PACCAR Inc. PCAR reported second-quarter 2026 earnings of $1.43 per share, beating the Zacks Consensus Estimate of $1.33 by 7.5%. The bottom line increased 4.4% from $1.37 in the year-ago quarter.
Consolidated revenues (including trucks and financial services) were $7.55 billion, up from $7.1 billion in the corresponding quarter of 2025.
Truck, Parts and Other revenues of $7 rose 0.5% year over year. Higher truck profitability and record parts revenues supported results, while global truck deliveries declined 1.5% to 38,700 units.
PACCAR Inc. Price, Consensus and EPS Surprise
PACCAR Inc. price-consensus-eps-surprise-chart | PACCAR Inc. Quote
PCAR’s Revenue Mix Favors Truck Sales
Truck revenues were $5.25 billion in the quarter, edging up from $5.24 billion a year earlier. Parts revenues increased 1.5% to a record $1.75 billion, reflecting continued strength in the aftermarket business.
Financial Services revenues were $549.7 million compared with $547.7 million in the prior-year quarter. Intersegment eliminations and other were $3 million.
Geographically, revenues from the United States and Canada declined 3.3% to $4.59 billion. European revenues advanced 6.9% to $1.79 billion, while revenues from other markets climbed 7.3% to $1.17 billion.
PACCAR Expands Truck Profit Despite Lower Deliveries
Truck pretax profit rose 16.7% year over year to $360.5 million from $308.8 million. The increase came even as worldwide deliveries slipped from 39,300 units in the prior-year period.
North American deliveries fell to 22,000 units from 23,000. Europe improved to 11,200 units from 10,600, while other markets declined to 5,500 units from 5,700.
The higher second-quarter build rates were attributable to strong orders and improving freight rates. PACCAR expects constrained freight capacity and an aging fleet to create opportunities for customers to replace trucks with newer, more fuel-efficient models.
PCAR Parts Delivers Record Quarterly Revenues
PACCAR Parts generated pretax income of $417 million compared with $416.5 million a year ago. The modest profit increase came alongside record quarterly revenues and continued investment in distribution and logistics capabilities.
The company expects improving North American freight conditions to support truck utilization and parts demand. Its parts network includes 21 distribution centers serving more than 2,000 DAF, Kenworth and Peterbilt locations and over 350 TRP stores.
First-half parts revenues increased to $3.46 billion from $3.41 billion. Pretax profit for the six-month period declined to $819.3 million from $843 million.
PACCAR Financial Services Holds Profit Steady
Financial Services pretax income was $124.1 million compared with $123.2 million in the year-ago quarter. Provision for losses on receivables increased to $39.4 million from $29.2 million, partly offsetting steady finance margins and an improving used-truck market.
The business ended the quarter with a portfolio of 222,000 trucks and trailers and $22.3 billion in total assets. PacLease’s fleet stood at 37,000 vehicles, and the segment issued $1.38 billion of medium-term notes during the first half.
First-half Financial Services pretax income declined to $239.6 million from $244.3 million. Revenues increased to $1.09 billion from $1.08 billion over the same period.
PCAR’s Costs and Cash Flow Remain in Focus
Within Truck, Parts and Other, cost of sales and revenues declined to $5.99 billion from $6 billion. Research and development expenses rose to $114.3 million from $112.9 million, while selling, general and administrative expense eased to $138.6 million from $139.2 million.
PACCAR generated $700.8 million in operating cash flow during the quarter. For the first half, operating cash flow was $1.67 billion, while capital investments and research and development expenses totaled $274.2 million and $223.4 million, respectively.
Cash and marketable securities were $8.67 billion as of June 30, 2026, compared with $9.25 billion at Dec. 31, 2025.
PACCAR Raises European Market Expectations
The company maintained its 2026 U.S. and Canada Class 8 industry retail sales forecast at 230,000-270,000 trucks. It expects European above 16-tonne registrations of 290,000-330,000 units, up from the previous estimate of 280,000-320,000.
The South American above 16-tonne market remains projected at 100,000-110,000 trucks. For 2026, capital expenditures are now expected between $700 million and $750 million, down from the previous estimate of $725-$775 million. Research and development expenses are now projected to be in the band of $450-$480 million compared with the previous estimate of $450-$500 million.
Spending priorities include clean diesel, hybrid and battery-electric powertrains, connected vehicle services and expanded manufacturing capabilities.
PCAR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Releases From Auto Space
General Motors Company GM reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. Strong pricing, lower costs and disciplined incentives supported results. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.
Tesla, Inc. TSLA reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years.
Genuine Parts GPC reported second-quarter 2026 adjusted earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.10 by 2.38%. The bottom line increased 2.4% from $2.10 in the year-ago quarter. Revenues rose 6% year over year to $6.54 billion and surpassed the consensus estimate of $6.39 billion by 2.36%. Genuine Parts reaffirmed its 2026 adjusted earnings guidance of $7.50-$8 per share and total sales growth outlook of 3-5.5%. Genuine Parts ended June with $2.3 billion of liquidity, including $559 million in cash.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PACCAR Inc. (PCAR): Free Stock Analysis Report
Genuine Parts Company (GPC): Free Stock Analysis Report
General Motors Company (GM): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).