KeyBanc Capital Markets raised its 12-month price target on Parker-Hannifin (NYSE: PH) to $1,100 from $1,050 and reiterated an Overweight rating after the industrial manufacturer released its fiscal second-quarter 2026 results. The brokerage cited sustained operational strength as the primary reason for the increase.
Parker-Hannifin shares are trading at $948.40, roughly 1% below their 52-week high of $965 and up about 36% over the past year. KeyBanc highlighted the company’s ability to deliver strong incremental margins even as conditions remain mixed outside the aerospace sector.
The recent price-target revision follows the company’s fiscal Q2 report, in which Parker-Hannifin posted adjusted earnings per share of $7.65, beating the forecasted $7.16. Revenue for the quarter came in at $5.17 billion, above the anticipated $5.07 billion. For the trailing twelve months, the company reported diluted earnings per share of $27.43, which corresponds to a price-to-earnings ratio of 33.4 at current market levels.
In its commentary, KeyBanc described the results as evidence of what it called Parker-Hannifin’s "uniquely strong execution," noting that the company produced strong incremental margins despite challenging market conditions. The analyst team expressed confidence that continued operational execution will drive organic earnings upside.
KeyBanc also pointed to potential additional contributions from Parker-Hannifin’s Filtration Group as a factor supporting further earnings and share-price appreciation. On that basis, the firm raised its earnings estimates for the company, reflecting the recent performance and what it views as scope for long-term growth.
Market participants are likely to continue watching subsequent quarterly results to assess whether the company sustains the level of execution highlighted by KeyBanc. Investors and analysts will monitor both organic performance and progress from the Filtration Group in judging forward momentum.
Contextual note - The company’s quarter outperformance and the analyst update combine to form the basis for the price-target increase and the maintained Overweight rating. The market valuation implied by the trailing EPS and current share price is a data point investors may weigh against KeyBanc’s raised estimates.