PACCAR (PCAR) Stock Forecast & Price Target

PACCAR's strong performance is reflected in its parts sales, which reached $1.738 billion, representing a year-over-year increase of 4.2%, aligning closely with management's expectations. The company introduced an optimistic FY2026 outlook, forecasting U.S. and Canadian Class 8 industry retail sales to increase approximately 5% year-over-year, with expected sales volumes in the range of 230,000 to 270,000 units. Additionally, PACCAR's strategic focus on enhancing margin performance and capturing above-average market share growth in the North American heavy-duty and medium-duty truck markets further supports a positive long-term outlook.

PACCAR has experienced significant declines in new truck deliveries, particularly in North America, where deliveries fell by 33% to 15,000 units in the last reporting period, indicating persistent regional weakness. Additionally, the company's operating margin has been under pressure, dropping to 8.3%, a decline of 490 basis points compared to the previous year, further highlighting challenges in profitability. Projections for the first quarter suggest a continued downturn, with anticipated new truck deliveries expected to decline by 18% year-over-year, reflecting ongoing market difficulties.