Upside case
Bull case
$1050+16.3%
PH would need investors to value it at roughly 34x earnings — about 5x more generous than today's 29x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
Parker-Hannifin Corporation (PH) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
38
analysts
24 bullish · 1 bearish · 38 covering PH
Strong Buy
0
Buy
24
Hold
13
Sell
1
Strong Sell
0
Consensus Target
$1042
+15.4% vs today
Scenario Range
$402 – $1050
Model bear to bull value window
Coverage
38
Published analyst ratings
Valuation Context
29.1x
Forward P/E · Market cap $113.9B
PH price targets
Three scenarios for where PH stock could go
Current
~$903
Confidence
67 / 100
Updated
May 1, 2026
Where we are now
Current · $903
Bear
$402
Base
$1064
Bull
$1050
Market caseClosest to today
Base case
$1064+17.9%
At 34x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$402-55.5%
If investor confidence fades or macro conditions deteriorate, a 16x multiple contraction could push PH down roughly 56% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Parker-Hannifin Corporation
PH · NYSEIndustrialsIndustrial - MachineryJune year-end
Parker-Hannifin is a global manufacturer of motion and control technologies — including hydraulic, pneumatic, and electromechanical systems — for industrial, mobile, and aerospace applications. It generates revenue primarily through its Diversified Industrial segment (~75% of sales) selling components to OEMs and distributors, and its Aerospace Systems segment (~25%) supplying flight control and fuel systems. The company's competitive advantage lies in its extensive product portfolio, deep engineering expertise, and long-standing customer relationships across diverse industrial markets.
Market Cap
$113.9B
Revenue TTM
$21.0B
Net Income TTM
$3.5B
Net Margin
16.6%
PH Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
100%Exceptional
12 quarters tracked
Revenue Beat Rate
75%Exceptional
vs consensus estimates
Avg EPS Surprise
+7.7%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$7.69/$7.10
Revenue
$5.2B/$5.1B
Q4 2025
EPS
$7.22/$6.62
Revenue
$5.1B/$4.9B
Q1 2026
EPS
$7.65/$7.16
Revenue
$5.2B/$5.1B
Q2 2026
EPS
$8.17/$7.84
Revenue
$5.5B/$5.4B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $7.69/$7.10 | +8.3% | $5.2B/$5.1B | +2.5% |
| Q4 2025 | $7.22/$6.62 | +9.1% | $5.1B/$4.9B | +2.9% |
| Q1 2026 | $7.65/$7.16 | +6.8% | $5.2B/$5.1B | +2.0% |
| Q2 2026 | $8.17/$7.84 | +4.2% | $5.5B/$5.4B | +1.6% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$21.5B
+2.5% YoY
FY2
$22.7B
+5.4% YoY
EPS Outlook
FY1
$30.04
+10.5% YoY
FY2
$31.98
+6.5% YoY
Trailing FCF (TTM)$3.7B
FCF Margin: 17.5%
Next Earnings
May 7, 2026
Expected EPS
$7.81
Expected Revenue
$5.4B
PH beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
PH Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $19.9B
Product Mix
Latest annual revenue by segment or product family
Diversified Industrial Segment
68.8%
-5.5% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
North America
67.5%
-0.8% YoY
Tap, hover, or focus a slice to inspect segment detail.
Diversified Industrial Segment is the largest disclosed segment at 68.8% of FY 2025 revenue, down 5.5% YoY.
North America is the largest reported region at 67.5%, down 0.8% YoY.
PH Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Fairly Valued
Fair value est. $890 — implies +0.9% from today's price.
Upside to Fair Value
0.9%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
PH
33.3x
vs
S&P 500
25.2x
+32% premium
vs Industrials Trailing P/E
PH
33.3x
vs
Industrials
25.9x
+29% premium
vs PH 5Y Avg P/E
Today
33.3x
vs
5Y Average
24.1x
+38% premium
Forward PE
29.1x
S&P 500
19.1x
+53%
Industrials
20.8x
+40%
5Y Avg
—
—
Trailing PE
33.3x
S&P 500
25.2x
+32%
Industrials
25.9x
+29%
5Y Avg
24.1x
+38%
PEG Ratio
1.39x
S&P 500
1.75x
-20%
Industrials
1.59x
-12%
5Y Avg
—
—
EV/EBITDA
24.8x
S&P 500
15.3x
+62%
Industrials
13.9x
+78%
5Y Avg
15.6x
+59%
Price/FCF
34.1x
S&P 500
21.3x
+60%
Industrials
20.6x
+65%
5Y Avg
20.1x
+70%
Price/Sales
5.7x
S&P 500
3.1x
+83%
Industrials
1.6x
+261%
5Y Avg
3.1x
+87%
Dividend Yield
0.73%
S&P 500
1.88%
-61%
Industrials
1.24%
-41%
5Y Avg
1.30%
-44%
| Metric | PH | S&P 500 | Industrials | 5Y Avg PH |
|---|---|---|---|---|
| Forward PE | 29.1x | 19.1x+53% | 20.8x+40% | — |
| Trailing PE | 33.3x | 25.2x+32% | 25.9x+29% | 24.1x+38% |
| PEG Ratio | 1.39x | 1.75x-20% | 1.59x-12% | — |
| EV/EBITDA | 24.8x | 15.3x+62% | 13.9x+78% | 15.6x+59% |
| Price/FCF | 34.1x | 21.3x+60% | 20.6x+65% | 20.1x+70% |
| Price/Sales | 5.7x | 3.1x+83% | 1.6x+261% | 3.1x+87% |
| Dividend Yield | 0.73% | 1.88% | 1.24% | 1.30% |
PH trades above S&P 500 benchmarks on 5 of 6 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolPH Financial Health
Verdict
Strong
PH generates $3.7B in free cash flow at a 17.5% margin — 13.4% ROIC signals a durable competitive advantage · returns 2.3% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$21.0B
Revenue Growth
TTM vs prior year
+6.0%
Gross Margin
Gross profit as a share of revenue
37.2%
Operating Margin
Operating income divided by revenue
20.9%
Net Margin
Net income divided by revenue
16.6%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$27.19
Free Cash Flow (TTM)
Cash generation after capex
$3.7B
FCF Margin
FCF as share of revenue — the primary cash quality signal
17.5%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
13.4%
ROA
Return on assets, trailing twelve months
11.5%
Cash & Equivalents
Liquid assets on the balance sheet
$467M
Net Debt
Total debt minus cash
$9.2B
Debt Serviceability
Net debt as a multiple of annual free cash flow
2.5× FCF
~2.5 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
24.3%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
2.3%
Dividend
0.7%
Buyback
1.5%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$1.8B
Dividend / Share
Annualized trailing dividend per share
$6.61
Payout Ratio
Share of earnings distributed as dividends
24.4%
Shares Outstanding
Declining as buybacks retire shares
126M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pagePH Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 11, 2026
High Risk
Inflation & Interest Rates
High inflation erodes consumer purchasing power and raises operating costs, squeezing corporate profits. The Bangko Sentral ng Pilipinas may hike rates to curb inflation, increasing borrowing costs for highly leveraged firms. This can depress earnings and stock valuations across the market.
High Risk
Currency Fluctuations
A weaker Philippine peso has historically moved negatively against the PSE index, hurting companies with import exposure. The economy’s heavy reliance on imported goods, especially oil, magnifies the impact of peso depreciation on input costs and profit margins. Sudden peso swings can trigger market sell‑offs.
High Risk
Oil Price Volatility
The Philippines imports most of its oil, making it vulnerable to Middle East conflict‑driven price spikes. Rising oil prices feed inflation, strain the peso, and dampen consumer spending, creating a feedback loop that can erode corporate earnings. Geopolitical tensions in the region are a key catalyst for these shocks.
Medium
Political Instability & Scandals
Corruption scandals, political infighting, or resignations of high‑profile officials can spark uncertainty and trigger investor sell‑offs. Such events erode confidence in governance and can lead to short‑term market volatility. The impact is often amplified during election periods.
Medium
Market Liquidity
Lower liquidity, especially in smaller stocks, hampers the ability to sell shares at fair prices, increasing transaction costs and price volatility. Illiquid conditions can exacerbate market swings during periods of stress, limiting investors’ exit options.
Lower
Governance Concerns
Persistent worries about corporate governance can dampen growth expectations and investor confidence. Weak governance structures may lead to misallocation of capital and higher risk premiums demanded by investors. This can depress valuations across the market.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why PH Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 11, 2026
Undervalued Market
Philippine equities trade at some of the cheapest levels in Southeast Asia, with valuations comparable to those seen during the 2008 global financial crisis. This low price-to-earnings backdrop offers a bargain hunting opportunity and a potential for significant price recovery.
Earnings Growth Outlook
Companies listed on the Philippine Stock Exchange Composite Index (PSEi) are projected to see an average earnings increase of 15% for the year. Strong demand and improving corporate performance underpin this growth forecast.
Government Reforms & Incentives
The CREATE MORE Act and liberalization of foreign ownership in renewable energy are part of a broader reform agenda. The upcoming 2026–2028 Strategic Investment Priority Plan will focus on performance‑based incentives for targeted sectors.
Foreign Fund Inflows
After being net sellers for much of 2025, foreign investors turned net buyers in January 2026, signaling renewed optimism for the market. This shift could drive additional capital into Philippine equities.
Elevated Dividend Yields
Many Philippine stocks offer attractive dividend yields, which can help mitigate the risk of value traps and provide a steady income stream for investors.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
PH Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$902.66
52W Range Position
69%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$608.31
+48.4% from the low
52-Week High
$1034.96
-12.8% from the high
1 Month
-1.03%
3 Month
-7.56%
YTD
+1.0%
1 Year
+47.0%
3Y CAGR
+39.2%
5Y CAGR
+23.4%
10Y CAGR
+23.1%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
PH vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
29.1x
vs 22.8x median
+28% above peer median
Revenue Growth
+2.5%
vs +6.1% median
-59% below peer median
Net Margin
16.6%
vs 12.4% median
+34% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
PH PH Parker-Hannifin Corporation | $113.9B | 29.1x | +2.5% | 16.6% | Buy | +15.4% |
EMR EMR Emerson Electric Co. | $83.2B | 22.8x | +3.8% | 13.3% | Buy | +9.5% |
ETN ETN Eaton Corporation plc | $163.5B | 31.7x | +9.1% | 14.0% | Buy | -9.9% |
HON HON Honeywell International Inc. | $137.4B | 20.6x | +6.1% | 11.2% | Buy | +12.5% |
ROK ROK Rockwell Automation, Inc. | $51.6B | 37.8x | +1.5% | 12.4% | Hold | -5.0% |
IR IR Ingersoll Rand Inc. | $30.8B | 22.4x | +6.5% | 7.5% | Buy | +26.5% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
PH Dividend and Capital Return
PH returns capital mainly through $1.8B/year in buybacks (1.5% buyback yield), with a modest 0.73% dividend — combining for 2.3% total shareholder yield. The dividend has grown for 33 consecutive years.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
2.3%
Dividend + buyback return per year
Buyback Yield
1.5%
Dividend Yield
0.73%
Payout Ratio
24.4%
How PH Splits Its Return
Div 0.73%
Buyback 1.5%
Dividend 0.73%Buybacks 1.5%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$6.61
Growth Streak
Consecutive years of dividend increases
33Y
3Y Div CAGR
11.9%
5Y Div CAGR
14.8%
Ex-Dividend Date
—
Payment Cadence
Semi-Annual
5 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$1.8B
Estimated Shares Retired
2M
Approx. Share Reduction
1.5%
Shares Outstanding
Current diluted share count from the screening snapshot
126M
At 1.5%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $3.80 | — | — | — |
| 2025 | $7.03 | +10.4% | 1.9% | 2.9% |
| 2024 | $6.37 | +10.4% | 0.5% | 1.7% |
| 2023 | $5.77 | +14.9% | 0.6% | 2.0% |
| 2022 | $5.02 | +26.4% | 1.4% | 3.2% |
FAQ
7 questionsPH Investor Questions
Common questions answered from live analyst data and company financials.
01Is Parker-Hannifin Corporation (PH) stock a buy or sell in 2026?
Parker-Hannifin Corporation (PH) is rated Buy by Wall Street analysts as of 2026. Of 38 analysts covering the stock, 24 rate it Buy or Strong Buy, 13 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $1042, implying +15.4% from the current price of $903. The bear case scenario is $402 and the bull case is $1050.
02What is the PH stock price target for 2026?
The Wall Street consensus price target for PH is $1042 based on 38 analyst estimates. The high-end target is $1147 (+27.1% from today), and the low-end target is $1000 (+10.8%). The base case model target is $1064.
03Is Parker-Hannifin Corporation (PH) stock overvalued in 2026?
PH trades at 29.1x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals fairly valued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Parker-Hannifin Corporation (PH) stock in 2026?
The primary risks for PH in 2026 are: (1) Inflation & Interest Rates — High inflation erodes consumer purchasing power and raises operating costs, squeezing corporate profits. (2) Currency Fluctuations — A weaker Philippine peso has historically moved negatively against the PSE index, hurting companies with import exposure. (3) Oil Price Volatility — The Philippines imports most of its oil, making it vulnerable to Middle East conflict‑driven price spikes. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Parker-Hannifin Corporation's revenue and earnings forecast?
Analyst consensus estimates PH will report consensus revenue of $21.5B (+2.5% year-over-year) and EPS of $30.04 (+10.5% year-over-year) for the upcoming fiscal year. The following year, analysts project $22.7B in revenue.
06When does Parker-Hannifin Corporation (PH) report its next earnings?
Parker-Hannifin Corporation is expected to report its next earnings on approximately 2026-05-07. Consensus expects EPS of $7.81 and revenue of $5.4B. Over recent quarters, PH has beaten EPS estimates 100% of the time.
07How much free cash flow does Parker-Hannifin Corporation generate?
Parker-Hannifin Corporation (PH) generated $3.7B in free cash flow over the trailing twelve months — a free cash flow margin of 17.5%. PH returns capital to shareholders through dividends (0.7% yield) and share repurchases ($1.8B TTM).