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Parker Hannifin
(NYSE:PH)
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Rating:72Outperform
Price Target:
$1,055.00
â–²(3.81% Upside)
Action:Reiterated
Date:09/14/26
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.
Positive Factors
Strong profitability and cash generation
Record margins, operating cash flow, and free cash flow demonstrate strong earnings quality and conversion. This financial capacity supports reinvestment, shareholder returns, debt reduction, and resilience through industrial-cycle volatility over the coming quarters.
Negative Factors
Higher financing obligations from acquisitions
Acquisition financing materially increases Parker’s debt obligations even though the later refinancing extends maturities. Higher interest and repayment commitments can reduce flexibility for investment, dividends, or further acquisitions if industrial conditions weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and cash generation
Record margins, operating cash flow, and free cash flow demonstrate strong earnings quality and conversion. This financial capacity supports reinvestment, shareholder returns, debt reduction, and resilience through industrial-cycle volatility over the coming quarters.
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
$116.63B
Dividend Yield0.81%
Average Volume (3M)604.71K
Price to Earnings (P/E)32.6
Beta (1Y)1.19
Revenue Growth8.31%
EPS Growth4.96%
CountryUS
Employees59,850
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)28.90
Shares Outstanding126,047,470
10 Day Avg. Volume506,497
30 Day Avg. Volume604,710
Financial Highlights & Ratios
PEG Ratio6.80
Price to Book (P/B)8.02
Price to Sales (P/S)5.75
P/FCF Ratio31.64
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
$1,211.15Price Target Upside19.17% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
EPS Forecast (FY)35.15
Revenue Forecast (FY)$23.05B
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 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 t...
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 | 21.50B | 19.85B | 19.93B | 19.07B | 15.86B |
| Gross Profit | 8.10B | 7.32B | 7.16B | 6.46B | 4.39B |
| EBITDA | 4.96B | 5.42B | 5.03B | 4.07B | 2.44B |
| Net Income | 3.65B | 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 | 15.46B | 15.80B | 17.22B | 19.63B | 17.08B |
| Stockholders Equity | 15.40B | 13.68B | 12.07B | 10.33B | 8.85B |
Cash Flow | |||||
| Free Cash Flow | 3.90B | 3.34B | 2.98B | 2.60B | 2.21B |
| Operating Cash Flow | 4.36B | 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
Neutral
1016.31
Price Trends
985.30
Negative
943.81
Negative
937.13
Positive
Market Momentum
-19.62
Positive
42.91
Neutral
28.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PH, the sentiment is Neutral. The current price of 1016.31 is above the 20-day moving average (MA) of 965.26, above the 50-day MA of 985.30, and above the 200-day MA of 937.13, indicating a neutral trend. The MACD of -19.62 indicates Positive momentum. The RSI at 42.91 is Neutral, neither overbought nor oversold. The STOCH value of 28.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
The timing and amount of the Company's share repurchases are subject to a number of uncertainties and may affect our common stock price. Q2, 2026
Parker Hannifin Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $9.37B | 25.65 | 16.63% | 1.16% | -0.26% | 29.38% | |
76 Outperform | $82.22B | 32.66 | 12.69% | 1.48% | 4.82% | -1.66% | |
76 Outperform | $28.19B | 29.32 | 9.46% | 0.11% | 7.85% | 88.74% | |
75 Outperform | $9.97B | 22.05 | 27.71% | 1.43% | 5.28% | 26.51% | |
72 Outperform | $116.63B | 32.65 | 25.11% | 0.81% | 8.31% | 4.96% | |
68 Neutral | $45.54B | 38.88 | 33.32% | 1.33% | 11.27% | 25.32% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
PH
Parker Hannifin
943.54
194.10
25.90%
DCI
Donaldson Company
86.44
6.40
8.00%
EMR
Emerson Electric Company
149.92
19.63
15.06%
FLS
Flowserve
73.88
17.92
32.03%
ROK
Rockwell Automation
415.62
72.39
21.09%
IR
Ingersoll Rand
71.83
-9.70
-11.90%
Parker Hannifin Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Parker Hannifin Completes Large Multi-Currency Debt Financing
Positive
Sep 14, 2026
On 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 matu...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Parker Hannifin Boosts Credit Capacity for Aerospace Deal
Positive
Sep 8, 2026
On 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 c...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Parker Hannifin Finalizes Filtration Group Acquisition with New Debt
Positive
Aug 13, 2026
On 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 si...
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.