Parker-Hannifin (NYSE:PH) Releases Quarterly Earnings Results, Beats Estimates By $0.54 EPS

Parker-Hannifin (NYSE:PH) issued its earnings results on Thursday. The industrial products company reported $7.65 earnings per share for the quarter, topping analysts’ consensus estimates of $7.11 by $0.54, FiscalAI reports. The firm had revenue of $5.17 billion during the quarter, compared to analyst estimates of $5.07 billion. Parker-Hannifin had a net margin of 17.29% and a return on equity of 27.56%. Parker-Hannifin’s revenue for the quarter was up 9.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $6.53 earnings per share.

Here are the key takeaways from Parker-Hannifin’s conference call:

• Parker reported a record Q2 — $5.2B sales, 6.6% organic growth, 150 bps segment margin expansion to 27.1%, adjusted EPS of $7.65 (+17%), operating cash flow of $1.6B, and a record backlog of $11.7B.
• Management raised full‑year guidance — organic growth to 4–6% (5% midpoint), reported sales to 5.5–7.5%, adjusted EPS to a $30.70 midpoint, adjusted segment margin to 27.2%, and free cash flow to $3.2–$3.6B with conversion >100%.
• Parker announced the acquisition of Filtration Group, expects close in 6–12 months, plans to capture about $220M of cost synergies by year three, expand filtration aftermarket share, and expects the deal to be accretive to growth, margins, EPS, and cash flow.
• Aerospace was a major driver — record Q2 sales of $1.7B, ~13.5% organic growth, a 30.2% segment margin, orders +14% and a record aerospace backlog of ~$8B, led by commercial OEM and aftermarket strength.
• Orders were strong (+9%) and positive across all businesses, improving visibility, but management notes the company is more long‑cycle today (more aerospace/filtration/engineering materials), so conversion timing from backlog to revenue remains uneven.

Parker-Hannifin Price Performance

Shares of Parker-Hannifin stock opened at $935.71 on Friday. The stock has a market cap of $118.08 billion, a price-to-earnings ratio of 34.13, a price-to-earnings-growth ratio of 3.30 and a beta of 1.25. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.61 and a current ratio of 1.18. The stock has a 50 day moving average price of $897.38 and a 200-day moving average price of $806.27. Parker-Hannifin has a one year low of $488.45 and a one year high of $965.00.

Parker-Hannifin Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, March 6th. Stockholders of record on Friday, February 6th will be issued a $1.80 dividend. The ex-dividend date is Friday, February 6th. This represents a $7.20 dividend on an annualized basis and a dividend yield of 0.8%. Parker-Hannifin’s payout ratio is 25.65%.

Key Parker-Hannifin News

Here are the key news stories impacting Parker-Hannifin this week:

• Positive Sentiment: Q2 results beat expectations — adjusted EPS $7.65 vs. consensus ~ $7.11 and revenue $5.17B vs. ~$5.07B; organic sales +6.6% and margin expansion drove better operating performance. Q2 Results
• Positive Sentiment: Company raised full‑year EPS guidance to $30.40–31.00 (vs. consensus ~30.36) and gave revenue guidance roughly $20.9B–$21.3B; management cited margin expansion and strategic moves (including the Filtration Group) as drivers of the higher outlook. Guidance & Deep Dive
• Positive Sentiment: Multiple brokers raised price targets and maintained buy/overweight views after the quarter (Jefferies, JPMorgan, Citi, Wells Fargo among others), signaling continued analyst confidence and upside potential. Analyst Raises
• Positive Sentiment: Company raised its annual profit forecast citing stronger aerospace parts demand, reinforcing the thesis that end‑market recovery is supporting sustainable earnings. Reuters: Forecast Raise
• Neutral Sentiment: Options flow shows notable institutional/large‑ticket activity — useful for short‑term positioning signals but not a directional confirmation by itself. Options Activity
• Neutral Sentiment: Technical note — PH crossed above its 20‑day moving average, a short‑term bullish sign that could attract momentum traders. Technical Note
• Neutral Sentiment: Analyst/third‑party research (Argus, Stifel coverage changes) produced mixed tone — some target increases but a few hold ratings remain, showing divergent views on valuation vs. growth. Analyst Report
• Negative Sentiment: Valuation concerns: some commentary argues PH is trading at a premium multiple after the recent rally, prompting profit‑taking by investors who see limited near‑term upside versus risk. Valuation Critique
• Negative Sentiment: Some GAAP metrics look mixed: reported net income was down year‑over‑year because the prior period included a one‑time divestiture gain — this nuance can temper enthusiasm despite strong adjusted results. GAAP vs Adjusted Note

Insider Activity at Parker-Hannifin

In related news, VP Berend Bracht sold 3,507 shares of the firm’s stock in a transaction on Wednesday, November 12th. The stock was sold at an average price of $864.58, for a total value of $3,032,082.06. Following the completion of the sale, the vice president directly owned 2,580 shares in the company, valued at $2,230,616.40. This trade represents a 57.61% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Andrew D. Ross sold 2,488 shares of the business’s stock in a transaction on Thursday, December 11th. The shares were sold at an average price of $894.81, for a total transaction of $2,226,287.28. Following the transaction, the chief operating officer owned 13,120 shares in the company, valued at $11,739,907.20. This trade represents a 15.94% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 7,432 shares of company stock worth $6,484,116. Company insiders own 0.32% of the company’s stock.

Institutional Trading of Parker-Hannifin

Several institutional investors have recently added to or reduced their stakes in the company. Sivia Capital Partners LLC grew its stake in shares of Parker-Hannifin by 3.6% during the second quarter. Sivia Capital Partners LLC now owns 430 shares of the industrial products company’s stock valued at $300,000 after buying an additional 15 shares during the last quarter. Empowered Funds LLC boosted its holdings in Parker-Hannifin by 0.5% during the 1st quarter. Empowered Funds LLC now owns 2,894 shares of the industrial products company’s stock valued at $1,759,000 after acquiring an additional 15 shares during the period. Centaurus Financial Inc. grew its position in Parker-Hannifin by 1.5% in the 3rd quarter. Centaurus Financial Inc. now owns 1,061 shares of the industrial products company’s stock valued at $804,000 after acquiring an additional 16 shares during the last quarter. First Foundation Advisors increased its stake in Parker-Hannifin by 1.7% in the third quarter. First Foundation Advisors now owns 1,171 shares of the industrial products company’s stock worth $888,000 after purchasing an additional 20 shares during the period. Finally, Johnson Financial Group Inc. increased its stake in Parker-Hannifin by 84.6% in the third quarter. Johnson Financial Group Inc. now owns 48 shares of the industrial products company’s stock worth $36,000 after purchasing an additional 22 shares during the period. Institutional investors own 82.44% of the company’s stock.

Analyst Ratings Changes

Several research analysts have commented on the stock. Robert W. Baird set a $1,050.00 price objective on shares of Parker-Hannifin in a report on Friday. Argus reiterated a “buy” rating and issued a $900.00 target price on shares of Parker-Hannifin in a research report on Monday, November 10th. JPMorgan Chase & Co. increased their price target on Parker-Hannifin from $1,083.00 to $1,100.00 and gave the company an “overweight” rating in a research note on Friday. Wells Fargo & Company lifted their price objective on Parker-Hannifin from $1,000.00 to $1,050.00 and gave the stock an “overweight” rating in a research note on Friday. Finally, KeyCorp reaffirmed an “overweight” rating and set a $1,100.00 price objective on shares of Parker-Hannifin in a report on Friday. Seventeen investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $990.47.

Parker-Hannifin Company Profile

Parker-Hannifin Corporation (NYSE: PH) is a global manufacturer and provider of motion and control technologies and systems. The company designs, manufactures and services a broad range of engineered components and systems used to control the movement and flow of liquids, gases and hydraulic power. Its product portfolio is applied across demanding environments and includes solutions for industrial manufacturing, aerospace, mobile equipment and other engineered applications.

Parker-Hannifin’s product and service offerings span hydraulic and pneumatic components, fittings and fluid connectors, valves, pumps and motors, electromechanical actuators and motion-control systems, filtration and separation products, and seals and sealing systems.