Parker Hannifin

PH Q3 2025 Earnings

Reported May 1, 2025 at 7:49 AM ET · SEC Source

Q3 25 EPS

$6.94

BEAT +3.26%

Est. $6.72

Q3 25 Revenue

$4.96B

MISS 0.55%

Est. $4.99B

vs S&P Since Q3 25

+15.7%

BEATING MARKET

PH +44.7% vs S&P +29.0%

Market Reaction

Did PH Beat Earnings? Q3 2025 Results

Parker Hannifin posted a mixed but broadly resilient fiscal third quarter, with adjusted earnings per share of $6.94 beating the $6.72 consensus estimate by 3.26%, even as revenue of $4.96 billion came in just 0.55% below expectations and declined 2.… Read more Parker Hannifin posted a mixed but broadly resilient fiscal third quarter, with adjusted earnings per share of $6.94 beating the $6.72 consensus estimate by 3.26%, even as revenue of $4.96 billion came in just 0.55% below expectations and declined 2.3% year-over-year. The clearest engine behind the earnings strength was a record adjusted segment operating margin of 26.3%, up 160 basis points, driven in large part by the Aerospace Systems segment, which delivered record sales of $1.57 billion on 11.7% organic growth and an adjusted margin of 28.7%. That momentum helped offset continued softness in the Diversified Industrial segments, where North America organic sales fell 3.5% on weakness in transportation and off-highway markets. Management also flagged an estimated $375 million annualized gross tariff impact, which it says is fully covered by mitigation actions. Looking ahead, Parker maintained its full-year adjusted EPS guidance midpoint at $26.70 and guided fourth-quarter adjusted EPS to approximately $7.05, while raising its Aerospace organic growth outlook to roughly 12%.

Key Takeaways

  • Record adjusted segment operating margin of 26.3%, surpassing 26% for the first time
  • Aerospace Systems delivered record sales on continued aftermarket strength with 11.7% organic growth
  • Aerospace backlog increased to a record $7.3 billion
  • Win Strategy business system driving margin expansion across all segments
  • Order rates accelerated to +9% overall, reflecting transformed portfolio and long-cycle strength
  • Record year-to-date cash flow from operations of $2.3 billion, up 8%
  • Simplification and 80/20 initiatives driving margin expansion across cycles
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PH YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

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PH Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 25 Q3 26
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PH Revenue by Geography

Regional revenue distribution

“Our third quarter performance demonstrates the strength of our business and our global team's ability to continue to deliver record results. All reported businesses showed substantial margin expansion and helped us surpass 26% adjusted segment operating margin for the first time. We also produced record earnings per share, generated record cash flow from operations, and repurchased $650 million of shares. We recently announced a 10% increase in our quarterly cash dividend and are committed to our strategy of actively deploying capital to drive shareholder value, including acquisitions and increased share repurchase activity, depending on market conditions.”

— Jenny Parmentier, Q3 2025 Earnings Press Release