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Parker Hannifin
(NYSE:PH)
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Rating:77Outperform
Price Target:
$1,075.00
â–²(8.72% Upside)
Action:Reiterated
Date:04/30/26
The score is driven primarily by strong underlying financial performance (high margins and robust free cash flow) and a very positive earnings call with raised FY-2026 guidance and record backlog. Offsetting factors are a mixed near-term technical picture and a relatively expensive valuation (high P/E and low yield).
Positive Factors
Strong free cash flow generation
Consistent, high free cash flow (FCF ~89% of net income, TTM ~$3.68B) underpins durable financial flexibility: funds capex, dividends, buybacks, and debt reduction. High FCF conversion supports shareholder returns and cushions the business through industry cycles.
Negative Factors
Sizable absolute debt load
Although leverage improved, the large absolute debt balance (~$9.6B) constrains strategic optionality and raises interest expense sensitivity. In a prolonged industrial slowdown or rising rates, high nominal debt could limit capital allocation flexibility and slow deleveraging.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent, high free cash flow (FCF ~89% of net income, TTM ~$3.68B) underpins durable financial flexibility: funds capex, dividends, buybacks, and debt reduction. High FCF conversion supports shareholder returns and cushions the business through industry cycles.
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
$121.41B
Dividend Yield0.79%
Average Volume (3M)788.78K
Price to Earnings (P/E)35.0
Beta (1Y)1.12
Revenue Growth6.03%
EPS Growth4.26%
CountryUS
Employees61,120
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)27.49
Shares Outstanding126,086,390
10 Day Avg. Volume731,955
30 Day Avg. Volume788,780
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 Cap1.06
Enterprise Value/Revenue6.12
Enterprise Value/Gross Profit16.43
Enterprise Value/Ebitda22.81
Forecast
1Y Price Target
$1,053.20Price Target Upside6.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)34.05
Revenue Forecast (FY)$22.82B
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 OEMs (original equipment manufacturers), distributors, and end users across industrial, mobile, and aerospace market...
Parker Hannifin Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call was strongly positive: management reported multiple record financial metrics (sales, margins, EBITDA, net income, EPS, cash flow, backlog), raised full-year guidance, and announced increased shareholder returns while citing broad-based demand strength—notably in aerospace and Asia Pacific. Challenges noted (weather-related facility damage, regional softness in Latin America and parts of EMEA, specific end-market headwinds in automotive, upstream energy and ag, and pending regulatory/financing items around Filtration Group) are acknowledged but characterized as manageable and non-material to the company’s overall outlook. On balance, highlights meaningfully outweigh the lowlights.Positive Updates
Record Quarterly Financial Performance
Q3 record sales of $5.5 billion (nearly +11% year-over-year) driven by organic growth of 6.5%, favorable currency of +2.5%, and acquisitions +1.5%.
Negative Updates
Severe Weather Damage to Texas Facility
Facility in Mineral Wells, Texas (employs over 300 team members) suffered damage from severe weather; management is assessing impact but does not expect material company-wide impact.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarterly Financial Performance
Q3 record sales of $5.5 billion (nearly +11% year-over-year) driven by organic growth of 6.5%, favorable currency of +2.5%, and acquisitions +1.5%.
Read all positive updates
Company Guidance
Management raised FY‑2026 guidance: reported sales growth to ~7% (Q4 sales ~ $5.5B, +5.5% YoY) and organic growth to 5.5% at the midpoint (currency benefit ~+1.5% at Mar‑31 rates; acquisitions ~+1%, divestitures ~‑1%), with full‑year adjusted segment operating margin guided to 27.2% (≈+110 bps) and full‑year incrementals ~40%; full‑year adjusted EPS was raised $0.50 to $31.20 at the midpoint (+14.2%). For Q4 they expect organic ≈4%, adjusted segment margin 27.4%, an effective tax rate ~22% and adjusted EPS ≈$8.16. Free cash flow was increased to $3.3–$3.6B (midpoint $3.45B, ~16.2% of sales, ~100% conversion). Vertical-level changes included Aerospace organic growth up to 12%, Transportation revised from mid‑single‑digit decline to low‑single‑digit decline, and Industrial growth at 2.5% (NA and international); company backlog and cash metrics remain strong (record backlog $12.5B; YTD CFOA $2.6B /16.7% of sales; YTD FCF $2.3B /14.9%).Parker Hannifin Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
76
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.99B | 19.85B | 19.93B | 19.07B | 15.86B | 14.35B |
| Gross Profit | 7.81B | 7.32B | 7.16B | 6.46B | 4.39B | 3.90B |
| EBITDA | 5.63B | 5.42B | 5.03B | 4.07B | 2.44B | 3.09B |
| Net Income | 3.48B | 3.53B | 2.84B | 2.08B | 1.32B | 1.75B |
Balance Sheet | ||||||
| Total Assets | 30.68B | 29.49B | 29.30B | 29.96B | 25.94B | 20.34B |
| Cash, Cash Equivalents and Short-Term Investments | 476.00M | 467.00M | 422.03M | 483.57M | 6.68B | 772.23M |
| Total Debt | 9.58B | 9.64B | 10.97B | 12.98B | 11.72B | 6.81B |
| Total Liabilities | 16.06B | 15.80B | 17.22B | 19.63B | 17.08B | 11.93B |
| Stockholders Equity | 14.61B | 13.68B | 12.07B | 10.33B | 8.85B | 8.40B |
Cash Flow | ||||||
| Free Cash Flow | 3.68B | 3.34B | 2.98B | 2.60B | 2.21B | 2.37B |
| Operating Cash Flow | 4.10B | 3.78B | 3.38B | 2.98B | 2.44B | 2.58B |
| Investing Cash Flow | -1.36B | 224.00M | -298.59M | -8.18B | -418.84M | -13.00K |
| Financing Cash Flow | -2.67B | -3.98B | -3.11B | -971.04M | 3.92B | -2.62B |
Parker Hannifin Technical Analysis
Positive
988.80
Price Trends
905.15
Positive
929.36
Positive
882.90
Positive
Market Momentum
22.71
Negative
59.65
Neutral
51.74
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 988.8 is above the 20-day moving average (MA) of 933.98, above the 50-day MA of 905.15, and above the 200-day MA of 882.90, indicating a bullish trend. The MACD of 22.71 indicates Negative momentum. The RSI at 59.65 is Neutral, neither overbought nor oversold. The STOCH value of 51.74 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $121.41B | 35.03 | 24.69% | 0.79% | 6.03% | 4.26% | |
77 Outperform | $52.49B | 48.83 | 30.25% | 1.33% | 10.45% | 21.30% | |
72 Outperform | $36.75B | 22.61 | 8.75% | 0.73% | 12.07% | 15.20% | |
71 Outperform | $154.75B | 38.84 | 20.81% | 1.29% | 12.68% | 3.12% | |
71 Outperform | $77.88B | 31.97 | 12.11% | 1.58% | 4.03% | 3.51% | |
70 Outperform | $78.47B | 25.28 | 97.38% | 2.43% | 2.90% | -5.25% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
PH
Parker Hannifin
962.89
262.39
37.46%
ETN
Eaton
398.52
44.12
12.45%
EMR
Emerson Electric Company
139.05
2.87
2.10%
ITW
Illinois Tool Works
272.76
24.38
9.81%
ROK
Rockwell Automation
471.70
137.50
41.14%
ROP
Roper Technologies
364.20
-197.45
-35.16%
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.