Parker-Hannifin (NYSE:PH) Posts Earnings Results, Beats Estimates By $0.36 EPS

Key Points

• Parker‑Hannifin reported adjusted EPS of $8.17, beating estimates by $0.36, with record quarterly revenue of $5.49 billion (up 10.6% year‑over‑year) and adjusted net income above $1 billion.
• Management raised FY‑2026 guidance, setting full‑year adjusted EPS at $31.20, increasing the organic growth midpoint to 5.5% (aerospace organic to 12%), and reporting a record backlog of $12.5 billion.
• Capital returns and cash flow remain strong: Parker raised its quarterly dividend ~11% to $2.00, reported YTD free cash flow of $2.3 billion and YTD share repurchases of about $825 million, while targeting FY free cash flow of $3.3–$3.6 billion.

Parker-Hannifin (NYSE:PH - Get Free Report) issued its quarterly earnings results on Thursday. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $7.81 by $0.36, FiscalAI reports. The business had revenue of $5.49 billion for the quarter, compared to the consensus estimate of $5.40 billion. Parker-Hannifin had a net margin of 17.29% and a return on equity of 27.56%. The firm's quarterly revenue was up 10.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $6.94 EPS. Parker-Hannifin updated its FY 2026 guidance to 31.200-31.200 EPS.

Here are the key takeaways from Parker-Hannifin's conference call:

• Parker delivered a record Q3 with $5.5 billion in sales, 6.5% organic growth, 26.7% adjusted segment operating margin, adjusted EPS of $8.17 (up 18%), and adjusted net income above $1 billion.
• Management raised FY‑2026 guidance — organic growth midpoint to 5.5%, aerospace organic to 12%, full‑year adjusted EPS to $31.20, adjusted segment operating margin to 27.2%, and free cash flow to $3.3–$3.6 billion.
• Orders remained strong at +9% with a record company backlog of $12.5 billion (aerospace backlog $8.4 billion), while industrial orders have been positive for six consecutive quarters, supporting sustained demand.
• The Filtration Group acquisition is progressing with integration planning underway and a targeted $220 million of synergies by year 3, but closing is subject to regulatory approvals and will modestly increase leverage until de‑levering occurs.
• Cash generation and capital returns remain robust — YTD operating cash flow of $2.6 billion, YTD free cash flow of $2.3 billion, an 11% dividend increase to $2.00 per quarter, and $825 million of share repurchases YTD.

Parker-Hannifin Trading Down 3.9%

Shares of Parker-Hannifin stock traded down $37.11 on Thursday, hitting $910.39. 2,029,676 shares of the company's stock traded hands, compared to its average volume of 500,377. The firm's 50-day moving average price is $948.12 and its two-hundred day moving average price is $900.79. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.18 and a quick ratio of 0.66. The stock has a market capitalization of $114.91 billion, a PE ratio of 33.20, a price-to-earnings-growth ratio of 3.05 and a beta of 1.25. Parker-Hannifin has a one year low of $595.71 and a one year high of $1,034.96.

Parker-Hannifin Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 5th. Shareholders of record on Friday, May 8th will be given a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Friday, May 8th. This is a positive change from Parker-Hannifin's previous quarterly dividend of $1.80. Parker-Hannifin's dividend payout ratio is presently 26.26%.

Parker-Hannifin News Summary

Here are the key news stories impacting Parker-Hannifin this week:

• Positive Sentiment: Q3 beat and raised adjusted-year outlook — Adjusted EPS of $8.17 topped estimates and revenue of $5.49B was a record; management raised FY26 adjusted EPS guidance to $31.20 and repurchased $275M of stock, supporting earnings quality and shareholder returns. Parker-Hannifin Tops Q3 Earnings & Sales Estimates, Updates 26' View
• Positive Sentiment: Backlog, margins and cash flow strengthened — Company reported a record ~$12.5B backlog, improved adjusted margins and year‑to‑date operating cash flow of $2.6B, which underpins revenue visibility and cash returns. Parker Hannifin Backlog Hits Record $12.5 Billion, Lifts Outlook
• Positive Sentiment: Dividend raise reinforces shareholder policy — Parker increased its quarterly dividend ~11% to $2.00 (70th consecutive year of increases), a positive for income investors. Parker‑Hannifin (PH) Raises Quarterly Dividend 11% to $2.00 per Share
• Neutral Sentiment: Guidance is broadly positive but not a blowout — FY26 adjusted EPS guidance slightly exceeded consensus while revenue guidance (~$21.2B) was roughly in line or marginally below some expectations, leaving little upside surprise for forward estimates. Parker Reports Fiscal 2026 Third Quarter Results
• Negative Sentiment: Sell‑the‑news & GAAP optics weighed on the stock — Despite strong adjusted results, GAAP net income and EPS fell year‑over‑year because last year included a one‑time tax benefit; investors appear to have “sold the news” after results and a guidance lift that fell short of a material upside. Parker‑Hannifin shares slide as investors digest Q3 results and a raised—but not blowout—full-year outlook
• Negative Sentiment: Insider and institutional selling flagged — Recent filings show extensive insider sales and notable institutional reductions, which can amplify downward pressure if investors interpret them as reallocation or confidence signals. Parker‑Hannifin shares slide as investors digest Q3 results and a raised—but not blowout—full-year outlook

Insider Buying and Selling at Parker-Hannifin

In other Parker-Hannifin news, VP Dinu J. Parel sold 1,316 shares of the firm's stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $950.05, for a total transaction of $1,250,265.80. Following the transaction, the vice president owned 6,534 shares in the company, valued at approximately $6,207,626.70. This trade represents a 16.76% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Andrew D. Ross sold 4,664 shares of the business's stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $999.00, for a total value of $4,659,336.00. Following the transaction, the chief operating officer owned 13,120 shares of the company's stock, valued at $13,106,880. The trade was a 26.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 10,063 shares of company stock valued at $9,891,214 over the last quarter. 0.32% of the stock is owned by corporate insiders.

Institutional Trading of Parker-Hannifin

A number of hedge funds have recently modified their holdings of PH. Texas Capital Bancshares Inc TX bought a new stake in Parker-Hannifin in the third quarter valued at approximately $25,000. Morse Asset Management Inc grew its holdings in shares of Parker-Hannifin by 164.7% in the 3rd quarter. Morse Asset Management Inc now owns 45 shares of the industrial products company's stock valued at $34,000 after buying an additional 28 shares during the period. Johnson Financial Group Inc. grew its holdings in shares of Parker-Hannifin by 84.6% in the 3rd quarter. Johnson Financial Group Inc. now owns 48 shares of the industrial products company's stock valued at $36,000 after buying an additional 22 shares during the period. IFC & Insurance Marketing Inc. bought a new stake in shares of Parker-Hannifin in the 4th quarter valued at $43,000. Finally, Strive Asset Management LLC acquired a new stake in Parker-Hannifin during the 3rd quarter worth $38,000. 82.44% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

PH has been the topic of a number of research reports. Jefferies Financial Group upped their target price on shares of Parker-Hannifin from $1,050.00 to $1,100.00 and gave the stock a "buy" rating in a research report on Friday, January 30th. The Goldman Sachs Group reissued a "buy" rating on shares of Parker-Hannifin in a report on Thursday, January 29th. BMO Capital Markets initiated coverage on shares of Parker-Hannifin in a research report on Friday, March 27th. They issued an "outperform" rating and a $1,090.00 price objective for the company. Truist Financial set a $1,139.00 price objective on Parker-Hannifin in a research report on Friday, January 30th. Finally, Barclays lifted their target price on Parker-Hannifin from $990.00 to $1,020.00 and gave the company an "overweight" rating in a research note on Friday, January 30th. Seventeen research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $1,000.60.

About Parker-Hannifin

Parker-Hannifin Corporation NYSE: PH is a global manufacturer and provider of motion and control technologies and systems. The company designs, manufactures and services a broad range of engineered components and systems used to control the movement and flow of liquids, gases and hydraulic power. Its product portfolio is applied across demanding environments and includes solutions for industrial manufacturing, aerospace, mobile equipment and other engineered applications.

Parker-Hannifin's product and service offerings span hydraulic and pneumatic components, fittings and fluid connectors, valves, pumps and motors, electromechanical actuators and motion-control systems, filtration and separation products, and seals and sealing systems.

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