Start with Parker-Hannifin’s latest annual report, then check newer quarterly filings before relying on its figures. In its fiscal 2026 Form 10-K, the company reported $21.499 billion in sales and $4.364 billion in operating cash flow. Those figures describe the business; they do not establish whether the shares are attractively priced. A sound review separates the company’s operating performance, risks, and financial capacity from the market valuation you would pay.
1. Start with current filings, not a stock summary
Use Parker-Hannifin’s Form 10-K for the fiscal year ended June 30, 2026 as the starting point for its business description, risk factors, management discussion, segment results, cash flows, debt, and accounting notes. The company filed it in August 2026. Then check the Parker financial-results page for any quarterly filings and earnings materials published after the annual report. Annual figures can become stale as conditions change.
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For every figure, record its period and source, and distinguish GAAP results from measures Parker defines itself, such as organic sales growth. Do not mix fiscal-year data with calendar-year data when you build comparisons.
2. Understand what Parker sells and where demand comes from
Parker describes itself as a global motion-and-control technology company. It designs, manufactures, and supports engineered solutions for markets including aerospace and defense, industrial equipment, transportation, off-highway, energy, and HVAC and refrigeration. It sells through OEMs and distributors and also provides aftermarket parts and support. Its 10-K says it serves several hundred thousand OEM and distribution customer locations.
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The company reports two segments. Their different customer and end-market exposures make segment results more informative than treating the company as a single product business.
Diversified Industrial
This segment sells products to OEMs and distributors, including aftermarket replacement markets. Its served verticals include industrial equipment, transportation, off-highway, energy, HVAC and refrigeration, and aerospace and defense.
Aerospace Systems
This segment sells airframe and engine components and systems to OEMs, and aftermarket parts and maintenance directly to end users. Its principal markets are commercial aerospace and defense.
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For fiscal 2026, Diversified Industrial represented 67% of sales and Aerospace Systems 33%. Parker reported $14.438 billion in Diversified Industrial sales and $7.061 billion in Aerospace Systems sales. The 10-K says no single product accounted for more than 1% of sales, so the investment case should be examined through segment and market exposure rather than one product.
3. Separate reported growth from underlying sales trends
Parker reported fiscal 2026 net sales of $21.499 billion, compared with $19.850 billion in fiscal 2025. Reported sales growth was 8.3%; the company’s organic sales growth measure was 6.6%.
Parker’s reconciliation identifies the following contributions to reported growth:
| Component | Fiscal 2026 contribution | How to read it |
|---|---|---|
| Organic sales growth | 6.6% | Company-defined non-GAAP measure; consult Parker’s definition and reconciliation. |
| Currency | +1.2 percentage points | Effect of currency movements, as presented by Parker. |
| Acquisitions | +1.2 percentage points | Contribution from acquisitions, as presented by Parker. |
| Divestitures | −0.7 percentage points | Reduction associated with divestitures, as presented by Parker. |
These components explain why reported sales growth and organic growth differ. Compare organic growth only after checking how Parker defines it, and use the same company-defined measure and periods when reviewing prior years or other companies.
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In fiscal 2026, Parker reported a gross profit margin of 37.7%, compared with 36.9% in fiscal 2025; net income attributable to common shareholders of $3.648 billion, compared with $3.531 billion; and interest expense of $401 million, compared with $409 million. These are historical company-reported results, not measures of the shares’ value. Check multi-year trends, segment performance, and the accounting notes before drawing conclusions from a single year.
Operating cash flow was $4.364 billion in fiscal 2026 versus $3.776 billion in fiscal 2025. Parker attributed the increase mainly to higher net income adjusted for non-cash items, which more than offset higher 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.
When judging cash generation, distinguish cash from recurring operations from acquisition spending and changes in working capital. Compare operating cash flow with capital expenditures over several years, and check whether inventory or receivables are absorbing more cash as sales change.
5. Identify risks that could change the outlook
Parker says its business is sensitive to global macroeconomic conditions. Its 10-K identifies risks and sensitivities including:
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- Manufacturing activity and demand in the end markets it serves.
- Exchange rates and regional economic conditions.
- Air-travel trends affecting aerospace demand.
- Tariffs and trade policies.
- Government spending priorities.
- Inflation, interest rates, and credit availability.
These are company-identified risk factors, not predictions that a specific event will occur. Read the full risk-factor section for execution and other business risks, and consider how the factors could affect each segment rather than assuming they affect all of Parker’s markets in the same way.
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6. Build a comparable multi-year record
Before deciding what the company’s results mean, assemble comparable periods from annual filings. A useful working table includes:
- Net sales and organic sales growth, with Parker’s definition and reconciliation.
- Segment sales and operating margins.
- Operating cash flow, capital expenditures, and working-capital movements.
- Acquisition spending and other portfolio changes.
- Debt, maturities, and interest expense.
- Dividends and other capital-allocation decisions.
Use the same fiscal periods and accounting basis across years. For a genuine peer comparison, also examine each company’s segment and end-market mix, exposure to industrial cycles and air travel, margins, cash conversion, balance-sheet capacity, and sensitivity to trade measures and input costs. No peer comparison is established by the figures above; build one from comparable filings rather than assuming that companies with similar labels have similar businesses.
7. Evaluate capital allocation and valuation separately
Parker’s fiscal 2026 10-K reports a current annual dividend rate of $8.00 per common share and says the company has paid dividends for 304 consecutive quarters and raised its yearly dividend for 70 years. These are issuer-reported historical facts, and the rate can change; confirm it in a later filing or company announcement before using it. Dividend history alone does not establish affordability, future growth, or investment value.
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1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear out junk files and repair common Windows errorsReview acquisition spending, debt and interest obligations, repurchases, dividends, and management’s stated capital-allocation targets in the current filing. Only after assessing the business, financial position, and risks should you compare valuation using a contemporaneous share price and per-share measures. Share price and valuation change over time; the FY2026 operating figures do not answer whether the shares are cheap or expensive today.
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