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Parker-Hannifin Gears Up to Report Q2 Earnings: What's in the Offing?

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Key Takeaways

  • PH is set to report Q2 results with revenues expected to rise 6.3% and earnings projected to grow 9.5%.
  • Parker-Hannifin's Aerospace Systems segment is poised to benefit from strong commercial and defense demand.
  • PH's margins are expected to gain from its Win Strategy and the Curtis Instruments acquisition.

Parker-Hannifin Corporation (PH - Free Report) is slated to release second-quarter fiscal 2026 (ended December 2025) results on Jan. 29, before market open.

The Zacks Consensus Estimate for revenues is pegged at $5.04 billion, indicating a rise of 6.3% from the prior-year quarter’s number. The consensus mark for earnings is pinned at $7.15 per share, which has increased 0.6% in the past 60 days. The figure indicates an increase of 9.5% 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 6.2%.

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

Factors Likely to Have Shaped PH’s Quarterly Performance

The Aerospace Systems segment is expected to have benefited from persistent strength in PH’s commercial and military end markets across both OEM and aftermarket channels. 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 the segment’s performance.

Also, strength in its defense market, owing to robust U.S. and international defense spending volumes, is likely to have been beneficial. The Zacks Consensus Estimate for the segment’s quarterly revenues is pegged at $1.67 billion, indicating 11.9% growth from the year-ago number.

Solid demand from customers across the in-plant and industrial equipment, refrigeration, HVAC and aerospace & defense markets is likely to have driven the Diversified Industrial segment’s North America business. Strength within the electronics, semiconductor and energy markets in the Asia Pacific region is likely to augment the results of the International business.

The consensus estimate for the Diversified Industrial North America segment’s revenues is pinned at $1.96 billion, indicating 1.7% growth year over year. The consensus mark for the Diversified Industrial International segment’s revenues is pegged at $1.44 billion, indicating an 8.5% rise year over year.

In September 2025, Parker-Hannifin completed the acquisition of Curtis Instruments. The inclusion of Curtis’ advanced control solutions enabled the company to enhance its industrial electrification portfolio and expand its reach in in-plant material handling and off-highway markets. The buyout is also expected to augment PH’s top-line results. 

Parker-Hannifin’s margins in the fiscal second 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 initiative that defines goals and initiatives, which enable long-term and sustainable growth.

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 -0.21%. 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 2. 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.

Dover Corporation (DOV - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter 2025 results on Jan. 29.

Dover’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.9%.

Deere & Company (DE - Free Report) has an Earnings ESP of +0.13% and a Zacks Rank of 3 at present. The company is slated to release first-quarter fiscal 2026 results on Feb. 12.

Deere’s earnings surpassed the Zacks Consensus Estimate thrice and missed once in the trailing four quarters, the average surprise being 5.2%.

Allegion plc (ALLE - Free Report) has an Earnings ESP of +0.75% and a Zacks Rank of 3 at present. The company is scheduled to release fourth-quarter 2025 results on Feb. 17.

Allegion’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 5.9%.

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