Parker-Hannifin has delivered four consecutive earnings beats averaging 7.2% above estimates with a wide economic moat and operating margins of 17%, but the stock is richly valued at a forward P/E of 26.9x and trades at its analyst price target leaving little near-term upside.
Thesis pillars
- Wide Moat Margin Leadership→Stable
- Four Quarter Earnings Excellence→Stable
- Rich Valuation Limited Upside↑Improving
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Aug 21, 2026
Parker-Hannifin Corporation (PH) Stock Analysis
Industrials · Specialty Industrial Machinery
Sell if holding. Momentum 2.2/10 is below the 5.0 floor at $900.73 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Sector modifier (Industrials): -0.7; Earnings in 7 days (event risk).
Parker-Hannifin designs, manufactures, and supports motion and control technology solutions for aerospace & defense, industrial equipment, transportation, off-highway, energy, and HVAC & refrigeration markets in 44 countries. Its two segments — Diversified Industrial (67% of... Read more
Sell if holding. Momentum 2.2/10 is below the 5.0 floor at $900.73 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Sector modifier (Industrials): -0.7; Earnings in 7 days (event risk). Chart setup: No clear chart pattern; technical signals are mixed. Score 5.6/10, moderate confidence.
Passes 6/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and earnings proximity 7d<=7d. Suitability: moderate.
About Parker-Hannifin Corporation
About Parker-Hannifin Corporation
Parker-Hannifin generated $21.5 billion in net sales for fiscal 2026, with the Diversified Industrial segment contributing 67% and Aerospace Systems the remaining 33%. Backlog stood at $12.8 billion as of June 30, 2026, up from $11.0 billion a year earlier, with about 70% scheduled for delivery within the next twelve months. Sales from locations outside the United States held steady near 36% for the third consecutive year, and the company employed approximately 59,850 people, over half at foreign subsidiaries.
Parker-Hannifin sells highly engineered, differentiated products to original equipment manufacturers and to distributors serving the aftermarket replacement market, with the Diversified Industrial segment reaching customers through field sales employees and independent distributors worldwide and the Aerospace Systems segment selling directly to OEMs and end users through regional sales organizations for both original-equipment and aftermarket repair business on commercial and defense aircraft programs. No single product accounted for more than 1% of net sales in fiscal 2026, reflecting a base of hundreds of thousands of individual part numbers. Primary raw materials include steel, brass, copper, aluminum, nickel, rubber, and thermoplastics, which the company says are available from numerous sources, alongside electric power as its main energy input, managed partly through aggregated deregulated-market contracts. In Diversified Industrial, named competitors include Bosch Rexroth, Danaher, Danfoss, Emerson/ASCO, and SMC Corporation; in Aerospace Systems, named competitors include Honeywell Aerospace, Moog, RTX, and Woodward.
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One risk the filing quantifies with more precision than most peers: Parker-Hannifin discloses it relies on a limited number of suppliers for certain critical components — specialty electronics, rare earths, specialty chemicals, aerospace super alloys, and filtration media — and states that recent and planned acquisitions may increase its exposure to supply concentration risk rather than diversify it away. Because pricing on many contracts, including fixed-price aerospace programs, cannot always pass through raw-material cost increases to customers, a disruption at one of these limited suppliers could force a search for costlier alternatives while the company absorbs cost increases it cannot reprice.
See also: Industrials · Specialty Industrial Machinery
From Parker-Hannifin Corporation's most recent 10-K filing, extracted August 23, 2026.
Recent developments
updated 2026-10-28Recent Developments — Parker-Hannifin Corporation
Latest news
- NEWS Parker Hannifin (PH) Pulls Back, Is The Premium P E Still Justified? - Simply Wall Street — Simply Wall Street neutral
- NEWS Parker Hannifin Corp (PH) Shares Fall 4.0% -- What GF Score of 8 - GuruFocus — GuruFocus negative
- NEWS Parker-Hannifin Corporation $PH Stock Position Raised by Smith Group Asset Management LLC - MarketBeat — MarketBeat neutral
- NEWS Hilltop Holdings Inc. Cuts Stock Position in Parker-Hannifin Corporation $PH - MarketBeat — MarketBeat neutral
- NEWS Wealthfront Advisers LLC Purchases 1,795 Shares of Parker-Hannifin Corporation $PH - MarketBeat — MarketBeat positive
Generated 2026-10-28T11:48:53Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMGeographicoutside the United States36%10-K Item 1A: 'Our net sales attributable to selling locations outside of the United States were approximately 36% in each of 2026, 2025 and 2024.'
- MEDIUMSupplierspecialty electronics, rare earths, aerospace super alloys10-K Item 1A: 'We rely on a limited number of suppliers for certain critical components, such as specialty electronics, rare earths, specialty chemicals, aerospace super alloys and filtration media'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
1 floor-breaker
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Momentum 2.2/10 is below the 5.0 floor at $900.73 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Sector modifier (Industrials): -0.7; Earnings in 7 days (event risk). Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $853.23. Score 5.6/10, moderate confidence.
Analyst target: $1037.32 (+15.2% upside). Prior stop was $853.23. Stop-loss: $853.23.
Sector modifier (Industrials): -0.7; Earnings in 7 days (event risk); Negative momentum.
Parker-Hannifin Corporation trades at a P/E of 31.6 (forward 22.7). TrendMatrix value score: 4.8/10. Verdict: Sell.
35 analysts cover PH with a consensus score of 4.0/5. Average price target: $1153.
What does Parker-Hannifin Corporation do?Parker-Hannifin designs, manufactures, and supports motion and control technology solutions for aerospace & defense,...
Parker-Hannifin designs, manufactures, and supports motion and control technology solutions for aerospace & defense, industrial equipment, transportation, off-highway, energy, and HVAC & refrigeration markets in 44 countries. Its two segments — Diversified Industrial (67% of FY2026's $21.5 billion net sales) and Aerospace Systems (33%) — sell via field sales, distributors, and direct OEM ties, with about 59,850 employees.