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Parker-Hannifin Corporation

Next est. report 2026-11-05 · BMO

AI '25: Data Owners AI '25: Platform Data Flywheel Humanoid '25: Motion Control Modern Warfare '26: Tier 1 Suppliers

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Overview

Parker-Hannifin Corporation provides advanced motion and control technologies, systems, and components globally for mobile, industrial, and aerospace markets. W

Parker-Hannifin Corporation provides advanced motion and control technologies, systems, and components globally for mobile, industrial, and aerospace markets. With the recent Filtration Group acquisition, its portfolio is now approximately 65% Aerospace, Engineered Materials, and Filtration. Parker-Hannifin sells to original equipment manufacturers and through distributors for diverse applications, including commercial and military aircraft.

Key Inputs And Sourcing

1. Steel

commodity · HR_STEEL_US · Global · unknown

Source Principal raw material for industrial and aerospace components.

Confidence: medium

2. Aluminum

commodity · ALUMINUM_LME · Global · unknown

Source Principal raw material for industrial and aerospace components.

Confidence: medium

3. Copper

commodity · COPPER_LME · Global · unknown

Source Principal raw material for electrical and fluid handling components.

Confidence: medium

4. Rubber/Elastomers

commodity · RUBBER_FUTURES · Global · unknown

Source Principal raw material, critical for seals, hoses, and O-rings.

Confidence: medium

5. Thermoplastic Materials/Plastics

commodity · PLASTICS_FUTURES · Global · unknown

Source Principal raw material for various molded components and filtration media.

Confidence: medium

6. Electronic Components

component · Global · unknown

Source Essential for control technologies, sensors, electromechanical systems, and acquired electrification capabilities.

Confidence: medium

7. Direct Manufacturing Labor

labor · Global · unknown

Source Explicitly mentioned as a cost input and a focus for productivity improvements.

Confidence: high

8. Logistics/Freight

logistics · Global · unknown

Source Explicitly mentioned as a cost input and included in cost of sales.

Confidence: high

9. Electric Power

energy · ELECTRICITY_PRICE · Global · unknown

Source Primary energy source for manufacturing operations.

Confidence: high

10. Specialty Chemicals/Coatings

commodity · Global · unknown

Source Principal raw material, used for surface treatments, bonding, and engineered materials.

Confidence: medium

Industry Publications

[]

Economic Data Watch

1. Stockholm International Peace Research Institute (SIPRI) / IHS Jane's Defence Budgets — Global Defense Spending

Metric/field Global Defense Spending (Year-over-Year % Change)

Cadence annually|quarterly

Why it matters Accelerating growth indicates increased demand for military hardware and services, directly benefiting Tier 1 suppliers like Parker-Hannifin's Aerospace segment. A slowdown signals potential headwinds for the sector and reduced procurement.

Signal to watch Increasing growth

Confidence: high

2. Federal Reserve Economic Data (FRED) — Industrial Production

Metric/field Industrial Production Index (IP Index, Series ID: INDPRO)

Cadence monthly

Why it matters A broad indicator of manufacturing, mining, and utility output, reflecting overall industrial demand relevant to Parker-Hannifin's Diversified Industrial segment.

Signal to watch Sustained month-over-month increases

Confidence: high

3. ACT Research — North American Commercial Vehicle Outlook

Metric/field North American Class 8 Truck Net Orders (Units)

Cadence monthly

Why it matters Directly impacts Parker-Hannifin's transportation vertical, particularly the heavy-duty truck market, which is a key driver for industrial growth.

Signal to watch Positive year-over-year growth in orders

Confidence: high

4. U.S. Census Bureau — Construction Spending

Metric/field Total Construction Spending (Millions of Dollars, Seasonally Adjusted Annual Rate, Series ID: W80000)

Cadence monthly

Why it matters Reflects activity in the construction end market, which is a component of Parker-Hannifin's industrial business, driven by infrastructure spend.

Signal to watch Consistent month-over-month increases

Confidence: medium

5. Institute for Supply Management (ISM) — Manufacturing PMI

Metric/field Purchasing Managers' Index (PMI)

Cadence monthly

Why it matters A leading indicator for the health of the manufacturing sector, impacting overall industrial demand and sentiment for Parker-Hannifin's diversified industrial businesses.

Signal to watch PMI consistently above 50, indicating expansion

Confidence: high

Free Alt Data Watch

1. Google Trends — Search Interest

Metric/field Search interest for 'aerospace actuation systems' (5-year trend, worldwide)

Cadence daily

Why it matters Reflects general public and industry interest in a key product area for Parker-Hannifin's Aerospace segment, indicating potential demand trends.

Signal to watch Increasing trend

Confidence: medium

2. USASpending.gov — Federal Contract Awards

Metric/field Contract awards for 'Parker-Hannifin' (Award Amount, Awarding Agency, Description)

Cadence daily|weekly

Why it matters Provides real-time insight into direct defense spending and new program awards for Parker-Hannifin, a Tier 1 supplier to the defense industry.

Signal to watch Increase in contract value and frequency

Confidence: high

3. Reddit (r/DefenseIndustry) — Forum Activity

Metric/field Daily/Weekly post and comment volume related to 'defense contracts' or 'military aircraft'

Cadence daily|weekly

Why it matters Gauges community sentiment and discussion volume around key defense market drivers, which can precede official announcements or market shifts.

Signal to watch Sustained increase in relevant discussion

Confidence: low

4. Parker-Hannifin Investor Relations — Earnings Reports/Presentations

Metric/field Reported Rolling 12-month Industrial Order Rates (Year-over-Year % Change)

Cadence quarterly

Why it matters Directly reported by the company as a key indicator for near-term organic sales growth in the industrial segment, aligning with their new reporting method.

Signal to watch Positive and accelerating year-over-year growth

Confidence: high

5. Boeing/Airbus Official Websites/Press Releases — Production Announcements

Metric/field Announced Commercial Aircraft Production Rate Changes (Units per month)

Cadence event_driven

Why it matters Directly impacts Parker-Hannifin's commercial aerospace OEM business and backlog, as they supply components for these aircraft.

Signal to watch Announcements of increased production rates

Confidence: high

Paid Alt Data Watch

1. Thinknum Alternative Data — Job Postings

Metric/field Number of unique job postings for 'Aerospace Engineer' at Parker-Hannifin (Weekly/Monthly)

Cadence weekly|monthly

Why it matters Indicates R&D investment, capacity expansion, and strategic focus within the high-growth Aerospace segment, signaling future growth areas.

Signal to watch Sustained increase in postings

Confidence: medium

2. ImportGenius/Panjiva — Global Trade Data

Metric/field Shipping records for Parker-Hannifin (Total TEUs, specific HS codes for hydraulic/pneumatic components, aerospace parts) (Monthly)

Cadence monthly

Why it matters Provides insight into manufacturing activity, supply chain health, and global demand for Parker-Hannifin's products by tracking physical shipments.

Signal to watch Increasing import/export volumes

Confidence: medium

3. Revelio Labs — Workforce Intelligence

Metric/field Total Employee Count for Parker-Hannifin (Quarterly) and Employee Attrition Rate (Quarterly)

Cadence quarterly

Why it matters Offers insights into labor stability, hiring trends, and overall operational capacity, which are critical for sustained production and growth.

Signal to watch Increasing employee count, stable or decreasing attrition

Confidence: medium

4. Placer.ai — Foot Traffic Data

Metric/field Aggregate foot traffic to top 5 industrial distributor locations (e.g., Grainger, Fastenal) in key industrial regions (Weekly/Monthly)

Cadence weekly|monthly

Why it matters Indirectly gauges broader industrial activity and the health of Parker-Hannifin's distribution channel, as distributors are key for their industrial sales.

Signal to watch Increasing foot traffic

Confidence: low

5. Price Intelligence Platform (e.g., Salsify, DataWeave for B2B) — E-commerce Product Pricing

Metric/field Average listed price for key Parker-Hannifin industrial components on major distributor e-commerce sites (Monthly)

Cadence monthly

Why it matters Monitors pricing power, competitive landscape, and demand signals for Parker-Hannifin's industrial products in the digital channel.

Signal to watch Stable or increasing average prices

Confidence: medium

Search Keywords Brand Product

motion control systems
fluid power systems
aerospace hydraulic equipment
filtration technologies
electromechanical controls
thermal management
liquid cooling systems
hoses
couplings
manifolds
fittings
actuators
valves
pumps
sealing solutions
braking systems
fuel systems
industrial manufacturing
aerospace and defense
electrification solutions
data center infrastructure
aftermarket services
operational excellence
global supply chain

Search Keywords Event Phrases

Parker-Hannifin earnings
Parker-Hannifin guidance
Filtration Group acquisition
CIRCOR aerospace acquisition

What They Do (Plain English & Analogies): Parker-Hannifin is like a master engineer for anything that moves or needs precise control. Imagine a car, an airplane, or a factory machine. Parker makes many of the hidden but crucial parts that allow these things to operate smoothly and efficiently. This includes things like the "muscles" (hydraulics and pneumatics) that make heavy machinery lift or push, the "veins and arteries" (fluid systems) that carry liquids and gases, the "nervous system" (electromechanical controls) that directs movement, and the "filters" that keep everything clean and running well. They serve both the original builders of these machines (OEMs) and also provide parts for maintenance and repair (aftermarket).
Very Brief History: Founded in Cleveland, Ohio, in 1917 by Arthur L. Parker, Parker-Hannifin Corporation started as Parker Appliance Company. It has grown over more than a century to become a global leader in motion and control technologies, becoming publicly traded on the NYSE in 1964. The company has expanded significantly through strategic acquisitions, including Clarcor (filtration systems) in 2016, Lord Corporation (adhesives, coatings, vibration technologies) in 2019, Meggitt (aerospace and defense) in 2021, and more recently, Curtis Instruments (electrification), Filtration Group Corporation, and CIRCOR's commercial aerospace and defense business.
"Street Stereotype": The "Street stereotype" for Parker-Hannifin is that of a highly efficient, well-managed industrial company consistently delivering strong financial performance, particularly in margins and cash flow. Investors perceive it as a reliable performer, often exceeding its own ambitious targets, driven by its "The Win Strategy" business system. There's a strong focus on its Aerospace segment as a key growth driver, with an increasing appreciation for its portfolio transformation towards longer-cycle, more resilient end markets and aftermarket exposure, reducing overall cyclicality. The market is currently focused on the durability of its record margins and the successful integration of recent large acquisitions.
Subsidiaries On Linked In*: Curtis Instruments — Acquired September 2025
Filtration Group Corporation — Pending acquisition announced November 2025
CIRCOR's commercial aerospace and defense business — Pending acquisition announced May 2026
Parker Meggitt — Acquired September 2022
Lord Corporation — Acquired 2019
Clarcor — Acquired 2016
Helac — Subsidiary
Clark Filter — Subsidiary
Exotic Metals Forming Company — Acquired 2019
Total Filtration Services — Subsidiary
Oildyne — Division, acquired via Commercial-Intertech
Advanced Atomization Technologies — Joint venture with GE Aviation
Customer Sectors & Example Clients: Customer sectors include mobile applications (e.g., heavy-duty trucks, off-highway equipment like construction and mining, agriculture, automotive), industrial operations (e.g., manufacturing, packaging, processing, in-plant and industrial equipment, electronics, data centers), aerospace (commercial OEM, commercial aftermarket, defense OEM, defense MRO), climate control (HVAC and refrigeration, commercial HVAC, residential business), energy (gas turbine power generation, oil and gas), and life sciences and medical. Specific clients mentioned or implied include Airbus, GE Aviation (through a joint venture), Rolls-Royce, Commercial Aircraft Corporation of China (COMAC), Indian Oil Corporation Limited, and the US Naval Supply Systems Command Weapon Systems Support.
New Customers / Segments They'Re Targeting: Parker-Hannifin is actively targeting enhanced electrification capabilities, strengthened by the acquisition of Curtis Instruments. They are also expanding into broader filtration markets through the pending acquisition of Filtration Group Corporation, which will significantly increase their proprietary filtration offerings and aftermarket presence. The pending acquisition of CIRCOR's commercial aerospace and defense business aims to add complementary flight-critical capabilities. Additionally, data centers represent a growing segment, where Parker provides liquid cooling systems, thermal management solutions, and related components.
Sales Geographies And Expansion Plans: Parker-Hannifin operates globally, with sales in North America and International regions, including Asia Pacific, EMEA (Europe, Middle East, Africa), and Latin America. The company's strategic acquisitions, such as Filtration Group Corporation and CIRCOR's commercial aerospace and defense business, are aimed at building its portfolio and expanding its offerings, which inherently implies expanding reach within existing and new customer segments globally. The Filtration Group acquisition is expected to create one of the largest industrial filtration businesses in the world. The company has also invested in capacity expansion over the last couple of years and has further expansion planned for the current year.
How Key Themes May Help/Hurt: The **Modern Warfare '26: Tier 1 Suppliers** theme is a significant tailwind for Parker-Hannifin. Its Aerospace Systems segment directly benefits from increased global defense spending, platform modernization, and a robust aftermarket for military aircraft components and systems. The acquisition of CIRCOR's commercial aerospace and defense business further strengthens this exposure. However, persistent supply chain constraints, geopolitical instability, and execution risks in complex defense programs could pose headwinds. The **AI '25: Data Owners** and **AI '25: Platform Data Flywheel** themes may indirectly help Parker through its growing exposure to data centers, where its precision control and thermal management solutions are critical for the physical infrastructure supporting AI. The **Humanoid '25: Motion Control** theme presents a long-term opportunity, as Parker's expertise in actuators, hydraulics, pneumatics, and electromechanical systems positions it as a potential key supplier for the motion control components required by humanoid robots as they move towards widespread deployment.

3 Main Long-Term Bull Details

Parker-Hannifin has a proven track record of achieving and raising its adjusted segment operating margin targets, reaching a record 27.3% in FY26 and setting a new, ambitious target of 30% by FY31, driven by its operational excellence framework, "The Win Strategy."
The company is strategically transforming its portfolio through significant acquisitions like Curtis Instruments, Filtration Group Corporation, and CIRCOR's aerospace and defense business, enhancing its exposure to longer-cycle secular trends, increasing aftermarket presence, and building a suite of interconnected, proprietary technologies that are expected to lower cyclicality and expand its total addressable market.
The Aerospace and Defense segment consistently delivers strong organic growth (four consecutive years of double-digit growth) and boasts a record backlog of $8.5 billion, providing a stable and high-growth revenue stream that is further bolstered by increasing defense budgets and sustained demand in commercial OEM and aftermarket.

3 Main Long-Term Bear Details

While strategic, the significant capital deployment for recent acquisitions, totaling nearly $12 billion for Filtration Group and CIRCOR's aerospace and defense business, introduces M&A integration risks, potential operational disruptions, and increased leverage that the company aims to reduce over the next six quarters.
Despite diversification efforts, portions of the industrial business, particularly in sectors like agriculture and automotive, remain susceptible to macroeconomic downturns and cyclical pressures, which could offset growth in other segments and impact overall financial performance.
Persistent supply chain constraints, including material availability issues, product cost inflation, and labor shortages, continue to pose challenges, potentially impacting production rates, profitability, and free cash flow conversion by delaying the full realization of demand.

Competitors And Differentiation: Parker-Hannifin competes with hundreds of companies worldwide. Key competitors in industrial markets include Bosch Rexroth, Danaher, Danfoss, Donaldson, Emerson, Festo, Freudenberg-NOK, Gates, IMI/Norgren, SMC, Swagelok, Trelleborg, Johnson Electric, Atlas Copco, Chicago Pneumatic, Ingersoll Rand, and Kaeser. In aerospace markets, competitors include Crane Co., Eaton, Honeywell, Moog, RTX, Safran, Senior, Triumph, and Woodward. Parker differentiates itself through its broad portfolio of advanced motion and control technologies, its "The Win Strategy" business system driving operational excellence, and its focus on interconnected and proprietary technologies, which is further strengthened by strategic acquisitions.
Recent Performance & What The Market'S Focused On: Parker-Hannifin delivered record performance in fiscal year 2026, with sales of $21.5 billion, organic growth of 6.6%, and adjusted segment operating margin reaching a record 27.3%. Adjusted EPS increased 18% to a record $32.31, and cash flow from operations was a record $4.4 billion. For fiscal year 2027, the company forecasts reported sales growth of 5.5% to 8.5% (7% at midpoint), aiming for approximately $23 billion in annual sales, and organic growth of 5.5% to 8.5% (7% at midpoint). Adjusted segment operating margins are guided to 27.7% at the midpoint, with adjusted EPS of $34.75 at the midpoint (an 8% increase). The market is focused on the durability of these record margins, the achievement of the new FY31 adjusted segment operating margin target of 30%, the successful integration of the Filtration Group and CIRCOR aerospace acquisitions, and signs of a sustained, broadening recovery in the industrial segment.

Revenue Segments And Estimated Mix: Diversified Industrial — Mix: ~67%; Source: FY26 net sales; Trend: Includes North American and International businesses. Post-acquisitions, the combined Aerospace, Engineered Materials, and Filtration technology platforms are expected to represent ~65% of pro forma sales, indicating a shift in the overall portfolio mix towards these areas, with other industrial businesses making up the remainder.
Aerospace Systems — Mix: ~33%; Source: FY26 net sales; Trend: Expected to contribute significantly to pro forma sales growth with recent acquisitions.
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Bull / Bear Details

Parker-Hannifin is demonstrating exceptional operational execution, achieving record FY26 performance and raising its FY31 adjusted segment operating margin tar

Thesis

Parker-Hannifin is demonstrating exceptional operational execution, achieving record FY26 performance and raising its FY31 adjusted segment operating margin target to 30%. Strategic acquisitions are transforming its portfolio towards resilient, longer-cycle markets, while a broadening industrial recovery and sustained aerospace strength underpin a robust FY27 outlook, making the bullish case compelling as of 2026-09-05.

Bull case

Parker-Hannifin has significantly raised its adjusted segment operating margin target to 30% by fiscal year 2031, after achieving its previous FY29 target early. This ambitious new goal, supported by the proven Win Strategy and operational excellence, signals strong confidence in continued margin expansion across all business segments, driving superior profitability.
Strategic acquisitions, including Filtration Group and CIRCOR's aerospace business, are materially transforming Parker's portfolio. These deals increase exposure to longer-cycle secular trends and resilient end markets, with Aerospace, Engineered Materials, and Filtration now representing approximately 65% of pro forma sales, enhancing aftermarket opportunities and lowering cyclicality.
The company forecasts 7% organic growth for FY27, with positive sales growth across all market verticals for the first time. This includes a broadening recovery in industrial markets, driven by automation and strong distribution orders, coupled with sustained high single-digit organic growth in the Aerospace segment, supported by a record $12.8 billion backlog.

Bear case

The pending acquisitions of Filtration Group and CIRCOR's aerospace business, while strategic, introduce integration complexities and will temporarily increase the company's leverage. Management anticipates it will take approximately six quarters to reduce net debt to adjusted EBITDA back to 2x, posing a near-term financial and execution risk.
Despite an overall broadening industrial recovery, specific end markets such as agriculture and automotive are expected to remain soft or experience lower growth in FY27. Additionally, the oil and gas vertical is forecasted to be flat, potentially tempering the overall pace and breadth of industrial segment growth.
The transition to rolling 12-month order rates for the Industrial segment, while intended to provide a stronger correlation to near-term sales, could introduce a period of investor adjustment and potentially obscure short-term trends. Furthermore, tougher year-over-year comparisons in the second half of FY27 may moderate reported growth rates.

Bull / Bear Case

Bear Case: Despite strong performance, Parker-Hannifin faces near-term financial and execution risks due to its significant capital deployment for recent acquisitions, totaling nearly $12 billion for Filtration Group and CIRCOR's aerospace and defense business. Management anticipates it will take approximately six quarters to reduce net debt to adjusted EBITDA back to 2x, introducing integration complexities and increased leverage. While an overall industrial recovery is broadening, specific end markets such as agriculture and automotive are expected to remain soft or experience lower growth in FY27. Additionally, the oil and gas vertical is forecasted to be flat, potentially tempering the overall pace and breadth of industrial segment growth. The transition to rolling 12-month order rates for the Industrial segment, while intended to provide clearer correlation to sales, could introduce a period of investor adjustment and potentially obscure short-term trends, especially with tougher year-over-year comparisons expected in the second half of FY27.
Bull Case: Parker-Hannifin is demonstrating exceptional operational execution, achieving record fiscal year 2026 performance with sales of $21.5 billion and adjusted segment operating margin of 27.3%. The company has significantly raised its adjusted segment operating margin target to 30% by fiscal year 2031, a testament to its proven 'Win Strategy' and confidence in continued profitability. Strategic acquisitions, including Filtration Group and CIRCOR's aerospace business, are transforming its portfolio, increasing exposure to longer-cycle secular trends and resilient end markets, with Aerospace, Engineered Materials, and Filtration now representing approximately 65% of pro forma sales. The company forecasts 7% organic growth for FY27, with positive sales growth across all market verticals for the first time, underpinned by a broadening industrial recovery, strong distribution orders, and sustained high single-digit organic growth in the Aerospace segment, supported by a record $12.8 billion backlog.
More Compelling & Why: Bear. Parker-Hannifin's current P/E ratio of approximately 35.21 is significantly above its historical averages (e.g., 10-year average of 23.08) and the broader S&P 500 Industrials sector average of 27.80, indicating a stretched valuation. The strongest argument for the bear case is that despite excellent operational execution and a strong outlook, the market has already priced in much of this upside, leaving limited room for further appreciation without a substantial re-rating. My view would flip to bullish if the P/E ratio were to normalize closer to its historical average, perhaps below 28x, or if the company demonstrated an even more aggressive acceleration in organic growth and margin expansion beyond current ambitious targets.

Key Factors5 rows

Key Factor	Why It Matters	What To Watch	What It Signals	Where/How To Track	Free Alt Data	Paid Alt Data
Completion of Filtration Group Corporation and CIRCOR's commercial aerospace and defense business acquisitions	These strategic acquisitions are central to Parker's portfolio transformation, expanding into higher-growth, more resilient end markets and enhancing electrification and flight-critical capabilities, directly impacting future sales and margin targets.	Official announcements regarding the closing of Filtration Group Corporation and CIRCOR's commercial aerospace and defense business. Management expects both to close in the second half of calendar year 2026 (first half of FY27).	Bullish: Timely closing of both acquisitions without significant regulatory hurdles or revised terms. Bearish: Delays beyond H2 2026 or unexpected regulatory issues/changes to deal terms.	Company press releases, SEC filings (8-K), Parker-Hannifin investor relations website.	Industry news outlets (e.g., Reuters, Bloomberg, Wall Street Journal) for M&A updates.	S&P Global Market Intelligence: M&A transaction status updates.
Aerospace Organic Growth and Backlog Conversion	Aerospace is a consistent high-growth, high-margin driver for Parker, with a record backlog providing significant revenue visibility. Sustained double-digit organic growth and efficient backlog conversion are critical for overall performance.	FY27 guidance for Aerospace organic growth is high single-digits (8.5% at midpoint). Watch for actual reported organic growth in subsequent quarters relative to this guidance. Monitor changes in the $8.5 billion record backlog.	Bullish: Organic growth consistently at or above 8.5% and stable or increasing backlog. Bearish: Organic growth falling below 8.5% or significant reduction in backlog without corresponding revenue recognition.	Parker-Hannifin quarterly earnings reports and conference call transcripts.	Boeing and Airbus delivery reports, US Department of Defense (DoD) contract awards (USASpending.gov).	Teal Group: Aerospace market forecasts and build rate analysis.
Broadening Industrial Recovery and Distribution Channel Health	The industrial segment is Parker's largest, and a sustained, broad-based recovery, moving beyond 'gradual,' would significantly de-risk the investment thesis and provide a strong tailwind for overall growth.	Management commentary on distribution orders, customer demand acceleration, and any signs of a full channel restock in future earnings calls. Specific vertical performance (e.g., in-plant, construction, heavy-duty truck).	Bullish: Management explicitly calls for a full channel restock or reports sustained double-digit distribution order growth. Continued positive commentary on broadening recovery. Bearish: Reversion to 'gradual recovery' or renewed softness in distribution orders.	Parker-Hannifin quarterly earnings reports and conference call transcripts.	ISM Manufacturing PMI (specifically new orders and inventories), regional Federal Reserve manufacturing surveys.	Channel checks with industrial distributors (e.g., through expert networks), supply chain intelligence platforms.
Industrial Segment Rolling 12-Month Order Rates	This new reporting metric, starting in FY27, provides a more accurate and less volatile indicator of near-term organic sales growth for Parker's largest segment, reflecting its transformed portfolio and longer-cycle end markets.	The reported rolling 12-month order rates for the Industrial segment in subsequent earnings calls, starting with Q1 FY27 (expected around November 2026). Compare to Q4 FY26 exit rate of +9% for North America and +10% for International.	Bullish: Sustained or accelerating rolling 12-month order growth above Q4 FY26 levels (e.g., >9% NA, >10% International). Bearish: Significant deceleration or negative trend in rolling 12-month order growth.	Parker-Hannifin quarterly earnings reports and conference call transcripts.	Industry association reports for manufacturing new orders (e.g., ISM Manufacturing PMI new orders sub-index).	Wolfe Research: Industrial distribution channel checks.
Adjusted Segment Operating Margin Progression towards FY31 Target	Parker has a strong track record of margin expansion driven by its Win Strategy. Achieving the new, ambitious 30% target by FY31 is a key long-term value driver, and consistent quarterly progress is essential.	Reported adjusted segment operating margin in each quarter. FY27 guidance midpoint is 27.7%. Watch for expansion across all businesses as guided.	Bullish: Quarterly adjusted segment operating margin consistently expanding and meeting or exceeding FY27 guidance (e.g., >27.7%). Bearish: Margin compression or failure to meet guided expansion, particularly in industrial segments.	Parker-Hannifin quarterly earnings reports and conference call transcripts.	Peer company earnings reports (Eaton, ITT, Moog) for sector-wide margin trends.	Bloomberg Terminal: Consensus analyst estimates for PH margins.

Key Reported Metrics, Reratings Triggers & Results3 rows

This new reporting metric for FY27 is a leading indicator for industrial sales, reflecting the 'broadening recovery' and demand acceleration. Its performance wi

Upcoming print · 2026-11-05

Key reported metrics
Metric	Last period	Why it matters
Industrial Segment Rolling 12-Month Order Rates	12%	This new reporting metric for FY27 is a leading indicator for industrial sales, reflecting the 'broadening recovery' and demand acceleration. Its performance will signal the health of Parker's largest segment.
Organic Growth	8%	Organic growth is a primary indicator of the company's top-line health and market demand. The FY27 guide of 7% (midpoint) and the expectation of positive growth across all verticals for the first time are key for investor sentiment.
Adjusted Segment Operating Margin	4.09%	This metric is central to Parker-Hannifin's profitability and its new, ambitious FY31 target of 30%. Continued expansion demonstrates the effectiveness of its 'Win Strategy' and operational excellence, driving investor confidence.

Key Questions

Can Parker-Hannifin's Aerospace segment sustain its high single-digit organic growth (8.5% midpoint for FY27) and strong backlog conversion, or will the high ba

Can Parker-Hannifin's Aerospace segment sustain its high single-digit organic growth (8.5% midpoint for FY27) and strong backlog conversion, or will the high base and potential build rate fluctuations temper its performance over the next quarter?

Question 2: Will the broadening industrial recovery, particularly in North America and distribution channels, translate into sustained volume-driven organic growth above the 6.5% FY27 midpoint, or will a full channel restock remain elusive?
Question 3: Can Parker-Hannifin successfully integrate the recently closed Filtration Group acquisition and the pending CIRCOR aerospace and defense business, while continuing to expand adjusted segment operating margins towards its new 30% FY31 target, particularly as industrial businesses are expected to drive a greater clip of this expansion?

Earnings Transcript SummaryTable

2026-08-06 · 2026Q4 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Achieving and raising adjusted segment operating margin targets: Management is highly focused on expanding margins, having surpassed their FY29 target early and setting a new, higher target of 30% by fiscal year '31. This is driven by their 'Win Strategy' and operational excellence. 2. Strategic capital deployment through acquisitions: The company is actively deploying capital through strategic acquisitions like Curtis Instruments, Filtration Group Corporation, and CIRCOR's commercial aerospace and defense business to build its portfolio of interconnected technologies, enhance electrification capabilities, and expand filtration and flight-critical offerings. 3. Operational excellence and safety: Management emphasized achieving top quartile safety performance and record sales, adjusted segment operating margin, adjusted EPS, and cash flow from operations, attributing these successes to their proven business system, 'The Win Strategy', and the dedication of their global teams.	Call Takeaway & ToneThe overall takeaway from Parker-Hannifin's Fiscal 2026 Fourth Quarter and Full Year Earnings Call was overwhelmingly positive and confident. The company reported record-setting performance across sales, organic growth, adjusted segment operating margin, adjusted EPS, and cash flow from operations for both the quarter and the full fiscal year. Management highlighted the early achievement of their FY29 margin target and the setting of an ambitious new target of 30% by FY31, underpinned by strategic acquisitions and the effectiveness of 'The Win Strategy'. The industrial business showed signs of a broadening recovery, while aerospace continued its strong double-digit growth. The tone was highly optimistic, with both management and analysts acknowledging the company's exceptional results and strong outlook.	Prior Quarter'S Y/Y Growth By SegmentTotal organic growth (FY26 Q3): 6.5%. North American businesses organic growth (FY26 Q3): nearly 3%. International businesses organic growth (FY26 Q3): 3% (Asia Pacific: 10%, EMEA: flat, Latin America: down). Aerospace organic growth (FY26 Q3): 14.2%.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Acquisition Status and Future M&A Appetite: Analysts inquired about the final hurdles for the Filtration Group and CIRCOR acquisitions and the company's appetite for further deals in FY27. Management responded that there were no major hurdles, anticipating both closings in the second half of the calendar year, subject to customary conditions. They also stated that while the pipeline work never stops, the focus would be on integrating the current acquisitions, and leverage would take about six quarters to return to 2x, indicating a more measured approach to new deals. 2. Industrial Order Strength and Outlook: Analysts pressed for more color on the strong industrial order rates, particularly in international and North American businesses, asking about drivers, sustainability, and whether it signaled a broader recovery or restock. Management explained that international strength was driven by electronics and in-plant demand, with Asia Pacific leading. North America saw broad-based strength across various verticals, and while distribution orders were strong, they were not yet calling for a full channel restock. They clarified that the growth was primarily volume-driven with a return to a normal pricing environment. 3. New FY31 Margin Target and Aerospace Growth Algorithm: Analysts questioned the confidence behind the new 30% adjusted segment operating margin target by FY31 and the long-term growth trajectory for the Aerospace segment. Management expressed great confidence, citing the team's alignment, the strength of 'The Win Strategy', and the company's track record. They indicated that all businesses would contribute to margin expansion, with industrial businesses expected to expand at a greater clip than aerospace, and forecasted high single-digit growth for aerospace through the FY31 period, including contributions from the CIRCOR acquisition.	Revenue SegmentsTotal organic growth: 8%. North American businesses organic growth: approximately 5%. International businesses organic growth: 6.5% (Asia Pacific: 16%, EMEA: 1%, Latin America: -3%). Aerospace organic growth: 13.4%.

Transcript TidbitsTable

2026-08-06

About Expanding Eligible Market	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)
About Expanding Eligible MarketParker-Hannifin enhanced its electrification capabilities with the acquisition of Curtis Instruments, completed last September. The pending acquisition of Filtration Group Corporation expands the company's offering of proprietary filtration technologies and is expected to increase its filtration aftermarket by 500 basis points. Additionally, the pending acquisition of CIRCOR's commercial aerospace and defense business will add complementary flight-critical capabilities. These strategic acquisitions have transformed Parker's portfolio, with technology platforms now representing approximately 65% of pro forma sales, providing greater exposure to longer-cycle secular trends and more resilient end markets. The company's data center business is also growing, now representing about 1.5% of sales, up from 1%, and involves providing liquid cooling systems and subsystem components.	About The Broader IndustryThe industrial sector is experiencing a broadening recovery with gradually accelerating customer demand, led by spending on automation. The aerospace industry continues to see strong demand, with aircraft demand still greater than supply, and wide-bodies growing to meet international traffic demand. The defense industry is benefiting from increasing budgets globally, with sustained demand for legacy and missile programs and F-35 deliveries at peak. In transportation, strong growth for heavy-duty trucks is driven by production rate increases, although this is offset by lower growth assumptions for the automotive business. Construction and mining show continued strong growth, while agriculture remains soft. The energy vertical sees strong and sustained long-cycle growth from gas turbine power generation, with oil and gas expected to be flat. Commercial HVAC is leading growth in the HVAC and refrigeration sector, with residential business improving as inventories stabilize.	Where Things Are HeadedParker-Hannifin is setting a new adjusted segment operating margin target of 30% by fiscal year '31, a 300 basis point increase from the previous target. The company remains committed to organic growth of 4% to 6% over the cycle, a 17% free cash flow margin, and greater than 10% adjusted EPS growth over the cycle. Starting in fiscal year '27, the company will transition to rolling 12-month order rates for its Industrial segment, aligning all businesses on this calculation for a stronger correlation to near-term organic sales growth. The FY '27 guidance forecasts 7% organic growth at the midpoint, with positive sales growth across all market verticals for the first time ever. The company anticipates closing the Filtration Group and CIRCOR acquisitions during the second half of the current calendar year. Management expects industrial businesses to expand margins at a greater clip than aerospace as they walk to FY '30. There will be a Win 4.0, and the company is discussing the next Investor Day.	Updates On ThemeTier	Broader Themes EmergingAI Infrastructure / Thermal Management for AI	Bullish-Leaning Quotes (Short)Our global teams delivered record performance in fiscal year '26. We achieved our fiscal year '29 margin target early. We are raising it by 300 basis points to 30% by fiscal year '31. This is clearly a different Parker with greater exposure to longer-cycle secular trends and more resilient end markets. This is the highest organic growth guide that we've had in modern history. The Win Strategy has never been stronger, and the alignment has never been stronger. We are guiding positive sales growth across all market verticals. It is the highest growth, highest margin acquisition to date.	Bearish-Leaning Quotes (Short)Currency was just slightly unfavorable at 0.3%. Latin America was down 3% versus the prior year. Lower growth assumptions for our automotive business. Continued softness in agriculture. Oil and gas to be flat this year. We've got a little bit of a headwind here on tax. Still not calling a full restock yet. The comps in the second half get a little bit tougher.

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Date	Comment	Comment Type	Comment Sentiment	Link	Price Reaction
2025-08-07	Parker-Hannifin posted record Q4 with 2% organic growth, margins up 160 bps to 26.9%, and EPS +14% y/y to $7.69. Aerospace drove double-digit gains, Industrial stabilized, backlog hit $11B. FY26 guide: modest growth, continued margin expansion, strong cash generation—stock reacted positively.	Earnings Transcript	Bullish		+4.39% (vs SPY: +3.89%)
2026-08-06	Parker-Hannifin reported record FY26 results, with sales exceeding $21.5 billion and adjusted segment operating margin reaching 27.3%. The company raised its FY31 margin target to 30% and issued robust FY27 guidance, including 7% organic growth across all verticals. Strategic acquisitions are transforming its portfolio. The market reacted very positively, with the stock returning 7.72% (t+2 days), significantly outperforming the SPY.	Earnings Transcript	Mixed		+7.72% (vs SPY: +7.30%)