PACCAR (PCAR) Stock Forecast & Price Target

PACCAR is well-positioned for growth, with the company projecting a business expansion of 4–6% in the third quarter, driven by increased shipping days in Europe and a robust demand for parts sales. The introduction of the fiscal year 2026 outlook anticipates a 5% year-on-year increase in Class 8 industry retail sales in the North American market, highlighting the company's strong market share and capacity for margin improvement. Additionally, with parts sales reaching $1.725 billion and exceeding previous management expectations, PACCAR's revenue diversification strategy is proving effective, indicating a solid foundation for future profitability.

The financial outlook for PACCAR is negative due to a significant decrease in operating margins, which fell to 8.3% from 13.2% in the previous year, indicating declining profitability for the company. Additionally, new truck deliveries in the second quarter of 2025 decreased by 18.8% year-over-year, reflecting demand challenges, with a forecasted sequential decline to 32,000-33,000 units for the third quarter following a normal summer shutdown in Europe. This trend is further exacerbated by regional disparities, as North American deliveries plunged by 34%, while the South American market saw a stark 48% drop, ultimately signaling weakening performance in key markets.