Paccar Inc (PCAR), with a $58.85 billion market capitalization, designs, manufactures, and distributes light-, medium-, and heavy-duty commercial trucks globally under the Kenworth, Peterbilt, and DAF brands. Headquartered in Bellevue, Washington, the company also supplies aftermarket parts, diesel engines, and financial services to truck customers and dealers worldwide.
The company is expected to report its third-quarter results for fiscal 2026 soon. Ahead of the earnings release, Wall Street analysts expect its bottom line to grow.
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Analysts expect Paccar to report diluted earnings of $1.61 per share for Q3, up 43.8% year over year (YOY). The company has exceeded consensus estimates in two of the four trailing quarters and matched them in two instances. For full fiscal year 2026, Wall Street analysts expect Paccar’s diluted EPS to grow 18% to $5.91, followed by a 22.3% improvement to $7.23 in fiscal 2027.
www.barchart.comInvestors are weighing solid earnings against the cyclical nature of truck demand and uncertainty around the 2026-2027 freight cycle. Over the past 52 weeks, the stock has gained 12%, and year-to-date (YTD), it has increased 2.1%. Meanwhile, the broader S&P 500 Index ($SPX) has increased by 15.2% and 12.1% over the same periods, respectively. Therefore, the stock has underperformed the broader market over these periods.
We now compare Paccar’s performance with that of its sector. The State Street Industrial Select Sector SPDR ETF (XLI) has increased 10.5% over the past 52 weeks and 9% YTD. Therefore, the stock has outperformed its sector over the past year but has underperformed this year.
www.barchart.comPaccar’s second-quarter results reflect strong orders and improved freight rates. However, revenue was almost flat YOY at $7.55 billion. Truck sales improved modestly to $5.25 billion, although new truck deliveries dropped YOY. Moreover, EPS grew 4.4% YOY to $1.43, above the $1.33 Wall Street analysts expected. On July 9, the U.S. EPA issued clarifying guidance on emissions rules that should help customers as they decide which trucks to buy in the second half of this year and in 2027.
Wall Street analysts have been bullish about Paccar’s prospects. Among the 17 analysts covering the stock, the consensus rating is “Moderate Buy.” The rating configuration has remained largely unchanged over the past three months. Veralto has five “Strong Buy” ratings, one “Moderate Buy,” and 11 “Holds.” The mean price target of $142.93 implies a 27.8% upside from current levels, while the Street-high price target of $164 implies 46.7% upside.
On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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