PAG earnings analysis
What we found in PAG's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Penske Automotive Group reported strong Q1 2026 earnings with revenue of $7.86 billion, exceeding estimates and showing improvement from the prior quarter. Diluted EPS came in at $3.05, surpassing consensus expectations, although challenges highlighted in management's discussion may impact future performance.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Exceeds Expectations
- Actual revenue for Q1 2026 was $7.86 billion, beating the estimated revenue of $7.76 billion.
- Earnings Per Share Beat
- Diluted EPS was reported at $3.05, exceeding consensus estimates of $2.89.
- Improved Gross and Operating Margins
- Q1 2026 gross margin increased to 16.7%, while operating margin improved to 4.4%.
- Strong Service and Parts Revenue
- Management highlighted record service and parts revenues, indicating continued demand in that segment.
- Free Cash Flow Increase
- Free cash flow improved to $206 million in Q1 2026, reflecting strong operational cash generation.
- Successful Acquisitions
- Strategic acquisitions during the quarter contributed to additional revenue potential, estimated at $450 million annualized.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Regulatory Risks
- New regulations such as those from the FCA could impact business operations significantly, with potential costs estimated at £9.1 billion.
- Fluctuation in Interest Rates
- A 100-basis-point change could result in a $53.7 million increase in annual interest expenses across outstanding debt.
- Ongoing Tariff Impact
- Existing tariffs may increase inventory costs and consumer pricing pressure, leading to dampened demand.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $3.05
- Gross margin
- 16.7%
- Operating margin
- 4.4%
What they said about what is next.
Management did not provide numeric guidance but mentioned challenges in the vehicle sales environment.
The filing reads better than the one before it.
What came before.
- 10-K · February 27, 2026
- Penske Automotive emphasizes diversification across retail automotive, commercial trucks, distribution/power systems and its equity stake in Penske Transportation Solutions (PTS). The 10-K highlights scale in retail…
- 10-Q · October 30, 2025
- Penske reported Q3 revenue of $7,695.3 million and diluted EPS of $3.23. Revenue was up modestly year-over-year while operating income, diluted EPS and operating margin declined versus the prior-year quarter; the…
- 10-Q · July 31, 2025
- Penske Automotive reported Q2 revenue of $7,662.3 million (down $34.4 million, or 0.4% vs. Q2 2024) and diluted EPS of $3.78 (up $0.17 vs. $3.61 in Q2 2024). Gross margin expanded to 16.9% and operating margin to 4.5%,…
- 10-Q · May 1, 2025
- Penske Automotive reported Q1 revenue of $7,604.5 million, up $156.7 million (≈2.1%) versus Q1 2024, and diluted EPS of $3.66 compared with $3.21 a year ago. Gross margin was essentially flat at ~16.7% while operating…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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