Parker Hannifin's stock plummeted 5.44% intraday on Thursday, a significant decline that occurred shortly after the market opened.

The motion and control technology maker reported fiscal third-quarter adjusted earnings per share of $8.17, beating analyst estimates of $7.83, while sales of $5.49 billion also exceeded expectations of $5.4 billion. The company raised its full-year outlook, now expecting adjusted EPS of $31.20 and reported sales growth of 7%.

However, the stock's decline appears to be driven by the company's GAAP results, which showed net income fell 6% to $904 million and EPS decreased 4% to $7.06 compared to the prior-year period. This decline was attributed to a one-time discrete tax benefit of $180 million in the third quarter of fiscal 2025, which boosted last year's results. While adjusted metrics showed strength, investors reacted negatively to the year-over-year decline in reported profits.