Parker Hannifin (PH)
NYSE:PH
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Parker Hannifin
(NYSE:PH)
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Rating:80Outperform
Price Target:
$1,091.00
â–²(20.15% Upside)
Action:ReiteratedDate:01/30/26
Score is driven primarily by strong and improving fundamentals (higher profitability and better leverage) and a bullish technical trend (above major moving averages with positive MACD). The latest earnings call further supports the outlook with raised guidance and strong order/backlog momentum, while a high P/E and low dividend yield temper the rating.
Positive Factors
Strong Profitability & Margins
Sustained margin expansion and high ROE reflect durable operational improvements and pricing/efficiency advantages. Higher quality earnings reduce reliance on volume, support reinvestment and dividend policy, and provide buffer versus cyclical revenue dips over the next several quarters.
Negative Factors
Stagnant Top-Line Growth
Very low organic revenue growth limits operating leverage and long-term EPS upside, forcing reliance on margin expansion and acquisitions. If margins compress or M&A slows, earnings growth could weaken given the tepid underlying sales trajectory.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability & Margins
Sustained margin expansion and high ROE reflect durable operational improvements and pricing/efficiency advantages. Higher quality earnings reduce reliance on volume, support reinvestment and dividend policy, and provide buffer versus cyclical revenue dips over the next several quarters.
Read all positive factors
Parker Hannifin (PH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$114.61B
Dividend Yield0.79%
Average Volume (3M)820.30K
Price to Earnings (P/E)32.8
Beta (1Y)1.20
Revenue Growth0.22%
EPS Growth26.66%
CountryUS
Employees61,120
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)7.65
Shares Outstanding126,216,530
10 Day Avg. Volume833,357
30 Day Avg. Volume820,296
Financial Highlights & Ratios
PEG Ratio1.04
Price to Book (P/B)6.55
Price to Sales (P/S)4.51
P/FCF Ratio26.82
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue6.06
Enterprise Value/Gross Profit16.27
Enterprise Value/Ebitda22.60
Forecast
1Y Price Target
$1,038.00Price Target Upside14.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)31
Revenue Forecast (FY)$21.28B
Parker Hannifin Business Overview & Revenue Model
Company Description
Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. The company operates through two segments, Diversified Industrial and Aerospace Systems...
How the Company Makes Money
Parker Hannifin generates revenue primarily through the sale of its diverse range of motion and control products. The company’s revenue model is built on several key streams, including direct sales of manufactured products, maintenance and service...
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 Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational performance and financial momentum: record sales, margins, EPS, orders and backlog; raised guidance across sales, margins, EPS and free cash flow; and a strategic acquisition with meaningful synergies. Challenges were noted in transportation, ag, upstream energy and some regional/ timing effects (e.g., project shipments and first-half cash timing), but management framed these as manageable and not interrupting the company’s positive trajectory.Positive Updates
Record Quarterly Sales and Organic Growth
Q2 record sales of $5.2 billion, up 9% versus prior year; organic growth ~6.6% (Todd described as nearly 7%); favorable currency impact ~2%, acquisitions +1.5%, divestitures -1% headwind.
Negative Updates
Transportation End Market Weakness
Transportation forecast unchanged with mid-single-digit organic decline for the year; truck OEM recovery not expected this fiscal year and auto/truck demand remains challenged, partially offset by aftermarket strength.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Sales and Organic Growth
Q2 record sales of $5.2 billion, up 9% versus prior year; organic growth ~6.6% (Todd described as nearly 7%); favorable currency impact ~2%, acquisitions +1.5%, divestitures -1% headwind.
Read all positive updates
Company Guidance
Parker raised its FY‑26 outlook: reported sales +5.5% to +7.5% (6.5% midpoint), with currency tailwind ~+1.5% and previously completed acquisitions/divestitures roughly offsetting (~1%); organic sales growth now guided to +4% to +6% (5% midpoint) with aerospace at +11%, North America diversified industrial +2.5% and international +2%, while off‑highway was lifted to positive low‑single digits. Full‑year adjusted segment operating margin is lifted to 27.2% (up 20 bps vs prior guide; +110 bps vs prior year) with full‑year incrementals ~40%; corporate G&A $200M, interest expense ~$45M, other expense ~$85M, tax rate full year ~22.1% (2H ~22.5%). Adjusted EPS guidance is $30.70 at the midpoint (±$0.30; +12.3% vs prior), free cash flow $3.2B–$3.6B ($3.5B midpoint) with conversion >100%, and Q3 guidance of ~ $5.4B sales (+~8.5%), 5% organic growth, 27% segment margin and $7.75 adjusted EPS.Parker Hannifin Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.46B | 19.85B | 19.93B | 19.07B | 15.86B | 14.35B |
| Gross Profit | 7.63B | 7.32B | 7.16B | 6.46B | 4.39B | 3.90B |
| EBITDA | 5.49B | 5.42B | 5.03B | 4.07B | 2.44B | 3.09B |
| Net Income | 3.54B | 3.53B | 2.84B | 2.08B | 1.32B | 1.75B |
Balance Sheet | ||||||
| Total Assets | 30.51B | 29.49B | 29.30B | 29.96B | 25.94B | 20.34B |
| Cash, Cash Equivalents and Short-Term Investments | 427.00M | 467.00M | 422.03M | 483.57M | 6.68B | 772.23M |
| Total Debt | 9.87B | 9.64B | 10.97B | 12.98B | 11.72B | 6.81B |
| Total Liabilities | 16.19B | 15.80B | 17.22B | 19.63B | 17.08B | 11.93B |
| Stockholders Equity | 14.31B | 13.68B | 12.07B | 10.33B | 8.85B | 8.40B |
Cash Flow | ||||||
| Free Cash Flow | 3.34B | 3.34B | 2.98B | 2.60B | 2.21B | 2.37B |
| Operating Cash Flow | 3.74B | 3.78B | 3.38B | 2.98B | 2.44B | 2.58B |
| Investing Cash Flow | -1.33B | 224.00M | -298.59M | -8.18B | -418.84M | -13.00K |
| Financing Cash Flow | -2.40B | -3.98B | -3.11B | -971.04M | 3.92B | -2.62B |
Parker Hannifin Technical Analysis
Positive
908.06
Price Trends
950.21
Negative
913.91
Negative
823.71
Positive
Market Momentum
-15.49
Negative
46.53
Neutral
60.66
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 908.06 is below the 20-day moving average (MA) of 908.06, below the 50-day MA of 950.21, and above the 200-day MA of 823.71, indicating a neutral trend. The MACD of -15.49 indicates Negative momentum. The RSI at 46.53 is Neutral, neither overbought nor oversold. The STOCH value of 60.66 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $114.61B | 32.82 | 25.65% | 0.79% | 0.22% | 26.66% | |
76 Outperform | $140.10B | 30.24 | 21.67% | 1.29% | 8.24% | 6.21% | |
72 Outperform | $74.42B | 23.48 | 95.18% | 2.43% | -0.41% | -10.88% | |
71 Outperform | $36.84B | 31.06 | 7.81% | 0.73% | 13.95% | 6.80% | |
69 Neutral | $74.06B | 30.81 | 11.61% | 1.58% | 2.97% | 18.14% | |
68 Neutral | $41.01B | 35.94 | 27.69% | 1.33% | 0.98% | -7.51% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
PH
Parker Hannifin
908.06
381.28
72.38%
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Parker Hannifin Corporate Events
M&A TransactionsPrivate Placements and Financing
Parker Hannifin Secures Loans for Filtration Group Acquisition
Positive
Dec 10, 2025
On December 10, 2025, Parker Hannifin Corporation entered into two significant credit agreements to secure financing for its proposed acquisition of Filtration Group Corporation. The agreements include a 364-Day Term Loan Agreement for $5.25 billi...
M&A TransactionsPrivate Placements and Financing
Parker Hannifin Announces $9.25B Acquisition of Filtration Group
Positive
Nov 12, 2025
On November 10, 2025, Parker Hannifin Corporation announced its agreement to acquire Filtration Group Corporation for $9.25 billion through a merger. This strategic acquisition is expected to enhance Parker’s filtration technology offerings,...
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.