Parker-Hannifin Corp (PH): Results of Operations and Financial Condition
Parker-Hannifin Corp (PH) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Parker Reports Record Fiscal 2026 Fourth Quarter and Full Year Results Issues FY27 guidance and raises adjusted segment operating margin target by 300 bps to 30% by FY31 CLEVELAND, August 6, 2026 -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion
How this was made
The 30-second read
Why it matters
The key tradable elements are the record results, the FY2027 sales and EPS ranges, and the raised adjusted segment operating margin target to 30% by FY2031, which can drive earnings estimate revisions and valuation changes.
Market read
Traders can update near-term expectations using the disclosed FY2027 sales growth and EPS ranges and the longer-term margin trajectory, plus assess how pending acquisitions are treated in guidance.
What to watch
FY2027 guidance explicitly excludes pending acquisitions, so investors should separate organic performance from deal-related contribution and monitor integration/incremental margin realization.
Parker Reports Record Fiscal 2026 Fourth Quarter and Full Year Results Issues FY27 guidance and raises adjusted segment operating margin target by 300 bps to 30% by FY31
Fiscal 2026 fourth-quarter and full-year sales, adjusted EPS, adjusted segment operating margin and cash flow from operations were reported at record levels, with positive organic growth and an FY27 outlook calling for further growth and higher adjusted segment operating margin.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Fourth-quarter salesGAAP | $5.8 billion | – | increased 9.8% |
| Fourth-quarter organic sales growthnon-GAAP | 8.0% | – | – |
| Fourth-quarter net incomeGAAP | $1.1 billion | – | an increase of 18% |
| Fourth-quarter adjusted net incomenon-GAAP | $1.2 billion | – | an increase of 20% |
| Fourth-quarter EPSGAAP | $8.54 | – | increased 19% |
| Fourth-quarter adjusted EPSnon-GAAP | $9.27 | – | increased 21% |
| Fourth-quarter segment operating marginGAAP | 26.5% | – | an increase of 260 bps |
| Fourth-quarter adjusted segment operating marginnon-GAAP | 28.0% | – | an increase of 110 bps |
| Full-year salesGAAP | $21.5 billion | – | increased 8.3% |
| Full-year organic sales growthnon-GAAP | 6.6% | – | – |
| Full-year net incomeGAAP | $3.6 billion | – | an increase of 3% |
| Full-year adjusted net incomenon-GAAP | $4.1 billion | – | an increase of 16% |
| Full-year EPSGAAP | $28.48 | – | increased 5% |
| Full-year adjusted EPSnon-GAAP | $32.31 | – | increased 18% |
| Full-year segment operating marginGAAP | 24.5% | – | an increase of 150 bps |
| Full-year adjusted segment operating marginnon-GAAP | 27.3% | – | an increase of 120 bps |
| Full-year cash flow from operationsGAAP | $4.4 billion | – | – |
| Cash flow from operations as a percentage of salesGAAP | 20.3% of sales | – | – |
| Parker Q4 FY26 order rateother | +19% | – | – |
| Parker backlogother | $12.8 billion | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Diversified Industrial Segment North America BusinessesOrganic sales growth of 5% as industrial recovery broadens; sales improvement across all market verticals; record adjusted segment operating margin. | $ 2,221 | – | 7.0 % |
| Diversified Industrial Segment International BusinessesRecord sales led by Asia with 16% organic growth; organic growth was 16% APAC, 1% EMEA, and (3%) LA; record adjusted segment operating margin. | $ 1,634 | – | 9.5 % |
| Aerospace Systems SegmentRecord sales with double-digit growth in all market segments; record adjusted segment operating margin; backlog increased to record $8.5B. | $ 1,900 | – | 13.4 % |
fiscal year ending June 30, 2027 outlook
- RevenueReported sales growth of 5.5% to 8.5%
- NoteOrganic sales growth of 5.5% to 8.5%; previously completed acquisitions of 0.5%, and unfavorable currency of 0.5%.
- NoteSegment operating margin of 24.5% to 24.9%, or 27.5% to 27.9% on an adjusted basis.
- NoteEPS of $30.00 to $31.00, or $34.25 to $35.25 on an adjusted basis.
- NoteGuidance excludes the pending acquisitions of Filtration Group Corporation and CIRCOR's Commercial and Defense Aerospace Business.
- NoteAdjusted segment operating margin target of 30% by fiscal 2031.
- NoteCommitted to achieving 4 to 6% organic growth, 17% free cash flow margin and greater than 10% adjusted earnings per share growth by fiscal 2031.
Capital returns
- Returned nearly $2 billion to shareholders, through a combination of share repurchases and dividends.
- Increased the annual dividend 11%, marking 70 consecutive fiscal years of increasing annual dividends per share paid.
What drove it
- Fourth-quarter organic sales increased 8.0%; full-year organic sales increased 6.6%.
- Diversified Industrial North America reported 4.9% organic growth in the fourth quarter.
- Diversified Industrial International reported 6.5% organic growth in the fourth quarter, led by Asia with 16% organic growth.
- Aerospace Systems reported 13.3% organic growth in the fourth quarter and double-digit growth in all market segments.
- Q4 FY26 order rates were +16% for Diversified Industrial Segment North America Businesses, +24% for Diversified Industrial Segment International Businesses, and +18% for Aerospace Systems Segment.
- The company said a broadening recovery in industrial markets and positive organic growth across all market verticals support its fiscal 2027 forecast.
- Adjusted results for the current period exclude a reduction of cost of sales related to tariff refunds.
Concerns
- Fiscal 2027 guidance includes unfavorable currency of 0.5%.
- Diversified Industrial Segment International Businesses reported organic growth of (3%) in LA.
- Fiscal 2027 guidance excludes the pending acquisitions of Filtration Group Corporation and CIRCOR's Commercial and Defense Aerospace Business.
- The company stated that the current-period tariff-refund reduction in cost of sales is a discrete, non-operating item that is not indicative of ongoing operations and is not expected to recur.
- The filing identifies risks related to the timing, successful completion and integration of acquisitions, including the pending Filtration Group and CIRCOR transactions and the integration of Curtis Instruments, Inc.
What to watch
- Execution against fiscal 2027 reported and organic sales growth guidance of 5.5% to 8.5%.
- Delivery of fiscal 2027 segment operating margin guidance of 24.5% to 24.9%, and adjusted segment operating margin guidance of 27.5% to 27.9%.
- Execution against fiscal 2027 EPS guidance of $30.00 to $31.00 and adjusted EPS guidance of $34.25 to $35.25.
- Order trends after the company changes all order-rate comparisons to a rolling 12-month average beginning in fiscal 2027.
- Progress on the pending Filtration Group Corporation and CIRCOR Commercial and Defense Aerospace Business acquisitions.
- Progress toward the adjusted segment operating margin target of 30% by fiscal 2031.
Balance sheet and cash flow
- Cash flow from operations was a record $4.4 billion, or 20.3% of sales.
- Completed acquisition of Curtis Instruments, Inc.
- Announced agreements to acquire Filtration Group Corporation and CIRCOR's Commercial and Defense Aerospace Business.
- Aerospace Systems Segment backlog increased to record $8.5B.
- Backlog increased to a record $12.8 billion, with increases in all segments.
Analysis
Parker reported record sales in both the fiscal 2026 fourth quarter and full year. Fourth-quarter sales increased 9.8% to $5.8 billion, with organic sales growth of 8.0%. Full-year sales increased 8.3% to $21.5 billion, while organic sales growth was 6.6%. The growth profile extended across the operating portfolio, including 4.9% fourth-quarter organic growth in Diversified Industrial North America, 6.5% in Diversified Industrial International and 13.3% in Aerospace Systems.
Profitability strengthened materially. Fourth-quarter segment operating margin was 26.5%, up 260 bps, and adjusted segment operating margin was 28.0%, up 110 bps. For the full year, segment operating margin was 24.5%, up 150 bps, while adjusted segment operating margin was 27.3%, up 120 bps. Fourth-quarter adjusted EPS increased 21% to $9.27, and full-year adjusted EPS increased 18% to $32.31. The company notes that current-period adjusted results exclude a reduction of cost of sales related to tariff refunds, which it describes as discrete, non-operating and not expected to recur.
Segment commentary points to a broad industrial recovery and continued aerospace strength. North America sales improved across all market verticals, International sales were led by 16% organic growth in Asia, and Aerospace delivered double-digit growth across all market segments. Aerospace backlog reached $8.5B and total backlog rose to $12.8 billion. Fourth-quarter order rates were +16% in North American Diversified Industrial, +24% in International Diversified Industrial and +18% in Aerospace. Beginning in fiscal 2027, Parker will place all order-rate comparisons on a rolling 12-month average basis.
Cash generation and shareholder distributions were notable. Full-year cash flow from operations was a record $4.4 billion, or 20.3% of sales. Parker returned nearly $2 billion through share repurchases and dividends, and increased the annual dividend 11%. Portfolio activity included completion of the Curtis Instruments acquisition and announced agreements to acquire Filtration Group Corporation and CIRCOR's Commercial and Defense Aerospace Business.
For fiscal 2027, Parker guides to reported sales growth and organic sales growth of 5.5% to 8.5%, with 0.5% from previously completed acquisitions and unfavorable currency of 0.5%. It expects segment operating margin of 24.5% to 24.9%, adjusted segment operating margin of 27.5% to 27.9%, EPS of $30.00 to $31.00 and adjusted EPS of $34.25 to $35.25. The outlook excludes the pending Filtration Group and CIRCOR acquisitions. Management also raised its adjusted segment operating margin target by 300 basis points to 30% by fiscal 2031 after stating it surpassed its previous target of 27% this year.
Management, verbatim
We had our safest year ever, continued enhancing our portfolio of interconnected technologies through strategic acquisitions, and demonstrated operational excellence to deliver record results.
Jenny Parmentier, Chairman and Chief Executive Officer
We are forecasting fiscal 2027 to be a record year for Parker supported by a broadening recovery in industrial markets and positive organic growth across all market verticals.
Jenny Parmentier, Chairman and Chief Executive Officer
Our proven ability to execute The Win Strategy™ and successfully integrate accretive acquisitions gives us the confidence to raise our adjusted segment operating margin target by 300 basis points to 30% by fiscal 2031, after surpassing our previous margin target of 27% this year.
Jenny Parmentier, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Exact prior-year total sales, net income, EPS, adjusted net income, adjusted EPS and total segment operating margin amounts are not provided in the supplied text.
- Prior-quarter comparisons for total company and segment financial metrics are not provided.
- Gross profit and gross margin are not provided.
- Total operating income and total operating expenses are not provided.
- Income tax expense and tax rate are not provided.
- Free cash flow amount and free cash flow margin for fiscal 2026 are not provided.
- Cash, total debt, net debt and liquidity balances are not provided.
- Exact dollar amount of share repurchases, exact dividends paid and dividend per share are not provided.
- Prior fiscal-period outlook was not provided, so no comparison of actual results with prior guidance is available.
- Full-year revenue and profitability by operating segment are not provided in the supplied text.
- The supplied text does not provide fourth-quarter consolidated operating cash flow, free cash flow, cash balances or debt balances.
- The supplied text is truncated before the financial tables and non-GAAP reconciliations.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This SEC 8-K (Item 2.02) reports Parker Hannifin’s fiscal 2026 Q4 and full-year results and provides fiscal 2027 guidance, including updated margin targets and capital return.
Ticker impact
Parker Hannifin reported record FY2026 Q4 and full-year results and issued FY2027 guidance, including a raised adjusted segment operating margin target to 30% by FY2031.
Likely positive near-term bias as traders reprice FY2027 EPS and margin trajectory, with follow-through dependent on industrial recovery and integration execution.
The filing discloses specific, time-bound financial guidance (sales growth range, EPS range) and a 300 bps margin target increase, plus record cash flow and capital return.
Market effects
Motion and control equipment peers may see read-across on industrial recovery and aerospace resilience, but the direct signal is company-specific margin expansion.
International growth commentary (notably Asia organic growth) may support regional industrial demand sentiment.
Global industrial and aerospace supply-chain sentiment could improve modestly if margin expansion is sustained post-acquisition integration.
Counterpoint
Raised margin targets could be optimistic if industrial recovery broadens slower than expected or if acquisition integration costs pressure adjusted margins.
Key entities
- public_companyParker Hannifin Corporation
Motion and control technologies company reporting record FY2026 results and issuing FY2027 guidance with a raised margin target.
- acquisition_targetCurtis Instruments, Inc.
Acquisition completed in fiscal 2026, referenced as part of portfolio transformation.
- acquisition_targetFiltration Group Corporation
Pending acquisition agreement referenced; excluded from FY2027 guidance.
- acquisition_targetCIRCOR's Commercial and Defense Aerospace Business
Pending acquisition agreement referenced; excluded from FY2027 guidance.
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