Is PACCAR (PCAR) Undervalued On Its Parts Growth And 2026 Sales Guidance?

Recent updates at PACCAR (PCAR) have put its Parts segment in focus, as management highlights higher margin and recurring revenue, and guides for sales growth in 2026 despite softer truck demand and elevated fuel costs.

That broader context matters. PACCAR’s share price is about US$106.33, with a 90 day share price return that has fallen 18.7%, even as the 1 year total shareholder return of 12.84% and 5 year total shareholder return of 120.17% point to longer term momentum that has rewarded patient holders.

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PACCAR now trades about 30% below one intrinsic value estimate and roughly 16% under the average analyst target after its recent pullback. Is that discount a cushion, or a warning about deeper risks in the truck cycle and Parts story ahead?

Most Popular Narrative: 17% Undervalued

On the analyst consensus Narrative on Simply Wall St, PACCAR screens as undervalued, with a fair value estimate of $128.44 against the recent $106.33 close. That gap reflects a view that the Parts and Financial Services engines matter more than the current truck softness.

Expansion of the PACCAR Parts business, supported by record quarterly revenues of US$1.75b in Q2 2026, 29.8% gross margins and management guidance for 3% to 5% sales growth in 2026, points to a growing share of higher margin, recurring revenue that can support net margin and earnings resilience through truck cycles.

See why 31 investors see PACCAR as 17% undervalued.

Result: Fair Value of $128.44 (UNDERVALUED)

Still, the PACCAR narrative could be challenged if truck demand stays soft for longer or if Parts growth and margins fall short of recent guidance.

Find out about the key risks to this PACCAR narrative.

Next Steps

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