Moat ranks
Balance sheet
| $B | Jun '25 | Jun '26 |
|---|---|---|
| Cash | 0.5 | 0.5 |
| Securities | 0.0 | 0.0 |
| Debt | 9.2 | 8.4 |
| Net cash | -8.7 | -7.9 |
| Equity | 13.7 | 15.4 |
- Debt / EBITDA
- 1.51×
- Debt / equity
- 0.55×
- Leases (6/30/26)
- $305M
- Diluted shares
- 128M
- Book value / share
- $120.25
- Price / book
- 7.8×
- Net cash / share
- −$61.88
- Market cap
- $120.2B
- Enterprise value
- $128.1B
Per-share record
Key indicators
| Indicator | Latest | Vs year ago | Last 8 quarters |
|---|---|---|---|
| Revenue growth | 9.8% | +8.7 pts | |
| Operating margin | 23.9% | +2.5 pts | |
| FCF margin | 27.2% | +1.7 pts | |
| Capex / revenue | 3.0% | +0.5 pts | |
| Commercial aerospace aftermarket sales | $2.5B | +14% | |
| Defense aerospace aftermarket sales | $937M | +2% | |
| Aerospace backlog | $8.5B | +15% | |
| Industrial backlog | $4.3B | +19% | |
| Industrial segment operating margin | 23.8% | +1.0 pts |
Margins and growth from reported quarters; company KPIs as reported in results releases.
About PH
Parker-Hannifin supplies industrial motion and control components and aircraft systems. Industrial sales were 67.2% of FY2026 revenue; aerospace was 32.8%.
- Distribution Control
Global field sales and distributor coverage supports reach and aftermarket pull-through.
- Design In Qualification
Custom engineered components designed to OEM specs become embedded in equipment designs; redesign and requalification raise switching costs.
- Scope Economies
Broad motion-control portfolio across multiple core technologies enables systems solutions and cross-selling (share-of-wallet) versus specialists.
- Design In Qualification
Aircraft manufacturers must requalify replacement components against performance and quality requirements.
- Sep 28, 2026
A court denied Parker’s motion to block a former CEO deposition in the Davidson trade-secret case. Discovery continues; the ruling did not decide liability or establish a loss.
- Sep 14, 2026
Parker issued $2.4bn of dollar notes and EUR2.025bn of euro notes to refinance the Filtration Group short-term loan with cash on hand. Longer maturities reduce refinancing pressure while preserving interest obligations.
- Sep 4, 2026
Parker raised its revolving credit and commercial-paper authorization to $5bn, adding liquidity capacity for acquisitions. Undrawn capacity is not cash or debt already borrowed.
- Aug 13, 2026
Parker acquired Filtration Group for $9.25bn cash, expanding industrial filtration and recurring applications while drawing $7.75bn of new term debt.
- Aug 6, 2026
Parker raised its fiscal 2031 adjusted segment margin target to 30% and issued FY2027 guidance that excluded Filtration Group and CIRCOR. The targets require sustained execution; the ranges do not include the subsequently closed filtration purchase.
Ownership
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On this page
Financial record
| Fiscal year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Trend | Change 2017–26 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Per share ($) | ||||||||||||
| Revenue | 88.74 | 105.61 | 108.67 | 105.51 | 109.66 | 121.68 | 146.77 | 153.07 | 152.46 | 167.83 | +7.3%/yr | |
| Cash flow | 9.59 | 11.79 | 13.13 | 15.95 | 19.68 | 18.73 | 22.94 | 25.99 | 29.00 | 34.07 | +15.1%/yr | |
| Earnings | 7.25 | 7.83 | 11.57 | 9.26 | 13.35 | 10.09 | 16.04 | 21.84 | 27.12 | 28.48 | +16.4%/yr | |
| Free cash flow | 8.09 | 9.96 | 11.65 | 14.16 | 18.08 | 16.97 | 20.01 | 22.92 | 25.66 | 30.48 | +15.9%/yr | |
| Capex | 1.50 | 1.83 | 1.48 | 1.79 | 1.60 | 1.76 | 2.93 | 3.07 | 3.34 | 3.58 | +10.1%/yr | |
| Dividends | 2.55 | 2.70 | 3.13 | 3.50 | 3.63 | 4.37 | 5.42 | 6.01 | 6.61 | 7.31 | +12.4%/yr | |
| Book value | 38.81 | 43.27 | 45.24 | 47.97 | 64.19 | 67.88 | 79.50 | 92.72 | 105.08 | 120.25 | +13.4%/yr | |
| Diluted shares (M) | 136 | 135 | 132 | 130 | 131 | 130 | 130 | 130 | 130 | 128 | -0.6%/yr | |
| Totals ($B) | ||||||||||||
| Revenue | 12.0 | 14.3 | 14.3 | 13.7 | 14.3 | 15.9 | 19.1 | 19.9 | 19.9 | 21.5 | +6.7%/yr | |
| Operating income | 1.5 | 1.9 | 2.1 | 1.7 | 2.4 | 2.8 | 3.1 | 3.8 | 4.1 | 4.6 | +13.4%/yr | |
| Net income | 1.0 | 1.1 | 1.5 | 1.2 | 1.7 | 1.3 | 2.1 | 2.8 | 3.5 | 3.6 | +15.7%/yr | |
| Free cash flow | 1.1 | 1.3 | 1.5 | 1.8 | 2.4 | 2.2 | 2.6 | 3.0 | 3.3 | 3.9 | +15.2%/yr | |
| Buybacks | 0.3 | 0.3 | 0.8 | 0.1 | 0.1 | 0.4 | 0.2 | 0.2 | 1.6 | 1.0 | +15.9%/yr | |
| Dividends | 0.3 | 0.4 | 0.4 | 0.5 | 0.5 | 0.6 | 0.7 | 0.8 | 0.9 | 0.9 | +11.7%/yr | |
| Net cash | -5.0 | -4.1 | -3.9 | -7.8 | -5.9 | -10.9 | -12.0 | -10.0 | -8.7 | -7.9 | −$2.9B | |
| Margins & returns (%) | ||||||||||||
| Gross margin | 24.2 | 24.9 | 25.4 | 24.8 | 33.1 | 33.5 | 33.7 | 35.8 | 36.9 | 37.7 | +13.5 pts | |
| Operating margin | 12.4 | 13.5 | 14.6 | 12.8 | 16.4 | 17.7 | 16.1 | 19.1 | 20.5 | 21.6 | +9.1 pts | |
| Net margin | 8.2 | 7.4 | 10.6 | 8.8 | 12.2 | 8.3 | 10.9 | 14.3 | 17.8 | 17.0 | +8.8 pts | |
| FCF margin | 9.1 | 9.4 | 10.7 | 13.4 | 16.5 | 13.9 | 13.6 | 15.0 | 16.8 | 18.2 | +9.0 pts | |
| ROIC | 11.7 | 15.4 | 16.9 | 9.9 | 13.2 | 11.3 | 11.0 | 13.8 | 14.5 | 15.8 | +4.2 pts | |
| Return on equity | 18.7 | 18.1 | 25.6 | 19.3 | 20.8 | 14.9 | 20.2 | 23.6 | 25.8 | 23.7 | +5.0 pts | |
| R&D % of revenue | 2.8 | 2.3 | 2.1 | 2.1 | 1.8 | 1.7 | 1.7 | 1.5 | 1.5 | 1.4 | -1.4 pts | |
| Stock pay % of revenue | 0.7 | 0.8 | 0.7 | 0.8 | 0.8 | 0.9 | 0.8 | 0.8 | 0.8 | 0.8 | +0.2 pts | |
| Capex % of revenue | 1.7 | 1.7 | 1.4 | 1.7 | 1.5 | 1.5 | 2.0 | 2.0 | 2.2 | 2.1 | +0.4 pts | |
Change uses 2017 and 2026 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2017 base. Trend shows the fiscal years.
Moat
Moat scorecard
- Strength
- Confidence
- Structure
- Competitive
- Durability
- durable
- Trajectory
- stable
- Pricing power
- moderate
- Diversified Industrial67.2%3 claims
- Aerospace Systems32.8%2 claims
Moat claims
- Applies to
- Diversified Industrial
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 8, 2026
Global field sales and distributor coverage supports reach and aftermarket pull-through.
The worldwide sales and independent distributor network remains in place. Industrial orders recovered in FY2026, but Parker reports no channel retention or exclusive distributor access that proves a stronger barrier.
- Industrial backlog$4.3B+19%
- Industrial segment operating margin23.8%+1.0 pts
- North America industrial orders growth+9%
- International industrial orders growth+10%
- Distributor consolidation increases channel bargaining power
- Digital/direct channels reduce the value of intermediated distribution
- Competitor price aggression in commoditized SKUs
- Applies to
- Diversified Industrial
- Confidence
- Durability
- medium
- Trajectory
- stableas of Oct 8, 2026
Custom engineered components designed to OEM specs become embedded in equipment designs; redesign and requalification raise switching costs.
Custom industrial components remain engineered to OEM specifications. Qualification protects an existing design, but standard products and new-platform bids face price competition; no new retention or win-rate evidence shows a change in switching costs.
- Industrial backlog$4.3B+19%
- Industrial segment operating margin23.8%+1.0 pts
- OEM multi-sourcing and design standardization reduces embedded content
- Customers redesign platforms to swap suppliers or in-source
- Rapid commoditization of selected component categories
- Applies to
- Diversified Industrial
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 8, 2026
Broad motion-control portfolio across multiple core technologies enables systems solutions and cross-selling (share-of-wallet) versus specialists.
The Filtration Group purchase broadens the range of filtration technologies and recurring applications. Integration and shared-cost benefits still need evidence, so greater acquisition revenue alone does not show stronger scope economies.
- Industrial backlog$4.3B+19%
- Industrial segment operating margin23.8%+1.0 pts
- North America industrial orders growth+9%
- International industrial orders growth+10%
- Best-of-breed specialists outperform integrated offerings in key niches
- Procurement unbundling favors lowest-cost point suppliers
- Complexity from breadth reduces responsiveness in fast-moving categories
- Applies to
- Aerospace Systems
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 8, 2026
Aircraft manufacturers must requalify replacement components against performance and quality requirements. The long approval process gives existing suppliers an advantage.
Program positions continue to produce follow-on work and aerospace backlog reached $8.498bn. Strong orders support the value of existing qualifications, while no new program-share or requalification evidence shows a change in the barrier.
- Commercial aerospace aftermarket sales$2.5B+14%
- Defense aerospace aftermarket sales$937M+2%
- Aerospace backlog$8.5B+15%
- Aerospace segment operating margin26.0%+2.7 pts
- Aerospace orders growth+18%
- OEM should-cost pressure and periodic re-sourcing at redesign points
- Platform delays/cancellations reduce expected volumes
- Technology shifts (e.g., electrification) displace legacy hydraulic/pneumatic content
- Applies to
- Aerospace Systems
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 8, 2026
Certified parts and repairs turn installed aircraft positions into repeat sales. FY2026 aftermarket sales rose, while overall aerospace product mix was unfavorable, so repeat demand and mix benefit need separate tests.
Commercial aftermarket sales rose to $2.523bn and defense aftermarket sales reached $937m in FY2026. These support repeat demand from the installed fleet, but demand and aircraft use also drive sales; no verified share gain proves wider protection.
- Commercial aerospace aftermarket sales$2.5B+14%
- Defense aerospace aftermarket sales$937M+2%
- Aerospace segment operating margin26.0%+2.7 pts
- Air travel downturns reduce utilization and spares consumption
- Competition and PMA/alternative parts where permitted
- OEMs and rivals expand captive aftermarket offerings
Profile change log
- Oct 8, 2026 · analyst revision
The shared industrial market now treats Allient’s named motion competitors as a submarket fact and omits an unsupported combined-market leader ranking. Added the September manufacturing demand and input-cost signals and the next dated survey release; the aerospace market now identifies CIRCOR’s proposed OEM-heavy mix.
- Oct 8, 2026 · analyst revision
Corrected the wheel-and-brake disposal date to September 16, 2022 and the CFC disposal date to November 1, 2024 from closing disclosures. The CFC one-off is now the $238m booked in its sale quarter, rather than the $241m later annual total.
- Oct 8, 2026 · analyst revision
Corrected operating income for ten annual years and twelve quarters to include all consolidated operating expenses. FY2026 falls from $5.068bn to $4.634bn; the earlier figure came from the segment reconciliation. Removed segment profit shares because corporate expenses remain outside segment results. Added manufacturing and air-travel tests to the debate.
- Oct 8, 2026 · business change
Parker raised its fiscal 2031 adjusted segment margin target to 30% and issued FY2027 guidance that excluded Filtration Group and CIRCOR. The targets require sustained execution; the ranges do not include the subsequently closed filtration purchase.
- Oct 8, 2026 · business change
Parker issued $2.4bn of dollar notes and EUR2.025bn of euro notes to refinance the Filtration Group short-term loan with cash on hand. Longer maturities reduce refinancing pressure while preserving interest obligations.
- Oct 8, 2026 · business change
Parker raised its revolving credit and commercial-paper authorization to $5bn, adding liquidity capacity for acquisitions. Undrawn capacity is not cash or debt already borrowed.
- Oct 8, 2026 · business change
A court denied Parker’s motion to block a former CEO deposition in the Davidson trade-secret case. Discovery continues; the ruling did not decide liability or establish a loss.
- Oct 8, 2026 · business change
Parker acquired Filtration Group for $9.25bn cash, expanding industrial filtration and recurring applications while drawing $7.75bn of new term debt.
- Oct 8, 2026 · business change
Parker agreed to buy CIRCOR aerospace for $2.55bn cash, adding proposed flight-critical motion and flow-control capabilities; regulatory approvals and closing remain conditions.
- Oct 8, 2026 · business change
Parker acquired Curtis Instruments for about $1bn net of cash, adding motor controls, instrumentation and power conversion for mobile electrification.
- Oct 8, 2026 · business change
Parker sold its composites and fuel containment business for $555m net proceeds, removing non-core industrial sales and creating a $241m pretax gain.
- Oct 8, 2026 · business change
Parker sold its aircraft wheel and brake business for $443m, enabling regulatory approval for Meggitt and creating a $374m pretax gain.
- Oct 8, 2026 · business change
Parker acquired Meggitt, expanding certified aerospace systems and the installed fleet it supports.
- Oct 8, 2026 · analyst revision
Corrected FY2026 profit in the summary from $3.649bn consolidated income to $3.648bn attributable to common shareholders. The one-million difference belongs to minority owners.
- Oct 8, 2026 · analyst revision
The FY2026 filing confirms existing moat mechanisms and revenue shares. Added a stable trajectory, operating tests, investment debate and end-market links. No segment score or evidence status changed.
Industry & peers
Peer map
Hover a point for its values; click a peer to compare. Dashed lines: industry medians.
Precision automation and engineered components
Custom motion systems, motors, thermal subsystems, fluid and gas controls, industrial filtration, harsh-environment interconnects, precision optical subsystems, specialist medical components and engineered metal products supplied to OEMs and industrial users. Includes replacement components and support for factory, mobile machinery and HVAC applications; excludes factory-wide software and commodity finished products. Product niches have different qualification and substitution economics.
| Stocks | Moat | Gross m. | Op. m. | |
|---|---|---|---|---|
| PH | 86 | 37.7% | 21.6% | |
| Industry median | 20 | 70 | 40.3% | 17.4% |
| Sector median | 88 | 76 | 37.0% | 17.5% |
| All stocks median | 398 | 76 | 52.9% | 19.6% |
Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.
Drivers & risks
- Industrial production, automation investment and customer inventory cycles strongly affect orders and factory utilization. Mobile machinery and transport production also strongly affect hydraulic, pneumatic and motor-control orders; replacement demand is less dependent on new equipment investment. September US manufacturing expansion supports this customer cycle; the ISM survey is an indirect signal for component demand.
- Medical-device procedure volumes, life science instrument development, semiconductor investment and defense programs diversify demand; the mix determines how much one customer cycle affects a supplier. AI data-center power investment strongly supports selected precision fluidic, filtration and optical businesses: IDEX HST reported Q2 2026 organic sales growth of 12%, while life science and industrial demand remained uneven.
- Miniaturization, cleanliness and optical performance encourage custom design and validation. These create moderate to strong switching friction for qualified components, weaker for standard motors and metals; OEM qualification plans must still be won at each new instrument generation.
- Interest rates have a moderate to strong indirect effect on industrial and capital-equipment budgets. Currency changes materially affect global sales and sourcing. Financing costs can also increase acquisition debt service before promised portfolio benefits arrive.
- Energy efficiency and electrification support demand for precision motion and power solutions. Suppliers must adapt to new materials and manufacturing methods.
- OEMs can qualify alternative suppliers or redesign around standard components; installed positions need new-design wins to stay valuable.
- Inventory destocking and utilization declines can pressure profit more than reported sales suggest.
- Copper, steel, rare-earth availability, electronic components and trade barriers can raise input costs; qualification can make substitute sourcing slow. Tariff recoveries can temporarily lift margins: IDEX HST Q2 2026 adjusted EBITDA margin included a 90-basis-point refund benefit, so headline improvement overstates recurring price and cost progress. Parker received an $84m FY2026 tariff refund that raised operating profit; a discrete refund does not prove lasting pricing power. The September ISM prices index was 77.9, showing widespread input inflation despite expanding customer orders.
- Medical quality failures or recalls can destroy customer trust and trigger costly revalidation.
- Alternative materials, competing motion technologies and lower-cost vendors can displace existing designs.
Bulls & bears
Can Parker turn its larger filtration and aerospace portfolio into sustained organic sales and repeat aftermarket cash while paying down the new acquisition debt?
Arguments
What to watch
- 1Commercial and defense aftermarket sales
- 2Industrial organic sales and segment margin excluding the tariff refund
- 3Aerospace backlog and conversion into shipments
- 4Filtration Group organic sales, integration spending and debt repayment
- 5Net debt after the acquisition closings and interest expense
- 6Davidson trade-secret litigation rulings and any quantified exposure
- 7US manufacturing new orders and input prices; global passenger traffic
Next check: Review FY2027 Q1 results for the first Filtration Group contribution, the new debt balance and industrial demand; reassess CIRCOR when an official closing or regulatory decision is published.
Sources: company filings and dated sources collected for Find My Moat; market cap as of Oct 7, 2026. Not investment advice.
Free to reuse, commercially too, with a credit link. See the data license.
Moat Score 86/100 by <a href="https://www.findmymoat.com/stocks/XNYS:PH">Find My Moat</a> (as of September 2026)Request update
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