Strength in Aerospace Systems Drives Parker-Hannifin: Will the Momentum Last?

Parker-Hannifin Corporation PH is witnessing strong momentum in its Aerospace Systems segment. The segment is benefiting from strength in commercial and military end markets across both Original Equipment Manufacturer (OEM) and aftermarket channels. Segmental revenues jumped approximately 13% year over year in fiscal 2025 (ended June 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 approximately 8% from the year-ago level in fiscal 2026 (ending June 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 guidance. The company currently expects total sales to increase 2-5% year over year, while organic sales are projected to grow 1.5-4.5%.Segment Snapshot of PH’s PeersAmong its major peers, Howmet Aerospace Inc. HWM is gaining momentum backed by the persistent strength in its defense aerospace market. In the second quarter of 2025, Howmet’s revenues from the defense aerospace market jumped 21% year over year, which accounted for 17% of its total sales. The surge in Howmet’s revenues was fueled by robust demand for engine spares, particularly related to the F-35 program and an increase in orders for new builds and legacy fighter jet parts.Another peer, RBC Bearings Incorporated RBC is benefiting from solid demand in the aerospace and defense markets. Strength in the commercial aerospace market, driven by strong growth in orders from the OEM (original equipment manufacturer) and the aftermarket verticals, is driving RBC Bearings’ Aerospace/Defense segment. Revenues from the RBC segment increased 10.4% year over year in first-quarter fiscal 2026 (ended June 28, 2025).PH's Price Performance, Valuation and EstimatesShares of Parker-Hannifin have surged 24.6% in the past year compared with the industry’s growth of 5.1%.Image Source: Zacks Investment ResearchFrom a valuation standpoint, PH is trading at a forward price-to-earnings ratio of 25.48X, above the industry’s average of 21.10X. Parker-Hannifin carries a Value Score of D.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for PH’s fiscal 2026 earnings has inched up 0.6% over the past 60 days.Image Source: Zacks Investment ResearchParker-Hannifin currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Parker-Hannifin Corporation (PH): Free Stock Analysis Report RBC Bearings Incorporated (RBC): Free Stock Analysis Report Howmet Aerospace Inc. (HWM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks