Upside case
Bull case
$1262+32.4%
PH would need investors to value it at roughly 40x earnings — about 10x more generous than today's 30x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated Jun 18, 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
$1047
+9.9% vs today
Scenario Range
$603 – $1262
Model bear to bull value window
Coverage
38
Published analyst ratings
Valuation Context
30.5x
Forward P/E · Market cap $120.3B
PH price targets
Three scenarios for where PH stock could go
Current
~$953
Confidence
55 / 100
Updated
Jun 18, 2026
Where we are now
Current · $953
Bear
$603
Base
$958
Bull
$1262
Market caseClosest to today
Base case
$958+0.5%
This is close to how the market is already pricing PH — at roughly 31x forward earnings. No dramatic re-rating needed, just steady execution on the core business.
Stress case
Bear case
$603-36.7%
If investor confidence fades or macro conditions deteriorate, a 11x multiple contraction could push PH down roughly 37% 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
$120.3B
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
$21.6B
+3.1% YoY
FY2
$22.6B
+4.5% YoY
EPS Outlook
FY1
$27.96
+2.8% YoY
FY2
$28.75
+2.8% YoY
Trailing FCF (TTM)$3.7B
FCF Margin: 17.5%
Next Earnings
August 6, 2026
Expected EPS
$8.27
Expected Revenue
$5.6B
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
Fair versus peers
Fair value est. $951 — implies -0.2% from today's price.
Premium to Fair Value
0.2%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
PH
35.2x
vs
S&P 500
24.4x
+44% premium
vs Industrials Trailing P/E
PH
35.2x
vs
Industrials
25.6x
+37% premium
vs PH 5Y Avg P/E
Today
35.2x
vs
5Y Average
24.1x
+46% premium
Forward PE
30.5x
S&P 500
18.8x
+62%
Industrials
21.2x
+44%
5Y Avg
—
—
Trailing PE
35.2x
S&P 500
24.4x
+44%
Industrials
25.6x
+37%
5Y Avg
24.1x
+46%
PEG Ratio
1.47x
S&P 500
1.66x
-11%
Industrials
1.65x
-11%
5Y Avg
—
—
EV/EBITDA
26.1x
S&P 500
15.2x
+71%
Industrials
13.9x
+88%
5Y Avg
15.6x
+67%
Price/FCF
36.0x
S&P 500
20.7x
+74%
Industrials
20.0x
+80%
5Y Avg
20.1x
+80%
Price/Sales
6.1x
S&P 500
3.1x
+96%
Industrials
1.6x
+288%
5Y Avg
3.1x
+97%
Dividend Yield
0.69%
S&P 500
1.91%
-64%
Industrials
1.21%
-43%
5Y Avg
1.30%
-47%
| Metric | PH | S&P 500 | Industrials | 5Y Avg PH |
|---|---|---|---|---|
| Forward PE | 30.5x | 18.8x+62% | 21.2x+44% | — |
| Trailing PE | 35.2x | 24.4x+44% | 25.6x+37% | 24.1x+46% |
| PEG Ratio | 1.47x | 1.66x-11% | 1.65x-11% | — |
| EV/EBITDA | 26.1x | 15.2x+71% | 13.9x+88% | 15.6x+67% |
| Price/FCF | 36.0x | 20.7x+74% | 20.0x+80% | 20.1x+80% |
| Price/Sales | 6.1x | 3.1x+96% | 1.6x+288% | 3.1x+97% |
| Dividend Yield | 0.69% | 1.91% | 1.21% | 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 2.2% 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
2.2%
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 June 17, 2026
Medium
Stock price underperformance
AI models forecast a -1.0% decline in PH stock price by 2026, indicating potential underperformance.
Lower
Revenue and earnings uncertainty
Analyst price targets and revenue estimates vary, reflecting uncertainty in future financial performance.
Medium
Market competition
As a global leader in motion and control technologies, Parker-Hannifin faces intense competition in a rapidly evolving industry.
High Risk
Economic cyclicality risk
The company's reliance on industrial manufacturing makes it vulnerable to economic downturns and reduced capital spending.
Lower
Brand diversification
Parker's legacy in fine pens and unrelated ventures may dilute focus on core industrial technologies.
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 June 17, 2026
Record financial performance
Parker-Hannifin reported record quarterly sales, a record backlog of US$12.50 billion, and raised its organic sales growth and adjusted EPS guidance for 2026.
AI-focused data center growth
The company is positioning itself as a key supplier to AI-focused data centers through its liquid cooling components, including couplings and fluid-control valves.
Sustainable innovation leadership
Parker's innovative solutions for a sustainable future in motion and control technologies highlight its commitment to environmental protection and customer success.
Consistent dividend increases
The company has achieved 69 consecutive fiscal years of dividend increases, demonstrating its financial stability and commitment to shareholders.
Strong market position
As a Fortune 250 global leader with annual sales of $19.9 billion in fiscal year 2025, Parker-Hannifin has a proven track record in motion and control technologies.
Partnership-driven growth
Parker is partnering with customers to improve lives and protect the environment, reinforcing its role as a trusted industrial solutions provider.
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
$953.27
52W Range Position
79%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$646.51
+47.4% from the low
52-Week High
$1034.96
-7.9% from the high
1 Month
+11.05%
3 Month
+4.48%
YTD
+6.6%
1 Year
+46.1%
3Y CAGR
+36.9%
5Y CAGR
+27.7%
10Y CAGR
+23.7%
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
30.5x
vs 23.2x median
+32% above peer median
Revenue Growth
+3.1%
vs +5.7% median
-46% 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 | $120.3B | 30.5x | +3.1% | 16.6% | Buy | +9.9% |
EMR EMR Emerson Electric Co. | $84.4B | 23.2x | +3.4% | 13.3% | Buy | +7.7% |
ETN ETN Eaton Corporation plc | $163.8B | 31.6x | +10.7% | 14.0% | Buy | -1.2% |
HON HON Honeywell International Inc. | $145.1B | 21.8x | +5.7% | 11.2% | Buy | +9.0% |
ROK ROK Rockwell Automation, Inc. | $53.2B | 36.6x | +1.5% | 12.4% | Hold | +0.3% |
IR IR Ingersoll Rand Inc. | $30.5B | 22.2x | +7.1% | 7.5% | Buy | +20.2% |
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 0.69% dividend — combining for 2.2% total shareholder yield. The dividend has grown for 9 consecutive years.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
2.2%
Dividend + buyback return per year
Buyback Yield
1.5%
Dividend Yield
0.69%
Payout Ratio
24.4%
How PH Splits Its Return
Div 0.69%
Buyback 1.5%
Dividend 0.69%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
9Y
3Y Div CAGR
11.9%
5Y Div CAGR
14.8%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 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 $1047, implying +9.9% from the current price of $953. The bear case scenario is $603 and the bull case is $1262.
02What is the PH stock price target for 2026?
The Wall Street consensus price target for PH is $1047 based on 38 analyst estimates. The high-end target is $1147 (+20.3% from today), and the low-end target is $950 (-0.3%). The base case model target is $958.
03Is Parker-Hannifin Corporation (PH) stock overvalued in 2026?
PH trades at 30.5x 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 fair versus peers. 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) Economic cyclicality risk — The company's reliance on industrial manufacturing makes it vulnerable to economic downturns and reduced capital spending. (2) Stock price underperformance — AI models forecast a -1. (3) Market competition — As a global leader in motion and control technologies, Parker-Hannifin faces intense competition in a rapidly evolving industry. 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 $21.6B (+3.1% year-over-year) and EPS of $27.96 (+2.8% year-over-year) for the upcoming fiscal year. The following year, analysts project $22.6B in revenue.
06When does Parker-Hannifin Corporation (PH) report its next earnings?
Parker-Hannifin Corporation is expected to report its next earnings on approximately 2026-08-06. Consensus expects EPS of $8.27 and revenue of $5.6B. 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).