PCAR US S&P 500NASDAQ-100Russell 1000 Earnings call · transcribed from the recording
Paccar (PCAR) · Q3 2026 results and valuation
Share price: $108.13 · 2026-11-11
Paccar manufactures heavy-duty trucks and provides industrial parts and financial services. The company operates in the transportation sector and serves customers in the trucking industry. Source: Wikipedia
Results Q3 2026 vs Q2 2026 · previous quarter · published 27 Oct 2026 and 28 Jul 2026
Net income up 12.7% on the previous quarter. Management sounded upbeat, though noticeably less so answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+12.7%
Net income vs Q2 2026
Outlook given
Net income 847.5M vs 752.0M
Revenue +5.2%
Against the same quarter last year (Q3 2025) it is +43.6%, so it is not just seasonal.
2 · How management spoke
Upbeat
More upbeat than 80% of company calls
Answers to analysts: typical, but clearly less so than the script.
The step down under questioning is smaller than last call.
3 · What stood out
Key theme
Packard Parts achieved record third quarter revenue of $1.78 billion.
Valuation
Is Paccar undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −0.4% growth a year (3-year revenue growth), the model's fair value is $83.31 a share — the stock trades 30% above it. Today's price assumes 3.4% growth a year.
Current price
$108.13
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+3.4% for 10 yrs
Fair value / share
$83.31
Buy below
$62.49
Price vs fair value
Overvalued 30%
Price vs buy-below price
Overvalued 73%
Read between the lines
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New
This year's capital expenditures are projected to be between $650 and $700 million, and research and development expenses…
Source quote
“This year's capital expenditures are projected to be between $650 and $700 million, and research and development expenses... This system will serve as a unifying platform that will enhance customer productivity and create new revenue streams for PACCAR.”
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Guidance
Outlook for 26, I mentioned the continued growth in the fourth quarter, and Paccar will finish within the range that it forecasted the 3% to 5% it would...
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Figure
PACCAR's second quarter revenues were $7.5 billion and net income was $752 million, an increase of 24% from the first quarter.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 85% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“This record is a result of investments in parts distribution, growth of the TRP All Makes brand, expanding transportation solutions, and increasing dealer retail locations.”
“DOF's done a great job maintaining its position and seeing an increase in order activity in the back half of this year, and we've increased build commiserate with the increased...”
“Some of the growth that we've seen with our record revenue has come from growth in the second market.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 7.94B | 7.55B | +5.2% | 6.67B | +19.0% |
| Gross profit | 1.63B | 1.56B | +4.4% | 1.33B | +22.5% |
| Operating income | 1.08B | 981.5M | +10.1% | 743.6M | +45.4% |
| Net income | 847.5M | 752.0M | +12.7% | 590.0M | +43.6% |
| EPS | 1.61 | 1.43 | +12.6% | 1.12 | +43.7% |
| P/E today 21.8 | 25.3 | 24.6 | +0.7 | 16.3 | +9.0 |
Topics
Most discussed now
- No clear topics this period.
Faded since Q2 2026
- Dropped PACCAR is investing in customer-focused technology and innovation projects including advanced flexible manufacturing, that enhances…
- Dropped Paccar thinks those will come through in the quarter, and it does expect healthy demand improvement or not even demand,...
- Dropped There is some mix shift, and it is it is not about really anything other than the fleets and the...
- Fading It is also likely to have a positive impact on the size and strength of next year's truck market.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
PACCAR reported third-quarter 2026 revenues of $7.94 billion, up 19% from $6.67 billion in the same period of the previous year.
- Results of operations · SEC 8-K
PACCAR reported second-quarter net income of $752.0 million and net sales of $7.55 billion, compared to $723.8 million and $7.51 billion in the same period last year.
- Director or officer change; Shareholder vote results · SEC 8-K
The Compensation Committee approved LTIP Cash Awards for executive officers, including a 198 to 1 pay ratio between the CEO's $19,453,009 compensation and the median employee's $98,350.
- Results of operations · SEC 8-K
PACCAR reported revenue of $6.78 billion and net income of $605.3 million in the first quarter of 2026, compared to $7.44 billion in revenue and $505.1 million in net income in the first quarter of 2025.
- Results of operations · SEC 8-K
PACCAR reported fourth-quarter 2025 revenues of $6.82 billion and net income of $556.9 million, compared to $7.91 billion in revenue and $872.0 million in net income in the fourth quarter of 2024.
- Director or officer change; Other events · SEC 8-K
Executive Vice President C. Michael Dozier announced his retirement effective April 1, 2026, after 37 years of service, while W. Lance Walters and Raja Shembekar will assume new leadership roles on that date.
- Director or officer change; Other events · SEC 8-K
Kevin D. Baney will be promoted to President and John N. Rich will be promoted to Executive Vice President and Chief Technology Officer effective January 1, 2026.
- Results of operations · SEC 8-K
PACCAR reported third-quarter 2025 revenues of $6.67 billion and net income of $590.0 million, compared to $8.24 billion in revenue and $972.1 million in net income in the third quarter of 2024.