweight | $874 | Jun 17, 2026 | Report ↗ |
| UBS | Buy | $850 | Jun 8, 2026 | Report ↗ |
On data-center backup-power demand and a recovering truck cycle, UBS upgraded to Buy ($850) followed by Wells Fargo ($874) and Truist ($901) in a wave of target-price hikes.
Analyses covering this node
- Power is the next bottleneck: where the chain crosses into the clock of generation, transmission and cooling Jun 23, 2026