AI Takeaway
PACCAR reported Q1 FY2026 net income of $605.3M, up 19.8% year-over-year despite an 8.9% revenue decline to $6.78B, reflecting improved profitability driven by stronger margins and disciplined cost management.
Revenue
$6.78B
-8.94% YoY
EPS (Basic)
$1.15
++19.79% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue fell 8.9% year-over-year to $6.78B in Q1 FY2026 from $7.44B in Q1 FY2025, reflecting a softer commercial truck market. Cost of revenue declined 8.1% to $5.42B, partially offsetting the top-line pressure.
Source: Source: 10-Q Income Statement
Net income rose 19.8% to $605.3M from $505.1M in the prior-year period, suggesting meaningful improvement in operating efficiency and/or favorable mix shifts. Net margin expanded to approximately 8.9% from roughly 6.8% in the prior year.
Source: Source: 10-Q Income Statement
Operating cash flow increased 6.8% to $971.8M in Q1 FY2026 from $910.3M in Q1 FY2025, demonstrating robust cash generation even as revenues declined, supporting PACCAR's ability to fund dividends and capital expenditures.
Source: Source: 10-Q Cash Flow Statement
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Upgrade to unlockPACCAR's revenue declined 8.9% in Q1 FY2026, consistent with a downturn in commercial truck demand. As a manufacturer heavily dependent on truck sales cycles, prolonged weakness in freight markets or fleet replacement deferrals could further pressure revenues.
Source: Source: 10-Q Income Statement
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Upgrade to unlockReported EPS of $1.15 versus the $1.17 analyst consensus — a -1.7% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $6.78B | $7.44B | -8.94% |
Cost of Revenue | $5.42B | $5.89B | -8.05% |
Net Income | $605.3M | $505.1M | +19.84% |
EPS (Basic) | $1.15 | $0.96 | +19.79% |
EPS (Diluted) | $1.15 | $0.96 | +19.79% |
R&D Expense | $109.1M | $115.4M | -5.46% |
SG&A Expense | $189.3M | $181.6M | +4.24% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $43.55B | $42.72B | +1.94% |
Stockholders' Equity | $19.76B | $18.02B | +9.62% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $971.8M | $910.3M | +6.76% |
Investing Cash Flow | $-75M | $-392.6M | +80.90% |
Financing Cash Flow | $-1.55B | $-2.13B | +27.31% |
Dividends Paid | $909.4M | $1.75B | -47.95% |
Share Buybacks | $4.8M | $4.3M | +11.63% |
D&A | $100.5M | $99.7M | +0.80% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 8.9% | — | — |
ROE | 3.1% | — | — |
ROA | 1.4% | — | — |
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PACCAR reported Q1 FY2026 EPS of $1.15, up 19.8% from $0.96 in Q1 FY2025, and net income of $605.3M. Whether this beat Wall Street consensus estimates would require comparison to analyst forecasts not included in the filing, but the year-over-year improvement was substantial.
PACCAR's revenue declined 8.9% to $6.78B in Q1 FY2026 from $7.44B in Q1 FY2025, reflecting softer commercial truck demand in the current freight market cycle. Despite the revenue decline, net income rose 19.8% to $605.3M, suggesting improved profitability from financial services or cost efficiencies.
The headline takeaway is that PACCAR grew net income 19.8% to $605.3M even as revenue fell 8.9% to $6.78B, demonstrating strong margin resilience. Operating cash flow also grew 6.8% to $971.8M, and stockholders' equity expanded 9.6% to $19.76B, reflecting a financially healthy company navigating a cyclical downturn.
PACCAR paid $909.4M in dividends in Q1 FY2026, down 47.9% from $1.75B in Q1 FY2025. The large prior-year figure likely included a special dividend, making the comparison appear dramatic; the current quarter's dividend remains substantial relative to net income of $605.3M.
Based on the financial data, key risks include cyclical commercial truck market weakness (revenue down 8.9%), credit risk within PACCAR's large financial services portfolio (total assets of $43.55B), and potential macroeconomic headwinds including tariffs and supply chain disruptions. Rising SG&A costs (+4.2%) amid falling revenues also represent a margin risk if the downturn persists.