S&P Global Ratings changed Parker-Hannifin’s outlook from stable to positive, maintaining BBB+ issuer and A‑2 short‑term ratings.
The firm’s FY2026 Q1‑Q3 revenue rose 7.8%, EBITDA margin improved 60 bps to 27.4% amid aerospace, defense strength.
Adjusted leverage fell to 1.6x as of March 31 2026 and is projected to stay below 3x post $9.25 bn Filtration Group acquisition.
S&P expects >$3 bn annual free cash flow, targeting 2x leverage by FY2029 after deleveraging and acquisition synergies.