Parker-Hannifin (NYSE:PH) Reports Bullish Q2 CY2026, Stock Soars

Industrial machinery company Parker-Hannifin (NYSE:PH) reported Q2 CY2026 results exceeding the market’s revenue expectations, with sales up 9.8% year on year to $5.76 billion. Its GAAP profit of $8.54 per share was 18.3% above analysts’ consensus estimates.

Is now the time to buy Parker-Hannifin? Find out by accessing our full research report, it’s free.

“On behalf of the entire leadership team, thank you to our global team members for their outstanding contributions in fiscal year 2026,” said Jenny Parmentier, Chairman and Chief Executive Officer.

Company Overview

Founded in 1917, Parker Hannifin (NYSE:PH) is a manufacturer of motion and control systems for a wide variety of mobile, industrial and aerospace markets.

Revenue Growth

A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Parker-Hannifin grew its sales at a decent 8.4% compounded annual growth rate. Its growth was slightly above the average industrials company and shows its offerings resonate with customers.

Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Parker-Hannifin’s recent performance shows its demand has slowed as its annualized revenue growth of 3.9% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs.

We can better understand the company’s sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, Parker-Hannifin’s organic revenue averaged 3.8% year-on-year growth. Because this number aligns with its two-year revenue growth, we can see the company’s core operations (not acquisitions and divestitures) drove most of its results.

This quarter, Parker-Hannifin reported year-on-year revenue growth of 9.8%, and its $5.76 billion of revenue exceeded Wall Street’s estimates by 3.3%.

Looking ahead, sell-side analysts expect revenue to grow 5.2% over the next 12 months, similar to its two-year rate. While this projection indicates its newer products and services will spur better top-line performance, it is still below average for the sector. At least the company is tracking well in other measures of financial health.

ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.

AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.

Operating Margin

Parker-Hannifin has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 19.4%. This result isn’t too surprising as its gross margin gives it a favorable starting point.

Analyzing the trend in its profitability, Parker-Hannifin’s operating margin rose by 4.9 percentage points over the last five years, as its sales growth gave it operating leverage.

In Q2, Parker-Hannifin generated an operating margin profit margin of 28%, up 6.7 percentage points year on year. The increase was solid, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Parker-Hannifin’s EPS grew at 16.5% compounded annual growth rate over the last five years, higher than its 8.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Diving into the nuances of Parker-Hannifin’s earnings can give us a better understanding of its performance. As we mentioned earlier, Parker-Hannifin’s operating margin expanded by 4.9 percentage points over the last five years. On top of that, its share count shrank by 2.9%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For Parker-Hannifin, its two-year annual EPS growth of 14.3% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future.

In Q2, Parker-Hannifin reported EPS of $8.54, up from $7.16 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Parker-Hannifin’s full-year EPS to grow 8.4% from $28.49 to $30.90.

Key Takeaways from Parker-Hannifin’s Q2 Results

We were impressed by how significantly Parker-Hannifin blew past analysts’ organic revenue expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. Zooming out, we think this was a solid print. The stock traded up 8.4% to $1,081 immediately following the results.

Sure, Parker-Hannifin had a solid quarter, but if we look at the bigger picture, is this stock a buy? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).