Morgan Stanley Adjusts Price Target on PACCAR to $125 From $119, Keeps Equalweight Rating

The Zacks Domestic Auto industry shows resilience, with new-vehicle sales remaining healthy. Affluent consumers support demand, while tax benefits may boost purchases. EV market recovery is uneven. Companies like General Motors (GM), PACCAR (PCAR), Ford (F), and Harley-Davidson (HOG) are highlighted. The industry's Zacks Rank is #67, indicating strong near-term prospects. GM raised its full-year adjusted free cash flow guidance to $9.5-$11.5 billion. PCAR expects Parts sales growth of 3-5% in 20

Caterpillar (CAT) leads heavy machinery stocks in 2026 with 40% YTD gains, driven by strong performance in construction, mining, and power. Deere (DE) reports earnings beat despite a shrinking agricultural market, while PACCAR (PCAR) lags with 18% YTD gains due to a slower freight cycle. CAT reported Q2 2026 revenue of $20.54B and EPS of $8.17, with DE and PCAR also showing growth.

Operational Drivers and Strategic Positioning Performance was primarily driven by strong truck division execution and record PACCAR Parts revenues, supported by favorable price-cost dynamics and effective cost controls. Management attributed margin strength to 'local-for-local' production strategies in Ohio and Texas, which provided significant tariff benefits and operational efficiencies. The U.S.

PACCAR (NASDAQ: PCAR) reported Q2 2026 diluted EPS of $1.43, up from $1.37 a year earlier, with net income of $752 million (+4% YoY, +24% vs Q1). Revenue was $7.55 billion, essentially flat. Truck deliveries fell to 38,700 units, while parts revenue rose to $1.75 billion. Management cited higher build rates from stronger orders and improved freight rates.

PACCAR (PCAR) reported Q2 2026 net sales of $7.55B and net income of $752M, up from $7.51B and a 24% increase versus Q1 2026. Global truck deliveries rose to 38,700 units. PACCAR Parts revenue was $1.75B (record) with $417M pretax income. Q3 delivery forecast is ~42,000 units; 2026 U.S./Canada Class 8 guide is 230,000 to 270,000.

PACCAR reported Q2 2026 net income of $752 million, up 24% sequentially, with gross margins rising to 14.4% from 13.1%, according to the company. Revenue was $6.997 billion, below the $7.264 billion consensus cited by Benzinga. Parts revenue hit $1.75 billion. PACCAR guided full-year capex $700-$750 million and R&D $450-$480 million.