These devices operate based on Pascal's Principle, which states that pressure applied to an enclosed fluid is transmitted undiminished to every portion of the fluid and the walls of the containing vessel. In hydraulic systems, a small force applied to a small area (piston) creates pressure in the fluid (Pressure = Force/Area). This pressure is transmitted through the fluid to a larger area (piston), resulting in a larger force output (Force = Pressure Area). The fluid acts as the medium to transmit this pressure.