PACCAR Inc (PCAR) AI Stock Analysis

PACCAR Inc. designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks across key markets such as the United States, Europe, Mexico, South America, and Australia. The company operates through three primary segments: Truck, Parts, and Financial Services. Its commercial vehicles are sold under the Kenworth, Peterbilt, and DAF brand names for over-the-road and off-highway hauling. In addition, its Parts segment oversees aftermarket parts distribution through an independent dealer network, while the Financial Services segment provides leasing, financing, and retail loan services under the PacLease brand. Headquartered in Bellevue, Washington, the company was founded in 1905.

Revenue expanded from $23.52B in FY2021 to $28.82B in FY2022 and reached a peak of $35.13B in FY2023, reflecting revenue growth of 21.9% that year. Net income rose from $1.87B in FY2021 to $4.60B in FY2023, while operating margin expanded from 9.8% to 15.4%. Revenue subsequently declined 4.2% to $33.66B in FY2024 and fell 15.5% to $28.44B in FY2025, with net income declining to $2.38B. Over the five-year period from FY2020 to FY2025, revenue posted a compound annual growth rate of 8.7%. In the latest quarter ended June 30, 2026, quarterly revenue grew 0.5% year-over-year, while quarterly earnings grew 4.2%.

As of June 30, 2026, PACCAR reported $8.83B in cash and short-term investments against $14.70B in total debt, resulting in net debt of $5.86B. Shareholders' equity stood at $20.32B with a debt-to-equity ratio of 0.72 and a current ratio of 3.12. In FY2025, operating cash flow reached $4.42B and free cash flow was $3.03B. Capital deployment in FY2025 included $1.39B in capital expenditures, $2.27B in dividends paid, and $36.1M spent on share buybacks.

Trading at $110.82 as of October 16, 2026, PACCAR has a market capitalization of $58.33B and an enterprise value of $64.86B. The stock trades at a trailing P/E of 23.3x and a forward P/E of 15.1x, both below the median of its Nasdaq-100 Industrials peers of 32.4x and 27.3x, respectively. Its enterprise value-to-EBITDA ratio of 17.9x also sits below the peer median of 20.3x. Over the past year, PACCAR returned 19.3%, outperforming the S&P 500 (SPY) return of 16.8%. Over five years, the stock achieved a 129.8% return compared to 83.0% for the index.

PACCAR offers an annual forward dividend of $1.40, representing a dividend yield of 1.26% with a payout ratio of 29.0%. The company pays dividends quarterly and has maintained 42 consecutive years of dividend payments. Over the past five years, dividend growth annualized at 15.6%. The company's last ex-dividend date was November 10, 2026.

Analysts tracked on PACCAR maintain 6 Strong Buy, 3 Buy, and 10 Hold ratings, with zero Sell or Strong Sell ratings. The mean price target of $133.38 sits 20.4% above the last close of $110.82. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $5.95 and revenue of $28.65B. The company beat EPS estimates in 2 of the last 4 quarters, and its next earnings date is scheduled for October 27, 2026.

This page is an AI-written research summary of PACCAR Inc (PCAR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: PCAR income statement, PCAR balance sheet, PCAR key metrics, PCAR analyst forecast, PCAR chart. See the PCAR stock overview for the latest quote and news.