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The upcoming report from Paccar (PCAR - Free Report) is expected to reveal quarterly earnings of $1.33 per share, indicating a decline of 2.9% compared to the year-ago period. Analysts forecast revenues of $7.1 billion, representing an increase of 2% year over year.

Over the last 30 days, there has been an upward revision of 2.6% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

In light of this perspective, let's dive into the average estimates of certain Paccar metrics that are commonly tracked and forecasted by Wall Street analysts.

Analysts expect 'Sales and Revenues- Financial Services' to come in at $539.88 million. The estimate suggests a change of -1.4% year over year.

The consensus estimate for 'Sales and Revenues- Parts' stands at $1.78 billion. The estimate points to a change of +3.2% from the year-ago quarter.

The consensus among analysts is that 'Sales and Revenues- Truck' will reach $5.15 billion. The estimate indicates a year-over-year change of -1.8%.

The collective assessment of analysts points to an estimated 'Truck deliveries - Total' of 37,871 . The estimate compares to the year-ago value of 39,300 .

According to the collective judgment of analysts, 'Truck deliveries - Other' should come in at 5,256 . The estimate compares to the year-ago value of 5,700 .

Based on the collective assessment of analysts, 'Truck deliveries - Europe' should arrive at 10,951 . The estimate compares to the year-ago value of 10,600 .

Analysts' assessment points toward 'Truck deliveries - U.S and Canada' reaching 21,664 . The estimate compares to the year-ago value of 23,000 .

Analysts predict that the 'Pretax Profit- Financial Services' will reach $115.96 million. The estimate compares to the year-ago value of $123.20 million.

The combined assessment of analysts suggests that 'Pretax Profit- Parts' will likely reach $441.87 million. The estimate compares to the year-ago value of $416.50 million.

Analysts forecast 'Pretax Profit- Truck' to reach $220.92 million. Compared to the current estimate, the company reported $308.80 million in the same quarter of the previous year.

View all Key Company Metrics for Paccar here>>>

Paccar shares have witnessed a change of +12% in the past month, in contrast to the Zacks S&P 500 composite's +0.4% move. With a Zacks Rank #3 (Hold), PCAR is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Wall Street expects a year-over-year decline in earnings on higher revenues when Paccar (PCAR - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 28. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis truck maker is expected to post quarterly earnings of $1.34 per share in its upcoming report, which represents a year-over-year change of -2.2%.

Revenues are expected to be $7.11 billion, up 2.1% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.56% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Paccar?For Paccar, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.45%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Paccar will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Paccar would post earnings of $1.13 per share when it actually produced earnings of $1.15, delivering a surprise of +1.77%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Paccar doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Stock to Watch: Paccar (PCAR - Free Report) Headquartered in Bellevue, WA, PACCAR Inc. is a leading manufacturer of heavy-duty trucks in the world and has substantial manufacturing exposure to light/medium trucks. It also designs and manufactures diesel engines and other powertrain components for use in its products and sale to third-party manufacturers of trucks and buses. Besides supplying aftermarket parts, PACCAR also offers finance and leasing services.

PCAR is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Auto-Tires-Trucks stock. PCAR has a Momentum Style Score of A, and shares are up 2.4% over the past four weeks.

One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.03 to $5.62 per share. PCAR also boasts an average earnings surprise of +2.2%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PCAR should be on investors' short list.

In the latest trading session, Paccar (PCAR - Free Report) closed at $124.57, marking a +1.05% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.42% for the day. On the other hand, the Dow registered a gain of 0.29%, and the technology-centric Nasdaq increased by 0.29%.

Prior to today's trading, shares of the truck maker had gained 4.85% outpaced the Auto-Tires-Trucks sector's gain of 0.6% and the S&P 500's gain of 2.2%.

The investment community will be closely monitoring the performance of Paccar in its forthcoming earnings report. The company is scheduled to release its earnings on July 28, 2026. The company is predicted to post an EPS of $1.32, indicating a 3.65% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.1 billion, up 1.92% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $5.58 per share and a revenue of $27.7 billion, demonstrating changes of +11.38% and +5.59%, respectively, from the preceding year.

Any recent changes to analyst estimates for Paccar should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.15% lower within the past month. Paccar presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Paccar has a Forward P/E ratio of 22.09 right now. This represents a premium compared to its industry average Forward P/E of 18.19.

It's also important to note that PCAR currently trades at a PEG ratio of 1.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Automotive - Domestic industry had an average PEG ratio of 1.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 43, placing it within the top 18% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow PCAR in the coming trading sessions, be sure to utilize Zacks.com.

Paccar (PCAR - Free Report) ended the recent trading session at $116.78, demonstrating a -2.78% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 1.44%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 2.22%.

The truck maker's stock has climbed by 9.85% in the past month, exceeding the Auto-Tires-Trucks sector's loss of 3.79% and the S&P 500's gain of 0.08%.

Analysts and investors alike will be keeping a close eye on the performance of Paccar in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.32, signifying a 3.65% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $7.1 billion, reflecting a 1.92% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.59 per share and a revenue of $27.7 billion, indicating changes of +11.58% and +5.59%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Paccar. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Paccar is holding a Zacks Rank of #3 (Hold) right now.

Looking at valuation, Paccar is presently trading at a Forward P/E ratio of 21.5. This signifies a premium in comparison to the average Forward P/E of 20.13 for its industry.

Meanwhile, PCAR's PEG ratio is currently 1.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Automotive - Domestic industry had an average PEG ratio of 0.99.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 104, putting it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

In the latest close session, Paccar (PCAR - Free Report) was up +1.83% at $120.69. The stock's performance was ahead of the S&P 500's daily gain of 1.65%. Elsewhere, the Dow saw an upswing of 0.92%, while the tech-heavy Nasdaq appreciated by 3.07%.

Shares of the truck maker witnessed a gain of 7.43% over the previous month, beating the performance of the Auto-Tires-Trucks sector with its loss of 3.63%, and the S&P 500's gain of 0.48%.

The investment community will be closely monitoring the performance of Paccar in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.32, marking a 3.65% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.1 billion, up 1.92% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.59 per share and a revenue of $27.7 billion, signifying shifts of +11.58% and +5.59%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Paccar. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Paccar holds a Zacks Rank of #3 (Hold).

With respect to valuation, Paccar is currently being traded at a Forward P/E ratio of 21.21. This indicates a premium in contrast to its industry's Forward P/E of 19.9.

One should further note that PCAR currently holds a PEG ratio of 1.1. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Automotive - Domestic stocks are, on average, holding a PEG ratio of 0.93 based on yesterday's closing prices.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Paccar (PCAR - Free Report) reported $6.23 billion in revenue for the quarter ended March 2026, representing a year-over-year decline of 9.8%. EPS of $1.15 for the same period compares to $1.46 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $6.35 billion, representing a surprise of -1.79%. The company delivered an EPS surprise of +1.77%, with the consensus EPS estimate being $1.13.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Paccar performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Truck deliveries - Total: 33,100 versus the three-analyst average estimate of 33,142.Truck deliveries - Other: 4,100 compared to the 6,232 average estimate based on three analysts.Truck deliveries - Europe: 11,200 versus 10,285 estimated by three analysts on average.Truck deliveries - U.S and Canada: 17,800 versus 16,626 estimated by three analysts on average.Sales and Revenues- Financial Services: $542.2 million versus the four-analyst average estimate of $559.51 million. The reported number represents a year-over-year change of +2.7%.Sales and Revenues- Parts: $1.71 billion versus $1.74 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +1.2% change.Sales and Revenues- Truck: $4.53 billion versus the two-analyst average estimate of $4.43 billion. The reported number represents a year-over-year change of -13.4%.Pretax Profit- Financial Services: $115.5 million versus the four-analyst average estimate of $118.43 million.Pretax Profit- Parts: $402.3 million compared to the $418.4 million average estimate based on three analysts.Pretax Profit- Truck: $176.2 million compared to the $166.51 million average estimate based on two analysts.View all Key Company Metrics for Paccar here>>>

Shares of Paccar have returned +13.1% over the past month versus the Zacks S&P 500 composite's +12.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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Published in earnings earnings-estimates-revisions earnings-surprise

PACCAR Inc (PCAR) Q1 2026 Earnings Call Transcript

BELLEVUE, Wash.--(BUSINESS WIRE)--PACCAR Inc’s Board of Directors today approved an increase in the regular quarterly cash dividend from thirty-three cents ($.33) per share to thirty-five cents ($.35) per share. The dividend will be payable on June 3, 2026, to stockholders of record at the close of business on May 13, 2026.

Mark Pigott, executive chairman, shared, “PACCAR has generated excellent shareholder returns and profitability for decades. PACCAR has delivered annual dividends, including regular quarterly and extra cash dividends, totaling approximately 50% of net income for many years. PACCAR’s shareholders have earned returns that have exceeded the S&P 500 index for the last five-, ten-, and twenty-year periods.”

Preston Feight, chief executive officer, commented, “PACCAR succeeds by consistently enhancing customers’ operating performance with fuel efficient and premium quality Kenworth, Peterbilt and DAF trucks, and optimized transportation solutions provided by PACCAR Parts and PACCAR Financial Services.”

PACCAR is a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. PACCAR also designs and manufactures advanced powertrains, provides financial services and information technology, and distributes truck parts related to its principal business. PACCAR shares are listed on the NASDAQ Stock Market, symbol PCAR. Its homepage is www.paccar.com.

Posted by Defense World Staff on Apr 29th, 2026

Comerica Bank cut its holdings in PACCAR Inc. (NASDAQ:PCAR – Free Report) by 10.1% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 126,293 shares of the company’s stock after selling 14,250 shares during the period. Comerica Bank’s holdings in PACCAR were worth $13,830,000 at the end of the most recent quarter.

Several other institutional investors also recently modified their holdings of the business. Vanguard Group Inc. grew its holdings in shares of PACCAR by 0.6% in the fourth quarter. Vanguard Group Inc. now owns 63,475,226 shares of the company’s stock valued at $6,951,172,000 after acquiring an additional 363,782 shares in the last quarter. Capital Research Global Investors grew its holdings in shares of PACCAR by 20.3% in the third quarter. Capital Research Global Investors now owns 5,971,153 shares of the company’s stock valued at $587,084,000 after acquiring an additional 1,009,134 shares in the last quarter. Invesco Ltd. grew its holdings in shares of PACCAR by 3.5% in the third quarter. Invesco Ltd. now owns 5,396,888 shares of the company’s stock valued at $530,622,000 after acquiring an additional 184,502 shares in the last quarter. UBS Group AG grew its holdings in PACCAR by 74.4% during the fourth quarter. UBS Group AG now owns 4,548,861 shares of the company’s stock valued at $498,146,000 after purchasing an additional 1,940,260 shares during the period. Finally, Bank of New York Mellon Corp grew its holdings in PACCAR by 0.7% during the third quarter. Bank of New York Mellon Corp now owns 3,256,671 shares of the company’s stock valued at $320,196,000 after purchasing an additional 22,941 shares during the period. 64.90% of the stock is owned by institutional investors.

More PACCAR News Here are the key news stories impacting PACCAR this week:

Positive Sentiment: Board raised the regular quarterly dividend, supporting income investors and signaling confidence in cash flow. PACCAR Increases Regular Quarterly Dividend Positive Sentiment: Q1 EPS of $1.15 beat consensus ($1.13), helped by higher parts margins and Financial Services results — these segments partially offset weak truck volumes. PCAR Q1 Earnings Surpass Estimates on Higher Parts Profit Neutral Sentiment: Management commentary and prepared remarks emphasize solid parts/finance performance and operational execution; the earnings call transcript provides more color on margins, backlog and dealer inventories for investors digging into guidance and outlook. PACCAR Inc (PCAR) Q1 2026 Earnings Call Transcript Neutral Sentiment: Company press release highlights sequential improvement and an increasing production backlog, which could point to firmer demand ahead if sustained. PACCAR Achieves Good Financial Performance Negative Sentiment: Revenue of $6.23B missed consensus ($6.37B) and was down ~9.8% year-over-year, reflecting softer new-truck demand — a key driver of the share decline. PACCAR (NASDAQ:PCAR) Misses Q1 CY2026 Revenue Estimates Negative Sentiment: Industry-wide overcapacity and tepid demand for new trucks were cited by analysts and Reuters as the main drivers of the revenue decline and investor concern, contributing to the stock drop. PACCAR’s revenue falls on tepid demand for new trucks Negative Sentiment: Market coverage notes the selloff is driven by the revenue miss and weak truck outlook despite the EPS beat and dividend raise — headlines and high trading volume amplified intraday selling. Why PACCAR (PCAR) shares are plunging today Insider Buying and Selling In other PACCAR news, CEO R Preston Feight sold 9,258 shares of the firm’s stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $129.70, for a total transaction of $1,200,762.60. Following the sale, the chief executive officer owned 258,566 shares in the company, valued at $33,536,010.20. This trade represents a 3.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP C Michael Dozier sold 79,076 shares of the firm’s stock in a transaction dated Tuesday, February 3rd. The shares were sold at an average price of $127.92, for a total value of $10,115,401.92. Following the sale, the executive vice president owned 34,656 shares in the company, valued at $4,433,195.52. The trade was a 69.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 133,105 shares of company stock valued at $16,869,046 in the last ninety days. 1.99% of the stock is owned by insiders.

PACCAR Trading Down 6.0% Shares of PCAR stock opened at $119.61 on Wednesday. The company has a debt-to-equity ratio of 0.55, a quick ratio of 2.79 and a current ratio of 2.98. PACCAR Inc. has a 52-week low of $84.65 and a 52-week high of $131.88. The company has a market capitalization of $62.95 billion, a PE ratio of 26.52, a price-to-earnings-growth ratio of 1.06 and a beta of 1.06. The business’s fifty day moving average is $121.18 and its 200 day moving average is $114.16.

PACCAR (NASDAQ:PCAR – Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The company reported $1.15 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.13 by $0.02. PACCAR had a return on equity of 13.97% and a net margin of 8.35%.The company had revenue of $6.23 billion for the quarter, compared to the consensus estimate of $6.37 billion. During the same quarter last year, the business posted $1.46 earnings per share. The firm’s revenue was down 9.8% compared to the same quarter last year. On average, equities research analysts anticipate that PACCAR Inc. will post 5.55 EPS for the current fiscal year.

PACCAR Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 3rd. Investors of record on Wednesday, May 13th will be given a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a dividend yield of 1.2%. This is a boost from PACCAR’s previous quarterly dividend of $0.33. The ex-dividend date is Wednesday, May 13th. PACCAR’s dividend payout ratio (DPR) is 29.27%.

Analyst Ratings Changes PCAR has been the subject of several research reports. BNP Paribas Exane initiated coverage on PACCAR in a report on Tuesday, March 31st. They set a “neutral” rating and a $126.00 price objective for the company. Morgan Stanley set a $109.00 price objective on PACCAR and gave the company an “equal weight” rating in a report on Tuesday, February 3rd. Truist Financial increased their price objective on PACCAR from $108.00 to $120.00 and gave the company a “hold” rating in a report on Wednesday, January 28th. JPMorgan Chase & Co. increased their price objective on PACCAR from $133.00 to $142.00 and gave the company an “overweight” rating in a report on Wednesday, January 14th. Finally, Citigroup increased their price objective on PACCAR from $125.00 to $130.00 and gave the company a “neutral” rating in a report on Monday, April 13th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $117.42.

View Our Latest Report on PCAR

PACCAR Company Profile (Free Report)

PACCAR Inc is a global technology leader in the design, manufacture and customer support of light-, medium- and heavy-duty commercial vehicles. The company’s products are marketed under well-known brand names including Kenworth, Peterbilt and DAF and span vocational and long-haul applications. PACCAR’s core business includes vehicle engineering and assembly as well as the supply of components and proprietary powertrain systems designed to meet regulatory and customer performance requirements.

In addition to truck manufacturing, PACCAR operates a comprehensive aftermarket parts business, distributes used trucks and provides commercial vehicle financing and leasing through its financial services operations.

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The S&P 500 index climbed about 10.5% in April, making it the best month for the market since 2020.The index hit a new all-time high on the last trading day of the month, despite ongoing uncertainty and economic drag from the conflicts in the Middle East. So, what sent the market soaring in April?

Two words: Artificial intelligence (AI).

More specifically, it's the massive AI build-out underway in the U.S., including some $670 billion in AI capital expenditures by hyperscalers this year. (Some analysts predict it could be much higher -- UBS expects the final AI spending figure for 2026 to be closer to $770 billion.)

Goldman Sachs estimates that AI-related investment will drive a full 40% of the entire S&P 500's earnings-per-share (EPS) growth this year. Earnings growth -- or, more accurately, the anticipation of it -- is what drives stocks higher.

Image source: Getty Images.

AI spending is showing up in the financial results of many industries The AI investment bonanza is boosting revenues and profits in companies far from Silicon Valley.

Of course, the hyperscalers -- cloud computing companies like Alphabet (GOOG +0.43%) (GOOGL +0.47%), Amazon (AMZN 1.24%), and Meta Platforms (META 0.17%) that offer data storage and computing services -- are the major initiators of the AI spending. Those companies are issuing billions of dollars in bonds in capital markets to fund that spending extravaganza.

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Then there are the semiconductor and semiconductor equipment manufacturers. Due to the AI construction boom, there's currently a shortage of memory chips, which is expected to continue through 2027. As a result, the State Street SPDR S&P Semiconductor ETF (XSD +1.38%) is up nearly 60% over the past month. Nvidia (NVDA +0.09%), which has the largest market cap and therefore the greatest effect on the S&P 500 index, rose 20% in April. Micron Technology (MU 1.02%), which makes memory chips, soared 61% in April.

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Don't forget construction equipment companies like Deere (DE +1.23%) and Caterpillar (CAT +1.44%), and heavy-duty truck manufacturers like Paccar (PCAR +0.60%), which are needed to build the massive data centers. They, too, are seeing a windfall from the AI boom. Caterpillar's gas turbine division is booming due to the insatiable power needs of AI data centers. Sales in the company's turbine division rose 23% during the first quarter, to $1.75 billion.

GE Vernova (GEV +3.60%), which makes power technologies, blew past Wall Street expectations for first-quarter revenue and earnings, and its shares climbed 33% last month.

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The rapidly rising demand for power is affecting electricity utilities, too. Dominion Energy (D +1.63%) just turned on the first commercial turbine project in its Coastal Virginia Offshore Wind project. Dominion plans to spend nearly $55 billion to build facilities to support the power needs of data centers (Virginia has more than any other state).

The enormous AI tailwind for the market should continue for the foreseeable future. Goldman Sachs expects AI infrastructure spending to reach nearly $800 billion in 2027.

An AI-driven stock market is a trend with staying power and is increasingly looking like a potential supercycle.

Matthew Benjamin has positions in Alphabet and Deere & Company. The Motley Fool has positions in and recommends Alphabet, Amazon, Caterpillar, Deere & Company, GE Vernova, Goldman Sachs Group, Meta Platforms, Micron Technology, Nvidia, and Paccar. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy.

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Stock to Watch: Paccar (PCAR - Free Report) Headquartered in Bellevue, WA, PACCAR Inc. is a leading manufacturer of heavy-duty trucks in the world and has substantial manufacturing exposure to light/medium trucks. It also designs and manufactures diesel engines and other powertrain components for use in its products and sale to third-party manufacturers of trucks and buses. Besides supplying aftermarket parts, PACCAR also offers finance and leasing services.

PCAR is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 19.86; value investors should take notice.

Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.06 to $5.87 per share. PCAR also boasts an average earnings surprise of +2.2%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, PCAR should be on investors' short list.

It has been about a month since the last earnings report for Paccar (PCAR - Free Report) . Shares have lost about 5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Paccar due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

PCAR Q1 Earnings Surpass Estimates on Higher Parts ProfitPACCAR delivered first-quarter 2026 earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.13 by 1.8%. The bottom line decreased 21.2% from $1.46 in the year-ago quarter.

Consolidated revenues (including trucks and financial services) were $6.78 billion, down from $7.44 billion in the corresponding quarter of 2025. The decline reflected lower industry volumes.

Sales from Truck, Parts and Other amounted to $6.23 billion. Global new truck deliveries totaled 33,100 units versus 40,100 a year ago.

PCAR’s Revenue Mix Tilts Toward TrucksBy business line, Truck sales were $4.53 billion versus $5.23 billion a year ago. Parts revenues rose to $1.71 billion from $1.69 billion reported in the year-ago period. Financial Services revenues increased to $542.2 million from $528 million. PACCAR Sees Improving Demand in Key Markets

The company expects a “positive inflection” in the U.S. and Canada truck market as freight rates improve amid reduced trucking capacity. For 2026, the company expects U.S. and Canada Class 8 industry retail sales in the range of 230,000-270,000 trucks.

In Europe, PACCAR projected above 16-tonne registrations of 280,000-320,000 trucks in 2026, while the comparable South American market is expected to be 100,000-110,000 trucks. The company also pointed to product initiatives, including new DAF XD, XF, XG and XG+ Electric offerings and Kenworth’s newly unveiled C580 vocational truck, with production slated to begin in January 2027.

PCAR Parts and Financing Remain Key Profit PillarsPACCAR Parts continued to be a major profit contributor, generating pretax income of $402.3 million in the quarter compared with $426.5 million a year ago. The segment’s performance improved due to investments in parts distribution centers, TRP all-makes parts and logistics capabilities supporting a broad dealer and service footprint.

PACCAR Truck's pre-tax income was $176.2 million, which decreased 51.7% year over year.

PACCAR Financial Services delivered pretax income of $115.5 million versus $121.1 million in the year-ago quarter. The business ended the period with a portfolio of 221,000 trucks and trailers and total assets of $22.3 billion, while PacLease’s fleet was about 37,000 vehicles. The company issued $400 million in medium-term notes during the first quarter.

PACCAR’s Costs and Other Items Shift Year Over YearWithin Truck, Parts and Other, the cost of sales and revenues were $5.42 billion, while research and development expense was $109.1 million and selling, general and administrative expense was $149.6 million. Truck, Parts and Other income before income taxes rose to $580.4 million from $438.2 million in the prior-year quarter.

A notable year-over-year swing came from “Interest and other (income) expense, net,” which was income of $21.3 million in the first quarter of 2026 compared with an expense of $325.8 million a year ago. The prior-year period included a $350.0 million charge related to civil litigation in Europe (EC-related claims). In Financial Services, provision for losses on receivables increased to $44.1 million from $18.3 million.

PCAR’s Cash Flow Stays Solid as Investment ContinuesPACCAR generated $971.8 million of cash provided by operations in the quarter, up from $910.3 million a year ago. The company invested $135.5 million in capital projects and declared a dividend of 33 cents per share.

On the balance sheet, cash and marketable securities were $8.60 billion as of March 31, 2026, compared with $9.25 billion as of Dec. 31, 2025, while stockholders’ equity increased to $19.76 billion from $19.26 billion over the same span. Looking ahead, the company expects 2026 capital expenditures of $725-$775 million and research and development expenses of $450-$500 million as it steps up investment in next-generation powertrains, connected vehicle services, expanded manufacturing capabilities and its autonomous vehicle platform.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -8.97% due to these changes.

VGM ScoresAt this time, Paccar has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock has a grade of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Interestingly, Paccar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

In the latest trading session, Paccar (PCAR - Free Report) closed at $119.69, marking a +1.06% move from the previous day. This move outpaced the S&P 500's daily loss of 0.26%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq lost 0.97%.

Prior to today's trading, shares of the truck maker had gained 4.85% outpaced the Auto-Tires-Trucks sector's loss of 2.65% and the S&P 500's gain of 0.23%.

Market participants will be closely following the financial results of Paccar in its upcoming release. The company is expected to report EPS of $1.32, down 3.65% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.1 billion, up 1.92% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.59 per share and a revenue of $27.7 billion, indicating changes of +11.58% and +5.59%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Paccar. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% lower. Paccar is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Paccar is currently being traded at a Forward P/E ratio of 21.19. Its industry sports an average Forward P/E of 19.26, so one might conclude that Paccar is trading at a premium comparatively.

One should further note that PCAR currently holds a PEG ratio of 1.1. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Automotive - Domestic industry had an average PEG ratio of 0.92 as trading concluded yesterday.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 169, this industry ranks in the bottom 31% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow PCAR in the coming trading sessions, be sure to utilize Zacks.com.