Parker-Hannifin Corporation stock research
FY2026 Q2
Parker-Hannifin (PH) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit increased both sequentially and year-over-year. Gross margin was slightly lower than the prior quarter but higher than the same quarter last year, as cost of revenue grew at a different pace relative to revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2026 Q2
Revenue and gross profit increased both sequentially and year-over-year. Gross margin was slightly lower than the prior quarter but higher than the same quarter last year, as cost of revenue grew at a different pace relative to revenue.
- The most notable observable driver is the year-over-year improvement in gross margin, as gross profit increased more than cost of revenue relative to the prior year period. A concrete item to monitor is the company's foreign currency exposure, as discussed in the filing.
- Compared to the immediately preceding quarter, gross margin weakened slightly. Compared to the same quarter one year earlier, gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.3%
Gross profit
$1.9B
Revenue
$5.2B
Cost of revenue
$3.2B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
+1.0 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $5.2B | $1.9B | $3.2B | 37.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-0.2 pts
Year-over-year change
Dec 31, 2024
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable observable driver is the year-over-year improvement in gross margin, as gross profit increased more than cost of revenue relative to the prior year period. A concrete item to monitor is the company's foreign currency exposure, as discussed in the filing.
Compared to the immediately preceding quarter, gross margin weakened slightly. Compared to the same quarter one year earlier, gross margin improved.
Monitor the impact of foreign currency fluctuations on future margins, as the company discusses foreign currency exposures and its management of such risks.