Why Parker Hannifin Stock Jumped 70%?
Parker Hannifin (PH)’s stock skyrocketed 74%, fueled less by a modest revenue uptick and more by a sharp margin expansion and soaring P/E multiple. Earnings beats, an optimistic outlook, aerospace growth, and buybacks are all playing a role—let’s dive into the forces behind this surge.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 4212025 | 1162026 | Change | |
|---|---|---|---|
| Stock Price ($) | 543.3 | 944.3 | 73.8% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 19,908.2 | 20,030.0 | 0.6% |
| Net Income Margin (%) | 15.9% | 18.2% | 14.6% |
| P/E Multiple | 22.2 | 32.8 | 48.1% |
| Shares Outstanding (Mil) | 128.8 | 126.5 | 1.7% |
| Cumulative Contribution | 73.8% |
So what is happening here? The stock surged 74%, driven by a slight 0.6% revenue boost, a solid 15% margin increase, and a strong 48% jump in the P/E multiple. Let’s explore what’s behind these moves.
Here Is Why Parker Hannifin Stock Moved
- Q4 FY25 Earnings Beat: Adjusted EPS of $7.69 topped estimates, driving stock upward.
- Q1 FY26 Earnings Beat: Record adjusted EPS of $7.22 significantly beat consensus, boosting shares.
- Raised FY26 Outlook: Increased full-year sales and EPS guidance signaled strong future performance.
- Aerospace Segment Growth: Consistent strong sales growth and record backlog in aerospace fueled investor confidence.
- Share Repurchases: Significant share buybacks in Q4 FY25 and Q1 FY26 supported EPS growth.
Our Current Assesment Of PH Stock
Opinion: We currently find PH stock unattractive. Why so? Have a look at the full story. Read Buy or Sell PH Stock to see what drives our current opinion.
Risk: A good way to gauge risk with PH stock is to check how much it fell in past market sell-offs. It dropped about 38% during the Dot-Com bubble, nearly 67% in the Global Financial Crisis, and around 29% in the recent inflation shock. Even smaller disruptions like the 2018 correction and Covid pandemic triggered dips above 28% and 54%, respectively. So, even with solid fundamentals, PH isn’t immune when broad markets turn sour.
PH stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.