Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Fortune 500

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

America's Most Innovative Companies

Industries included in the sector are electrical equipment and industrial machinery.

Fortune Sector Leaders: Industrials

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 200 companies on this list are transforming industries from the inside out.

The 300 companies on this list are transforming industries from the inside out.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

This year’s Fortune 500 marks the 68th running of the list.

This year’s Fortune 500 marks the 67th running of the list.

With more than four dozen locations around the world, the Cleveland technology provider manufactures motion and control devices.

This year's Fortune 500 marks the 66th running of the list.

The manufacturing company creates motion and control-related products including adhesives, filters, generators, piping, pumps, and valves, which are sold through its network of 7,500 distributors

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

World's Most Admired Companies

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Company Info

Industry

Industry Rank

Previous Industry Rank

Overall Score

Location

Website

Fortune 500 Rank

Fortune 500 Profile

Key Attributes Of Reputation

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

Global Competitiveness

Sector

Culture rank

Process rank

Product rank

Years on list

Previous rank

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

Q4 2025

Q3 2025

Q2 2025

Get insights into Parker-Hannifin including business profile, stock information, news, and rankings from Fortune.

Parker-Hannifin (PH): Company Profile, Stock Price, News, Rankings

legacy

Parker-Hannifin

parker-hannifin

Please be advised that today's conference is being recorded.

I would now like to turn the call over to Mr. Todd Liambruno, Executive Vice President and Chief Financial Officer. Please go ahead, sir.

Thank you so much, Bo. I'd like to welcome everyone to Parker's fiscal year twenty twenty five fourth quarter and full year earnings release webcast. As Bo said, this is Todd Leonbruno, Chief Financial Officer speaking. And with me today, usual, is Jenny Farmateer, our Chairman and Chief Executive Officer. We appreciate your interest in Parker, and we thank everyone for joining us today.

On Slide two, we address our disclosures on forward looking projections and non GAAP financial measures. Items listed here could cause actual results to vary from our forecast. Our press release, this presentation and reconciliations for all non GAAP measures were released this morning and are available under the Investors section on Parker. The agenda for today has Jenny starting out with the highlights of our record fiscal year 2025 performance. She will then reiterate the strength of our transformed portfolio, the Power of the Win Strategy, which is our business system that drives performance in all economic climates, and then she'll provide some color on our recently announced acquisition of Curtiss Instruments.

I'm going to follow with a few details on our strong fourth quarter financial results. We did release our initial FY twenty twenty six guidance this morning, and we will discuss the assumptions and provide some color on what we expect to be another record year for Parker. We'll conclude the call with a normal question and answer session, and we will do our best to take as many questions as possible. Now I would ask everyone to call your attention to Slide three. And Jenny, the floor is yours.

Thank you, Todd, and thank you to everyone for joining the call today. The Win Strategy and our culture of high performance delivered another record year. We had a 17% reduction in recordable incident rate, once again achieving top quartile safety performance and record engagement survey results. Top line sales finished at $19,900,000,000 and this team achieved record adjusted segment operating margin of 26.1%, an increase of 120 basis points to prior year and record adjusted EBITDA margin of 26.4%, an increase of 80 basis points to prior year. We generated record cash flow from operations of $3,800,000,000 and delivered 7% adjusted EPS growth.

We finished the year with a record $11,000,000,000 in backlog and we remain committed to a disciplined, active and balanced capital deployment strategy. Next slide please. Another year of outstanding performance from aerospace with record sales of $6,200,000,000 that's 13% organic growth and 190 basis points of adjusted expansion. Orders continue to outpace sales growth as we finished the year at a record backlog of 7,400,000,000 Today, we enjoy a balanced and diverse aerospace portfolio. We finished FY 2025 with 51% of our sales sales from serving the aftermarket and 49% from serving our OEM customers.

Looking back to FY 2019, I'd like to recognize our aerospace team for navigating and managing through numerous industry challenges, successfully integrating the Parker and Meggitt Aerospace businesses together and staying focused every day on the safety of our team members and improving the experience for all of our customers. The performance is impressive. Sales are approximately 2.5 times higher and we are on track to expand adjusted segment operating margin by nine forty basis points from fiscal year twenty nineteen through our fiscal year twenty twenty six guide and we're not done yet. Our comprehensive offering of proprietary designs on premier programs and our global footprint that supports a diverse customer base well positions us for sustained growth and operating performance. Next slide please.

The Industrial segment of our business has been a large part of our transformation and margin expansion story. Fiscal year twenty twenty five delivered record adjusted segment operating margin of 25.1, a 90 basis point increase over prior year. Using the Win Strategy, our teams are on track to deliver 700 basis points margin expansion from fiscal year twenty nineteen through our FY 2026 guide. This is a testament of our ability to expand margins through the cycle even in periods of negative organic growth. Our powerhouse of interconnected technologies, global distribution network and global manufacturing footprint are competitive advantages that will drive growth from secular trends across the market verticals.

Our portfolio today is well balanced. Two thirds is now longer cycle secular trends and aftermarket. We are poised for a return to growth. Next slide please. Once again, the transformation of our portfolio further expanded longer cycle and secular revenue mix in fiscal year twenty twenty five.

Acquisitions in both aerospace and industrial along with international distribution growth have greatly contributed to this transformation. We see this transformation continuing and expect 85% of our portfolio to be longer cycle secular and aftermarket by fiscal year twenty nineteen. Next slide please. And on June 30, we announced our intent to acquire Curtis Instruments, further expanding our electrification offering and secular revenue mix. Curtis is the leader in low voltage motor control solutions for zero emission and hybrid mobile equipment.

This acquisition will add a complementary suite of control solutions to pair with Parker's electric motor and motion control portfolio. This will further enhance our capabilities for in plant and off highway applications. Curtis has a strong market position across diverse and growing end markets. These are markets that we know, customers we have relationships with and products that will be a great addition to our portfolio. We expect to close by end of the calendar year and we look forward to welcoming the Curtis team to Parker.

Next slide please. And a reminder on why we win. First, the win strategy is our business system. We have a decentralized operating structure, 85 divisions run by general managers with full P and L responsibility, acting like owners, close to their customers and executing the Win Strategy every day. We have innovative products that solve customer problems, 85% covered by intellectual property.

Our application engineers provide the expertise that allows us to have a competitive advantage with our technologies to provide efficient solutions for our customers. And finally, our distribution network is the envy of the competition and the best in the world. It took us over sixty years to build it and it is truly an extension of our engineering teams providing solutions to small and mid sized OEMs. These partners are experts at applying our interconnected technologies. I'll now turn it back over to Todd to go through our fiscal year 2025 highlights.

Thank you, Jenny. FY 2025 was really a strong year. I'm going to try and quickly wrap up FY 2025 with the Q4 results and I'm on Slide 10. Fourth quarter was another record setting quarter. In fact, every number on this page is once again a record.

It was another quarter of continued margin expansion and a quarter of double digit EPS growth. Really impressive considering that sales were up just 1% versus prior year. Organic growth was positive at 2%. That's the highest we've been all fiscal year. Currency did turn favorable at 1% and the divestitures that we previously announced throughout the year were 2% unfavorable to total sales.

Adjusted segment operating margin was 26.9%. That's up 100 basis points from prior year. And adjusted EBITDA margin was 26.8%. That's an increase of 50 basis points from prior year. Adjusted net income was almost $1,000,000,000 was $992,000,000 in the quarter.

That was an 18.9% return on sales. And adjusted earnings per share were up 14% and they reached $7.69 per share. Just a fantastic quarter really from all the businesses resulting in the best performance that we've had this fiscal year for sales, for organic growth, for adjusted segment margins and for adjusted EPS. We'd really like to thank our global team for a strong finish to the fiscal year. We talk about this a lot internally, finishing strong and everyone certainly delivered.

If you move to Slide 11, this just highlights the components in the year over year improvements. And adjusted EPS, what I'm proud to say here is 60% of the improvement in EPS in the quarter came from strong operating execution. Segment operating income dollars are up $96,000,000 or 7%. That was $0.56 of our improvement. Income tax was a big favorable in the quarter.

That's $0.47 favorable. That was really a result of a few discrete tax benefits that were resolved in the quarter. Also, I'd just like to call attention that Q4 last year was our highest tax rate of the year. So comps helped a little bit there. Interest expense continues to be favorable.

That was $0.12 favorable. That's really just based on our efforts to pay down debt throughout the year. And discretionary share repurchases drove a $09 favorable impact. You can see that on share count bar there. Corporate G and A and other were unfavorable, really a combined $0.32 That's a combination of less favorable pension expense versus prior year, but really a result of foreign currency exchange volatility year over year.

The EPS growth story has been really consistent throughout the year, just strong operating execution, very tight cost controls driving margin expansion and as Jenny mentioned, disciplined capital allocation. So just a great way to finish the year. If we can go to Slide 12, this just details the performance across our businesses. First, I'll start with orders. Orders continue to be positive.

It's plus five versus prior year. Aerospace strength continues to drive backlog higher. Jenny mentioned that's a record. We did see gradual improvement in sales growth across our major market verticals. And once again this quarter, every business delivered record segment operating margins.

Very nice to see that. And I already mentioned it, but total in total, we were up 160 basis points from prior year. Looking specifically in the North America businesses, sales were $2,100,000,000 Organic growth was just down 1% versus prior, but we did continue to see a sequential improvement in the organic growth. And quite honestly, that was better than our expectations coming into the quarter. We did see improvement across the market verticals in North America.

So that was a positive and distribution sentiment continues to be positive across the channel. Adjusted operating margins did increase 170 basis points to a record 26.7%, and that was just again driven by excellent operating execution, cost controls and a little bit of favorable mix. Gradual improvement in distribution kept orders in North America positive at plus 2% versus prior year. And just want to note that this is the third consecutive quarter of positive order growth for North America. Moving to the Diversified Industrial International businesses.

Sales were up to $1,500,000,000 that's up 4%. Organic growth was positive at 1%. It was really nice to see that turn positive. In Asia Pac, organic growth was plus 6%. In Latin America, it was plus 4%.

While EMEA did improve, it did remain negative 3% from an organic growth standpoint. Our international teams are really committed to using the tools of The Win Strategy to reduce cost, improve efficiency and drive margin expansion no matter what's happening with the top line. And that resulted in adjusted operating margins achieving a record of 24.7%, which is an 80 basis point expansion from prior year. On the order front, international orders were flat versus prior year, really against some tough comps. And just a reminder that orders in Q3 did benefit from a number of significant long cycle orders that remain in the backlog.

Lastly, if I look at Aerospace Systems, the momentum continues in Aerospace. Sales were a record $1,700,000,000 That's up 10% versus prior year. That did exceed our expectations for the quarter. Organic growth was most of that. 9% of that growth is organic, really driven by strong strength in the aftermarket channels.

Adjusted segment operating margins up huge 190 basis points versus prior and reached a record 29%. And Aerospace orders continue to be positive at plus 12%. Really want to commend our Aerospace team members for another outstanding quarter and a strong finish to a stellar year. All right. On Slide 13, this is my last slide for the year.

This is cash flow. We finished FY 2025 by achieving record cash flow generation. Cash flow from operations is a record at $3,800,000,000 that's 19% of sales. Free cash flow is also a record at $3,300,000,000 or 16.8% of sales with conversion at 109 after adjusting for some non operating items. Both CFOA and free cash flow increased by 12% versus prior year.

And in addition, we did repurchase an additional $850,000,000 in shares during the quarter and that brought our year to date share repurchases amount to $1,600,000,000 And that is a wrap on our record FY 2025 performance. So I know everyone's interested in guidance. We'll move on to FY 'twenty six guidance. And Jenny, I'm going hand

it back to you on Slide 15. Thanks, Todd. This slide shows our fiscal year 'twenty six organic sales growth forecast by key market vertical. So in Aerospace, we are forecasting high single digit growth with higher growth in commercial OEM than commercial aftermarket. We are forecasting low single digit growth in In Plant and Industrial, this is assuming a gradual industrial recovery.

Transportation, our most challenged market this year, we are forecasting a mid single digit organic decline. In Off Highway, we are forecasting a low single digit decline. The ag market has moved past trough, but needs a little more time before returning to positive. Construction is stronger than ag with recovery underway. And we expect positive low single digit growth in energy as well as HVAC and refrigeration.

At the midpoint, this results in 8% organic growth for aerospace, approximately 1% organic growth for both Industrial North America and Industrial International and approximately 3% total Parker organic growth. I'll give it back to Todd to go through more details guidance.

Okay. Thank you, Jenny. I'm on Slide 16. We'll just go over a few items. Reported sales growth for the year is expected to be in the range of 2% to 5%, that's 3.5% at the midpoint.

That will be approximately 20,600,000,000.0 annual sales. And we have modeled those sales 48% in the first half, 52% in the second half. And consistent with our practice, this guidance does not include any impact from the We will add Curtiss to our guide once it closes. If you look at organic growth, Jenny mentioned this, but the forecast is in the range of 1.5 to 4.5% or 3% at the midpoint.

Aerospace is again 8% at the midpoint and both North America and international we expect 1%. Organic growth is modeled two percent first half and four percent second half. Currency as usual is based on the June 30 spot rates. And based on our math here, it shows that that's expected to be favorable by 1.5% or roughly $260,000,000 On margins, adjusted segment operating margin guidance is 26.5% at the midpoint. That is an increase of 40 basis points versus the FY 2025 finish.

And in respect to incrementals, we have modeled roughly 35% for the full year on incrementals. Just a few things to note. Below segment operating income, corporate G and A is approximately $200,000,000 interest expense approximately $390,000,000 and other expense is approximately 80,000,000 midpoint.

Tax rate, we are modeling a 22.5% tax rate. As usual, we are not including any unknown discretes in that number. 22.5% is what we have modeled. And EPS for the full year is expected to be $28.9 on an adjusted basis at the midpoint. That is an increase of 6% versus prior year.

We have a range of $0.50 on both sides of that $28.9 And the split on EPS is forty six percent first half, fifty four percent second half. Lastly, in respect to cash flow, full year free cash flow is expected to be in the range of 3,000,000,000 to $4,000,000,000 with conversion at approximately 100%. And lastly, on the far right column here, you could see what we have highlighted for Q1. FY 2026, all of these numbers are at the midpoint. Reported sales are roughly 0.5% positive.

Organic growth is 2% positive. And we are forecasting 26.1 for adjusted segment margins and an adjusted EPS of $6.51 As usual, we have some further details in the appendix if those are helpful for your model. Lastly, on Slide 17, this is just the bridge. And I'll just highlight as we walk through this. We are forecasting a 5% increase in adjusted segment operating income dollars, which translates to $1.68 in additional EPS.

Share count based off of that year to date repurchase amount is roughly $0.37 of improvement in EPS for FY 2026. Corporate G and A are forecast to be $0.18 favorable. And again, interest rate will give a little bit of a tailwind $0.11 for the year. The forecasted tax rate of '22 is a headwind of $0.77 compared to our the effective tax rate that we realized in FY 2025. Once again, that does not include any discrete items.

So in summary, we are guiding FY 2026 at $28.9 and adjusted EPS that is up 6%. And with that, I'm going to ask you to move to Slide 18. And Jenny, I will hand it back to you.

So I'll close with a reminder on what drives Parker. And again, thank you to all the Parker team members for a fantastic fiscal year 2025 and a very, very promising FY 2026. Safety and engagement and ownership are the foundation of our culture. It's our people and our purpose that drives top quartile performance, and we remain committed to being great generators and deployers of cash.

Okay. Bo, we are ready to start the Q and A session.

Certainly, Mr. We'll go first today to Joe Ritchie of Goldman Sachs.

Hey, good morning, everybody, and congrats on another great year.

Can we just maybe talk about the Q1 guide? If you take a look at that relative to the last few years, it's a pretty meaningful sequential step down in EPS relative to what you've seen even just like the last three years. So can you guys maybe just talk about like the bridge between 4Q to 1Q and what's really changing on the margin embedded in your guide?

Well, I'll start Joe and then I'll let Todd follow-up if he has any more comments. So first of all, we had very little sales growth in Q1 and this EPS guidance for Q1 is a $05 increase year over year. And this margin at 26.1% does have 40 basis points of margin expansion and is a Q1 record, will be a Q1 record. So I think this is a good starting point for the year for us.

Yes, Joe, would add, we do have sequentially it's hard to go from Q4 to Q1, Q1 being obviously the start of our fiscal year. We do have to recognize some of the stock comp that is a big hit in Q1. If you look at that versus prior year, Jenny mentioned this, but we're forecasting 80 basis points of margin expansion, Q1 twenty six versus '25, and EPS is a little over 4% of an increase.

Okay. All right. Yes. No, it's just looks to touch conservative, but that's okay. I guess maybe just a broader question.

It sounded like you were seeing some green shoots across your businesses. Maybe just kind of talk through, especially the industrial short cycle businesses, what you're seeing there? And then also, can you just touch on like the self help opportunity for this year as well? Clearly, you've been doing a great job from a margin perspective. If you can just touch on those two points, that'd be great.

Sure. So taking a look at implant and industrial equipment guidance. So we have that at a positive low single digit for the year. And as I mentioned, that does assume a gradual industrial recovery. I mean, I would say, Todd mentioned this already, but distributor sentiment does remain positive.

And I think we're in a good position to benefit from some of the customer supply chain actions. So we'll benefit from increased MRO activity, any factory retooling or spending that's going on and our distributors will participate in that. They continue to tell us, I was on a distributor visit just in the last month, they continue to tell us that they're quoting. And it's the activity is there, just still some of those delays that we've been talking about now for a few quarters. When you look at transportation, mentioned that that is going to be our most challenged market this year.

There's some near term pressure in both auto and truck markets. We think their end users, they're delaying their purchasing decisions due to the uncertainty on cost, timing of new emission requirements and current interest rate levels. We think that's all buying into that. So again, will be a challenged market for us. Off highway, our guidance is at negative low single digit, but there's improvement here.

Turned out to be a little bit better. Construction was a little bit better in Q4 than we thought it would be, and we see that continuing. We see that recovery underway. A lot of the ongoing and announced infrastructure here is going to be a plus. But the ag market, while we do believe that it's moved past a trough, we think that it's going to be a little bit of time before it returns to positive.

Again, cost uncertainty, interest rates, crop prices, all factors here. So we see improvement and that's why we have the guide where it is. But obviously there's some opportunity here.

Joe, I would just add your question on self help. Obviously everything we have on The Win Strategy is a self help margin enhancing process of tools. But we are forecasting slightly higher restructuring this year versus what we did last year just in some of those regions or some of those end markets that may need attention?

Yes. We still you heard me say before, we're very confident in our ability to expand margins with these tools. It's obviously shown what we've done in all of the business in this past fiscal year and the ones before, but we have great teams that are using these tools on a regular basis and really delivering great results. It will continue.

Thank you. We go next now to Jeff Sprague of Vertical Research Partners.

Jenny or Todd, maybe you could just speak a little bit, more to Curtis, kind of where the margin profile is on a Parker comparable basis, what kind improvement you can get in the business from a synergy standpoint relative to the deal plan that you must have internally? And what's the growth been like in that business recently? How is it performing in 2025?

Yes, sure Jeff, be happy to. We're really excited about bringing Curtis into the Parker team. So we chose not to disclose their margins more about the size of this deal. But initially, the margins will be dilutive, but we see a clear path to accretion with the Win Strategy, the tools we were just talking about and with synergies. We expect, like you've seen with our past deals, full synergies within three years.

And relative size would be similar to the Lord and Mega deals. That's what we're looking at right now. Historically, Curtis sales have grown mid single digit to high single digit over the past five to ten years. So really nice growth profile with them.

Jeff, the only thing I would add is if you look at what we are forecasting for 2026, the segment operating income dollars roughly $5,500,000,000 worth of segment operating income that does not include Curtis. So to Jenny's point, this will be slightly dilutive, but it's small in scale compared to where it fits in the total company.

Right. It would be margin dilutive. I know you don't want to give an EPS number yet, but it looks like it's EPS accretive, right? Margin dilutive, EPS accretive?

I think, yes, we expect EPS accretion in the first year.

Yes, absolutely. Okay. And then just on international orders, I guess, Todd, your comment alluded to the fact that maybe the softness here in Q4 was because you got some chunky orders in Q3. Maybe you could just elaborate a little bit more on that and what's going on sort of in the international order pipeline?

Sure. Jeff, I'll take that one. So yes, Todd did mention that, that we in Q3, we had very strong long cycle orders in International. We saw that in HVAC and refrigeration, power gen and aerospace and defense. They didn't repeat in Q4, but we did see EMEA slightly positive with energy remaining really strong.

And then in Asia, orders were slightly negative and that was really more about a challenging comp to the prior year. But if you look at the order dollars, they were flat sequentially to Q3. So that really explains the difference between Q3 and Q4 and that drop that we saw.

Thank you. We go next now to Scott Davis with Melius Research.

Hey, good morning, Jenny and Todd, and congrats on a good year.

Just wanted to follow on just Curtis and then combine that with the big buyback Is that an indication that you expect M and A to continue to be more of kind of the smaller bolt on type stuff? Or am I reading too much into that?

Well, like you've heard me say many times in the past, Scott, we have deals of all sizes in our pipeline. It can be small and bolt on or there could be something larger out there. As we said, timing is hard to predict. But obviously, strategy remains the same. We want to acquire companies where we're the clear best owner, fits in with our interconnected technologies and follows the secular trends that we've talked about here for a while.

So it doesn't mean that they'll all be this size, but we're going to continue to work that pipeline. It's building those strong relationships and making sure that we're ready when they're ready.

Yes, Scott, I would just add, you've heard us talk, we want to operate with net gross debt to adjusted EBITDA around two. We finished the year at roughly 1.7. So we do have obviously capacity to do something even below two. But the cash flow generation profile that the company has really gives us lots of optionality. You saw us be active with the share repurchase this year.

And we'll constantly balance what the best use of our capital is and that's what we expect to do throughout FY 2026.

Yes. No, it makes sense. Guys, I don't think you mentioned tariffs. I know it's not wasn't a big deal even last quarter. But just curious, is the lack of kind of mention of tariffs an indication that you've just been able to capture price to offset any impacts?

I'm trying to kind of picture how 85 different P and Ls kind of manage something that's such a big complex global issue, but maybe you can address both of those in some way in your answer if you can. Thanks.

Sure, Scott. So first I would just say our teams are doing a fantastic job managing tariffs and making sure that there's no impact to earnings per share. But you probably heard us say pricing is something that is a strong muscle for us. I mean this is a function within Parker Hannifin and these divisions have pricing leaders. And there's a lot of coordination within the groups and across the enterprise, obviously, because a lot of our businesses share the same customers.

So it's a lot of work. I'm not going to say that it's not. It's been a whole lot of work for them. But they have this down pat. They've done really a great job with it.

And we have the analytics. We have these robust processes. And we've been able to navigate and act very quickly. So we didn't talk about it because we feel like we have it covered, and it's going to continue to evolve and change, but we're going to make sure that doesn't impact EPS.

Scott, you know us pretty I would just ask, Scott, you know us pretty well. Pricing is one of the levers we're able to flex, but it's also our global footprint. It's our local for local model that we've had for years. It's really our supply chain team being pretty creative with dual sourcing and the ability to ship from multiple regions. So pricing is a big piece of it, but it's not the only tool.

Yes. Our global capacity has been a really good thing for us.

Thank you. We'll go next now to Amit Mehrotra of UBS.

Thanks. Good morning. Just a follow-up to that earlier comment. I just wanted to see if you can help us sort of bifurcate the exceptional margin performance in Resilience between price and lower costs. I know each of the 85 divisions has its own pricing management, so obviously pricing is a focus.

But one thing I noticed is the absolute cost base of the company also went down in fiscal twenty twenty five, which is pretty amazing just given just inflation has been a little bit higher. So can you help us kind of think about those two things? And is there an opportunity for the OpEx base or the cost base to actually move down an absolute basis after the huge performance in 2025? Or are we just entering a more maybe normalized period where the cost base will mirror kind of normal inflation?

Parker-Hannifin Q4 2025 Earnings Call Transcript | Fortune

Companies

John Kell

e.l.f. Beauty’s CDIO says she’s responsible for AI’s foundation, but that these tools aren’t an IT mandate

/2025/09/10/e-l-f-beautys-cdio-says-shes-responsible-for-ais-foundation-but-that-these-tools-arent-an-it-mandate/

Phil Wahba

Why Walmart’s U.S. CEO says staffing levels will remain steady even as A.I. becomes a bigger part of work

/2025/09/09/walmart-ai-jobs-brainstorm-tech/

Jessica Mathews

DoorDash CEO Tony Xu says path to autonomous deliveries filled with ‘lots of pain and suffering’ but company is nearing first inning of commercial progress

/2025/09/08/doordash-ceo-tony-xu-interview-brainstorm-tech-autonomous-drone-deliveries/

Indrani Sen

Fortune Archives: Warren Buffett’s biggest blunder

/2025/09/07/fortune-archives-warren-buffetts-biggest-blunder/

Fortune Editors

Fortune 500 Power Moves: Which executives gained and lost power, Aug. 23-Sept. 5, 2025

/2025/09/05/fortune-500-power-moves-aug-23-sept-5/

Nino Paoli

Davenport, Florida, Starbucks Coffee, outside exterior drive thru through.

Parker-Hannifin (PH) Q4 2025 Earnings Call Transcript

Company Participants