Parker-Hannifin (PH) reported $5.08 billion in revenue for the quarter ended September 2025, representing a year-over-year increase of 3.7%. EPS of $7.22 for the same period compares to $6.20 a year ago. The reported revenue represents a surprise of +2.93% over the Zacks Consensus Estimate of $4.94 billion. With the consensus EPS estimate being $6.67, the EPS surprise was +8.25%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wa ...

Core Insights - Parker-Hannifin Corporation (PH) is experiencing growth driven by its Aerospace Systems segment and benefits from acquired assets, positioning it well for future performance [1][3] Business Strength - The Aerospace Systems segment is benefiting from strong demand in both commercial and military markets, with growth in air transport activities and stable defense spending [3][8] Expansion Efforts - The acquisition of Curtis Instruments in September 2025 enhances PH's industrial electrification portfolio and strengthens its electric motor and motion control capabilities [4][8] Gains from Win Strategy - PH's Win Strategy 3.0 focuses on innovation and strategic positioning, contributing to organic growth and improved operating margins, which increased by 170 basis points to 23.9% in Q4 fiscal 2025 [5][8] Rewards to Shareholders - In fiscal 2025, PH rewarded shareholders with $861 million in dividends (up 10.1%) and repurchased shares worth $851 million, with a 10% dividend increase to $1.80 per share in April 2025 [6][8]

Core Insights - Parker-Hannifin Corporation (PH) is experiencing strong growth in its Aerospace Systems segment, with revenues increasing approximately 13% year over year in fiscal 2025 [1][8] - The company anticipates continued demand in the Aerospace Systems segment, driven by growth in air transport activities and stable defense spending [2][3] - Fiscal 2026 guidance indicates total sales growth of 2-5% and organic sales growth of 1.5-4.5% [4][8] Segment Performance - The Aerospace Systems segment is benefiting from robust demand in both commercial and military markets, including Original Equipment Manufacturer (OEM) and aftermarket channels [1][8] - Key trends supporting long-term growth include advancements in clean technologies, increased automation, infrastructure investments, digitalization, and electrification [3] Peer Comparison - Howmet Aerospace Inc. reported a 21% year-over-year revenue increase in its defense aerospace market, driven by demand for engine spares related to the F-35 program [5] - RBC Bearings Incorporated saw a 10.4% year-over-year revenue increase in its Aerospace/Defense segment, supported by strong orders from OEM and aftermarket verticals [6] Financial Performance - Parker-Hannifin's shares have increased by 24.6% over the past year, outperforming the industry growth of 5.1% [7] - The company is trading at a forward price-to-earnings ratio of 25.48X, above the industry average of 21.10X [10] - The Zacks Consensus Estimate for PH's fiscal 2026 earnings has increased by 0.6% over the past 60 days [11]

Core Insights - Parker-Hannifin Corporation (PH) reported adjusted earnings of $7.69 per share for Q4 fiscal 2025, exceeding the Zacks Consensus Estimate of $7.08, with a year-over-year increase of 14% [1][9] - Total sales reached $5.24 billion, surpassing the consensus estimate of $5.10 billion, marking a 1.1% year-over-year increase, while organic sales grew by 2.1% [1][2] - The company reported net revenues of $19.9 billion for fiscal 2025, a slight decrease of 0.4% year over year, with adjusted earnings of $27.33 per share, up 7% year over year [2] Segment Performance - The Diversified Industrial segment generated sales of $3.57 billion, accounting for 68% of total sales, but saw a year-over-year decline of 2.5% [3] - Sales from Diversified Industrial North America were $2.08 billion, down 6.9% year over year, while Diversified International sales increased by 4.3% to $1.49 billion [3] - The Aerospace Systems segment reported sales of $1.68 billion, representing 32% of total sales, with a significant year-over-year increase of 9.7% driven by aftermarket sales growth [4] Orders and Margins - Orders for Diversified Industrial North America increased by 2% year over year, while orders for the Aerospace Systems unit rose by 12% [4] - The cost of sales decreased by 1.1% year over year to $3.29 billion, while adjusted total segment operating income increased by 7.2% to $1.41 billion, resulting in an adjusted total segment operating margin of 26.9%, up 160 basis points year over year [5][9] Financial Position - As of the end of Q4 fiscal 2025, Parker-Hannifin had cash and cash equivalents of $467 million, an increase from $422 million at the end of fiscal 2024, while long-term debt rose to $7.49 billion from $7.16 billion [6] - The company generated net cash of $3.78 billion from operating activities in fiscal 2025, compared to $3.38 billion in the previous year [6] - Capital spending for the fiscal year totaled $435 million, up from $400 million in the prior year, and cash dividends paid out increased by 10.1% year over year to $861 million [7] Fiscal 2026 Guidance - Parker-Hannifin expects total sales to increase by 2-5% year over year for fiscal 2026, with organic sales projected to rise by 1.5-4.5% [10] - The company anticipates an adjusted operating margin in the range of 26.3-26.7% and adjusted earnings between $28.40 and $29.40 per share [10]