PH AI Stock Analysis – Buy, Hold, or Avoid?
Parker-Hannifin Corporation (PH)
Fundamentals
Parker-Hannifin (PH) demonstrates consistently strong financial results, with impressive growth in both revenue and earnings, outpacing analyst expectations in consecutive quarters. Its robust operating margins, solid earnings quality, and continued execution signal a well-managed industrial powerhouse benefitting from secular trends and operational excellence.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
10.60% YoY
Q1 2026
Net Income
-5.92% YoY
Q1 2026
Net Margin
Q1 2026
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q1 2026
Net Income Growth YoY
Latest Quarter: Q1 2026
Revenue Per Share Growth YoY
Latest Quarter: Q1 2026
EPS Growth YoY
Latest Quarter: Q1 2026
Book Value Per Share Growth YoY
Latest Quarter: Q1 2026
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 5.5B | 5.2B | 5.1B | 5.2B | 5.0B | 4.7B | 4.9B | 5.2B |
| Revenue Growth YoY | +10.60% | +9.10% | +3.67% | +1.08% | -2.25% | -1.63% | +1.17% | +1.78% |
| Net Income | 904.0M | 845.0M | 808.0M | 923.2M | 960.9M | 948.5M | 698.4M | 785.0M |
| Net Income Growth YoY | -5.92% | -10.92% | +15.69% | +17.61% | +32.25% | +39.11% | +7.31% | +10.72% |
| EPS | $7.16 | $6.69 | $6.39 | $7.25 | $7.48 | $7.37 | $5.43 | $6.10 |
| EPS Growth YoY | -4.28% | -9.23% | +17.68% | +18.85% | +32.39% | +38.79% | +7.10% | +10.51% |
Profitability Metrics
Gross Margin
TTM
Operating Margin
TTM
Net Margin
TTM
Return on Equity
TTM
Return on Assets
TTM
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 36.77% | 37.32% | 37.51% | 37.34% | 36.90% | 36.50% | 36.94% | 35.94% |
| Operating Margin | 20.65% | 21.14% | 20.34% | 21.33% | 21.09% | 20.35% | 19.84% | 20.16% |
| Net Margin | 16.48% | 16.33% | 15.89% | 17.61% | 19.37% | 20.00% | 14.24% | 15.13% |
| Return on Equity (ROE) | 6.19% | 5.90% | 5.86% | 6.75% | 7.18% | 7.23% | 5.42% | 6.50% |
| Return on Assets (ROA) | 7.44% | 7.19% | 6.86% | 8.08% | 8.67% | 9.06% | 6.22% | 7.15% |
Technical Analysis
PH stock is currently in an advancing Stage 2 uptrend with institutional accumulation, indicated by a golden cross and favorable SMA positioning. The RSI is neutral and the ADX shows a moderate trend strength, suggesting cautious momentum as the price consolidates below the 50-day SMA. The overall technical picture supports a potential bullish continuation, pending confirmation of consolidation breakout.
No extreme reading
Mixed signals
Trend developing
Watching for cross
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
Parker-Hannifin (PH) demonstrates consistently strong financial results, with impressive growth in both revenue and earnings, outpacing analyst expectations in consecutive quarters. Its robust operating margins, solid earnings quality, and continued execution signal a well-managed industrial powerhouse benefitting from secular trends and operational excellence.
Latest Earnings
Q1 2026 Earnings (Mar 31, 2026)
Earnings Per Share (EPS)
Actual
$8.17
Estimated
$7.84
Surprise
+$0.33
Surprise %
+4.21%
Revenue
Actual
$5.49B
Estimated
$5.4B
Surprise
+$87.3M
Surprise %
+1.62%
Historical Earnings
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $8.17 | $7.65 | $7.22 | $7.69 | $6.94 | $6.53 | $6.20 | $6.77 |
| EPS (Estimated) | $7.84 | $7.16 | $6.62 | $7.10 | $6.72 | $6.23 | $6.14 | $6.22 |
| EPS Surprise | +$0.33 | +$0.49 | +$0.60 | +$0.59 | +$0.22 | +$0.30 | +$0.06 | +$0.55 |
| % Diff | +4.2% | +6.8% | +9.1% | +8.3% | +3.3% | +4.8% | +1.0% | +8.8% |
| Revenue | ||||||||
| Revenue (Actual) | $5.49B | $5.17B | $5.08B | $5.24B | $4.96B | $4.74B | $4.9B | $5.19B |
| Revenue (Estimated) | $5.4B | $5.07B | $4.94B | $5.12B | $4.99B | $4.81B | $4.9B | $5.08B |
| Revenue Surprise | +$87.3M | +$103.73M | +$141.37M | +$127.9M | -$27.56M | -$70.99M | +$3.91M | +$104.5M |
| % Diff | +1.6% | +2.0% | +2.9% | +2.5% | -0.6% | -1.5% | +0.1% | +2.1% |
Valuation
Parker-Hannifin (PH) currently trades at a premium valuation with a strong record of revenue growth, profit margins, and operational performance. Analyst consensus suggests upside potential, supported by solid backlog and aerospace segment strength, but recent insider selling and short-term price weakness temper enthusiasm. The valuation is reflective of growth prospects, though recent volatility suggests caution in timing.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 31.24 | 32.82 | 29.67 | 24.06 | 20.36 | 21.58 | 29.10 | 20.52 |
| Price to Sales | 20.59 | 21.44 | 18.86 | 16.95 | 15.78 | 17.27 | 16.58 | 12.42 |
| Price to Book | 7.73 | 7.75 | 6.96 | 6.49 | 5.84 | 6.24 | 6.31 | 5.34 |
| Enterprise Value to EBITDA | 107.75 | 85.79 | 77.03 | 70.03 | 66.41 | 60.66 | 74.84 | 56.14 |
| Enterprise Value to Revenue | 22.25 | 23.26 | 20.80 | 18.69 | 17.58 | 19.09 | 18.58 | 14.46 |
Sentiment & Analyst Ratings
Parker-Hannifin's sentiment landscape is mostly positive, supported by strong quarterly financial results with EPS and revenue beats, robust backlog growth, and raised full-year guidance. Despite this, short-term profit-taking has led to some negative price reactions, reflecting a classic sell-the-news dynamic and valuation concerns. Overall, strong institutional support and upbeat analyst ratings prevail, though some retail caution is visible due to recent insider selling and elevated valuation metrics.
Analyst Recommendations
Risk Assessment
Parker-Hannifin Corporation (PH) presents a moderate financial risk profile with a currently adequate but slightly strained liquidity position and manageable leverage. The company benefits from a strong backlog and rising earnings guidance, yet economic sensitivity and operational risks such as supply chain disruptions temper its risk outlook.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q1 2026
Quick Ratio
Latest Quarter: Q1 2026
Debt-to-Equity
Latest Quarter: Q1 2026
Debt-to-Assets
Latest Quarter: Q1 2026
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 1.13 | 1.18 | 1.07 | 1.19 | 1.21 | 1.06 | 0.96 | 0.93 |
| Quick Ratio | 0.66 | 0.66 | 0.61 | 0.71 | 0.70 | 0.59 | 0.57 | 0.55 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 0.66 | 0.69 | 0.75 | 0.70 | 0.70 | 0.69 | 0.79 | 0.91 |
| Debt-to-Assets | 0.31 | 0.32 | 0.34 | 0.33 | 0.32 | 0.32 | 0.34 | 0.37 |
Liquidity Assessment
Current Ratio: 1.13(Adequate)
Quick Ratio: 0.66(Weak)
The company has relatively weak liquidity and may face challenges meeting short-term obligations.
Solvency Assessment
Debt-to-Equity: 0.66(Moderate)
Debt-to-Assets: 0.31(Moderate)
The company maintains a balanced capital structure with manageable debt levels.
Frequently Asked Questions about PH
AI Answers: Common Questions About PH
Get AI-powered answers to the questions investors ask most about Parker-Hannifin Corporation
PH is a good buy for long-term investors seeking quality and growth, but the current P/E of 32.45 and price consolidation below the 50-day SMA ($934) suggest caution for new entries. The stock is trading at a premium to sector and historical averages, so waiting for a technical breakout or pullback to support ($860-$870) may offer a better entry point.
Unless your thesis has changed or you need to reduce risk, selling is not warranted—fundamentals remain strong and long-term growth is intact. However, if you are a short-term trader or uncomfortable with recent technical weakness and insider selling, consider trimming or setting stops below $856 (200-day SMA).
Key risks include a premium valuation that could compress if earnings growth slows, moderate liquidity (current ratio 1.13, quick ratio <0.7), and exposure to economic cycles and supply chain disruptions. Integration of large acquisitions and geopolitical tensions (e.g., US-China) also pose potential headwinds.
Analyst price targets average $1,010-$1,012 (14-20% upside), with technical resistance at $934.45 (50-day SMA) and $1,034.96 (52-week high). Strong support is at $856.72 (200-day SMA); a breakout above $934 would be bullish, while a drop below $856 could signal further downside.
PH is fairly valued to slightly overvalued, with a P/E of 32.45, elevated EV/EBITDA, and high price-to-sales relative to sector norms. The premium is justified by strong growth and margins, but leaves little room for error if growth expectations are not met.
Fundamentals are robust: revenue up 6-7% YoY, EPS up 20%+, operating margins above 21%, and ROE at 22%. Cash flow is strong, earnings quality is high, and the balance sheet is manageable, though liquidity is somewhat tight.
Technically, PH is consolidating below the 50-day SMA ($934.45) with neutral RSI (38) and moderate trend strength (ADX 21); a breakout above $934 would confirm bullish momentum, while support is strong at $856.72. No clear pattern suggests waiting for confirmation before new trades.
Key catalysts include upcoming earnings (with a history of beats and raised guidance), integration progress on the Filtration Group acquisition, and macro trends in automation and aerospace. Watch for volume spikes and technical breakouts as signals for renewed momentum.
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