Parker-Hannifin Corporation (NYSE:PH) reported better-than-expected second-quarter financial results and raised its FY26 guidance on Thursday.The motion and control technologies company posted adjusted EPS of $7.65, beating the $7.17 analyst estimate. Net sales totaled $5.174 billion, exceeding the $5.066 billion estimate. Sales increased 9% year over year with organic sales growth of 6.6%.CEO Jenny Parmentier said, "This was another outstanding quarter that reflected the performance of our global team, the ...

Parker-Hannifin Corporation (NYSE:PH) reported better-than-expected second-quarter financial results and raised its FY26 guidance on Thursday.The motion and control technologies company posted adjusted EPS of $7.65, beating the $7.17 analyst estimate. Net sales totaled $5.174 billion, exceeding the $5.066 billion estimate. Sales increased 9% year over year with organic sales growth of 6.6%.CEO Jenny Parmentier said, "This was another outstanding quarter that reflected the performance of our global team, the ...

Core Viewpoint - Parker-Hannifin (PH) shows potential as a stock pick due to its recent technical performance, surpassing resistance at the 20-day moving average, indicating a short-term bullish trend [1]. Technical Analysis - The 20-day simple moving average is a favored tool among traders, providing insights into short-term price trends and trend reversals, which is beneficial for short-term traders [1][2]. - A stock price above the 20-day moving average indicates a positive trend, while a price below suggests a downward trend [2]. Performance Metrics - Over the past four weeks, PH has experienced a gain of 7.9% [4]. - The company holds a Zacks Rank 2 (Buy), suggesting further potential for stock price increases [4]. Earnings Estimates - There have been three upward revisions in earnings estimates for the current fiscal year, with no downward revisions, indicating a bullish sentiment among investors [4]. - The consensus estimate for earnings has also increased, reinforcing the positive outlook for PH [4][5]. Investment Outlook - Given the positive technical indicators and favorable earnings estimate revisions, investors are encouraged to monitor PH for potential gains in the near future [5].

Financial Performance - Net sales for the three months ended December 31, 2025, were $5,174 million, an increase of 9.1% from $4,743 million in the same period of 2024[85] - Gross profit margin improved to 37.3% for the current-year quarter, up from 36.3% in the prior-year quarter[85] - Selling, general and administrative expenses (SG&A) increased to $837 million, representing 16.2% of sales, compared to $782 million and 16.5% in the prior-year quarter[85] - Net income for the three months ended December 31, 2025, was $845 million, a decrease of 11% from $949 million in the same period of 2024[85] Segment Performance - The Diversified Industrial Segment reported net sales of $3,468 million for the three months ended December 31, 2025, an increase of 6.6% compared to $3,253 million in the prior-year quarter[96] - Aerospace Systems Segment net sales reached $1.706 billion in the current-year quarter, up from $1.490 billion in the prior-year quarter, with an operating margin of 26.0%[105][107] Tax and Financial Ratios - The effective tax rate for the current-year quarter was 20.6%, compared to 18.6% in the prior-year quarter[85] - The company expects the effective tax rate for fiscal 2026 to be approximately 22%[94] - As of December 31, 2025, the company maintained a debt to debt-shareholders' equity ratio of 0.41 to 1.0, well below the covenant limit of 0.65 to 1.0[124] Cash Flow and Investments - Cash provided by operating activities decreased by $35 million to $1.644 billion for the first six months of fiscal 2026 compared to the same period in fiscal 2025[116] - Net cash used in investing activities decreased by $1.6 billion, primarily due to $1.0 billion spent on the Curtis acquisition[117] Acquisitions and Divestitures - The acquisition of Curtis contributed approximately $74 million to net sales in the current-year quarter[85] - The company completed the acquisition of Curtis for approximately $1.0 billion on September 18, 2025, and announced an agreement to acquire Filtration Group for approximately $9.25 billion, expected to close within 6 to 12 months[129] - The company continues to assess existing businesses for potential divestitures that do not align with long-term strategic goals[129] Backlog and Sales Performance - The backlog for the Diversified Industrial Segment was $3,738 million as of December 31, 2025, unchanged from the prior-year period[96] - North America businesses sales increased by $58 million year-over-year, with a $41 million contribution from the Curtis acquisition and a $38 million decrease due to divestitures in the current-year quarter[98] - International businesses sales rose by $157 million year-over-year, with $33 million from the Curtis acquisition and $62 million from favorable currency exchange rates in the current-year quarter[99] - The backlog for the Diversified Industrial Segment increased from $3.7 billion as of June 30, 2025, driven by orders exceeding shipments[103] Operational Efficiency - Operating margin for the Diversified Industrial Segment improved due to favorable product mix and price increases, despite rising material costs[100] - Days sales outstanding for trade accounts receivable was 49 days as of December 31, 2025, compared to 51 days at June 30, 2025[119] Shareholder Returns - The company declared a quarterly cash dividend of $1.80 per share on October 22, 2025, marking 302 consecutive quarters of dividend payments and 69 consecutive years of annual increases[127] - The Board of Directors approved a share repurchase authorization of 20.0 million shares, with 19.3 million shares remaining available for repurchase as of December 31, 2025[128] Future Outlook and Risks - The company anticipates incurring approximately $40 million in additional business realignment charges in the remainder of fiscal 2026[102] - Capital expenditures are targeted at 2.5% of sales for the remainder of fiscal 2026, with a long-term annual target of 2.0%[126] - A 10% change in foreign exchange rates related to forward exchange contracts as of December 31, 2025, would affect earnings by approximately $125 million[138] - A 100 basis point increase in near-term interest rates would increase annual interest expense on variable rate debt by approximately $24 million[139] - The company aims to maintain an investment-grade credit profile, with long-term credit ratings of A from Fitch, A3 from Moody's, and BBB+ from S&P as of December 31, 2025[125] - Supply chain financing programs are in place to improve liquidity and working capital efficiency, with no significant impact anticipated on liquidity[130]

Parker-Hannifin Corporation ( PH ) just recently reported its Q2 ’26 numbers , so I wanted to go through them and give some comments on its outlook and why I think its steady performance isMSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.Analyst’s Disclosure: I/we hav ...

On profitability, Leombruno said adjusted EBITDA margin was 27.7%, up 90 basis points from the prior year, while net income was $980 million, representing return on sales of 18.9%. Adjusted EPS was $7.65, up 17% year over year, which he called a record.CFO Todd Leombruno added that the quarter produced new records for sales, adjusted segment operating margin, EBITDA, net income, and earnings per share. He said sales increased 9% year over year, with organic growth “nearly 7%,” currency a 2% tailwind, acquis ...

Parker-Hannifin Corporation (NYSE:PH) reported adjusted earnings per share of $7.65, surpassing estimates and indicating a 17% year-over-year increase.The company's total sales reached $5.17 billion, a 9.1% increase from the previous year, with organic sales growing by 6.6%.Parker-Hannifin's Aerospace Systems segment saw a 14.5% surge in sales, highlighting strong growth in both original equipment manufacturing and aftermarket performance.Parker-Hannifin Corporation (NYSE:PH), a prominent player in the moti ...

Parker-Hannifin Corporation (NYSE:PH) is included among the 13 Best February Dividend Stocks to Buy. Stifel Revises Parker-Hannifin (PH) Outlook in Diversified Industrials Review Photo by Vitaly Taranov on Unsplash On January 23, Stifel raised its price target on Parker-Hannifin Corporation (NYSE:PH) to $941 from $869. However, the firm maintained a Hold rating as part of its fourth-quarter preview for diversified industrial companies. The stock has climbed more than 40% over the past year. Results in ...

Jennifer Parmentier: Thank you, Todd, and thank you to everyone for attending the call today. Q2 was another great quarter where our team and our strategy demonstrated our ability to compound performance. We achieved top quartile safety performance with an 8% reduction in our recordable incident rate. This performance is aligned with our goal to be the safest industrial company in the world. Our team delivered record Q2 sales of $5.2 billion, organic growth of 6.6% and 150 basis points of margin expansion, ...

Key Takeaways PH beat Q2 estimates as earnings jumped 17% and sales rose 9.1% on strong organic growth.Parker-Hannifin's Aerospace Systems sales surged 14.5%, supported by OEM growth and aftermarket strength.PH raised its fiscal 2026 sales and earnings outlook, citing higher margins and solid order momentum.Parker-Hannifin Corporation (PH) reported second-quarter fiscal 2026 (ended December 2025) adjusted earnings (excluding $1.05 from non-recurring items) of $7.65 per share, which beat the Zacks Consensus ...