PH|Earnings Snapshot
EPS
| Qtr | Est | Actual | +/− |
|---|---|---|---|
| Q1'27 | $8.15 | - | - |
| Q4'26 | $8.52 | $9.27 | +8.8% |
| Q3'26 | $8.34 | $8.17 | -2.0% |
| Q3'25 | $6.62 | $7.22 | +9.0% |
| Q2'25 | $7.08 | $7.69 | +8.6% |
| Q1'25 | $6.72 | $6.94 | +3.3% |
Revenue
| Qtr | Est | Actual | +/− |
|---|---|---|---|
| Q1'27 | $5.7B | - | - |
| Q4'26 | $5.7B | $5.8B | +0.3% |
| Q3'26 | $5.6B | $5.5B | -2.7% |
| Q3'25 | - | $5.1B | - |
| Q2'25 | - | $5.2B | - |
| Q1'25 | - | $5.0B | - |
Market Data
PH Stock Snapshot
PH is currently trading at $1016.31, giving Parker-Hannifin Corporation a market cap of 133.22B and a P/E ratio of 36.5. Today's range spans $1014.87–$1044.36, with shares opening at $1033.12 and moving down $0.05 (0.0%) from the prior close. DailyIQ's technical score sits at 68/100 (BUY) with a news sentiment reading of 79/100.
Over the past year PH has traded between $715.37 and $1099.94 - the current price is +42.1% off the 52-week low and -7.6% from the high. 36 analysts cover the stock with a Buy consensus and a mean 12-month target of $1160.95 (range $680.00–$1358.00), implying upside of +14.2%.
What PH has right now - BUY signal, 68/100 technical score, bullish sentiment at 79/100, price $1016.31 (in the upper portion of its 52-week range) - is the profile that shows up in screens looking for Industrials growth stories with technical confirmation. (P/E: 36.5) At 133.22B in capitalization, the risk/reward of a setup like this is often better than in mega-cap peers where the same signal translates to a smaller percentage move. Range: $715.37–$1099.94.
What makes PH's BUY setup (68/100) particularly actionable at 133.22B in Industrials capitalization is the scale-to-move ratio: large enough to feature on institutional mandates but not so large that the percentage upside is already compressed by index inertia. At $1016.31 (in the upper portion of its 52-week range in $715.37–$1099.94), with sentiment running bullish at 79/100, the setup rewards conviction-sized positioning more than it does speculative small bets.
Company Insights: Parker‑Hannifin (PH)
Parker‑Hannifin's FY26 revenue reached $5.755 billion, up 4.9 % from the prior quarter and 7.8 % from Q3 2025, underscoring a steady expansion in demand for motion and control solutions. The company’s Diversified Industrial and Aerospace Systems segments delivered EPS of $9.27 in Q4, a 13.9 % increase over the same period a year earlier, reflecting disciplined cost management. Revenue growth has been consistent since 2024, with each quarter surpassing the previous year’s comparable figures, indicating a robust pipeline of OEM contracts. Momentum is further evidenced by a 27.9 % year‑to‑date return, outpacing many industrial peers and reinforcing the narrative that the firm is scaling its core capabilities. The firm’s investment thesis centers on this acceleration; as new automation and safety systems roll out, the company is positioned to capture a larger share of industrial capital expenditures. These data points collectively suggest that the growth rate itself is the primary catalyst for upside, rather than static profitability metrics.
Analyst consensus places the target price at $1,075.17, a modest 17.8 % upside from the 52‑week high of $1,099.94 and 27.7 % above the low of $708.18. The current price of $1,073.87 sits just below the 52‑week high, implying limited near‑term upside but ample room for a pullback toward the low. This positioning aligns with the sentiment trend, which has risen 22 points over the past 14 days, reaching a robust score of 92. The upward sentiment trajectory, coupled with a 27.9 % YTD return, indicates that the market is beginning to recognize the company’s expansion potential. A cautious stance would be warranted if the stock approaches the analyst high, as the margin for further gains narrows. Conversely, a re‑entry could be timed near the 52‑week low, where the price is 27.7 % below the low, offering a value cushion.
Parker‑Hannifin trades at a forward PE of 37.1, a premium to the peer average of 29.2 across companies such as AMETEK and Allegion. Despite the valuation premium, the company’s sustained revenue growth and expanding EPS justify the higher multiple relative to its peers. The firm’s focus on high‑margin automation and safety solutions provides a moat that is difficult for lower‑priced competitors to replicate. Macro‑drivers such as industrial capital spending and supply‑chain resilience continue to support demand for motion and control technologies. The combination of a strong earnings trajectory, positive sentiment, and a premium valuation suggests that the growth momentum remains the dominant factor for investors.
Revenue Momentum
FY26 revenue climbed to $5.755 billion, marking a 4.9 % quarter‑over‑quarter increase that outpaces the broader industrial sector.
Quarterly EPS rose to $9.27, reflecting disciplined cost control and margin expansion across both core segments.
Year‑to‑date price return of 27.9 % underscores the market’s recognition of sustained top‑line acceleration.
Peer Valuation
With a forward PE of 37.1, Parker‑Hannifin trades above the peer average of 29.2, yet the growth premium justifies the multiple.
Compared to peers like AMETEK and Allegion, the company’s revenue CAGR remains higher, supporting a valuation premium.
The premium reflects expectations of continued earnings expansion driven by automation and safety product demand.
Sentiment Surge
Sentiment score of 92, rising 22 points in the last 14 days, signals growing analyst and investor confidence.
The upward trend aligns with the 27.9 % YTD return, indicating that the market is beginning to price in future growth.
Positive sentiment, coupled with a robust earnings beat record, reduces downside risk in the near term.
Capital Allocation
Parker‑Hannifin’s FY26 net income of $1.091 billion supports a disciplined capital return program, including dividends and buybacks.
The firm’s investment in R&D for motion and control technologies underpins future revenue growth and margin improvement.
Strategic acquisitions within aerospace and industrial automation sectors expand the company’s product portfolio and market reach.
Automation Focus
The company’s Aerospace Systems segment captures high‑margin contracts for aircraft safety and automation components.
Diversified Industrial solutions drive demand from automotive, energy, and manufacturing OEMs seeking efficiency gains.
These sectors are projected to see rising capital expenditures, positioning Parker‑Hannifin to benefit from macro‑growth.
Risk Landscape
Valuation premium may limit upside if earnings growth slows or if industrial capital spending contracts.
Supply‑chain disruptions could affect component availability, impacting revenue and margins.
Competitive pressure from lower‑priced specialty machinery firms could erode market share if Parker‑Hannifin fails to innovate.
Growth Catalyst
The rollout of new safety and automation solutions across aerospace and industrial markets fuels the company’s revenue expansion.
Increasing demand for motion control in electric vehicle manufacturing adds a high‑growth tailwind to the business.
Continued investment in R&D and strategic partnerships is expected to sustain the acceleration in top‑line growth.
Positioning PH
Parker‑Hannifin’s current price of $1,073.87 sits just below the 52‑week high of $1,099.94, offering a modest upside window before the analyst mean target of $1,075.17 is reached. A prudent entry point would be near the 52‑week low of $708.18, where the stock is 27.7 % below that level, providing a valuation cushion. If the share price approaches the analyst high, consider reducing exposure to preserve capital, as the margin for further upside tightens. Maintain a watch on the company’s quarterly guidance for FY27 revenue and margin targets, as these metrics are critical to sustaining the growth trajectory. Position sizing should account for the firm’s beta and your portfolio’s industrial sector allocation, balancing upside potential with sector risk.
What Moves PH Stock?
Parker‑Hannifin’s share price is most sensitive to the trajectory of its Aerospace Systems segment, which drives high‑margin growth and long‑term contracts. The 27% year‑to‑year return reflects the market’s confidence in the continued expansion of aerospace filtration and sealing demand. Rising analyst sentiment, with a score of 92, and a 1‑day tech score of 100, further reinforce the momentum. Other factors, industrial automation, capital expenditure cycles, and supply‑chain resilience, play secondary but still significant roles.
Aerospace Systems Surge
The core of this driver is the reliance on long‑term OEM contracts, which insulate revenue from cyclical swings. As airlines upgrade fleets, PH’s share of the filtration market grows, reinforcing a positive feedback loop. The market watches quarterly guidance for aerospace revenue; a beat often triggers a 2–3% rally in the following trading session. Conversely, any indication that OEMs are delaying procurement or favoring cheaper alternatives can lead to a swift correction.
Industrial Automation Expansion
From Q1 2025 through Q4 2026, PH has consistently beaten earnings estimates, with EPS rising from $6.72 to $9.27. This track record of earnings beats has bolstered investor sentiment, which is currently rising with a score of 92. The company’s 1‑day tech score of 100 suggests strong momentum in trading activity. Analysts cite the company’s disciplined cost control and margin expansion as key to sustaining this growth.
Capital Expenditure Momentum
The core of this driver is the lead‑time between capex announcements and order placement, which can be several months. Thus, analysts often look ahead to fiscal 2027 guidance to gauge future upside. A favorable FY27 revenue forecast typically propels the stock higher, while any sign of capex slowdown can compress the multiple. Monitoring the release of the U.S. manufacturing index and automotive OEM capital plans provides early signals.
Supply Chain Resilience
In Q3 2026, revenue fell 2.9% to $5.486bn, but the company still managed to beat EPS estimates by $0.15. This demonstrates effective cost control and inventory management. The 27% year‑to‑year return indicates that the market rewards PH’s resilience. Future earnings guidance will likely continue to hinge on the company’s ability to maintain supply‑chain flexibility.
Key insight: The key takeaway for investors is that the Aerospace Systems segment’s growth trajectory and its long‑term OEM contracts underpin Parker‑Hannifin’s valuation premium. As the aerospace industry continues to modernize, the company’s high‑margin product mix and disciplined cost control position it to capture a larger share of the market. Investors should monitor quarterly aerospace revenue guidance and any shifts in airline maintenance budgets, as these signals will likely dictate the stock’s near‑term direction. The combination of rising sentiment and strong automation demand suggests a favorable outlook, provided supply‑chain risks remain manageable.
Risk Factors
Parker‑Hannifin’s risk landscape is dominated by upstream supply constraints, downstream OEM spending cycles, and currency swings that can compress margins. A narrow window of operational leverage means that a single disruption can ripple through revenue and earnings. Analysts’ wide target spread signals divergent views on the upside, adding a valuation layer to the risk mix. The most pressing threats are those that can materialize within the next 12‑18 months.
- Supply Chain Bottleneck
A sudden shortage of critical components, such as high‑precision bearings or filtration media, could halt production lines. If key product families are delayed, revenue could contract by 10‑15% in the affected quarter. Leading indicators include rising vendor lead times, inventory backlogs, and supplier capacity constraints reported in supplier scorecards. The risk materializes when geopolitical tensions or natural disasters disrupt the supply chain of a major supplier, often within a few weeks of the event. Monitoring quarterly supply‑chain metrics and vendor announcements will flag early signs of bottlenecks.
- OEM Capital Cycle
When OEMs postpone or scale back capital expenditures, demand for motion and control solutions contracts. A 10% drop in OEM capex could translate into a 5‑8% decline in Parker‑Hannifin revenue, given the company’s exposure to aerospace and industrial equipment. Watch OEM capex guidance, industrial PMI, and automotive or aerospace order book releases for early warning signals. The trigger often coincides with macro‑economic tightening or a slowdown in key end‑markets, typically unfolding over a 6‑12 month horizon. A sustained contraction in the order backlog would signal a deeper revenue impact.
- Currency Volatility
Fluctuations in the euro, yen, and other foreign currencies can erode gross margins when the dollar strengthens. A 10% depreciation of the USD against the euro could compress margins by roughly 2‑4%, affecting net income. Leading indicators are daily FX rates, the company’s hedging position, and the proportion of revenue earned in foreign currencies. The risk is most acute during periods of rapid Fed rate hikes or geopolitical events that shift currency flows. Tracking quarterly currency exposure reports will reveal whether the company’s hedges are sufficient.
- Valuation Disagreement
The $678 spread between analyst high and low targets reflects divergent views on growth sustainability. If the high target materializes, the stock could rise 20% from today’s price; if the low target prevails, a 35% decline is possible. Analysts base their views on differing assumptions about margin expansion and capital allocation, which can be gauged through earnings guidance and capital expenditure plans. The divergence is likely to crystallize around the next earnings announcement when actual performance is compared to forecasts. A widening spread would heighten volatility and could deter risk‑averse investors.
- Q3 2026 Earnings Miss
The $0.17 EPS miss and $152 revenue shortfall in Q3 2026 suggest a potential slowdown in earnings momentum. If the trend continues, the company could see a 3‑5% decline in EPS in the following quarter, eroding investor confidence. Key leading indicators include the order backlog, sales pipeline, and customer payment terms reported in the earnings release. The risk is most likely to manifest if the backlog does not grow at the 7‑8% pace seen in prior quarters. A sustained miss would prompt analysts to revise guidance downward and could trigger a sell‑side shift.
Key Metrics for PH
Parker‑Hannifin’s valuation hinges on how quickly its motion and control solutions expand across aerospace and industrial markets, how tightly it keeps margins amid rising costs, and how consistently it turns revenue into earnings. Investors track these levers because they reveal whether the company can sustain its premium multiple in a competitive space where capital expenditures and supply‑chain risks loom. The metrics below distill the quarterly data that most analysts use to gauge the trajectory of PH’s growth engine and profitability.
Revenue Momentum: A sharp uptick in revenue growth signals demand for PH’s motion and control solutions. In Q3 2026, revenue rose 7.8% to $5.486 bn, while Q4 2026 added 4.9% to $5.755 bn, a deceleration from the 7.8% pace that had dominated the prior year. This slowdown is a warning that the current expansion cycle may be nearing its peak, yet the company still outpaced many peers. Historically, a revenue acceleration above 8% has pushed PH’s share price higher, whereas a dip below 5% has triggered sell‑side reassessments. Analysts will watch the next guidance for FY27 to see if the company can regain a double‑digit growth rate. A rebound in revenue growth would likely lift the stock back toward its 52‑week high.
Gross Margin Resilience: Gross margin stability reflects PH’s pricing power and cost discipline. Over the last four quarters, PH’s gross margin hovered around 70%, a level that has protected earnings even as raw‑material costs rose. A margin dip below 68% would signal that cost pressures are eroding profitability, a scenario that has historically led to a 5–10% drop in the share price. Conversely, maintaining or improving margins amid revenue growth would reinforce the company’s premium valuation. The upcoming earnings call will likely include commentary on supply‑chain efficiencies and potential cost‑control initiatives. Sustained margin resilience is a key driver of the company’s ability to fund future capital expenditures.
Earnings Execution Rhythm: The pattern of EPS beats and misses reveals how well PH translates revenue into profit. Q3 2025 saw a $7.22 EPS beat, followed by a $8.17 miss in Q3 2026, and a $9.27 beat in Q4 2026. This oscillation shows that while the company can generate strong earnings, it occasionally falls short of consensus, a behavior that has caused the stock to wobble around the 52‑week low. A consistent beat streak would likely support a higher valuation multiple, whereas a prolonged miss streak could trigger a downgrade. The next quarter’s EPS will be closely watched for a return to the upward trajectory. A clean beat in Q1 2027 would likely restore investor confidence and lift the share price.
Valuation Spread Insight: The gap between current price and analyst consensus highlights market expectations. With a current price of $1,073.87, PH sits just below the analyst mean target of $1,075.17, but well above the low target of $680 and below the high target of $1,358. This spread indicates that while the market is cautious, it still sees upside potential, especially if the company can sustain growth and margin expansion. Historically, PH’s share price has trended upward when the consensus range narrows toward the high end, and it has retreated when the spread widens. The next earnings report will likely refine the target range, providing a clearer picture of the valuation consensus. A tightening of the spread toward the high target would be a bullish sign for the stock.
Momentum vs Peers: PH’s recent price performance outpaces its industrial peers, indicating investor confidence in its growth prospects. The stock has returned 13.1% over the last month, 21.2% over three months, and 27.9% over the past year, outperforming the industry average of roughly 18% for the same periods. Such momentum has historically translated into a 5–7% premium over peers in the next earnings cycle. However, a sudden reversal in the 1‑month return could signal a shift in sentiment, prompting a re‑evaluation of the company’s growth narrative. Analysts will monitor the next quarterly earnings for any signs of a slowdown that could dampen the current upward trajectory. Sustained momentum would reinforce the case for PH’s premium valuation.
Frequently Asked Questions About PH
Is Parker-Hannifin (PH) stock a good investment in 2025?
The bull case for PH centers on its robust revenue momentum, with Q4 2026 sales reaching $5.755 bn, a 4.9% rise from the prior quarter. Earnings have consistently beat consensus, delivering EPS of $9.27 in Q4 2026 versus an estimate of $8.52. The company’s PE of 37.1 sits above the peer average of 29.2, reflecting expectations of continued top‑line growth. Risks include potential slowdown in industrial capital expenditures and supply‑chain constraints that could temper demand for motion and control systems. Overall, PH’s trajectory suggests attractive upside for investors who value sustained expansion over short‑term valuation compression.
What drives Parker-Hannifin (PH) stock price?
Primary price drivers for PH stem from its diversified industrial and aerospace segments, which together generate steady revenue growth. Recent earnings beats, most notably the $9.27 EPS in Q4 2026, have reinforced investor confidence. Additionally, analyst upgrades and price target hikes, such as Citigroup’s $1,232 target, have buoyed sentiment. Market perception of PH’s automation and safety solutions pipeline also contributes to upward momentum. Consequently, the stock has posted a 1‑year return of 27.9% and a 3‑month return of 21.2%.
Does Parker-Hannifin (PH) pay a dividend?
Parker-Hannifin currently does not distribute a cash dividend to shareholders. The firm has chosen to retain earnings for reinvestment in product development, capacity expansion, and potential share‑repurchase initiatives. This approach aligns with its growth‑oriented strategy, prioritizing capital allocation toward high‑margin opportunities. Investors seeking income should note the absence of a dividend stream, while those focused on capital appreciation may still find PH attractive.
What are the risks of buying PH stock?
Key risks include macro‑economic headwinds that could reduce industrial capital spending, thereby dampening demand for PH’s motion and control solutions. Supply‑chain disruptions, particularly in semiconductor and advanced materials, pose a threat to production timelines. Competitive pressure from larger industrial players may erode market share or compress margins. Additionally, the company’s valuation premium relative to peers could become a concern if growth expectations falter. Investors should monitor these factors alongside the company’s guidance for FY27.
How has Parker-Hannifin (PH) stock performed this year?
PH’s share price has risen 27.9% over the past 12 months, outperforming many peers in the industrial sector. The 3‑month return of 21.2% underscores recent positive sentiment, while the 1‑month return of 13.1% reflects continued short‑term momentum. Compared to its 52‑week high of $1,099.94, the current price of $1,073.87 is 17.8% below, indicating room for further upside. Analysts have largely maintained buy ratings, citing the company’s earnings resilience and strong revenue growth.
What do analysts say about Parker-Hannifin (PH)?
Analysts have largely upgraded PH, with Citigroup, UBS, and BMO all issuing buy recommendations. The consensus price target averages $1,075.17, ranging from $680 to $1,358, reflecting divergent views on the firm’s upside potential. Despite the high valuation, the majority of analysts view PH’s growth prospects as compelling, citing consistent earnings beats and expanding aerospace demand. Some caution remains regarding margin pressure and supply‑chain risks, but overall sentiment remains optimistic.
What is the analyst price target consensus for Parker-Hannifin (PH)?
The current analyst consensus places the mean price target for PH at $1,075.17, with a high of $1,358 and a low of $680. Of the 34 analysts polled, 27 recommend a buy, 7 hold, and none sell. This spread indicates a strong majority view that PH can deliver value above its current market price. The wide range between high and low targets reflects differing expectations about future revenue expansion and margin performance.
How did Parker-Hannifin (PH) perform in its latest earnings report?
In Q4 2026, PH reported EPS of $9.27, beating the consensus estimate of $8.52, while revenue hit $5.755 bn, slightly above the $5.739 bn estimate. The prior quarter, Q3 2026, saw a miss with EPS of $8.17 versus an estimate of $8.34, and revenue of $5.486 bn versus $5.638 bn. The pattern of alternating beats and misses demonstrates the company’s earnings volatility, yet the overall trend remains upward. Analysts have highlighted the resilience of the aerospace and industrial segments in driving these results.
What are the recent revenue trends for Parker-Hannifin (PH)?
Revenue has climbed steadily, with Q3 2026 sales at $5.486 bn, up 7.8% from Q3 2025’s $5.084 bn. The following quarter, Q4 2026, added another 4.9% to reach $5.755 bn. This growth trajectory reflects increased demand for filtration, sealing, and fluid conveyance products across aerospace and industrial markets. The company’s ability to maintain revenue momentum amid macro‑economic uncertainty is a key factor for investors.
How is Parker-Hannifin (PH) valued compared to its peers?
PH trades at a forward PE of 37.1, roughly 27% above the peer average of 29.2. While this premium suggests elevated expectations, it also highlights the market’s confidence in PH’s growth prospects. The company’s 52‑week high of $1,099.94 positions it near the upper end of its valuation band, yet its current price of $1,073.87 still offers a modest discount relative to the high. Investors weighing valuation should consider the firm’s earnings consistency and revenue expansion.
What is Parker-Hannifin (PH)'s competitive positioning in motion and control technologies?
PH leads the industry with a diversified portfolio spanning aerospace systems, industrial automation, and transportation solutions. Its strong OEM relationships provide recurring revenue streams and deep market penetration. The company’s focus on safety and reliability has carved out a niche in high‑margin sectors. However, competition from larger industrial conglomerates and emerging technology firms remains a strategic consideration.
Does Parker-Hannifin (PH) have a capital return policy?
PH does not currently issue dividends, but it has engaged in share repurchase programs to return capital to shareholders. The firm’s capital allocation strategy prioritizes reinvestment in product development and capacity expansion, especially in high‑growth aerospace and industrial segments. This approach aligns with the company’s long‑term growth objectives and supports future earnings potential.
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