Revenue growth accelerated to 10.6% in 2026Q3, while the company maintained a stable 36.8% gross margin despite complex global supply chain pressures.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 | Jun'96 |
|---|
| Sales/Revenue | 20.99B | 19.85B | 19.93B | 19.07B | 15.86B | 14.35B | 13.7B | 14.32B | 14.3B | 12.03B | 11.36B | 12.71B | 13.22B | 13.02B | 13.15B | 12.35B | 9.99B | 10.31B | 12.15B | 10.72B | 9.39B | 8.22B | 7.11B | 6.41B | 6.15B | 5.98B | 5.36B | 4.96B | 4.63B | 4.09B | 3.59B |
| Revenue Growth % | 6.03% | -0.4% | 4.53% | 20.2% | 10.55% | 4.76% | -4.36% | 0.13% | 18.9% | 5.88% | -10.63% | -3.82% | 1.54% | -0.99% | 6.48% | 23.54% | -3.06% | -15.12% | 13.32% | 14.19% | 14.25% | 15.59% | 10.86% | 4.25% | 2.83% | 11.66% | 8% | 7.03% | 13.25% | 14.07% | 11.57% |
| Cost of Goods Sold | 13.17B | 12.54B | 12.77B | 12.61B | 11.48B | 10.44B | 10.21B | 10.67B | 10.69B | 9.14B | 8.72B | 9.71B | 10.13B | 10.08B | 9.95B | 9.36B | 7.8B | 8.14B | 9.33B | 8.26B | 7.35B | 6.38B | 5.74B | 5.31B | 5.12B | 4.73B | 3.95B | 3.67B | 3.37B | 2.98B | 2.61B |
| COGS % of Revenue | - | 63.15% | 64.09% | 66.12% | 72.35% | 72.78% | 74.56% | 74.48% | 74.71% | 76.02% | 76.8% | 76.4% | 76.66% | 77.42% | 75.66% | 75.81% | 78.09% | 78.96% | 76.85% | 77.05% | 78.29% | 77.63% | 80.8% | 82.83% | 83.21% | 79.07% | 73.76% | 73.96% | 72.7% | 72.92% | 72.91% |
| Gross Profit | 7.81B | 7.32B | 7.16B | 6.46B | 4.39B | 3.9B | 3.48B | 3.65B | 3.62B | 2.88B | 2.64B | 3B | 3.08B | 2.94B | 3.2B | 2.99B | 2.19B | 2.17B | 2.81B | 2.46B | 2.04B | 1.69B | 1.36B | 1.1B | 1.03B | 1.25B | 1.41B | 1.29B | 1.26B | 1.11B | 971.5M |
| Gross Margin % | 37.23% | 36.85% | 35.91% | 33.88% | 27.65% | 27.22% | 25.44% | 25.52% | 25.29% | 23.98% | 23.21% | 23.6% | 23.34% | 22.58% | 24.34% | 24.19% | 21.91% | 21.04% | 23.15% | 22.95% | 21.71% | 20.59% | 19.2% | 17.17% | 16.79% | 20.93% | 26.24% | 26.04% | 27.3% | 27.08% | 27.09% |
| Gross Profit Growth % | - | 2.2% | 10.8% | 47.28% | 12.33% | 12.05% | -4.64% | 1.04% | 25.4% | 9.41% | -12.12% | -2.74% | 4.96% | -8.15% | 7.14% | 36.41% | 0.94% | -22.88% | 14.31% | 20.73% | 20.46% | 23.94% | 23.98% | 6.61% | -17.49% | -10.94% | 8.81% | 2.11% | 14.15% | 14.04% | 9.65% |
| Operating Expenses | 3.43B | 3.25B | 3.26B | 3.24B | 1.57B | 1.5B | 1.5B | 1.53B | 1.6B | 1.43B | 1.34B | 1.53B | 1.6B | 1.55B | 1.52B | 1.47B | 1.27B | 1.28B | 1.36B | 1.22B | 1.04B | 860.28M | 800.2M | 721.07M | 686.49M | 679.96M | 782.31M | 752.7M | 714.8M | 645M | 566.8M |
| OpEx % of Revenue | - | 16.4% | 16.34% | 16.99% | 9.91% | 10.47% | 10.94% | 10.69% | 11.21% | 11.92% | 11.78% | 12.05% | 12.07% | 11.92% | 11.55% | 11.88% | 12.72% | 12.46% | 11.23% | 11.41% | 11.04% | 10.47% | 11.26% | 11.25% | 11.16% | 11.37% | 14.61% | 15.18% | 15.43% | 15.77% | 15.8% |
| Selling, General & Admin | 3.43B | 3.25B | 3B | 2.98B | 1.38B | 1.24B | 1.2B | 1.24B | 1.28B | 1.1B | 978.51M | 1.13B | 1.19B | 1.14B | 1.15B | 1.11B | 955.4M | 945.27M | 1.06B | 969.38M | 832.94M | 696.05M | 800.2M | 721.07M | 686.49M | 679.96M | 575.91M | 550.7M | 532.1M | 475.2M | 425.4M |
| SG&A % of Revenue | - | 16.4% | 15.07% | 15.64% | 8.7% | 8.67% | 8.79% | 8.63% | 8.92% | 9.12% | 8.61% | 8.88% | 8.97% | 8.79% | 8.77% | 8.97% | 9.56% | 9.17% | 8.74% | 9.04% | 8.87% | 8.47% | 11.26% | 11.25% | 11.16% | 11.37% | 10.75% | 11.11% | 11.48% | 11.62% | 11.86% |
| Research & Development | 298M | 240M | 253M | 258M | 191M | 259.04M | 293.84M | 294.85M | 327.88M | 336.68M | 359.8M | 403.1M | 410.1M | 406.61M | 365.7M | 359.5M | 316.18M | 338.91M | 303.1M | 253.09M | 203.7M | 164.23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 1.21% | 1.27% | 1.35% | 1.2% | 1.81% | 2.15% | 2.06% | 2.29% | 2.8% | 3.17% | 3.17% | 3.1% | 3.12% | 2.78% | 2.91% | 3.16% | 3.29% | 2.5% | 2.36% | 2.17% | 2% | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -1000K | -240M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 206.41M | 202M | 182.7M | 169.8M | 141.4M |
| Operating Income | 4.38B | 4.06B | 3.9B | 3.22B | 2.81B | 2.4B | 1.99B | 2.12B | 2.01B | 1.45B | 1.3B | 1.47B | 1.49B | 1.39B | 1.68B | 1.52B | 917.52M | 884.49M | 1.45B | 1.24B | 1B | 831.31M | 564.65M | 379.77M | 346.07M | 571.49M | 622.86M | 538.7M | 549.9M | 462.9M | 404.7M |
| Operating Margin % | 20.87% | 20.45% | 19.58% | 16.89% | 17.75% | 16.74% | 14.51% | 14.83% | 14.08% | 12.05% | 11.42% | 11.55% | 11.27% | 10.66% | 12.79% | 12.31% | 9.18% | 8.58% | 11.92% | 11.55% | 10.66% | 10.12% | 7.95% | 5.92% | 5.63% | 9.56% | 11.63% | 10.86% | 11.87% | 11.31% | 11.28% |
| Operating Income Growth % | - | 4.07% | 21.13% | 14.42% | 17.17% | 20.91% | -6.45% | 5.47% | 38.86% | 11.72% | -11.59% | -1.42% | 7.32% | -17.45% | 10.63% | 65.62% | 3.73% | -38.92% | 17.01% | 23.64% | 20.41% | 47.23% | 48.68% | 9.74% | -39.44% | -8.25% | 15.62% | -2.04% | 18.79% | 14.38% | 6.08% |
| EBITDA | 5.07B | 4.97B | 4.83B | 4.04B | 3.39B | 3B | 2.52B | 2.56B | 2.48B | 1.81B | 1.6B | 1.79B | 1.83B | 1.72B | 2B | 1.86B | 1.28B | 1.24B | 1.77B | 1.53B | 1.28B | 1.1B | 817.43M | 638.95M | 627.66M | 836.01M | 829.27M | 740.7M | 732.6M | 632.7M | 546.1M |
| EBITDA Margin % | 24.18% | 25.02% | 24.23% | 21.18% | 21.35% | 20.89% | 18.43% | 17.88% | 17.34% | 15.01% | 14.13% | 14.05% | 13.82% | 13.24% | 15.24% | 15.06% | 12.81% | 12.05% | 14.61% | 14.3% | 13.66% | 13.34% | 11.5% | 9.97% | 10.21% | 13.98% | 15.48% | 14.94% | 15.81% | 15.47% | 15.23% |
| EBITDA Growth % | 2.75% | 2.87% | 19.55% | 19.26% | 12.97% | 18.75% | -1.39% | 3.23% | 37.36% | 12.5% | -10.12% | -2.21% | 5.96% | -13.97% | 7.72% | 45.26% | 3.04% | -30.01% | 15.84% | 19.52% | 16.97% | 34.08% | 27.93% | 1.8% | -24.92% | 0.81% | 11.96% | 1.11% | 15.79% | 15.86% | 8.91% |
| D&A (Non-Cash Add-back) | 694.34M | 907M | 927.13M | 818.13M | 571.76M | 595.39M | 537.53M | 436.19M | 466.08M | 355.23M | 306.84M | 317.49M | 336.7M | 335.62M | 321.93M | 339.8M | 362.51M | 357.74M | 326.72M | 294.57M | 280.97M | 264.7M | 252.78M | 259.18M | 281.6M | 264.53M | 206.41M | 202M | 182.7M | 169.8M | 141.4M |
| EBIT | 4.61B | 4.52B | 4.1B | 3.25B | 1.87B | 2.5B | 1.82B | 2.12B | 1.92B | 1.49B | 1.25B | 1.55B | 1.64B | 1.4B | 1.67B | 1.51B | 858.42M | 790.33M | 1.43B | 1.24B | 975.72M | 805.14M | 544.14M | 370.46M | 346.07M | 571.49M | 622.86M | 538.75M | 549.9M | 462.9M | 404.7M |
| Net Interest Income | -397.79M | -398M | -491.5M | -527.89M | -255.25M | -243.04M | -277.16M | -172.14M | -198.87M | -162.44M | -136.52M | -118.1M | -82.26M | -91.55M | -92.79M | -99.7M | -103.6M | -108.87M | -99.23M | -83.33M | -75.76M | -66.87M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 7.37M | 11M | 15M | 46M | 0 | 7M | 31M | 18M | 15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 405.17M | 409M | 506.5M | 573.89M | 255.25M | 250.04M | 308.16M | 190.14M | 213.87M | 162.44M | 136.52M | 118.41M | 82.57M | 91.55M | 92.79M | 99.7M | 103.6M | 112.07M | 99M | 83.33M | 75.76M | 66.87M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -85.39M | 47M | -306.68M | -541M | -1.2B | -155.33M | -474.16M | -190.34M | -311.43M | -121.49M | -183.23M | -35.83M | 67.49M | -76.61M | -104.33M | -105.84M | -162.7M | -203.03M | -121.62M | -78.37M | -101.03M | -93.04M | -50.07M | -82.39M | -128.03M | -37.89M | -60.67M | -61.05M | -45.9M | -38.1M | -30.2M |
| Pretax Income | 4.29B | 4.11B | 3.59B | 2.68B | 1.61B | 2.25B | 1.51B | 1.93B | 1.7B | 1.33B | 1.11B | 1.43B | 1.56B | 1.31B | 1.58B | 1.41B | 754.82M | 681.45M | 1.33B | 1.16B | 899.96M | 738.27M | 494.07M | 297.38M | 218.04M | 533.6M | 562.19M | 477.7M | 504M | 424.8M | 374.5M |
| Pretax Margin % | 20.46% | 20.69% | 18.04% | 14.06% | 10.18% | 15.66% | 11.04% | 13.5% | 11.9% | 11.04% | 9.81% | 11.27% | 11.78% | 10.07% | 11.99% | 11.45% | 7.55% | 6.61% | 10.92% | 10.82% | 9.59% | 8.99% | 6.95% | 4.64% | 3.55% | 8.92% | 10.5% | 9.63% | 10.88% | 10.38% | 10.44% |
| Income Tax | 813.51M | 575M | 749.67M | 596.13M | 298.04M | 500.1M | 305.92M | 420.49M | 640.96M | 344.8M | 307.51M | 419.69M | 515.3M | 362.22M | 421.21M | 356.57M | 198.45M | 172.94M | 377.06M | 329.24M | 261.68M | 205.1M | 148.28M | 101.11M | 87.89M | 189.43M | 193.96M | 167.2M | 180.8M | 150.8M | 134.8M |
| Effective Tax Rate % | 18.94% | 14% | 20.86% | 22.25% | 18.46% | 22.26% | 20.22% | 21.75% | 37.65% | 25.95% | 27.59% | 29.3% | 33.1% | 27.63% | 26.71% | 25.22% | 26.29% | 25.38% | 28.42% | 28.4% | 29.08% | 27.78% | 30.01% | 34% | 40.31% | 35.5% | 34.5% | 35% | 35.87% | 35.5% | 35.99% |
| Net Income | 3.48B | 3.53B | 2.84B | 2.08B | 1.32B | 1.75B | 1.2B | 1.51B | 1.06B | 983.41M | 806.84M | 1.01B | 1.04B | 948.43M | 1.15B | 1.05B | 554.07M | 508.51M | 949.47M | 830.05M | 673.17M | 604.69M | 345.78M | 196.27M | 130.15M | 340.79M | 368.23M | 310.5M | 319.5M | 274M | 239.7M |
| Net Margin % | 16.58% | 17.79% | 14.27% | 10.93% | 8.29% | 12.17% | 8.78% | 10.56% | 7.42% | 8.18% | 7.1% | 7.96% | 7.88% | 7.29% | 8.76% | 8.5% | 5.54% | 4.93% | 7.82% | 7.74% | 7.17% | 7.36% | 4.87% | 3.06% | 2.12% | 5.7% | 6.88% | 6.26% | 6.9% | 6.7% | 6.68% |
| Net Income Growth % | 2.58% | 24.15% | 36.55% | 58.33% | -24.65% | 45.27% | -20.52% | 42.57% | 7.87% | 21.88% | -20.28% | -2.78% | 9.77% | -17.66% | 9.79% | 89.35% | 8.96% | -46.44% | 14.39% | 23.3% | 11.32% | 74.88% | 76.18% | 50.8% | -61.81% | -7.45% | 18.59% | -2.82% | 16.61% | 14.31% | 9.85% |
| Net Income (Continuing) | 3.48B | 3.53B | 2.84B | 2.08B | 1.32B | 1.75B | 1.21B | 1.51B | 1.06B | 983.84M | 807.22M | 1.01B | 1.04B | 948.78M | 1.16B | 1.06B | 556.37M | 508.51M | 949.47M | 830.05M | 638.28M | 533.17M | 332.08M | 191.84M | 130.15M | 344.17M | 368.23M | 310.5M | 323.2M | 274M | 239.7M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 8M | 9M | 8.92M | 11.39M | 11.91M | 15.36M | 14.55M | 6.18M | 5.63M | 5.7M | 3.42M | 3.28M | 3.38M | 3.06M | 9.21M | 104.48M | 91.44M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 27.19 | 27.12 | 21.84 | 16.04 | 10.09 | 13.35 | 9.29 | 11.48 | 7.83 | 7.25 | 5.89 | 6.97 | 6.87 | 6.26 | 7.45 | 6.37 | 3.40 | 3.13 | 5.53 | 4.68 | 3.71 | 3.35 | 1.94 | 1.12 | 0.75 | 1.97 | 2.21 | 1.89 | 1.90 | 1.64 | 1.44 |
| EPS Growth % | 4.35% | 24.18% | 36.16% | 58.97% | -24.42% | 43.7% | -19.08% | 46.62% | 8% | 23.09% | -15.5% | 1.46% | 9.74% | -15.97% | 16.95% | 87.35% | 8.63% | -43.4% | 18.16% | 26.15% | 10.75% | 72.68% | 73.21% | 49.33% | -61.93% | -10.86% | 16.93% | -0.53% | 15.85% | 13.89% | 9.09% |
| EPS (Basic) | - | 27.52 | 22.13 | 16.23 | 10.24 | 13.54 | 9.39 | 11.63 | 7.98 | 7.37 | 5.96 | 7.08 | 6.98 | 6.36 | 7.62 | 6.51 | 3.44 | 3.15 | 5.64 | 4.75 | 3.77 | 3.39 | 1.96 | 1.13 | 0.75 | 1.99 | 2.23 | 1.90 | 1.92 | 1.64 | 1.44 |
| Diluted Shares Outstanding | 128M | 130.2M | 130.24M | 129.82M | 130.36M | 130.83M | 129.81M | 131.78M | 135.43M | 135.56M | 136.91M | 145.11M | 151.44M | 151.59M | 154.66M | 164.8M | 162.9M | 162.72M | 171.64M | 177.49M | 181.28M | 180.68M | 178.24M | 175.24M | 174.31M | 172.7M | 166.87M | 164.49M | 168.07M | 168.06M | 167.02M |
| Basic Shares Outstanding | 126.2M | 128.3M | 128.51M | 128.37M | 128.54M | 129M | 128.42M | 130M | 133M | 133.38M | 135.35M | 142.93M | 149.1M | 149.22M | 151.22M | 161.13M | 160.91M | 161.56M | 168.29M | 174.64M | 178.72M | 178.2M | 176.42M | 174.21M | 172.77M | 171.54M | 165.37M | 163.34M | 166.32M | 167.07M | 166.97M |
| Dividend Payout Ratio | - | 24.38% | 27.5% | 33.8% | 43.32% | 27.21% | 37.76% | 27.27% | 34.44% | 35.12% | 42.38% | 33.63% | 26.73% | 26.89% | 20.89% | 19.64% | 29.37% | 31.77% | 14.98% | 14.61% | 16.29% | 15.32% | 25.82% | 43.73% | 63.65% | 23.45% | 20.36% | 22.38% | 20.81% | 20.66% | 22.24% |
Acquisition integration execution risk
According to recent quarterly financial statements, Parker-Hannifin achieved a notable 10.6% year-over-year revenue growth in 2026Q3, signaling a robust acceleration from the 3.7% growth observed in 2026Q1, which suggests that the company's diversified industrial and aerospace segments are successfully capturing market demand despite broader macroeconomic headwinds.
The recent uptick in top-line performance appears to be driven by a combination of pricing power and the integration of large-scale acquisitions. Investors should monitor whether this growth trajectory can be sustained as the company faces tougher year-over-year comparisons in the coming quarters.
As reported in financial filings, Parker-Hannifin has maintained a consistent gross margin profile, hovering around 36.8% in 2026Q3, which demonstrates the company's ability to preserve value-added pricing despite the inflationary pressures inherent in its complex, multi-SKU manufacturing model and global supply chain operations.
The stability of these margins suggests that the company possesses significant pricing power, likely derived from its role as a critical supplier in specialized industrial niches. This resilience indicates that the firm is effectively passing through input cost volatility to its OEM customer base.
Based on the provided income statement data, operating income reached $1.1 billion in 2026Q3, reflecting a 20.7% operating margin that highlights the company's successful efforts to scale its overhead costs efficiently while simultaneously expanding its footprint through strategic, high-value acquisitions in the aerospace and industrial sectors.
The ability to maintain operating margins above 20% while scaling revenue suggests that management is successfully capturing synergies from recent integrations. This operational discipline appears to be a core driver of the company's ability to convert top-line growth into meaningful bottom-line expansion.
As indicated by the periodic fluctuations in net income and the presence of stock-based compensation reaching $37 million in 2026Q3, Parker-Hannifin's reported earnings are subject to non-cash charges related to its aggressive acquisition strategy, which warrants careful adjustment when evaluating the company's true economic profitability.
The variance between net income and operating cash flow suggests that investors should focus on cash-based metrics to strip away the noise of acquisition-related amortization. The recurring nature of these charges implies that reported EPS may consistently understate the underlying cash-generating capacity of the business.
While the company shows strong growth, the recent revenue contraction in prior periods and the potential for integration friction from large-scale deals like Meggitt suggest that Parker-Hannifin remains vulnerable to cyclical downturns in global industrial production and the inherent execution risks of its serial acquisition strategy.
Short-sellers may focus on the potential for margin compression if volume growth stalls and the company is unable to continue passing through price increases. Furthermore, the reliance on aerospace aftermarket revenue may not fully insulate the company from a broader, sustained decline in global industrial CapEx.
Quick answers to the most common questions about buying PH stock.
For fiscal year 2025, Parker-Hannifin Corporation (PH) reported total revenue of $19.85B. This represents a 453.5% increase compared to $3.59B in 1996.
Parker-Hannifin Corporation (PH) is profitable, generating $3.53B in net income for the fiscal year ending 2025 with a net profit margin of 17.8%.
Parker-Hannifin Corporation (PH) reported an operating income of $4.06B, resulting in an operating profit margin of 20.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Parker-Hannifin Corporation (PH) generated $7.32B in gross profit for the year, representing a gross profit margin of 36.9%. This demonstrates the company's core pricing power and production efficiency.