PACCAR net income jumps 44% to $847.5 million in third quarter
Key Facts
PACCAR reported on October 27 that its net income rose 44% year over year to $847.5 million in the third quarter of 2026, while revenue increased 19% to $7.94 billion. Results were supported by higher truck segment margins and strong business performance, according to the chief executive. The parts segment also posted record revenue, providing another source of support for quarterly performance. The stock rose 3% in premarket trading on the day results were announced, according to Reuters.
Net income in the year-earlier quarter of 2025 was about $590.0 million, against revenue of $6.67 billion, while diluted earnings per share rose from $1.12 to $1.61. PACCAR said quarterly revenue increased 19% and net income rose 44% from a year earlier. The company said improved truck segment margins and strong overall performance contributed to higher earnings, while record revenue at PACCAR Parts reached $1.78 billion. The financial services segment posted pretax income of $138.1 million for the quarter. In the first nine months of 2026, net income totaled $2.20 billion, compared with $1.82 billion in the same period of 2025, which included a one-time after-tax charge of $264.5 million related to a civil lawsuit in Europe.
PACCAR's chief technology officer linked demand to customers renewing their fleets and buying newer, more fuel-efficient trucks. He said the company was seeing good truck demand in 2026 and expected it to continue the following year, supported by U.S. economic growth and infrastructure investment. PACCAR estimated U.S. and Canadian retail sales of Class 8 trucks at between 240,000 and 260,000 trucks in 2026. The company sees sales ranging between 240,000 and 280,000 trucks in 2027. These estimates place North American heavy-duty truck demand in the context the company provides for its outlook on continued activity.
In Europe, PACCAR estimated registrations of trucks weighing more than 16 tonnes at between 300,000 and 320,000 trucks in 2026, and expected them to remain within a similar range in 2027. The company had estimated U.S. and Canadian Class 8 truck sales at between 230,000 and 245,000 trucks in 2025, before raising its 2026 forecast range to 240,000 and 260,000. Third-quarter 2025 results showed net income of $590.0 million and revenue of $6.67 billion, forming the basis for the current year-over-year comparison. EL7 published coverage of second-quarter results on July 28, noting that they beat expectations with support from the parts segment. That comparison provides context for how the company's results have evolved across quarters, alongside changes in truck market estimates.
PCAR shares closed at $104.37 on October 26, the day before results were announced, so that price does not reflect the market's response to the disclosure. The first reported move after the announcement was a 3% gain in premarket trading on October 27, according to Reuters. PACCAR held its third-quarter earnings call on October 27 at 9:00 a.m. Pacific time. The company made a recording of the call available through November 3. The call included a presentation of results and the company's outlook for the truck markets in North America and Europe.