PH Parker-Hannifin Corp

Overview and Growth

In fiscal 2026, Parker-Hannifin Corp recorded $21.50B of revenue, net income of $3.65B, and an operating cash inflow of $4.36B. Revenue of $21.50B sets the scale for evaluating how effectively sales translated into profit and cash during the year. The top line expanded 8.3% from $19.85B in fiscal 2025, increasing the company’s operating scale. On a per-share basis, diluted EPS was $28.48, which connects the reported earnings outcome with the company’s diluted share count. Diluted EPS increased by 5.0% from $27.12 in fiscal 2025, showing how the earnings change reached shareholders on a per-share basis. Asset turnover was 0.7x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

After reported cost of revenue, the company retained $8.10B as gross profit before recognizing operating expenses and other items. Gross profit represented 37.7% of revenue, showing how much of the top line remained after direct costs. Operating income was $5.07B, the earnings remaining from reported operations after the company’s recognized operating cost structure. The operating result equaled 23.6% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. Net income came to $3.65B, completing the progression from revenue through gross and operating profitability to the final reported result. Net margin was 17.0%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $4.56B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Measured against revenue, pretax income equaled 21.2%, adding a pre-tax profitability layer between revenue and net income. Income tax expense totaled $914.00M, providing the reported tax component that separates pretax and after-tax earnings. The income-tax provision equaled 20.0% of pretax income, showing the tax burden absorbed by the year’s earnings.

Liquidity and Capital Structure

At period end, the $30.88B asset base was financed through $15.46B of liabilities and $15.41B of equity. Current assets were $7.70B against $6.10B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. The current ratio was 1.26x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $501.00M, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 8.2%, excluding receivables and other current assets. Total debt was $8.18B, establishing the amount of borrowing carried within the company’s capital structure. Debt equaled 0.53x of book equity, describing the relative scale of borrowing and shareholder capital. Debt represented 26.5% of total assets, placing borrowing in the context of the company’s full resource base. Liabilities represented 50.1% of total assets, quantifying the liability-funded share of the company’s resource base. Measured against total assets, cash and equivalents represented 1.6%, a balance-sheet composition measure rather than a liquidity forecast.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $4.36B, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. The operating-cash-flow-to-net-income relationship was 1.2x, comparing cash generated by operations with the bottom-line earnings result. The cash-flow statement records $459.00M of capital expenditures, the investment amount considered after operating cash generation. Relative to operating cash flow, capital expenditures measured 10.5%, connecting investment intensity with the company’s cash-generation base. Free cash flow came to $3.90B, leaving a positive amount after capital expenditures. Free cash flow represented 18.2% of revenue, linking post-investment cash generation with the company’s operating scale. Measured against total assets, free cash flow represented 12.6%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Jun 30, 2026. Analysis generated Oct 21, 2026.