PACCAR’s (NASDAQ:PCAR) Q2 CY2026 Earnings Results: Revenue In Line With Expectations
Trucking company PACCAR (NASDAQ:PCAR) met Wall Street’s revenue expectations in Q2 CY2026, but sales were flat year on year at $7.55 billion. Its GAAP profit of $1.43 per share was 5.4% above analysts’ consensus estimates.
Is now the time to buy PACCAR? Find out in our full research report.
PACCAR (PCAR) Q2 CY2026 Highlights:
- Revenue: $7.55 billion vs analyst estimates of $7.56 billion (flat year on year, in line)
- EPS (GAAP): $1.43 vs analyst estimates of $1.36 (5.4% beat)
- Operating Margin: 17.3%, up from 9.5% in the same quarter last year
- Free Cash Flow Margin: 8.7%, up from 6.5% in the same quarter last year
- Market Capitalization: $70.23 billion
Company Overview
Founded more than a century ago, PACCAR (NASDAQ:PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, PACCAR’s 4.6% annualized revenue growth over the last five years was tepid. This fell short of our benchmark for the industrials sector and is a rough starting point for our analysis.
Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. PACCAR’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 11.2% annually. 
This quarter, PACCAR’s $7.55 billion of revenue was flat year on year and in line with Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 14.5% over the next 12 months, an improvement versus the last two years. This projection is eye-popping for a company of its scale and indicates its newer products and services will spur better top-line performance.
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Operating Margin
Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development.
PACCAR has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 11.9%. This result was particularly impressive because of its low gross margin, which is mostly a factor of what it sells and takes huge shifts to move meaningfully. Companies have more control over their operating margins, and it’s a show of well-managed operations if they’re high when gross margins are low.
Looking at the trend in its profitability, PACCAR’s operating margin rose by 1.7 percentage points over the last five years, as its sales growth gave it operating leverage.
In Q2, PACCAR generated an operating margin profit margin of 17.3%, up 7.8 percentage points year on year. The increase was solid, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
PACCAR’s EPS grew at 7.2% compounded annual growth rate over the last five years. On the bright side, this performance was better than its 4.6% annualized revenue growth and tells us the company became more profitable on a per-share basis as it expanded.
We can take a deeper look into PACCAR’s earnings to better understand the drivers of its performance. As we mentioned earlier, PACCAR’s operating margin expanded by 1.7 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.
Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.
For PACCAR, its two-year annual EPS declines of 29% show it’s continued to underperform. These results were bad no matter how you slice the data.
In Q2, PACCAR reported EPS of $1.43, up from $1.37 in the same quarter last year. This print beat analysts’ estimates by 5.4%. Over the next 12 months, Wall Street expects PACCAR’s full-year EPS to grow 31.2% from $4.76 to $6.24.
Key Takeaways from PACCAR’s Q2 Results
It was good to see PACCAR beat analysts’ EPS expectations this quarter. Zooming out, we think this was a decent quarter. The stock remained flat at $133.09 immediately following the results.
Is PACCAR an attractive investment opportunity at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
