Research Parker-Hannifin (Parker) by starting with its latest SEC filing, then testing the company’s segment mix, underlying growth, cash generation, capital allocation and stated risks across multiple fiscal years. In fiscal 2026, ended June 30, Parker reported $21.499 billion in sales, but those company-reported results alone do not establish whether its shares are attractively valued.
Start with the latest filings, not a stock summary
Parker’s fiscal 2026 Form 10-K is the starting point for understanding its year ended June 30, 2026. Read the filing’s Business, Risk Factors and Management’s Discussion and Analysis sections, then check its segment results, cash-flow statement, debt disclosures and accounting notes. The FY2026 Form 10-K is the primary source for the annual figures below.
Before relying on year-end numbers, check Parker’s financial-results page for quarterly filings and earnings materials issued after the 10-K. Match each figure to its period, and distinguish GAAP results from company-defined non-GAAP measures. Avoid mixing fiscal years with calendar years.
Understand what Parker sells and who buys it
Parker describes itself as a global motion-and-control technology company. It designs, manufactures and supports engineered solutions for aerospace and defense, industrial equipment, transportation, off-highway, energy, and HVAC and refrigeration markets. It sells through OEMs and distributors as well as aftermarket channels, serving several hundred thousand customer locations.
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The company reports two segments. Its FY2026 sales mix helps frame the business, but each segment spans multiple end markets:
| FY2026 segment | Sales | Share of net sales | What to examine |
|---|---|---|---|
| Diversified Industrial | $14.438 billion | 67% | Products sold to OEMs and distributors, including replacement markets, across industrial equipment, transportation, off-highway, energy, HVAC and refrigeration, and aerospace and defense. |
| Aerospace Systems | $7.061 billion | 33% | Airframe and engine components and systems sold to OEMs, plus aftermarket parts and maintenance sold directly to end users, primarily in commercial aerospace and defense. |
| Total | $21.499 billion | 100% | Company-reported FY2026 net sales. |
These figures are from Parker’s FY2026 filing. The company also reports that no single product contributed more than 1% of sales. That makes segment and end-market exposure more useful analytical lenses than treating one product as the investment thesis.
Separate reported growth from underlying growth
Parker reported FY2026 net sales of $21.499 billion, compared with $19.850 billion in FY2025. Reported sales growth was 8.3%; Parker’s organic sales growth measure was 6.6%. In Parker’s reconciliation, currency added 1.2 percentage points, acquisitions added 1.2 points and divestitures reduced growth by 0.7 points.
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Organic sales growth is a company-defined non-GAAP measure that excludes specified effects of currency and acquisitions or divestitures. Read Parker’s definition and reconciliation alongside GAAP sales rather than treating “organic” as a standardized measure that is automatically comparable across companies. The reconciliation and segment data are in Parker’s FY2026 Form 10-K.
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1Scan for outdated or missing drivers - takes under a minute2Repair Windows errors before they cause bigger problems3Fix the driver behind crashes, sound loss and screen glitchesFor a useful trend, build a multi-year series from comparable annual filings. Track reported and organic growth together, then inspect segment results and geography to see whether growth is broad or concentrated. A single year cannot establish a durable demand pattern.
Test profitability and cash generation over time
Parker reported a gross profit margin of 37.7% in FY2026, versus 36.9% in FY2025. Net income attributable to common shareholders was $3.648 billion, compared with $3.531 billion; interest expense was $401 million, versus $409 million. These are company-reported accounting figures, not valuation measures. Put them in multi-year context and read the accounting notes before drawing conclusions about operating performance.
Operating cash flow was $4.364 billion in FY2026, up from $3.776 billion in FY2025. Management said higher net income adjusted for non-cash items more than offset increased working-capital requirements, especially inventory and receivables. Cash flow from investing included $1.014 billion of acquisitions, primarily Curtis, and $459 million of capital expenditures. These figures and management’s explanation appear in the FY2026 Form 10-K.
When assessing cash generation, separate cash from recurring operations from acquisition spending and changes in working capital. Compare operating cash flow with capital expenditures across several years, and check whether inventory or receivables are absorbing more cash as sales change. Parker’s explanation describes the reported period; it does not by itself show whether working-capital patterns will persist.
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Review capital allocation and balance-sheet capacity
Use the latest filing to examine acquisition spending, debt maturities, interest burden, repurchases, dividends and any stated financial targets. Consider how acquisitions are funded and whether cash generation can support investment and shareholder distributions through different points in the business cycle.
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Parker’s FY2026 10-K reported a current annual dividend rate of $8.00 per common share and said the company had paid dividends for 304 consecutive quarters and increased its yearly dividend for 70 years. These are issuer-reported historical facts, and the rate can change; check subsequent filings for the current amount. A long dividend record is not a substitute for evaluating earnings, cash flow, debt or share valuation.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Identify risks that could change the outlook
Parker says its business is sensitive to global and regional economic conditions. Its FY2026 filing identifies factors including manufacturing and end-market activity, exchange rates, air-travel trends, tariffs and trade policy, government spending priorities, inflation, interest rates and credit availability. It also discusses execution and other business risks.
These are risks identified by the company, not predictions that a particular event will occur. For each one, consider which segment or customer markets may be exposed and whether later filings describe a change in conditions. Parker’s Risk Factors section provides the issuer’s full discussion.
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Compare Parker with peers on like-for-like measures
If you compare Parker with other companies, use a genuine peer set and align fiscal periods and accounting definitions. Useful comparison axes include:
- Segment and end-market mix: Compare industrial cyclicality with aerospace and defense exposure, including results by segment and geography.
- Growth quality: Separate reported growth from organic growth and check each company’s definition for currency and portfolio effects.
- Margins and cash conversion: Review segment margins, operating cash flow, capital expenditures and working-capital changes over several years.
- Capital allocation and financial capacity: Compare acquisition spending, debt maturities and interest burden, repurchases, dividends and stated targets in current filings.
- Risk exposure: Consider sensitivity to manufacturing cycles, air travel, trade measures, input costs and customer demand.
These comparisons provide context; they do not establish which company’s shares are cheaper or more suitable for a particular investor.
Assess valuation only after understanding the business
Business performance and share price answer different questions. After reviewing the company, use a contemporaneous share price and per-share financial measures to assess valuation. Price and valuation change over time, so date the figures and make sure the share-price period matches the financial period used. The FY2026 results above are not a buy or sell signal.
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