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

Parker-Hannifin (NYSE:PH) released its quarterly earnings data on Thursday. The industrial products company reported $9.27 earnings per share for the quarter, topping analysts’ consensus estimates of $8.29 by $0.98, FiscalAI reports. The business had revenue of $5.75 billion for 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 company’s revenue for the quarter was up 9.8% compared to the same quarter last year. During the same quarter last year, the company earned $7.69 EPS. 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 Price Performance

Parker-Hannifin stock traded up $6.32 during trading hours on Friday, hitting $1,076.12. 823,537 shares of the company traded hands, compared to its average volume of 645,440. Parker-Hannifin has a 1-year low of $715.37 and a 1-year high of $1,099.94. The firm has a market cap of $135.69 billion, a P/E ratio of 37.77, a P/E/G ratio of 2.87 and a beta of 1.12. The firm’s 50-day simple moving average is $950.62 and its two-hundred day simple moving average is $941.17. The company has a quick ratio of 0.66, a current ratio of 1.26 and a debt-to-equity ratio of 0.44.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in PH. T. Rowe Price Investment Management Inc. boosted its stake in Parker-Hannifin by 57.9% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 1,274 shares of the industrial products company’s stock valued at $1,120,000 after purchasing an additional 467 shares in the last quarter. Compound Planning Inc. raised its stake in shares of Parker-Hannifin by 45.0% in the 4th quarter. Compound Planning Inc. now owns 2,487 shares of the industrial products company’s stock worth $2,186,000 after buying an additional 772 shares in the last quarter. Axxcess Wealth Management LLC lifted its holdings in shares of Parker-Hannifin by 5.4% in the fourth quarter. Axxcess Wealth Management LLC now owns 1,331 shares of the industrial products company’s stock valued at $1,170,000 after buying an additional 68 shares during the period. Raymond James Financial Inc. lifted its holdings in shares of Parker-Hannifin by 3.9% in the fourth quarter. Raymond James Financial Inc. now owns 272,345 shares of the industrial products company’s stock valued at $239,382,000 after buying an additional 10,174 shares during the period. Finally, Virtue Capital Management LLC boosted its stake in Parker-Hannifin by 11.0% during the fourth quarter. Virtue Capital Management LLC now owns 921 shares of the industrial products company’s stock valued at $823,000 after buying an additional 91 shares in the last quarter. 82.44% of the stock is currently owned by institutional investors.

More Parker-Hannifin News

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

Several research analysts have commented on PH shares. KeyCorp upped 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. Wells Fargo & Company reduced their price objective on Parker-Hannifin from $980.00 to $950.00 and set an “overweight” rating for the company in a research report on Tuesday, May 26th. BMO Capital Markets reissued an “outperform” rating and issued a $1,214.00 price objective on shares of Parker-Hannifin in a report on Friday. Wall Street Zen upgraded Parker-Hannifin from a “hold” rating to a “buy” rating in a research report on Saturday. Finally, JPMorgan Chase & Co. lowered their target price on Parker-Hannifin from $1,100.00 to $1,060.00 and set an “overweight” rating on the stock in a research report on Thursday, May 7th. Eighteen investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat, Parker-Hannifin currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,091.38.

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.