Paccar (PCAR)
NASDAQIndustrialsFarm & Heavy Construction MachinerySnapshot 2026-07-08
$122.50-1.57%
Close 2026-07-08 · 1-day change
Reading PCAR? This analysis is rebuilt every market day. Get it tracked free. No credit card.
Track PCAR free→NASDAQIndustrialsFarm & Heavy Construction MachinerySnapshot 2026-07-08
Reading PCAR? This analysis is rebuilt every market day. Get it tracked free. No credit card.
Track PCAR free→Warn: Management is running behind on a stated commitment.
Paccar leads in medium- and heavy-duty trucks with strong brands. It plans $725-$775 million in capital spending and $450-$500 million in R&D for 2026. Analysts expect about 7% revenue growth and EPS of $5.69 in 2026. Profit margins and cash flow remain solid, supporting steady returns.
Truck demand could weaken, hurting sales and profits. Capital and R&D spending may not translate into growth. Recent earnings missed expectations, signaling risks to execution and margins.
The stock price is about 21% above our estimate of intrinsic value and 19% below the median analyst price target. The market expects roughly 7% revenue growth. Our view is more cautious on growth and margin expansion.
Breaks if: Capital expenditures fall below $725 million or exceed $775 million in FY26
PACCAR plans to invest $725-$775 million in capital projects in 2026.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated in 4 of last 4 quarters. Capital expenditures are projected to be in the range of $725-$775 million for 2026. Despite consistent emphasis on capital investment, the financials show a decrease in revenue from $7.44 billion in 2025-Q1 to $6.78 billion in 2026-Q1, indicating limited progress in translating these investments into revenue growth.
“PACCAR estimates that it will invest $725-$775 million in capital projects in 2026.”
“PACCAR estimates that it will invest $725-$775 million in capital projects in 2026.”
“Capital expenditures are projected to be in the range of $750-$775 million in 2025.”
“Capital expenditures are projected to be in the range of $750-$800 million in 2025.”
Breaks if: Profit margins decline significantly below recent levels over next 4 quarters
Breaks if: R&D spending falls below $450 million or exceeds $500 million in FY26
PACCAR plans to invest $450-$500 million in research and development in 2026.
Stated in 4 of last 4 quarters. Research and development expenses are estimated to be in the range $450-$500 million for 2026. Despite this focus, the financials show a decrease in net income from $723.8 million in 2025-Q2 to $605.3 million in 2026-Q1, suggesting limited progress in leveraging R&D spending for profitability.
“Research and development expenses are estimated to be in the range $450-$500 million in 2026.”
“Research and development expenses are estimated to be in the range $450-$500 million in 2026.”
“Research and development expenses are estimated to be in the range $450-$465 million in 2025.”
“Research and development expenses are estimated to be in the range $450-$480 million in 2025.”
Breaks if: YoY revenue growth falls below 7% in FY26