Parker-Hannifin (NYSE:PH) Posts Earnings Results, Beats Expectations By $0.98 EPS

Key Points

• Strong quarterly performance: Parker-Hannifin reported adjusted EPS of $9.27, beating expectations by $0.98, while revenue rose 9.8% year over year to $5.75 billion. Fiscal 2026 sales reached a record $21.5 billion, with adjusted EPS up 18% to $32.31.
• Positive growth outlook: Management guided fiscal 2027 adjusted EPS to $34.25–$35.25 and expects approximately 7% organic sales growth. It also raised its long-term adjusted segment operating-margin target to 30% by fiscal 2031.
• Expansion brings execution risk: Parker announced nearly $12 billion in pending acquisitions involving Filtration Group and CIRCOR’s commercial aerospace and defense business. The deals are not yet included in guidance, while fiscal 2027 revenue guidance remains below consensus before their impact.

Parker-Hannifin (NYSE:PH - Get Free Report) posted its quarterly earnings results on Thursday. The industrial products company reported $9.27 EPS for the quarter, topping the consensus estimate of $8.29 by $0.98, FiscalAI reports. The business had revenue of $5.75 billion during the quarter, compared to analysts' expectations of $5.57 billion. Parker-Hannifin had a net margin of 16.97% and a return on equity of 28.48%. The firm's quarterly revenue was up 9.8% compared to the same quarter last year. During the same period last year, the company posted $7.69 earnings per share. Parker-Hannifin updated its FY 2027 guidance to 34.250-35.250 EPS.

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

• Record FY 2026 results: Sales reached $21.5 billion, organic growth accelerated to 6.6%, adjusted segment operating margin expanded 120 basis points to 27.3%, and adjusted EPS rose 18% to $32.31. Operating cash flow also exceeded $4 billion for the first time, reaching $4.4 billion.
• Fourth-quarter performance was particularly strong, with 8% organic sales growth, 28.0% adjusted segment operating margin, $9.27 adjusted EPS, and backlog up 16% to a record $12.8 billion. Aerospace led growth with 13.4% organic sales growth and an $8.5 billion backlog.
• Parker issued FY 2027 guidance for approximately 7% organic sales growth, 27.7% adjusted segment operating margin, and $34.75 adjusted EPS, representing 8% EPS growth. Management expects positive growth across all major market verticals, including high-single-digit aerospace and defense growth.
• Management raised its long-term adjusted segment operating margin target to 30% by FY 2031, while maintaining goals of 4%-6% organic growth, a 17% free-cash-flow margin, and more than 10% adjusted EPS growth over the cycle.
• Parker announced nearly $12 billion of pending acquisitions involving Filtration Group and CIRCOR’s commercial Aerospace & Defense business, expected to close in the second half of calendar 2026. The deals expand filtration, electrification, and flight-critical technology capabilities, but guidance does not yet include their financial impact and integration will require substantial execution.

Parker-Hannifin Stock Performance

NYSE PH traded up $6.32 during midday trading on Friday, hitting $1,076.12. The company had a trading volume of 823,537 shares, compared to its average volume of 645,440. The firm has a fifty day simple moving average of $950.62 and a two-hundred day simple moving average of $941.17. Parker-Hannifin has a fifty-two week low of $715.37 and a fifty-two week high of $1,099.94. The company has a quick ratio of 0.66, a current ratio of 1.26 and a debt-to-equity ratio of 0.44. The stock has a market cap of $135.69 billion, a price-to-earnings ratio of 33.24, a P/E/G ratio of 2.87 and a beta of 1.12.

Key Headlines Impacting Parker-Hannifin

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

• Positive Sentiment: Record earnings beat expectations: Fourth-quarter sales rose 9.8% year over year to $5.8 billion, while adjusted EPS climbed 21% to a record $9.27, well above the roughly $8.26–$8.29 consensus. Full-year sales reached a record $21.5 billion and adjusted EPS rose 18% to $32.31. Parker Reports Record Fiscal 2026 Fourth Quarter and Full Year Results
• Positive Sentiment: Strong operating momentum: Parker reported broad-based aerospace and industrial growth, record total backlog of $12.8 billion—including an $8.5 billion aerospace backlog—and improved margins. Management also raised its long-term adjusted segment operating-margin target by 300 basis points to 30% by fiscal 2031.
• Positive Sentiment: Fiscal 2027 outlook supports continued growth: Adjusted EPS guidance of $34.25 to $35.25 is above consensus of $34.09, with reported and organic sales growth expected at 5.5% to 8.5%, excluding the pending Filtration Group and CIRCOR aerospace transactions.
• Positive Sentiment: Analysts raised targets: Citigroup lifted its target to $1,232 and upgraded PH to “buy”; BNP Paribas Exane raised its target to $1,220 while reaffirming “outperform”; Truist increased its target to $1,358 with a “buy” rating; and Susquehanna raised its target to $1,250 with a “positive” rating. The revisions imply roughly 13% to 26% potential upside from the referenced price. Analyst price-target updates
• Neutral Sentiment: Valuation and positioning warrant monitoring: PH trades near its 52-week high at a premium earnings multiple. Institutional activity was mixed, with some large investors reducing holdings while BlackRock and Morgan Stanley added shares.
• Negative Sentiment: Revenue guidance is below consensus: Fiscal 2027 revenue guidance of $20.9 billion to $21.5 billion trails the $22.7 billion consensus estimate, although the company said the outlook excludes pending acquisitions. Reported insider activity was also entirely selling over the past six months, which could create a modest sentiment headwind.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on PH shares. KeyCorp increased their target price on shares of Parker-Hannifin from $1,100.00 to $1,210.00 and gave the stock an "overweight" rating in a research report on Friday. Evercore set a $1,064.00 price objective on Parker-Hannifin in a report on Monday, May 11th. Wall Street Zen upgraded Parker-Hannifin from a "hold" rating to a "buy" rating in a research note on Saturday. UBS Group raised their price target on Parker-Hannifin from $1,092.00 to $1,250.00 and gave the stock a "buy" rating in a research note on Friday. Finally, BNP Paribas Exane reissued an "outperform" rating and issued a $1,220.00 price target (up from $1,090.00) on shares of Parker-Hannifin in a research note on Friday. Eighteen research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, Parker-Hannifin has a consensus rating of "Moderate Buy" and an average target price of $1,091.38.

Institutional Investors Weigh In On Parker-Hannifin

Institutional investors have recently added to or reduced their stakes in the company. Texas Capital Bancshares Inc TX acquired a new stake in shares of Parker-Hannifin during the 3rd quarter worth approximately $25,000. Morse Asset Management Inc increased its holdings in 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. lifted its holdings in shares of Parker-Hannifin by 84.6% during the 3rd quarter. Johnson Financial Group Inc. now owns 48 shares of the industrial products company's stock worth $36,000 after acquiring an additional 22 shares during the period. State of Wyoming acquired a new stake in shares of Parker-Hannifin during the 2nd quarter valued at about $38,000. Finally, Strive Asset Management LLC acquired a new position in Parker-Hannifin in the third quarter worth about $38,000. 82.44% of the stock is owned by institutional investors and hedge funds.

Parker-Hannifin Company Profile

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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