PH: F2027 Bridge—EPS Midpt Could Start ~3% Below Cons, w/ Path to Ultimately Exceed Cons

Research evidence excerpt

PH: F2027 Bridge—EPS Midpt Could Start ~3% Below Cons, w/ Path to Ultimately Exceed Cons

Parker-Hannifin Corporation Equity Research

Wells Fargo Express Takeaways

Parker-Hannifin Corporation (PH) | Rating: Overweight | Price Target: $950.00

Analyst: Joseph O'Dea

Financials Investment Thesis

Parker distinguishes itself with exceptional operational execution,FY (Jun) 2025A 2026E 2027E

$ evidenced in significant margin expansion over the past five

ESTIMATES years, despite challenging operating environments. Portfolio

EPS diversification through increased Aero exposure has also diminished

Q1 6.20 A 7.22 A 7.75 E industrial cyclicality. The company has built a strong track record on

Q2 6.53 A 7.65 A 7.95 E capital deployment. We rate shares Overweight.

Q3 6.94 A 8.17 A 8.57 E

Q4 7.69 A 8.21 E 8.85 E

AN 27.33 A 31.25 E 33.11 E Risk vs. Reward – Upside/Downside Price Target ScenariosRev. (MM) 19.85B A 21.33B E 22.61B E

EBIT (MM) 4,878.9 A 5,493.8 E 5,891.6 E

EBITDA (MM) 5.23B A 5.85B E 6.25B E

FCF (MM) 3,341.4 A 3,388.5 E 3,745.7 E Upside Scenario $1050.00

WELLS FARGO vs. CONSENSUS Base Case $950.00

Consensus Estimate 26.73 A 31.30 E 34.16 E * $866.96

Difference from Consensus (0.2)% (3.1)%

Downside Scenario $800.00

VALUATION

P/E 31.7x 27.7x 26.2x $640 $795 $950 $1105 $1260

EV/Revenue 6.0x 5.6x 5.3x

EV/EBIT 24.6x 21.9x 20.4x

EV/EBITDA 22.9x 20.5x 19.2x *As of 05/22/26

EV/FCF 35.9x 35.4x 32.1x Source: Wells Fargo Securities, LLC estimates and Factset.

FCF Yield 3.0% 3.1% 3.4%

Consensus Estimate: EPS; Source: Visible Alpha

Source: Company Data, Wells Fargo Securities estimates, and Factset.

NA = Not Available, NE = No Estimate

Base Case | $950.00 Upside Scenario | $1,050.00 Downside Scenario | $800.00

• Our $950 target is ~28.5x our NTM • Our upside scenario target is $1,050.