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Parker Hannifin
(NYSE:PH)
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Rating:78Outperform
Price Target:
$1,136.00
â–²(15.03% Upside)
Action:Reiterated
Date:08/07/26
PH scores well on fundamentals and management outlook: strong margins, strong free cash flow, improving leverage, and upbeat FY27 guidance with aerospace/backlog strength are the primary positives. The main offset is valuation (high P/E and low yield), while technicals remain supportive but show signs of somewhat extended near-term momentum.
Positive Factors
High and improving margins
Persistently high EBITDA and net margins reflect differentiated engineered products, scale and operational efficiency. Durable margin strength supports recurring cash generation, funds reinvestment and targets (management raised longer‑term segment margin goals), cushioning cyclicality over the medium term.
Negative Factors
Pending acquisitions / integration risk
Material announced deals are not in guidance and require regulatory approvals; expected debt issuance and integration complexity could raise near‑term leverage, interest costs and execution risk. Missteps could temporarily compress margins or divert management focus.
Read all positive and negative factors
Positive Factors
Negative Factors
High and improving margins
Persistently high EBITDA and net margins reflect differentiated engineered products, scale and operational efficiency. Durable margin strength supports recurring cash generation, funds reinvestment and targets (management raised longer‑term segment margin goals), cushioning cyclicality over the medium term.
Read all positive factors
Parker Hannifin Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Parker Hannifin is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Parker Hannifin is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyParker Hannifin (PH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$135.40B
Dividend Yield0.7%
Average Volume (3M)589.54K
Price to Earnings (P/E)36.7
Beta (1Y)1.14
Revenue Growth8.31%
EPS Growth4.96%
CountryUS
Employees57,950
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)28.90
Shares Outstanding126,086,390
10 Day Avg. Volume551,243
30 Day Avg. Volume589,545
Financial Highlights & Ratios
PEG Ratio-1.65
Price to Book (P/B)7.53
Price to Sales (P/S)21.43
P/FCF Ratio32.38
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$1,159.86Price Target Upside17.45% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
EPS Forecast (FY)34.67
Revenue Forecast (FY)$22.95B
Parker Hannifin Business Overview & Revenue Model
Company Description
Parker-Hannifin Corporation is a global enterprise specializing in the production and distribution of advanced motion and control technologies and systems. These solutions serve a broad spectrum of international markets, including mobile applicati...
How the Company Makes Money
Parker Hannifin makes money primarily by selling engineered components, subsystems, and integrated motion-and-control solutions to industrial and aerospace customers, with revenue recognized through product sales and, where applicable, long-term c...
Parker Hannifin Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive performance narrative: record revenue, margins, EPS and cash generation; robust orders, backlog and aerospace strength; active and strategic M&A; and raised medium‑term margin targets. The lowlights were limited to regional/end‑market pockets of softness, order lumpiness/visibility that prompted a change in order reporting, pending acquisition integration/funding uncertainty, modest FX and tax headwinds, and modest CapEx versus some peers. Overall the positives materially outweigh the negatives.Positive Updates
Record Full-Year Financial Performance
Fiscal 2026 sales reached a record $21.5 billion (first time > $20B). Organic growth accelerated to 6.6%. Adjusted segment operating margin expanded 120 basis points to a record 27.3%. Adjusted EPS rose 18% to $32.31. Cash flow from operations was a record $4.4 billion (first time > $4B).
Negative Updates
Regional Softness — EMEA and Latin America
International results were mixed: Latin America sales were down 3% in Q4 and EMEA organic growth was only +1% in Q4 despite strength in Asia Pacific (Asia Pac organic +16%).
Read all updates
Q4-2026 Updates
Positive
Negative
Record Full-Year Financial Performance
Fiscal 2026 sales reached a record $21.5 billion (first time > $20B). Organic growth accelerated to 6.6%. Adjusted segment operating margin expanded 120 basis points to a record 27.3%. Adjusted EPS rose 18% to $32.31. Cash flow from operations was a record $4.4 billion (first time > $4B).
Read all positive updates
Company Guidance
Parker initiated FY‑27 guidance calling for reported sales growth of 5.5–8.5% (7% midpoint), roughly $23.0B in revenue, with organic growth also 5.5–8.5% (7%) and a 48%/52% H1/H2 sales split; segment/region midpoints include North American industrial +6.5%, international industrial +5.5% and Aerospace +8.5%; currency is a ~0.5ppt headwind while the Curtis acquisition contributes ~+0.5ppt. Management guided adjusted segment operating margin to 27.7% (≈+40 bps YoY) with incrementals near the high end of a 30–35% range, corporate G&A ≈$200M, interest ≈$340M (excludes pending acquisition debt), other expense ≈$100M, and a full‑year tax rate of 22.5%. Full‑year adjusted EPS is $34.75 (±$0.50) with a 47%/53% H1/H2 split and Q1 EPS ~ $8.07; free cash flow is expected to be $3.4–3.9B with ≈100% conversion. Management also raised its FY‑31 adjusted segment operating margin target to 30% (up 300 bps) and reiterated over‑cycle targets of 4–6% organic growth, a 17% free cash flow margin and >10% adjusted EPS growth.Parker Hannifin Financial Statement Overview
Summary
Income Statement
87
Very Positive
Balance Sheet
78
Positive
Cash Flow
84
Very Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.75B | 19.85B | 19.93B | 19.07B | 15.86B |
| Gross Profit | 2.25B | 7.32B | 7.16B | 6.46B | 4.39B |
| EBITDA | 1.58B | 5.42B | 5.03B | 4.07B | 2.44B |
| Net Income | 1.09B | 3.53B | 2.84B | 2.08B | 1.32B |
Balance Sheet | |||||
| Total Assets | 30.88B | 29.49B | 29.30B | 29.96B | 25.94B |
| Cash, Cash Equivalents and Short-Term Investments | 501.00M | 467.00M | 422.03M | 483.57M | 6.68B |
| Total Debt | 8.52B | 9.64B | 10.97B | 12.98B | 11.72B |
| Total Liabilities | 14.49B | 15.80B | 17.22B | 19.63B | 17.08B |
| Stockholders Equity | 16.39B | 13.68B | 12.07B | 10.33B | 8.85B |
Cash Flow | |||||
| Free Cash Flow | 3.81B | 3.34B | 2.98B | 2.60B | 2.21B |
| Operating Cash Flow | 4.27B | 3.78B | 3.38B | 2.98B | 2.44B |
| Investing Cash Flow | -1.39B | 224.00M | -298.59M | -8.18B | -418.84M |
| Financing Cash Flow | -2.93B | -3.98B | -3.11B | -971.04M | 3.92B |
Parker Hannifin Technical Analysis
Positive
987.54
Price Trends
950.15
Positive
931.26
Positive
913.67
Positive
Market Momentum
26.52
Negative
69.36
Neutral
79.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PH, the sentiment is Positive. The current price of 987.54 is above the 20-day moving average (MA) of 987.16, above the 50-day MA of 950.15, and above the 200-day MA of 913.67, indicating a bullish trend. The MACD of 26.52 indicates Negative momentum. The RSI at 69.36 is Neutral, neither overbought nor oversold. The STOCH value of 79.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PH.
Parker Hannifin Risk Analysis
Parker Hannifin disclosed 21 risk factors in its most recent earnings report. Parker Hannifin reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Parker Hannifin Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $84.49B | 26.63 | 101.74% | 2.28% | 4.30% | -3.22% | |
78 Outperform | $135.40B | 36.70 | 24.70% | 0.75% | 8.31% | 4.96% | |
76 Outperform | $174.27B | 45.13 | 19.56% | 1.06% | 15.53% | -1.21% | |
76 Outperform | $88.28B | 34.57 | 12.69% | 1.48% | 4.82% | -1.66% | |
73 Outperform | $39.78B | 16.75 | 12.94% | 0.97% | 10.88% | 68.89% | |
68 Neutral | $48.98B | 40.71 | 33.32% | 1.18% | 11.27% | 25.32% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
PH
Parker Hannifin
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336.14
46.40%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.