Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Parker-Hannifin's fiscal 2026 was shaped by broad-based organic sales growth, a step-up in aerospace demand, and strategic moves to reshape its portfolio through acquisitions and divestitures. Management attributed the sales increase primarily to organic growth in both segments, with total organic sales up 6.6% and Aerospace Systems organic sales up 13.4%, driven by higher commercial OEM and aftermarket volumes. A one-time benefit came from an $84 million reduction to cost of sales tied to IEEPA tariff refunds, while margin expansion was supported by higher volume and pricing. The period also saw transformative M&A, including the FGC acquisition completed after year-end and the pending CIRCOR Aerospace deal, which will increase leverage and integration risk.
Revenue
$21.5B
+8.31% YoY
EPS (Diluted)
$28.48
+5.01% YoY
Operating Income
$5.07B
+16.59% YoY
Audit Opinion: Unqualified opinion on the financial statements and internal control over financial reporting(Report of Independent Registered Public Accounting Firm)
Source: SEC XBRL
Parker-Hannifin (PH) reported FY2026 revenue of $21.5B, up 8.3% year over year. Operating margin was 23.6%, up 1.7 points from 21.9% a year earlier. Operating cash flow was $4.36B, up 15.6% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 9.27 | 8.51 | Beat +8.9% |
| Mar 2026 | 8.17 | 8.07 | Beat +1.3% |
| Dec 2025 | 7.65 | 7.39 | Beat +3.6% |
| Sep 2025 | 7.22 | 6.82 | Beat +5.8% |
Reported EPS of $9.27 versus the $8.51 analyst consensus — a +8.9% beat for Jun 2026.
2 reported segments · SEC XBRL
Segment revenue totals $21.5B, which is the $21.5B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure PH itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-K Item 7 of this filing
Organic sales growth was 6.6% for the total company, driven by Aerospace Systems organic growth of 13.4% and Diversified Industrial organic growth of 3.4%, with management citing higher commercial OEM and aftermarket volumes in Aerospace and stronger Asia Pacific demand in industrial markets.
Source: 10-K Item 7 MD&A
During Q4 fiscal 2026, the company recognized an $84 million reduction to cost of sales related to IEEPA tariff refunds received from the U.S. government, and applied for additional refunds that remain uncertain and unrecorded.
Source: 10-K Item 7 MD&A
Diversified Industrial backlog increased to $4,332 million from $3,655 million, while Aerospace Systems backlog rose to $8,498 million from $7,389 million, reflecting orders exceeding shipments across markets.
Source: 10-K Item 7 MD&A
Curtis was acquired for approximately $1.0 billion in September 2025; FGC closed after year-end for $9.25 billion, and a definitive agreement to acquire CIRCOR Aerospace for $2.55 billion is expected to close in the second half of calendar 2026, funded by new debt and cash.
Source: 10-K Item 7 MD&A
The company increased its revolving credit facility and commercial paper program to $3.75 billion, had $2.7 billion available at June 30, 2026, and reported a debt covenant ratio of 0.36 to 1.0 versus a 0.65 maximum, though post-year-end borrowings of $7.75 billion for FGC will increase leverage.
Source: 10-K Item 7 MD&A
Compiled by AI from 10-K Item 1A of this filing · 5 high, 0 medium, 0 low
The company is exposed to dynamic tariff environments, including the February 2026 U.S. Supreme Court ruling that IEEPA tariffs were unauthorized, and ongoing U.S.-China trade tensions and potential USMCA renegotiation. Changes in trade policies could increase costs, disrupt supply chains, and reduce international sales.
Source: 10-K Item 1A Risk Factors
Parker relies on a limited number of suppliers for critical components such as specialty electronics, rare earths, specialty chemicals, aerospace super alloys, and filtration media. Price fluctuations and supply interruptions could increase costs or delay production, with limited ability to pass through price increases due to contracts or competitive pressure.
Source: 10-K Item 1A Risk Factors
The company relies extensively on information technology systems, and sophisticated cyber threats, including those using AI and quantum computing, could disrupt operations, compromise sensitive data, and cause financial or reputational harm. Insurance may not cover all potential liabilities from a breach.
Source: 10-K Item 1A Risk Factors
The recent Curtis acquisition, the post-year-end FGC acquisition, and the pending CIRCOR Aerospace transaction pose integration challenges, including retaining key employees, unifying systems and cultures, and realizing anticipated synergies. Divestitures also carry risks of stranded costs and indemnification obligations.
Source: 10-K Item 1A Risk Factors
The company has incurred and expects to incur significant additional debt for acquisitions, including $7.75 billion borrowed for FGC and potential debt for CIRCOR. Higher leverage and interest expense could limit operational and financial flexibility, and covenant breaches could accelerate debt maturities.
Source: 10-K Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 21.50 $B | 19.85 $B | +8.31% |
Cost of Revenue $B | 13.40 $B | 12.54 $B | +6.88% |
Operating Income $B | 5.07 $B | 4.35 $B | +16.59% |
EPS (Basic) $ | 28.89 $ | 27.52 $ | +4.98% |
EPS (Diluted) $ | 28.48 $ | 27.12 $ | +5.01% |
R&D Expense $M | 267.00 $M | 240.00 $M | +11.25% |
SG&A Expense $B | 3.47 $B | 3.26 $B | +6.54% |
Answers draw on this SEC filing and the data on this page
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