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Parker Hannifin (PH) AI Stock Analysis
Parker Hannifin
(NYSE:PH)
PH scores well on fundamentals and outlook: strong profitability, returns, and free cash flow, reinforced by upbeat FY27 guidance and raised medium-term margin targets. The score is held back by weak near-term technical momentum and a relatively rich valuation, with additional risk from acquisition-related funding and integration even as strategic positioning improves.
Parker Hannifin Key Performance Indicators (KPIs)
Revenue by GeographyBreaks 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.
North America is the clear engine of growth and underpins management’s upgraded FY‑2026 sales and margin targets, while APAC is the fastest‑growing international market—its double‑digit organic strength and record international sales are driving upside. Europe and Latin America are noticeably more uneven and cyclical, keeping upside concentrated in aerospace and Asia. Key risks: Filtration Group financing/temporary leverage and localized headwinds (auto, upstream energy, EMEA softness) that could temper near‑term momentum.
The FlyParker Hannifin (PH) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $119.17B
- Dividend Yield
- 0.80%
- Average Volume (3M)
- 626.23K
- Price to Earnings (P/E)
- 32.7
- Beta (1Y)
- 1.18
- Revenue Growth
- 8.31%
- EPS Growth
- 4.96%
- Country
- US
- Employees
- 59,850
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Industrial - Machinery
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 applications...
How the Company Makes Money
Parker Hannifin makes money primarily by selling engineered motion-and-control products and systems to original equipment manufacturers (OEMs) and to customers buying replacement parts and services in the aftermarket. Revenue is generated across two...
Parker Hannifin Earnings Call Summary
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.
Q4-2026 Updates
Positive Updates
Negative 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
Fundamentals are strong: profitability and efficiency improved materially (TTM net margin ~16.6% and EBITDA margin ~26.8%), returns are healthy (TTM ROE ~24.7%), and free cash flow is robust (~$3.9B TTM) with solid earnings quality (~0.90x FCF-to-net income). Key offsets are industrial-cycle growth variability and meaningful debt levels (TTM total debt ~$8.5B), even though leverage has moderated.
Income Statement
87Very PositiveBalance Sheet
78PositiveCash Flow
84Very Positive| Breakdown | TTM | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.50B | 21.50B | 19.85B | 19.93B | 19.07B | 15.86B |
| Gross Profit | 8.10B | 8.10B | 7.32B | 7.16B | 6.46B | 4.39B |
| EBITDA | 5.90B | 5.90B | 5.42B | 5.03B | 4.07B | 2.44B |
| Net Income | 3.65B | 3.65B | 3.53B | 2.84B | 2.08B | 1.32B |
Balance Sheet | ||||||
| Total Assets | 30.88B | 30.88B | 29.49B | 29.30B | 29.96B | 25.94B |
| Cash, Cash Equivalents and Short-Term Investments | 501.00M | 501.00M | 467.00M | 422.03M | 483.57M | 6.68B |
| Total Debt | 8.73B | 8.52B | 9.64B | 10.97B | 12.98B | 11.72B |
| Total Liabilities | 15.46B | 15.46B | 15.80B | 17.22B | 19.63B | 17.08B |
| Stockholders Equity | 15.40B | 15.40B | 13.68B | 12.07B | 10.33B | 8.85B |
Cash Flow | ||||||
| Free Cash Flow | 3.90B | 3.90B | 3.34B | 2.98B | 2.60B | 2.21B |
| Operating Cash Flow | 4.36B | 4.36B | 3.78B | 3.38B | 2.98B | 2.44B |
| Investing Cash Flow | -1.39B | -1.39B | 224.00M | -298.59M | -8.18B | -418.84M |
| Financing Cash Flow | -2.93B | -2.93B | -3.98B | -3.11B | -971.04M | 3.92B |
Parker Hannifin Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PH, the sentiment is Negative. The current price of 944.99 is above the 20-day moving average (MA) of 937.77, below the 50-day MA of 954.36, and below the 200-day MA of 946.63, indicating a bearish trend. The MACD of -14.16 indicates Positive momentum. The RSI at 47.62 is Neutral, neither overbought nor oversold. The STOCH value of 50.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PH.
Parker Hannifin Risk Analysis
Parker Hannifin disclosed 22 risk factors in its most recent earnings report. Parker Hannifin reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
1 New RiskParker Hannifin Peers Comparison
Overall Rating
IR85Outperform
EMR76Outperform
DCI73Outperform- PH72Outperform
ROK68Neutral
FLS63Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| IR | 85Outperform | $31.77B | 23.69 | 13.53% | 0.09% | 7.96% | 161.68% |
| EMR | 76Outperform | $92.57B | 36.23 | 12.69% | 1.33% | 4.82% | -1.66% |
| DCI | 73Outperform | $9.88B | 21.91 | 27.71% | 1.44% | 5.28% | 26.51% |
| PH | 72Outperform | $117.07B | 32.70 | 25.11% | 0.80% | 8.31% | 4.96% |
| ROK | 68Neutral | $48.88B | 41.76 | 33.32% | 1.24% | 11.27% | 25.32% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| FLS | 63Neutral | $10.18B | 40.52 | 11.35% | 1.07% | 0.21% | -42.26% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| PH | Parker-Hannifin Corp | 944.99 | 177.23 | 23.08% | |
| DCI | Donaldson | 85.90 | 0.52 | 0.61% | |
| EMR | Emerson Electric | 166.39 | 35.99 | 27.60% | |
| FLS | Flowserve | 81.03 | 11.95 | 17.30% | |
| ROK | Rockwell Automation | 446.38 | 88.57 | 24.75% | |
| IR | Ingersoll Rand Inc. | 84.56 | 6.24 | 7.96% |
Parker Hannifin Corporate Events
Parker Hannifin Completes Large Multi-Currency Debt Financing
PositiveOn September 14, 2026, Parker-Hannifin completed a major debt financing, issuing $2.4 billion in U.S. dollar senior notes across four tranches maturing between 2028 and 2033, and €2.025 billion in euro senior notes across three tranches maturin...
Parker Hannifin Boosts Credit Capacity for Aerospace Deal
PositiveOn September 4, 2026, Parker-Hannifin entered into a new revolving credit agreement that replaced its prior facility and expanded its available revolving line of credit to $5.0 billion, while simultaneously authorizing a matching increase in its comm...
Parker Hannifin Finalizes Filtration Group Acquisition with New Debt
PositiveOn August 13, 2026, Parker-Hannifin completed its previously announced acquisition of Filtration Group Corporation via a cash-free, debt-free merger valued at $9.25 billion, subject to a net working capital adjustment. The transaction is set to signi...
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.
Date of analysis: Sep 14, 2026