Allison Transmission Holdings, (ALSN) Stock Price & How to Invest

Allison Transmission Holdings, based in Indianapolis, designs and builds fully automatic transmissions and propulsion systems for on-highway trucks and buses, off-highway equipment, and defense vehicles. It is the clear global leader in medium- and heavy-duty automatic transmissions, with a large installed base, strong aftermarket parts and service revenue, and deep relationships with truck makers like Daimler, PACCAR, and Traton. The company also sells electric propulsion products such as its eGen axle line and remains a long-standing supplier of tracked-vehicle transmissions to the U.S. military and allied defense programs.

The investment picture in 2026 is shaped by two things: a highly profitable, mature core business that throws off substantial free cash flow, and a major acquisition of an off-highway drive-and-motion business that sharply expanded revenue but added integration costs and debt. Both quarters since the deal closed have beaten estimates: Q1 2026 revenue of about $1.41 billion came with adjusted EPS of $2.57 against $2.10 expected, and Q2 revenue reached about $1.57 billion, up roughly 92% year over year, with EPS of $2.73 against $2.61 expected. Trailing twelve-month revenue is now about $4.4 billion and net income about $529 million. The price of that growth is leverage: debt stands near $4.2 billion against about $399 million of cash. Allison still converts strong EBITDA margins into buybacks and a growing dividend (currently $1.16 a year, about a 1% yield), which is a core part of the return thesis. As of October 16, 2026 the stock traded near $112.74, up about 14% in 2026 but below its 52-week high of $137.62, and Citigroup upgraded it to Buy with a $135 target on October 12. Third-quarter results are due October 29, 2026. The key debate is whether the eventual shift toward battery-electric commercial vehicles, which need fewer multi-speed transmissions, erodes the moat over the long term, or whether slow fleet adoption and Allison's own electric and defense products keep the franchise durable for years.

Allison's core on-highway transmission business is cyclical and fell about 4% year over year even as total revenue surged, so a downturn in North American Class 8 and vocational truck demand would pressure the highest-margin segment. The long-term threat is battery-electric commercial vehicles, which typically do not need multi-speed automatic transmissions, potentially shrinking Allison's addressable content per vehicle over time. The off-highway acquisition adds integration risk, one-time costs, and higher leverage: debt of about $4.2 billion is roughly ten times the cash balance, and trailing earnings growth was negative even as revenue nearly doubled. The stock also swings with industrial sentiment, falling about 4% over the past month despite a Citigroup upgrade. Customer concentration among a handful of large truck makers, exposure to defense budget cycles, and sensitivity to steel and component costs are additional risks.

11 analysts publish price targets on ALSN, averaging $138.91 against a $111.80 price as of October 2026, or +24.2%. The published targets run from $115.00 to $185.00, a moderate spread, and the ratings split 6 buy, 4 hold, 1 sell. Over the last six months there have been 4 raises and 3 cuts among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full ALSN forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on Allison Transmission Holdings,. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. Off-Highway acquisition scale-up. A large off-highway drive-and-motion acquisition added roughly $673 million of net sales in its first quarter and drove reported revenue up more than 80% year over year in Q1 2026 and about 92% in Q2, to roughly $1.57 billion. The most optimistic published target, $185.00, assumes this works close to its best case.

The case against. Allison's core on-highway transmission business is cyclical and fell about 4% year over year even as total revenue surged, so a downturn in North American Class 8 and vocational truck demand would pressure the highest-margin segment. The most pessimistic target, $115.00, is roughly what ALSN is worth if this bites instead.

Read the full bull and bear case on ALSN, including what would have to change to break either one. Walnut is not an investment adviser.

No. Allison Transmission Holdings, (ALSN) has not split its stock in the last 10 years. That is a statement about the window we check rather than about the company’s entire history, so an older split is possible. It also matters less than it once did: fractional shares mean a high price per share no longer keeps smaller investors out, which removed most of the practical reason to split.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Allison Transmission Holdings,'s investor relations page or your broker.

• Revenue (TTM): ~$4.4B
• Q2 2026 revenue: ~$1.57B (+92% YoY)
• Q2 2026 EPS (actual vs est.): ~$2.73 vs ~$2.61
• Operating / net margin (TTM): ~19% / ~12%
• P/E (trailing / forward): ~18x / ~10x
• Dividend yield: ~1.0% ($1.16 a year)
• Market cap: ~$9.3B
• Cash / debt: ~$0.4B / ~$4.2B

Allison trades at about 18 times trailing earnings and about 10 times forward, a low forward multiple because analysts expect the acquired off-highway business to lift EPS to about $9.95 in 2026 and $11.26 in 2027 on revenue near $5.9 billion and $6.2 billion. EV/EBITDA is about 11, which counts the heavier debt load. The Q3 report on October 29, with consensus near $2.48 EPS on $1.47 billion of revenue, is the next check on whether integration costs are coming down as planned.

Other names that sit close to ALSN: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get ALSN exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic portfolio, so ALSN sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where ALSN fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

ALSN is a dominant, cash-rich commercial-vehicle transmission maker adding off-highway and defense scale, with the long-run electrification transition as the central question mark.

Whether ALSN is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is ALSN a buy or a sell?, and where the stock could go from here in the ALSN stock forecast.

For income investors, whether ALSN pays a dividend and how the payout looks is covered in does ALSN pay a dividend? And to weigh ALSN against a peer, read the full side-by-side comparisons: ALSN vs ETN and ALSN vs BWA.