The short answer is no.
The long answer is yes, but only if:
- your server's been compromised, in which case people reading your php files are the least of your worries
- you've misconfigured your server to parse .php files and plain text, which would be very silly indeed.
Also, if you're using some kind of version control software, make sure your .hg or .svn or whatever folders can't be viewed from a web browser. You'd be surprised how often that happens.
EDIT:
I would be inclined to go with some of the suggestions on here already, which is what I do in my day to day development. Have a config.php file outside of your web root folder and include this in your index.php. That way you know for sure it's never going to be viewable. Btw, I've been developing in PHP for a number of years and have never had the parser fail in such a way that it's resulted in raw PHP being displayed to an end user.
EDIT 2:
If your colleague is referring to parse errors when he talks about the PHP parser "failing" then in a live environment you should have error reporting disabled anyway.