Can Parker-Hannifin Sustain Growth as Aerospace Demand Surges?

Parker-Hannifin Corporation PH is witnessing persistent strength in its Aerospace Systems segment. The segment is benefiting from solid momentum across its commercial and military end markets across both Original Equipment Manufacturer (OEM) and aftermarket channels. Segmental revenues jumped approximately 13.3% year over year in the first quarter of fiscal 2026 (ended September 2025).

In the quarters ahead, the Aerospace Systems segment is poised to gain from strong demand for its products and aftermarket support services in the general aviation market, driven by growth in air transport activities. Strength in its defense end market, owing to stable U.S. and international defense spending volumes, is also likely to be beneficial. Parker-Hannifin expects the Aerospace Systems segment’s organic sales to increase 8-11% from the year-ago level in fiscal 2026.

In addition to growth in the aerospace and defense markets, key trends in other end markets hold promise for long-term growth. These include the advancement of clean technologies in support of carbon reduction targets, higher automation and infrastructure investments, digitalization and electrification.

Driven by strength in the Aerospace Systems segment, PH has issued bullish fiscal 2026 (ending June 2026) guidance. The company currently expects total sales to increase 4-7% year over year, while organic sales are projected to grow 2.5-5.5%.

Segment Snapshot of PH’s Peers

Among its major peers, Honeywell International Inc. HON is witnessing solid momentum in its commercial aviation aftermarket business, driven by strength in the air transport market and supply-chain improvements. Honeywell's organic sales from the commercial aviation aftermarket increased 19% year over year in third-quarter 2025. Also, recovery in the commercial aviation OEM business, due to improved production and reduced customer destocking, bodes well for Honeywell.

RBC Bearings Incorporated RBC is gaining from the strong performance of the Aerospace/Defense segment. Strength in the commercial aerospace market, driven by strong growth in orders from the OEM and the aftermarket verticals, is driving RBC Bearings' Aerospace/Defense segment. The segment’s revenues were up 38.8% year over year in second-quarter fiscal 2026 (ended September 2026).

PH's Price Performance, Valuation and Estimates

Shares of Parker-Hannifin have gained 17.9% in the past three months against the industry’s decline of 6.8%.

From a valuation standpoint, PH is trading at a forward price-to-earnings ratio of 28.19X, above the industry’s average of 21.88X. Parker-Hannifin carries a Value Score of D.

The Zacks Consensus Estimate for PH’s fiscal 2026 earnings has increased 3.8% over the past 60 days.

Parker-Hannifin currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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