Illinois Tool Works vs Parker Hannifin
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The short version
- Parker Hannifin is the larger business, with $21.5B of revenue in fiscal 2026 against $16.0B for Illinois Tool Works.
- Parker Hannifin grew revenue faster (8.3%, against 0.9%).
- Illinois Tool Works kept more of each dollar of sales as operating profit (26.3% operating margin, against 23.6%).
- Parker Hannifin turned more of its sales into free cash flow (18.2% FCF margin, against 16.9%).
- Illinois Tool Works earned a higher return on the capital invested in it (30.2%, against 17.6%).
| Latest fiscal year | ITW · FY25 | PH · FY26 |
|---|---|---|
| Size | ||
| Market cap | $79.1B | $112.8B |
| Revenue | $16.0B | $21.5B |
| Free cash flow | $2.7B | $3.9B |
| Net income | $3.1B | $3.6B |
| Growth | ||
| Revenue growth | 0.9% | 8.3% |
| 5-year growth | 5.0% | 8.4% |
| Share count change | −1.9% | −1.6% |
| Profitability | ||
| Gross margin | 52.9% | 37.7% |
| Operating margin | 26.3% | 23.6% |
| Net margin | 19.1% | 17.0% |
| FCF margin | 16.9% | 18.2% |
| Return on capital | 30.2% | 17.6% |
| Return on equity | 93.7% | 25.1% |
| Balance sheet | ||
| Net debt | $8.1B | $8.1B |
| Net debt / EBITDA | 1.8x | 1.3x |
| Dividends and buybacks | $3.3B | $2.2B |
| Valuation & quality | ||
| P/E | 25.0x | — |
| Piotroski F-score | 6 | 9 |
Revenue
FY17
ITW $14.3B
PH $12.0B
FY18
ITW $14.8B
PH $14.3B
FY19
ITW $14.1B
PH $14.3B
FY20
ITW $12.6B
PH $13.7B
FY21
ITW $14.5B
PH $14.3B
FY22
ITW $15.9B
PH $15.9B
FY23
ITW $16.1B
PH $19.1B
FY24
ITW $15.9B
PH $19.9B
FY25
ITW $16.0B
PH $19.9B
FY26
ITW —
PH $21.5B
ITW
PH
Operating margin
FY17
ITW 24.4%
PH 14.9%
FY18
ITW 24.3%
PH 14.3%
FY19
ITW 24.1%
PH 15.6%
FY20
ITW 22.9%
PH 14.4%
FY21
ITW 24.1%
PH 17.2%
FY22
ITW 23.8%
PH 18.8%
FY23
ITW 25.1%
PH 17.9%
FY24
ITW 26.8%
PH 20.4%
FY25
ITW 26.3%
PH 21.9%
FY26
ITW —
PH 23.6%
ITW
PH
Free cash flow
FY17
ITW $2.1B
PH $1.1B
FY18
ITW $2.4B
PH $1.3B
FY19
ITW $2.7B
PH $1.5B
FY20
ITW $2.6B
PH $1.8B
FY21
ITW $2.3B
PH $2.4B
FY22
ITW $1.9B
PH $2.2B
FY23
ITW $3.1B
PH $2.6B
FY24
ITW $2.8B
PH $3.0B
FY25
ITW $2.7B
PH $3.3B
FY26
ITW —
PH $3.9B
ITW
PH
Return on capital
FY17
ITW 18.5%
PH 16.9%
FY18
ITW 28.6%
PH 12.5%
FY19
ITW 29.1%
PH 17.6%
FY20
ITW 25.1%
PH 13.2%
FY21
ITW 29.0%
PH 13.6%
FY22
ITW 28.5%
PH 14.3%
FY23
ITW 28.2%
PH 12.5%
FY24
ITW 31.0%
PH 14.4%
FY25
ITW 30.2%
PH 16.7%
FY26
ITW —
PH 17.6%
ITW
PH
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.