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Helena Cheng

Cummins rises after power systems division delivers record results, management boosts full-year outlook

Shares of Cummins are higher in early trading on evidence that the 107-year-old engine maker is carving out a role as an AI infrastructure company.

While its headline Q1 results were nothing to write home about, its power systems segment — which makes generators — posted record-breaking performance fueled by data center demand.

Management boosted its full-year sales growth outlook to a range of 8% to 11% (up from 3% to 8%) and said its full-year EBITDA would be up 17.8% to 18.5% (up from 17% to 18%). Analysts had expected growth at the bottom end of this updated range.

“Demand for data center power generation across a range of our products continues to outpace expectations,” said Cummins CEO and Chair Jennifer Rumsey, who added that North American truck markets look to be improving from a “cyclical low.”

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Helena Cheng

PayPal tumbles as management warns of weak 2026 trends, says turnaround plan will take “a few months” to define

PayPal reported Q1 results that were modestly ahead of analyst estimates, but shares sank after management warned of seeing trends at the “low end” of its full-year guidance.

Key numbers:

  • Adjusted earnings per share of $1.34 (compared to analyst estimates of $1.27).

  • Revenue of $8.4 billion (estimate: $8.1 billion).

Management plans to cut costs and jobs, with new CEO Enrique Lores aiming to engineer a turnaround for the payments company, whose stock was down double digits this year heading into the report.

PayPal is seeking to accelerate its adoption of AI to cut costs and generate at least $1.5 billion in savings over the next two to three years, according to a statement on Tuesday. Per Bloomberg, PayPal is targeting a workforce reduction of about 20%.

“We need to recommit to the fundamentals. That includes becoming a technology company again,” Lores said during the conference call, adding that it “will take a few months to completely define our new plan.”

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J. Edward Moreno

Coinbase CEO: Company cutting 14% of employees

Coinbase CEO Brian Armstrong said the company is cutting 14% of its workforce, citing volatile crypto markets and artificial intelligence, saying he is “rebuilding Coinbase as an intelligence, with humans around the edge aligning it.”

The cuts will impact about 700 employees and will be “substantially complete in the second quarter of 2026,” the company said in a regulatory filing. The restructuring will cost up to $60 million.

Armstrong said Coinbase will have fewer layers of management and lean heavily on AI. He said that engineers and nontechnical workers at Coinbase have been able to enhance their work with AI already.

The move comes as the company is scheduled to report earnings results on Thursday. The crypto bear market has been a headwind for the company in recent quarters, with analysts expecting the company’s Q1 profits to decline by 58% year over year.

Shares rose as much as 8% in premarket trading after the announcement. The company is down over 14% since the start of the year through yesterday’s close.

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Max Knoblauch

Frontier sinks as high fuel costs dampen record Q1 revenue, weigh on Q2 earnings guidance

Budget airline Frontier reported its first-quarter results before markets opened on Tuesday. Its shares fell more than 5% in premarket trading.

For Q1, Frontier reported:

  • An adjusted loss of $0.30 per share, compared to Wall Street estimates of a $0.36 loss per share, per analysts polled by FactSet.

  • $1.07 billion in revenue, compared to the $1.05 billion consensus estimate.

  • $268 million in fuel expenses, up 13% from last year. Like the rest of the industry, Frontier has been rocked by higher fuel costs.

Looking ahead, Frontier guided for a second-quarter adjusted loss of between $0.60 and $0.45 per share, deeper than the estimates of a $0.31 loss per share. Frontier said it expects to pay $4.25 per gallon of jet fuel in Q2, up about 48% from Q1.

Frontier shares closed up more than 10% on Friday on reports that rival Spirit would likely cease operations over the weekend. Following Spirit’s shutdown, Frontier climbed more on Monday. The carrier has the most direct route overlap with Spirit of any airline — though it may not benefit from its rival’s downfall as much as larger rivals with more premium ticket exposure.

A group of budget carriers including Frontier has sought $2.5 billion in government assistance to help sustain operations amid higher fuel costs. Following Spirit’s collapse, US Transportation Secretary Sean Duffy said he doesn’t think it’s necessary.

markets
Hyunsoo Rim

Shopify tumbles despite strong first quarter as Q2 guidance fails to impress

Shopify fell in premarket trading Tuesday after the e-commerce company’s strong Q1 results failed to offset concerns over its second-quarter outlook.

The stock was recently down 5.9% premarket.

Revenue for the first quarter rose 34% year on year to $3.17 billion, topping the $3.09 billion estimate compiled by Bloomberg, while gross merchandise volume — the total dollar value of goods sold through its platform — hit $100.7 billion, also above the roughly $98.8 billion analysts had expected.

But investors appeared to look past its Q1 beat, focusing instead on the company’s second-quarter outlook, which suggests slower growth and higher-than-expected operating expenses in the near term.

For Q2, Shopify forecast revenue to grow in the “high-twenties” percentage rate year on year, gross profit growth in the mid-20s, and operating expenses of 35% to 36% of revenue — compared with the 33% consensus estimate for full-year 2026, per Bloomberg.

Bloomberg Intelligence analyst Anurag Rana had previously warned that Q2 growth could slow on softer spending as fuel prices rise.

markets
Helena Cheng

Cipher Digital gains as CEO touts pricing power in data center lease negotiations

Cipher Digital shares are surging in early trading following the release of its Q1 2026 results, as management talked up the prospect for additional lease signings to boost the data center company’s backlog.

During the conference call, CEO Tyler Page said the firm is “in active and advanced discussions with multiple potential tenants for an HPC hosting lease” at its Reveille site as well as its Ulysses location.

During analyst Q&A, he added that Cipher is able to enjoy “premium pricing” in lease negotiations because its sites are already energized or slated to be in the near future.

Key numbers:

  • Q1 revenue of $34.8 million (compared to analyst estimates of $36.5 million).

  • Adjusted EBITDA of -$48.2 million (estimate: -$7.3 million).

Cipher Digital rebranded from Cipher Mining in February 2026 to align with its new focus on industrial-scale data centers for AI and cloud workloads.

The company has signed a 15-year, 300-megawatt agreement with Amazon Web Services at its Black Pearl campus, as well as a 10-year lease with Fluidstack and Google at its Barber Lake site. Cipher also added a third, unnamed client in March. Together, its deals total around $11 billion in contracted revenues over the next decade.

By 2030 and beyond, Cipher anticipates having multiple gigawatts of capacity available for sale as it continues its data center construction efforts in anticipation of an enduring AI boom.

Cipher Digital expected portfolio capacity beyond 2030
(Cipher Digital)

The company has also moved to strengthen its balance sheet, securing a $200 million revolving credit facility backed by major banks including Morgan Stanley, Goldman Sachs, and JPMorgan, giving it additional flexibility to fund data center expansion.

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