v3.26.1
REVENUE FROM CONTRACTS WITH CUSTOMERS
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS
NOTE 2. REVENUE FROM CONTRACTS WITH CUSTOMERS
Long-term Contracts
We have certain arrangements, primarily long-term maintenance agreements, construction contracts, product sales with associated performance obligations extending beyond a year, product sales with lead times extending beyond one year that are non-cancellable or for which the customer incurs a penalty for cancellation and extended warranty coverage arrangements that span a period in excess of one year. The aggregate amount of the transaction price for these contracts, excluding extended warranty coverage arrangements, at June 30, 2026, was $7.6 billion. We expect to recognize the related revenue of $4.1 billion over the next 12 months and $3.5 billion over periods up to 10 years. See NOTE 10, “PRODUCT WARRANTY LIABILITY,” for additional disclosures on extended warranty coverage arrangements. Our other contracts generally are for a duration of less than one year, include payment terms that correspond to the timing of costs incurred when providing goods and services to our customers or represent sales-based royalties.
Deferred and Unbilled Revenue
The following is a summary of our unbilled and deferred revenue and related activity:
In millionsJune 30,
2026		December 31,
2025
Unbilled revenue$328 $439 
Deferred revenue2,658 2,660 
We recognized revenue of $305 million and $824 million for the three and six months ended June 30, 2026, compared with $242 million and $592 million for the comparable periods in 2025, that was included in the deferred revenue balance at the beginning of each year. We did not record any impairment losses on our unbilled revenues during the three and six months ended June 30, 2026 or 2025.
Disaggregation of Revenue
Consolidated Revenue
The table below presents our consolidated net sales by country based on the location of the customer:
Three months endedSix months ended
June 30,June 30,
In millions2026202520262025
United States$5,305 $4,865 $9,802 $9,615 
China1,074 826 2,074 1,605 
India446 415 917 841 
Other international2,632 2,537 5,062 4,756 
Total net sales$9,457 $8,643 $17,855 $16,817 
Segment Revenue
Engine segment external sales by market were as follows:
Three months endedSix months ended
June 30,June 30,
In millions2026202520262025
Heavy-duty truck$739 $727 $1,302 $1,381 
Medium-duty truck and bus772 676 1,385 1,376 
Light-duty automotive490 482 938 907 
Total on-highway2,001 1,885 3,625 3,664 
Off-highway348 277 690 538 
Total sales$2,349 $2,162 $4,315 $4,202 
Components segment external sales by business were as follows:
Three months endedSix months ended
June 30,June 30,
In millions2026202520262025
Drivetrain and braking systems$1,119 $1,094 $2,037 $2,150 
Emission solutions853 777 1,660 1,568 
Components and software335 301 660 607 
Automated transmissions124 123 212 240 
Total sales$2,431 $2,295 $4,569 $4,565 
Distribution segment external sales by region were as follows:
Three months endedSix months ended
June 30,June 30,
In millions2026202520262025
North America$2,353 $2,074 $4,521 $4,173 
Asia Pacific319 280 646 520 
Europe300 323 603 592 
China130 123 250 236 
India92 91 176 163 
Africa and Middle East70 60 126 119 
Latin America56 83 107 133 
Total sales$3,320 $3,034 $6,429 $5,936 
Distribution segment external sales by product line were as follows:
Three months endedSix months ended
June 30,June 30,
In millions2026202520262025
Power generation$1,377 $1,200 $2,648 $2,290 
Parts1,078 1,011 2,141 2,037 
Service470 439 903 855 
Engines395 384 737 754 
Total sales$3,320 $3,034 $6,429 $5,936 
Power Systems segment external sales by product line were as follows:
Three months endedSix months ended
June 30,June 30,
In millions2026202520262025
Power generation$744 $584 $1,384 $1,029 
Industrial298 298 591 582 
Generator technologies175 172 335 315 
Total sales$1,217 $1,054 $2,310 $1,926