Nigel Bennett, Penske's longtime chief designer, developed the PC-26 as a direct evolution of the PC-25 rather than a clean-sheet design. The primary engineering objective was to address the twitchy handling characteristics that had frustrated drivers Al Unser Jr. and Paul Tracy in 1996. Aerodynamic changes included revised sidepod inlets and a longer, sharper nose profile intended to improve front-end stability and increase aerodynamic efficiency across a wider range of circuit types.
Power came from the Ilmor-produced Mercedes-Benz IC108D engine, rated at approximately 850 bhp. Drive was transmitted through an Xtrac gearbox housed within a Penske-fabricated casing. The Delco Gen V electronics package, which had debuted the previous season as a Penske-exclusive system, was carried over without major revision, continuing to provide the team with a proprietary advantage in data acquisition and engine management. Five chassis were constructed over the course of the program.
Paul Tracy emerged as the more consistently competitive of the two Penske drivers during 1997, scoring three victories across the season. His wins came at Rio de Janeiro, Nazareth Speedway, and Gateway International Raceway. The PC-26 demonstrated particular strength on short ovals, where its revised aerodynamic package and stable handling balance translated into a clear competitive advantage.
The Gateway victory carried special historical significance: it was the 99th championship race win recorded by a Penske Cars-built chassis, and it proved to be the final victory for a car manufactured directly by Penske Cars. After 1997, the team transitioned to using customer chassis supplied by other constructors, closing the chapter on Penske as an in-house manufacturer at the top level of American open-wheel racing.
Al Unser Jr., a two-time CART champion and two-time Indianapolis 500 winner, shared driving duties with Tracy but the latter half of the season brought mounting difficulties for both drivers. Tracy encountered a significant eye problem that affected his performance in the closing rounds, while the car also showed a lack of raw pace on the high-speed ovals and road courses where the championship was being decided. These issues meant the team finished the year without a championship challenge, despite the early-season promise.
The Penske PC-26 occupies a transitional place in team history. It delivered the last race victory for Penske's own chassis operation, capping a manufacturing legacy that stretched back to the 1970s and had produced some of the most successful open-wheel racing cars in American motorsport history. The gap between the 99th win at Gateway in 1997 and the 100th victory would stretch to three additional years before Team Penske reached the milestone using a different supplier's chassis.
Nigel Bennett's design work on the PC-26 represented one of his final major projects with Penske, and the car stands as a capable if unspectacular conclusion to the PC-series lineage. Its short oval competitiveness underlined the team's enduring strength in that discipline, even as the broader competitive landscape of CART was shifting toward increasingly sophisticated aerodynamic packages that would eventually prompt Penske's move away from in-house construction.