PACCAR (NASDAQ:PCAR) Reaches New 1-Year High Following Better-Than-Expected Earnings

Key Points

• PACCAR shares reached a new 52-week high after the company reported quarterly EPS of $1.43, exceeding the $1.36 analyst consensus. Revenue totaled approximately $7 billion, up 0.5% year over year but slightly below expectations.
• Results were supported by stronger truck orders, improved truck profitability, record parts revenue and higher operating performance; net income rose 24% from the prior quarter. However, softer vehicle sales and exposure to freight conditions remain potential risks.
• PACCAR declared a quarterly dividend of $0.35, equivalent to $1.40 annually and a 1.0% yield. Despite the stock’s rally, analysts maintain a consensus “Hold” rating with a $124.50 price target, below its reported trading level.

PACCAR Inc. (NASDAQ:PCAR - Get Free Report)'s stock price hit a new 52-week high during trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $139.24 and last traded at $138.21, with a volume of 5675130 shares trading hands. The stock had previously closed at $133.44.

The company reported $1.43 EPS for the quarter, beating analysts' consensus estimates of $1.36 by $0.07. PACCAR had a net margin of 8.91% and a return on equity of 12.81%. The company had revenue of $7 billion for the quarter, compared to the consensus estimate of $7.05 billion. During the same period in the prior year, the firm posted $1.37 EPS. The company's quarterly revenue was up .5% compared to the same quarter last year.

PACCAR Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 2nd. Investors of record on Wednesday, August 12th will be issued a $0.35 dividend. This represents a $1.40 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Wednesday, August 12th. PACCAR's dividend payout ratio is 29.79%.

Key Stories Impacting PACCAR

Here are the key news stories impacting PACCAR this week:

• Positive Sentiment: Earnings beat: PACCAR reported adjusted earnings of $1.43 per share, above analyst estimates ranging from $1.33 to $1.36 and up from $1.37 a year earlier. Paccar Q2 Earnings Snapshot
• Positive Sentiment: Orders and margins helped results: Strong truck orders increased production rates, while improved truck profitability and record parts revenues offset softer vehicle sales. Management also cited improved freight rates and customer demand for PACCAR’s trucks. PACCAR Q2 Earnings Surpass Expectations on Truck Profit
• Positive Sentiment: Profit momentum: PACCAR said second-quarter net income increased 24% from the preceding quarter, reflecting higher revenues and improved operating performance. PACCAR Increases Quarterly Revenues and Profits
• Neutral Sentiment: Revenue was largely stable: Quarterly revenue was approximately in line with expectations and increased just 0.5% year over year, indicating that the earnings upside came more from mix, profitability and parts demand than broad sales growth. PACCAR Q2 CY2026 Earnings Results
• Negative Sentiment: Sales remain a watch point: Softer truck sales and the company’s cyclical exposure to freight conditions could limit the durability of the earnings improvement if orders or freight rates weaken. PACCAR Key Q2 Metrics

Wall Street Analyst Weigh In

PCAR has been the subject of a number of recent analyst reports. Wells Fargo & Company set a $125.00 price target on PACCAR and gave the stock an "equal weight" rating in a report on Wednesday, April 29th. JPMorgan Chase & Co. increased their price objective on PACCAR from $140.00 to $155.00 and gave the company an "overweight" rating in a report on Monday, July 13th. Citigroup reiterated a "neutral" rating and issued a $125.00 price objective (down from $130.00) on shares of PACCAR in a report on Thursday, April 30th. Truist Financial raised their target price on PACCAR from $126.00 to $131.00 and gave the stock a "hold" rating in a research report on Thursday, July 2nd. Finally, BNP Paribas Exane initiated coverage on PACCAR in a research note on Tuesday, March 31st. They set a "neutral" rating and a $126.00 target price for the company. Three investment analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $124.50.

Institutional Trading of PACCAR

Several institutional investors and hedge funds have recently made changes to their positions in PCAR. Deseret Mutual Benefit Administrators raised its stake in PACCAR by 9.9% during the fourth quarter. Deseret Mutual Benefit Administrators now owns 887 shares of the company's stock worth $97,000 after acquiring an additional 80 shares in the last quarter. Gulf International Bank UK Ltd boosted its stake in shares of PACCAR by 0.3% in the 4th quarter. Gulf International Bank UK Ltd now owns 26,202 shares of the company's stock valued at $2,869,000 after purchasing an additional 81 shares in the last quarter. CYBER HORNET ETFs LLC boosted its stake in shares of PACCAR by 6.2% in the 4th quarter. CYBER HORNET ETFs LLC now owns 1,486 shares of the company's stock valued at $163,000 after purchasing an additional 87 shares in the last quarter. Parkside Financial Bank & Trust grew its holdings in shares of PACCAR by 3.1% during the 4th quarter. Parkside Financial Bank & Trust now owns 2,898 shares of the company's stock valued at $317,000 after purchasing an additional 87 shares during the last quarter. Finally, Jackson Square Capital LLC grew its holdings in shares of PACCAR by 3.5% during the 4th quarter. Jackson Square Capital LLC now owns 2,650 shares of the company's stock valued at $290,000 after purchasing an additional 90 shares during the last quarter. 64.90% of the stock is owned by hedge funds and other institutional investors.

PACCAR Stock Performance

The firm has a market capitalization of $72.74 billion, a price-to-earnings ratio of 29.41, a PEG ratio of 1.22 and a beta of 0.97. The company has a current ratio of 3.11, a quick ratio of 2.91 and a debt-to-equity ratio of 0.52. The stock's 50-day moving average is $120.01 and its 200-day moving average is $120.57.

About PACCAR

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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