01—Abstract
Summary
Summary of the 10-Q filed July 29, 2026. Cited figures are marked; the original filing is the authoritative source.
PACCAR Inc's (PCAR) Q2 2026 filing shows resilience in its top line and an increase in net income compared to the prior year period.
Total net sales and revenues reached $7.55 billiona, a slight increase from $7.51 billion in Q2 2025. Net income grew to $752.0 million, or $1.43 per diluted share, up from $723.8 million, or $1.37 per diluted share, in the prior year's second quarter. This performance was driven by steady truck sales, a notable increase in European parts sales, and stable financial services revenue, demonstrating broad-based operational strength across its segments.
Despite a decrease in overall truck deliveries year-over-year for the first six months, PACCAR managed to improve its profitability. The company is actively managing costs, evidenced by a decrease in R&D expenses for the six-month period and strategic cost management within its Truck segment, leading to improved gross margins in that segment for the second quarter.
The Financial Services segment saw an increase in provision for losses and net charge-offs, particularly in Brasil, indicating some economic pressures in specific markets, but overall segment income remained stable. The company maintains a strong liquidity position with substantial cash and marketable securities, and its outlook for Parts sales remains positive.
02—Key points
Key Highlights
- Net income increased to $752.0 million ($1.43 per diluted share) in Q2 2026, up from $723.8 million ($1.37 per diluted share) in Q2 2025.
- Worldwide net sales and revenues were $7.55 billion in Q2 2026, a slight increase from $7.51 billion in Q2 2025.
- Truck segment gross margin improved to 9.4% in Q2 2026 from 8.7% in Q2 2025, driven by higher price realization and lower tariff costs.
- Parts sales increased by 2% to $1.75 billion in Q2 2026 from $1.72 billion in Q2 2025, primarily due to higher sales in Europe.
- Financial Services segment income before income taxes remained stable at $124.1 million in Q2 2026 compared to $123.2 million in Q2 2025, despite an increase in provision for losses.
- Total cash and marketable securities stood at $8.83 billion as of June 30, 2026.
- The company expects 2026 capital investments to be between $700-$750 million and R&D expenses between $450-$480 million.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 29, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $7.55B$7.51B | +0.5% |
| Cost of Revenue | $5.99B$6.00B | −0.1% |
| Gross Profit | $1.56B$1.52B | +2.8% |
| R&D Expenses | $114.30M$112.90M | +1.2% |
| SG&A Expenses | $179.70M$179.30M | +0.2% |
| Net Income | $752.00M$723.80M | +3.9% |
| EPS (Basic) | $1.43$1.38 | +3.6% |
| EPS (Diluted) | $1.43$1.37 | +4.4% |
| Shares Outstanding (Basic) | 527.00M525.90M | +0.2% |
| Shares Outstanding (Diluted) | 527.60M526.70M | +0.2% |
05—Questions
Frequently Asked Questions
How did PACCAR's revenue and net income perform in the second quarter of 2026 compared to the prior year?
In the second quarter of 2026, PACCAR reported worldwide net sales and revenues of $7.55 billion, a slight increase from $7.51 billion in the same period of 2025. Net income rose to $752.0 million, or $1.43 per diluted share, compared to $723.8 million, or $1.37 per diluted share, in the prior year's second quarter.
What were the key drivers behind the Truck segment's performance in Q2 2026?
The Truck segment saw comparable net sales and revenues in Q2 2026 versus Q2 2025. Despite lower truck unit deliveries globally, the segment's income before taxes and pre-tax return on revenues increased, primarily due to higher price realization and lower tariff costs. The gross margin also improved to 9.4% from 8.7% year-over-year.
How is the Financial Services segment performing, and what are the key credit quality indicators?
The Financial Services segment maintained stable revenues and income before taxes in Q2 2026. However, the provision for losses on receivables and net charge-offs increased, particularly in Brasil, reflecting challenging economic conditions. The segment's past due accounts (30+ days) stood at 2.2% of the retail loan and lease portfolio as of June 30, 2026, slightly down from 2.4% at the end of 2025 but up from 1.2% in mid-2025, indicating some credit normalization.
What is PACCAR's outlook for capital investments and R&D in 2026?
PACCAR anticipates capital investments for 2026 to be in the range of $700 million to $750 million and research and development expenses to be between $450 million and $480 million. These investments are focused on next-generation powertrains (clean diesel, hybrid, battery-electric), connected vehicle services, and manufacturing capabilities.
06—Continue