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

Parker-Hannifin (NYSE:PH) released its quarterly earnings results on Thursday. The industrial products company reported $9.27 earnings per share for the quarter, beating analysts’ consensus estimates of $8.29 by $0.98, FiscalAI reports. Parker-Hannifin had a return on equity of 28.48% and a net margin of 16.97%.The firm had revenue of $5.75 billion during the quarter, compared to analysts’ expectations of $5.57 billion. During the same period last year, the firm posted $7.69 EPS. The business’s revenue was up 9.8% on a year-over-year basis. 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

Shares of PH traded up $6.32 during trading hours on Friday, reaching $1,076.12. 823,537 shares of the company traded hands, compared to its average volume of 645,440. The stock has a market capitalization of $135.69 billion, a PE ratio of 33.24, a price-to-earnings-growth ratio of 2.87 and a beta of 1.12. The stock has a fifty day simple moving average of $950.62 and a 200 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.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Bank of America Corp DE boosted its stake in shares of Parker-Hannifin by 0.6% during the 4th quarter. Bank of America Corp DE now owns 3,926,896 shares of the industrial products company’s stock worth $3,451,584,000 after purchasing an additional 22,305 shares during the last quarter. Morgan Stanley raised its position in shares of Parker-Hannifin by 1.1% in the fourth quarter. Morgan Stanley now owns 2,133,044 shares of the industrial products company’s stock valued at $1,874,862,000 after buying an additional 22,367 shares during the last quarter. Schroder Investment Management Group raised its position in shares of Parker-Hannifin by 2.8% in the fourth quarter. Schroder Investment Management Group now owns 883,185 shares of the industrial products company’s stock valued at $776,284,000 after buying an additional 24,430 shares during the last quarter. Wells Fargo & Company MN lifted its stake in shares of Parker-Hannifin by 1.5% during the fourth quarter. Wells Fargo & Company MN now owns 880,256 shares of the industrial products company’s stock valued at $773,710,000 after buying an additional 12,775 shares during the period. Finally, Kestra Advisory Services LLC lifted its stake in shares of Parker-Hannifin by 0.9% during the fourth quarter. Kestra Advisory Services LLC now owns 619,041 shares of the industrial products company’s stock valued at $544,113,000 after buying an additional 5,412 shares during the period. 82.44% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages have commented on PH. JPMorgan Chase & Co. decreased their price objective 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. Truist Financial upped their target price on shares of Parker-Hannifin from $1,269.00 to $1,358.00 and gave the company a “buy” rating in a research report on Friday. Stifel Nicolaus set a $1,075.00 price objective on Parker-Hannifin in a report on Friday. Wall Street Zen raised shares of Parker-Hannifin from a “hold” rating to a “buy” rating in a research note on Saturday. Finally, Mizuho set a $1,050.00 price target on shares of Parker-Hannifin in a report on Friday, May 1st. Eighteen analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $1,091.38.

Key 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.

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.