| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 43 | 25.8x | 17.8x | Around median | |
Growth | 20 | -10.6% | 7.1% | Bottom tier | |
Quality | 56 | 5.6% | 4.5% | Around median | |
Safety | 72 | 2.6x | 2.6x | Top tier | |
Capital Return | 46 | 2.23% | 2.12% | Around median | |
Momentum | 70 | 33.6% | 2.9% | Top tier | |
Sentiment | 63 | 10 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
PACCAR operates in heavy-duty transportation solutions through three interconnected income drivers: truck manufacturing, parts and aftermarket services sales, and financial services. Its portfolio includes DAF trucks and PACCAR engines, while PACCAR Parts supports fleets with replacement parts and fleet service programs, and PACCAR Financial Services generates income from vehicle financing, financing margins, and the used truck market.
In Q2 FY2026, PACCAR recorded revenue of $7.5 billion and gross profit of $1.6 billion, equivalent to a calculated gross margin of approximately 21.3%. Net income was $752 million, or $1.43 per share, up 24% from Q1 FY2026, when net income was $605.3 million. The company’s revenue also increased from $6.8 billion in Q1 FY2026 to $7.5 billion in Q2 FY2026.
The truck business led the results, with deliveries rising from 33 thousand to 38.7 thousand trucks, while PACCAR Parts recorded quarterly revenue of $1.75 billion, representing approximately 23% of the company’s total revenue, pretax income of $417 million, and a gross margin of 29.8%. PACCAR Financial Services also generated pretax income of $124 million, illustrating the contribution of parts and financing in mitigating volatility in the truck sales cycle. The combined gross margin for trucks, parts, and other activities increased from 13.1% to 14.4% between Q1 and Q2 FY2026.
The average analyst price target is $132.4, approximately 4.9% below the 52-week range high of $139.24, while the target range extends from $119 to $148 and places the highest target approximately 6.3% above that high. The consensus remains Neutral, reflecting that the strength of Q2 FY2026 earnings and the recovery in deliveries are offset by dependence on an acceleration in the truck market, an expected nearly stable margin in Q3, and regulatory uncertainty related to EPA rules.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Revenue was $7.5 billion and net income was $752 million, or $1.43 per share, in Q2 FY2026. Net income increased 24% from Q1 FY2026 as truck deliveries rose from 33 thousand to 38.7 thousand units. Profitability also benefited from improved price versus cost, expense control, warranty performance, and local production for the local market.
PACCAR Parts generated quarterly revenue of $1.75 billion in Q2 FY2026, with pretax income of $417 million. Its gross margin was 29.8%, while fleet services program revenue increased 8% as truck utilization rose. Management expects parts sales growth of between 3% and 5% in FY2026, favoring the high end of the range in the second half.
PACCAR expects the U.S. and Canadian heavy-duty truck market to reach approximately 250 thousand units in FY2026, split between 105 thousand units in the first half and approximately 145 thousand in the second half. It estimates the European market for trucks above 16 tonnes at approximately 310 thousand units and the South American market at between 100 thousand and 110 thousand units. At the company level, PACCAR is targeting approximately 42 thousand deliveries in Q3 FY2026 after 38.7 thousand in Q2.
Automated analysis for informational purposes only — not investment advice.
Management said on July 28, 2026, that the EPA proposal issued on July 9, 2026, allows the current generation of engines to be sold in exchange for an estimated noncompliance penalty of between $6 thousand and $7 thousand per truck. PACCAR plans to begin 2027 by selling its current engines and engines from its partner Cummins, then gradually introduce customers to 35-milligram engines as the year progresses. However, the proposal was still subject to comments and its final version had not been issued, so the cost and final rules remain a source of uncertainty.
PACCAR plans to spend between $700 million and $750 million on capital investments and between $450 million and $480 million on research and development in FY2026. The programs include flexible manufacturing, next-generation clean diesel engines, hybrid and electric powertrains, and integrated and connected vehicle services. In autonomous driving, management stated on July 28, 2026, that it is developing an autonomous vehicle platform in collaboration with Aurora, Stack AV, and Kodiak, but explicitly said there were no plans to remove the driver at that stage.
The analyst consensus on PCAR is Neutral, and the average price target is $132.4. The lowest target is $119 and the highest target is $148, compared with a 52-week range of $92.25 to $139.24. The average target is approximately 4.9% below the top of that range, while the highest target exceeds it by approximately 6.3%, highlighting differing estimates regarding the sustainability of the truck market and margin recovery.
