Stock AnalysisUpdated July 13, 2026 · 9 min read

Is Parker Hannifin Stock (PH) Halal? A Current Sharia Screen

A filing-based analysis of Parker Hannifin combining reproducible financial ratios with qualitative review of industrial, aerospace and defense-related activity.

Time-sensitive screening snapshot: financial ratios and business mix can change after each filing. This is educational research, not a fatwa or investment advice. Verify the latest filing and your preferred Sharia standard before acting.

The short answer

Parker Hannifin is HALAL in ZakatInvest's qualitative classification, and its current asset-based financial ratios pass the examined methods. Parker makes motion and control components rather than weapons, but aerospace defense customers, acquisition-related leverage and downstream end use require continuing review.

This is a reproducible research screen, not a fatwa or investment recommendation. Apply your school's principles and consult a qualified scholar for a binding ruling.

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.

USD · millions
Interest-bearing debt / assets
31.23%Within limit
Below 33.333% under FTSE Yasaar

9,582 / 30,679

Cash + interest-bearing securities / assets
1.55%Within limit
Below 33.333% under FTSE Yasaar

476 / 30,679

Receivables + cash / assets
12.86%Within limit
Below 50% under FTSE Yasaar

3,944 / 30,679

Non-compliant income / revenue
0.04%Within limit
No more than 5% under FTSE Yasaar

2 / 5,486

FTSE Yasaar
v4.6, February 2026
Financial
Pass
Overall
Incomplete

Debt is 31.23%, cash is 1.55%, receivables plus cash are 12.86% and disclosed interest income is 0.04%; the examined financial ratios pass, while aerospace end-use exposure remains qualitatively incomplete.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Pass
Overall
Incomplete

Debt is 31.23%, liquidity is 1.55% and receivables plus cash are 12.86%, below the examined MSCI total-assets limits. This is a calculation against the named method, not an index-membership claim.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Pass
Overall
Incomplete

Debt is 31.23% and liquidity is 1.55%, below the examined Malaysia SAC financial limits. This is a calculation against SAC ratios, not an official classification of a U.S.-listed security.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Not calculated

A properly licensed and reproducible historical market-cap series is not stored, so these methods are not estimated from a current spot price.

Business-activity disclosure

Parker Hannifin provides motion and control technologies, including hydraulics, pneumatics, electromechanical systems and fluid-control products for industrial, aerospace and transportation customers. Neutral engineering components are generally permissible, while military end use and product-specific applications require continuing review.

Limitation: The filing reports aerospace revenue, including commercial and defense customer categories, but does not establish a universally accepted prohibited-revenue numerator for neutral components supplied into defense programs.

Purification

Parker discloses interest income but does not prescribe a scholar-approved purification percentage. Readers should follow the qualified scholar or methodology they use rather than applying an invented fixed rate.

Inputs, assumptions and primary sources
  • Inputs use Parker Hannifin's March 31, 2026 Form 10-Q; amounts are USD millions as presented in the filing.
  • Debt uses $2,813 million of current notes payable and debt payable within one year plus $6,769 million of long-term debt. Operating lease liabilities are not entered as conventional debt.
  • Cash uses $476 million of cash and cash equivalents. The filing does not provide a separately identified fixed-income securities balance for this screen, so no securities amount is added.
  • Receivables use $3,161 million of trade accounts receivable plus $307 million of non-trade and notes receivable.
  • Quarterly sales are $5,486 million and disclosed interest income is $2 million. No fixed purification percentage is prescribed.
  • Aerospace defense-related revenue is not entered as a universal prohibited-revenue numerator because product end use and scholarly treatment are not resolved by the filing.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

Current quantitative screen

The calculations use Parker Hannifin's official filing at the SEC (Q3 fiscal 2026 Form 10-Q). Amounts are USD millions and use total assets as the denominator.

  • Interest-bearing debt / assets: 31.23%, below the examined total-assets limits.
  • Cash / assets: 1.55%, using reported cash and cash equivalents.
  • Receivables plus cash / assets: 12.86%.
  • Disclosed interest income / revenue: 0.04% for the quarter. No universal purification percentage is prescribed.

FTSE Yasaar, MSCI Islamic and Malaysia SAC total-assets calculations pass. Market-cap denominator methods are not calculated because ZakatInvest does not store a licensed, reproducible historical market-cap series.

What Parker Hannifin does

Parker Hannifin supplies hydraulics, pneumatics, electromechanical systems, fluid connectors and other motion-control technologies to industrial, aerospace and transportation customers. The March 2026 quarter generated $5,486 million of sales across these activities.

Aerospace Systems sales included $324 million of defense OEM revenue and $242 million of defense aftermarket revenue, or $566 million (10.32%) of quarterly sales. That is quantified context from the filing, not a universally agreed prohibited-revenue determination: the products are neutral components and scholarly treatment of indirect defense exposure differs.

Debt, investments and income

At March 31, 2026, Parker reported $30,679 million of assets, $9,582 million of current and long-term debt, $476 million of cash and cash equivalents, and $3,468 million of trade, non-trade and notes receivable. The filing does not provide a separately identified fixed-income securities balance for this screen, so no securities amount is added.

Interest income was $2 million for the quarter. We report the disclosed figure and ratio, but Parker does not prescribe a scholar-approved purification amount.

Qualitative considerations

  • Neutral engineering products: Parker sells components and systems used in both civilian and military platforms rather than weapons themselves.
  • Defense end use: defense aerospace revenue is disclosed, but the filing cannot resolve every downstream use or each school's treatment of indirect supply.
  • Acquisition and leverage: the pending $9.25 billion Filtration Group acquisition and $1.0 billion Curtis acquisition may change debt and business mix after closing.
  • Operations: product safety, aerospace compliance, supply chains, labor and environmental obligations remain material diligence topics.
  • Income treatment: interest income is disclosed, but the filing does not select a universal purification rule.

The halal verdict

Parker Hannifin remains HALAL in ZakatInvest's qualitative classification, with the current examined financial ratios passing while defense end-use questions remain qualitatively incomplete. This is not an official index membership or fatwa. Revisit the record when Parker files new statements or materially changes its debt, investments, products or customer mix.

Parker Hannifin: neutral motion technology with aerospace diligence

Use the quantitative screen alongside your school's principles and consult a qualified scholar before investing.

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