Parker-Hannifin Corporation (PH) AI Stock Analysis

Parker-Hannifin Corporation manufactures and distributes motion and control technologies across mobile, industrial, and aerospace markets. The company operates through two primary segments: Diversified Industrial and Aerospace Systems. The Diversified Industrial segment provides sealing, thermal management, adhesives, filtration systems, connectors, and hydraulic and pneumatic components. The Aerospace Systems segment serves commercial and military customers with control actuation systems, engine ducting, and fluid conveyance systems for airframe and engine programs. Founded in 1917, the company employs 59,850 people and sells its products through direct-sales channels, independent distributors, and sales representatives.

Revenue expanded at an 8.4% five-year compound annual growth rate from FY2021 to FY2026, reaching $21.50B in FY2026 with an 8.3% annual increase. Gross margin improved from 27.7% in FY2022 to 37.7% in FY2026, while operating margin rose from 17.7% to 21.6% over the same timeframe. Net income reached $3.65B in FY2026, producing diluted earnings per share of $32.31. In the latest quarter ended June 30, 2026, quarterly revenue increased 9.8% year over year and quarterly earnings grew 19.3%. Free cash flow reached $3.90B in FY2026, up from $2.21B in FY2022.

As of June 30, 2026, Parker-Hannifin held $501.0M in cash and short-term investments alongside $8.73B in total debt, resulting in net debt of $8.23B. Total assets stood at $30.88B and shareholders' equity was $15.40B, yielding a debt-to-equity ratio of 0.57 and a current ratio of 1.26. In FY2026, the company generated $4.36B in operating cash flow. It deployed this capital toward $459.0M in capital expenditures, $1.26B in share buybacks, and $936.0M in dividends paid.

At a last close of $963.34, Parker-Hannifin trades at a trailing P/E of 33.8x and a forward P/E of 27.5x. Both multiples exceed the median of its S&P 500 Industrials peers, which post a trailing P/E of 28.4x and a forward P/E of 20.1x. Its enterprise value to EBITDA ratio is 22.0x, above the peer median of 17.2x, while price-to-sales stands at 5.7x compared to the peer median of 3.1x. Over the past year, the stock returned 33.8% versus 16.8% for the S&P 500. Over five years, the stock returned 244.4% compared to 83.0% for the index.

Parker-Hannifin pays a quarterly dividend with an annual forward payout of $8.00 per share, delivering a dividend yield of 0.83%. The company has paid consecutive dividends for 42 years, with an annualized five-year dividend growth rate of 14.8%. Its payout ratio is 23.5%, and the last ex-dividend date was August 31, 2026.

Wall Street coverage consists of 16 Strong Buy, 3 Buy, 6 Hold, 0 Sell, and 1 Strong Sell ratings. The mean price target is $1155.62, representing a 20.0% premium over the last close of $963.34. For the fiscal year ending June 30, 2027, consensus estimates project $24.68B in revenue and EPS of $35.58. The company has beat EPS estimates in each of the last 4 quarters, and its next earnings report is scheduled for November 5, 2026.

This page is an AI-written research summary of Parker-Hannifin Corporation (PH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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