Penske Automotive Group (NYSE:PAG) Releases Earnings Results, Misses Expectations By $0.06 EPS

29 Apr 2026, 21:46 by Renee Jackson · The Cerbat Gem

Penske Automotive Group (NYSE:PAG – Get Free Report) posted its quarterly earnings results on Wednesday. The company reported $3.05 earnings per share for the quarter, missing analysts’ consensus estimates of $3.11 by ($0.06), Zacks reports. Penske Automotive Group had a net margin of 2.91% and a return on equity of 15.77%. The business had revenue of $7.86 billion during the quarter, compared to analysts’ expectations of $7.80 billion. During the same quarter last year, the firm earned $3.66 earnings per share. The firm’s quarterly revenue was down 1.1% compared to the same quarter last year.

Here are the key takeaways from Penske Automotive Group’s conference call:

Reported Q1 $7.9 billion revenue, GAAP net income of $235 million and EPS of $3.56 (adjusted EPS $3.05 after a $60M dealership gain and $13M disposal charges); management flagged difficult year‑over‑year comps and market headwinds.
Service & parts delivered a Q1 record with same‑store revenue +4.6%, gross profit +5.7% and a 60bp gross margin improvement, strengthening recurring earnings.
Expanded premium footprint with two Lexus acquisitions (plus prior Toyota/Lexus deals) expected to add ~$2 billion of annualized revenue, while returning capital via a $26M buyback and raising the dividend to $1.40 (21st consecutive increase).
Penske Transportation Solutions equity income rose 24% as fleet right‑sizing, higher utilization and lower maintenance/interest costs offset a $26M decline in gain‑on‑sale; management highlighted a surge in demand with Class‑8 orders +91% and industry backlog +33%, which should boost H2 truck deliveries.
International revenue +6% with Australia EBT +15%; the energy/off‑highway business has >AUD 600 million secured orders for 2026 and management believes the energy solutions segment can reach at least AUD 1 billion by 2030.

Penske Automotive Group Price Performance

PAG traded up $9.86 during trading on Wednesday, reaching $171.41. 699,405 shares of the stock were exchanged, compared to its average volume of 295,084. The business’s 50 day moving average price is $154.36 and its two-hundred day moving average price is $160.36. The company has a debt-to-equity ratio of 0.32, a current ratio of 0.99 and a quick ratio of 0.22. The company has a market capitalization of $11.27 billion, a price-to-earnings ratio of 12.70, a P/E/G ratio of 2.10 and a beta of 0.87. Penske Automotive Group has a 1 year low of $140.12 and a 1 year high of $189.51.

Penske Automotive Group Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, March 5th. Shareholders of record on Wednesday, February 25th were given a dividend of $1.40 per share. The ex-dividend date was Wednesday, February 25th. This is a positive change from Penske Automotive Group’s previous quarterly dividend of $1.38. This represents a $5.60 dividend on an annualized basis and a yield of 3.3%. Penske Automotive Group’s dividend payout ratio (DPR) is presently 41.48%.

Wall Street Analyst Weigh In

A number of research firms recently commented on PAG. Weiss Ratings downgraded shares of Penske Automotive Group from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, March 16th. JPMorgan Chase & Co. decreased their price objective on shares of Penske Automotive Group from $170.00 to $165.00 and set a “neutral” rating on the stock in a report on Friday, April 17th. Barclays decreased their price objective on shares of Penske Automotive Group from $195.00 to $190.00 and set an “overweight” rating on the stock in a report on Tuesday, April 7th. Finally, Citigroup decreased their price objective on shares of Penske Automotive Group from $200.00 to $193.00 and set a “buy” rating on the stock in a report on Wednesday, April 8th. Six analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $180.43.

Read Our Latest Stock Report on Penske Automotive Group

Institutional Trading of Penske Automotive Group

Several institutional investors and hedge funds have recently modified their holdings of PAG. Acadian Asset Management LLC purchased a new stake in shares of Penske Automotive Group in the first quarter valued at about $42,000. Global Retirement Partners LLC lifted its holdings in shares of Penske Automotive Group by 186.6% in the fourth quarter. Global Retirement Partners LLC now owns 321 shares of the company’s stock valued at $51,000 after purchasing an additional 209 shares in the last quarter. State of Wyoming purchased a new stake in shares of Penske Automotive Group in the fourth quarter valued at about $67,000. UMB Bank n.a. lifted its holdings in shares of Penske Automotive Group by 20.8% in the fourth quarter. UMB Bank n.a. now owns 488 shares of the company’s stock valued at $77,000 after purchasing an additional 84 shares in the last quarter. Finally, EverSource Wealth Advisors LLC lifted its holdings in shares of Penske Automotive Group by 506.9% in the second quarter. EverSource Wealth Advisors LLC now owns 880 shares of the company’s stock valued at $151,000 after purchasing an additional 735 shares in the last quarter. Hedge funds and other institutional investors own 77.08% of the company’s stock.

Penske Automotive Group News Roundup

Here are the key news stories impacting Penske Automotive Group this week:

Positive Sentiment: Record and same‑store growth in service & parts revenue and related gross profit helped offset retail softness; management highlighted sequential improvement in gross profit per unit. PENSKE AUTOMOTIVE GROUP REPORTS QUARTERLY RESULTS
Positive Sentiment: PAG completed acquisitions representing about $450M of estimated annualized revenue and continued share repurchases (170,393 shares), signaling M&A-driven growth and capital return that support future revenue and EPS potential. PENSKE AUTOMOTIVE GROUP REPORTS QUARTERLY RESULTS
Positive Sentiment: Some analyst writeups and outlets framed the quarter as better than modelled — adjusted EPS beat certain consensus estimates and commentary emphasized strength in parts & service margins. PAG Q1 Earnings Beat Estimates on Strong Service and Parts
Neutral Sentiment: Market commentary and a valuation piece note that the underlying fundamentals support the stock’s valuation, but that the improvement is gradual — investors may wait for sustained margin/revenue momentum before revising longer‑term estimates. Penske Automotive Group: Solid Fundamentals Reflected In Valuation
Neutral Sentiment: Some outlets provide detailed metric comparisons to estimates and prior year results — useful for modeling but not an immediate directional catalyst. Compared to Estimates, Penske (PAG) Q1 Earnings: A Look at Key Metrics
Negative Sentiment: Reported adjusted EPS and revenue were down year‑over‑year (EPS decline ~15%; revenue down ~1.1%), and consensus comparisons varied — some data showed an EPS miss vs a higher Street estimate, creating short‑term uncertainty. Listen to Conference Call / Earnings Summary
Negative Sentiment: Net margin remains modest and retail vehicle volumes/revenues showed limited decline, leaving upside dependent on continued margin expansion from service, parts and successful integration of acquisitions. Penske Automotive Group (NYSE:PAG) Exceeds Q1 CY2026 Expectations

About Penske Automotive Group

(Get Free Report)

Penske Automotive Group, Inc (NYSE: PAG), headquartered in Bloomfield Township, Michigan, is an international transportation services company primarily focused on automotive and commercial truck dealerships. The company retails new and pre-owned vehicles across a broad spectrum of brands, while offering parts, maintenance, collision repair and reconditioning services. In addition, Penske provides financing and insurance products through its integrated finance and insurance operations, supporting both retail customers and commercial clients.

Formed in 1990 as United Auto Group and publicly traded since 1999, Penske Automotive Group has grown through organic expansion and strategic acquisitions to establish a network of dealerships and service centers across the United States and Europe.