What to Note Ahead of Parker-Hannifin's Q1 Earnings Release?

Parker-Hannifin Corporation PH is slated to release first-quarter fiscal 2026 (ended September 2025) results on Nov. 6, before market open.

The Zacks Consensus Estimate for revenues is pegged at $4.94 billion, indicating a rise of 0.7% from the prior-year quarter’s number. The consensus mark for earnings is pinned at $6.67 per share, which has been stable in the past 60 days. The figure indicates an increase of 7.6% from the year-ago quarter’s figure.

The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 4.5%.

Let’s see how things have shaped up for Parker-Hannifin this earnings season.

Factors Likely to Have Shaped PH’s Quarterly Performance

Strong momentum in commercial and military end markets across both OEM and aftermarket channels is expected to have driven the Aerospace Systems segment’s performance. Healthy demand for its products and aftermarket support services in the general aviation market, driven by growth in air transport activities, is likely to have augmented its performance. Also, strength in its defense market, owing to robust U.S. and international defense spending volumes, is likely to have been beneficial.

The Meggitt buyout expanded PH’s presence in the United Kingdom, positioning it well to provide a broader suite of solutions for aircraft and aero-engine components and systems. The buyout is also expected to augment the Aerospace Systems segment’s results. The Zacks Consensus Estimate for the segment’s quarterly revenues is pegged at $1.57 billion, indicating 8.4% growth from the year-ago number.

Parker-Hannifin’s margins in the fiscal first quarter are expected to have benefited from its Win Strategy, which focuses on innovation, strategic positioning and capital allocation policy. Notably, the Win strategy is the company’s business system that defines goals and initiatives, which enables long-term and sustainable growth.

However, lower demand in the off-highway end market is expected to have hurt the Diversified Industrial segment’s performance. Softness across the transportation, in the pant & industrial equipment and energy markets is likely to have weighed on the North America business of the segment. Nevertheless, growth in demand within the electronics, semiconductor and in-plant & industrial equipment markets is likely to have boosted the International business of the segment.

The consensus estimate for the Diversified Industrial North America segment’s revenues is pinned at $1.97 billion, indicating a 6.2% decline year over year. The consensus mark for the Diversified Industrial International segment’s revenues is pegged at $1.39 billion, indicating a 2.9% increase year over year.

Parker-Hannifin Corporation Price and EPS Surprise

Parker-Hannifin Corporation price-eps-surprise | Parker-Hannifin Corporation Quote

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Parker-Hannifin this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: PH has an Earnings ESP of -0.42% as the Zacks Consensus Estimate is pegged at $6.67 per share, higher than the Most Accurate Estimate of $6.64. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: Parker-Hannifin presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With the Favorable Combination

Here are three companies, which according to our model, have the right combination of elements to post an earnings beat this season.

Sealed Air Corporation SEE has an Earnings ESP of +1.28% and a Zacks Rank of 3 at present. Sealed Air is slated to release third-quarter 2025 results on Nov. 4.

Sealed Air’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19%.

Curtiss-Wright Corporation CW has an Earnings ESP of +1.59% and a Zacks Rank of 3 at present. Curtiss-Wright is scheduled to release third-quarter 2025 results on Nov. 5.

Curtiss-Wright’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 9.3%.

Woodward, Inc. WWD has an Earnings ESP of +0.16% and a Zacks Rank of 3 at present. Woodward is slated to release fourth-quarter fiscal 2025 results on Nov. 24.

Woodward’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being a negative 15%.

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This article originally published on Zacks Investment Research (zacks.com).

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