Parker-Hannifin Corporation stock research
FY2026 Q1
Parker-Hannifin (PH) Gross Margin — Quarter Ended Sep 30, 2025
Revenue decreased from the prior quarter while gross profit and cost of revenue also declined, resulting in a slightly higher gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue all increased, and gross margin improved.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2026 Q1
Revenue decreased from the prior quarter while gross profit and cost of revenue also declined, resulting in a slightly higher gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue all increased, and gross margin improved.
- Gross margin improved relative to both the prior quarter and the year-ago quarter, driven by a proportionally larger decline in cost of revenue compared to revenue in the sequential comparison, and a proportionally larger increase in gross profit relative to revenue in the year-over-year comparison.
- Sequentially, revenue was lower, gross profit was lower, and cost of revenue was lower, while gross margin was higher. Year over year, revenue was higher, gross profit was higher, cost of revenue was higher, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.5%
Gross profit
$1.9B
Revenue
$5.1B
Cost of revenue
$3.2B
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+0.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2024 | $4.7B | $1.7B | $3.0B | 36.3% |
| Mar 31, 2025 | $5.0B | $1.8B | $3.1B | 36.9% |
| Jun 30, 2025 | $5.2B | $2.0B | $3.3B | 37.3% |
| Sep 30, 2025 | $5.1B | $1.9B | $3.2B | 37.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+0.2 pts
Year-over-year change
Sep 30, 2024
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved relative to both the prior quarter and the year-ago quarter, driven by a proportionally larger decline in cost of revenue compared to revenue in the sequential comparison, and a proportionally larger increase in gross profit relative to revenue in the year-over-year comparison.
Sequentially, revenue was lower, gross profit was lower, and cost of revenue was lower, while gross margin was higher. Year over year, revenue was higher, gross profit was higher, cost of revenue was higher, and gross margin was higher.
Monitor the trajectory of cost of revenue relative to revenue, as the sequential decline in cost outpaced revenue and contributed to margin expansion.