NASDAQIndustrialsIndustrial - MachinerySnapshot 2026-08-31
Reading PCAR? Create a free portfolio, then add this holding for ongoing Reports and tracking. Track it in a free portfolio. No credit card.
Create your account →Broken: Primary pillar broken — Revenue growth of at least 7% in FY26: Q2 FY26 rev +1.0% vs 7% target.
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
Breaks if: Profit margins decline significantly below recent levels over next 4 quarters
R&D spending falls below $450 million or exceeds $500 million in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a stable, long-term thesis focused on a company with a solid management team and a commitment to capital and research investments. The current state is weakened due to recent financial performance dropping within its industry.
The market currently reflects a neutral valuation, with expectations slightly below average compared to peers. There is a low level of fragility in the stock, indicating that the market does not expect significant volatility.
Fundamentals are likely to remain stable, given the management's focus on capital projects and R&D spending. However, the recent history of earnings misses raises some caution, even with a low probability of missing expectations in the near term.
The thesis hinges on the performance of sector bellwethers like GEV, PH, and TT, as their earnings results will influence PCAR's momentum. Additionally, any changes in guidance during the next earnings call could significantly impact investor sentiment.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat indicates strong demand for PCAR. Record parts revenue supports growth objectives and overall financial health. Analyst valuations also reinforce this positive outlook.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: YoY revenue growth falls below 7% in FY26
In the next 1 to 3 years, PCAR's performance will depend on its ability to navigate sector dynamics and deliver on management's priorities. Not investment advice.
