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Penske Automotive Group ( (PAG) ) has issued an update.
For the first quarter ended March 31, 2026, Penske Automotive Group reported revenue of $7.9 billion, slightly below the $8.0 billion recorded a year earlier, with net income attributable to common stockholders declining to $234.5 million from $257.7 million and EPS slipping to $3.56 from $3.86. Adjusted net income fell 16% to $200.6 million and adjusted EPS decreased 15% to $3.05, reflecting tougher comparisons and challenging market conditions, although foreign exchange provided a modest earnings tailwind.
Operationally, the quarter showed resilience in high-margin areas as total retail automotive revenue rose 1% to $7.0 billion, same-store service and parts revenue and gross profit climbed 5% and 6% respectively, and gross profit per new and used vehicle improved sequentially despite lower new vehicle volumes driven by U.S. weather disruptions, prior-year tariff-pull-forward, and weaker EV demand. Retail commercial truck operations faced lower unit sales and earnings due to the prior freight downturn, but service and parts revenue increased 5% and Class 8 order trends strengthened, while Penske Transportation Solutions contributed a 24% earnings increase.
Strategically, Penske advanced its growth and capital allocation agenda by completing the acquisition of two Lexus dealerships in the Orlando metro area, adding an estimated $450 million in annualized revenue and bringing its six-month tally of Toyota and Lexus acquisitions to about $2 billion in expected annualized revenue. The company also repurchased 170,393 shares for $26.4 million, maintained a leverage ratio of 1.8x, and ended the quarter with roughly $1.3 billion in liquidity, supporting continued investment and shareholder returns despite near-term earnings pressure.
The most recent analyst rating on (PAG) stock is a Hold with a $165.00 price target. To see the full list of analyst forecasts on Penske Automotive Group stock, see the PAG Stock Forecast page.
Spark’s Take on PAG Stock
According to Spark, TipRanks’ AI Analyst, PAG is a Neutral.
The score is driven primarily by solid but cooling financial performance (margin normalization, softer cash conversion, and meaningful leverage). Valuation is a positive offset (moderate P/E and ~3.4% yield), and the earnings call supports a constructive but cautious 2026 outlook. Technicals are the main drag, with the stock trading below major moving averages and weak momentum readings.
To see Spark’s full report on PAG stock, click here.
More about Penske Automotive Group
Penske Automotive Group, Inc., headquartered in Bloomfield Hills, Michigan, is a diversified international transportation services company and major retailer of automotive and commercial trucks. The company operates dealerships across the U.S., U.K., Canada, Germany, Italy, Japan, and Australia, and is a leading Freightliner commercial truck retailer in North America.
It also distributes and retails commercial vehicles, engines, power systems, and related parts and services in Australia and New Zealand, and holds a 28.9% stake in Penske Transportation Solutions. Through this affiliate, it participates in one of North America’s largest truck fleets, providing leasing, rental, maintenance, logistics, and technology solutions worldwide.
Average Trading Volume: 303,866
Technical Sentiment Signal: Strong Buy
Current Market Cap: $10.53B
For an in-depth examination of PAG stock, go to TipRanks’ Overview page.