Parker-Hannifin Corp (PH): Parker Delivers Record Fiscal 2027 First Quarter Results, Raises Full Year Outlook Record first quarter sales, segment operating margin and EPS; Completes…
Parker-Hannifin Corp (PH) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Parker Delivers Record Fiscal 2027 First Quarter Results, Raises Full Year Outlook Record first quarter sales, segment operating margin and EPS; Completes Filtration Group acquisition CLEVELAND, November 5, 2026 -- Parker Hannifin Corporation (NYSE: PH), the global l
How this was made
The 30-second read
Why it matters
Record sales and margin expansion, combined with a raised FY2027 outlook, provide a clear catalyst for buying pressure.
Market read
The earnings beat and raised guidance are material for the industrial sector and may influence related stocks and ETFs.
What to watch
Integration risks from the Filtration Group acquisition could temper long-term upside.
Parker Delivers Record Fiscal 2027 First Quarter Results, Raises Full Year Outlook Record first quarter sales, segment operating margin and EPS; Completes Filtration Group acquisition
Record sales, adjusted segment operating margin and adjusted EPS were accompanied by 11.5% organic sales growth, double-digit rolling 12-month order rates across all businesses, record backlog of $13.7 billion and increased FY27 outlook.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $5.99B | – | 17.9 % |
| Organic sales growthnon-GAAP | 11.5 % | – | 11.5 % |
| Cost of salesGAAP | 3,731 | – | – |
| Selling, general and administrative expensesGAAP | 1,065 | – | – |
| Total segment operating incomeGAAP | 1,469 | – | – |
| Segment operating marginGAAP | 24.4% | – | 20 bps |
| Adjusted total segment operating incomenon-GAAP | $1.72B | – | – |
| Adjusted segment operating marginnon-GAAP | 28.6% | – | 120 bps |
| Interest expenseGAAP | 146 | – | – |
| Income before income taxesGAAP | $1.14B | – | – |
| Income taxesGAAP | 253 | – | – |
| Net incomeGAAP | $884M | – | 9% |
| Adjusted net incomenon-GAAP | $1.14B | – | 23% |
| Basic earnings per shareGAAP | $ 7.01 | – | – |
| Diluted earnings per shareGAAP | $ 6.92 | – | 10% |
| Adjusted diluted earnings per sharenon-GAAP | $ 8.90 | – | 23% |
| Net cash provided by operating activitiesGAAP | 752 | – | – |
| Capital expendituresGAAP | (109) | – | – |
| Rolling 12-Month Order Rates - Parkerother | +13% | – | +13% |
| Backlogother | $13.7B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Diversified Industrial Segment North America BusinessesRecord sales with growth across all market verticals; Organic sales growth of 9%. | $2.44B | – | 19.6 % |
| Diversified Industrial Segment International BusinessesRecord sales with growth led by APAC; organic growth was 23% APAC, 4% EMEA and (1%) LA. | $1.71B | – | 22.0 % |
| Aerospace Systems SegmentRecord sales with double-digit OEM and Aftermarket growth; strong orders drove backlog to a new record. | $1.87B | – | 13.8 % |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Fiscal Year 2027 outlook
- RevenueReported sales growth of 16.0% to 19.0%; Organic sales growth of 7.5% to 10.5%
- NoteAcquisitions of 9%, and currency of (0.5%)
- NoteSegment operating margin of 23.6% to 24.0%
- NoteAdjusted segment operating margin of 27.7% to 28.1%
- NoteEPS of $29.65 to $30.45
- NoteAdjusted EPS of $36.45 to $37.25
- NoteCash flow from operations $4,125 to $4,625
- NoteCapital expenditures ~(625)
- NoteFree cash flow $3,500 to $4,000
Capital returns
- Payments for common shares (118)
- Dividends paid (252)
- Cash dividends per common share $ 2.00
What drove it
- Increased demand across all market verticals resulted in double-digit organic sales growth and record backlog levels.
- Acquisitions added 7% to first-quarter sales growth.
- Diversified Industrial International growth was led by APAC.
- Aerospace Systems recorded double-digit OEM and Aftermarket growth.
- Rolling 12-month order rates were +11% for Diversified Industrial Segment - North America Businesses, +14% for Diversified Industrial Segment - International Businesses and +14% for Aerospace Systems Segment.
- The company completed the acquisition of Filtration Group Corporation.
Concerns
- Diversified Industrial Segment North America GAAP segment operating margin was 23.0%, down -180 bps, and included expenses related to the Filtration Group acquisition.
- The first quarter included 189 of amortization of acquired intangibles, 17 of business realignment charges, 23 of integration costs to achieve and 78 of acquisition-related expenses.
- Net sales were reduced by $27 million for IEEPA tariff-related returns to customers, partially offset by $6 million received from the U.S. government.
- Inventories were 3,640 at September 30, 2026, compared with 3,166 at June 30, 2026.
What to watch
- Delivery against Fiscal Year 2027 organic sales growth guidance of 7.5% to 10.5%.
- Integration of Filtration Group Corporation and the associated integration costs to achieve.
- Conversion of record $13.7 billion backlog and sustained double-digit rolling 12-month order rates.
- Progress toward adjusted segment operating margin guidance of 27.7% to 28.1%.
- Free cash flow delivery versus Fiscal Year 2027 guidance of $3,500 to $4,000.
Balance sheet and cash flow
- Cash and cash equivalents $ 711 at September 30, 2026, compared with $ 501 at June 30, 2026
- Notes payable and current portion of long-term debt $ 4,744 at September 30, 2026, compared with $ 1,754 at June 30, 2026
- Long-term debt 12,734 at September 30, 2026, compared with 6,766 at June 30, 2026
- Acquisitions, net of cash acquired (9,102)
- Proceeds from borrowings 12,478
- Payments for borrowings (5,257)
- Net cash provided by operating activities 752
- Net change in cash and cash equivalents 210
Analysis
Parker reported record FY27 first-quarter sales of $ 5,992, up 17.9 %, with 11.5 % organic sales growth and acquisitions contributing 6.9 % to total reported sales growth. Management cited increased demand across all market verticals, while rolling 12-month order rates were double digit in every business and backlog reached a record $13.7 billion. The company completed the Filtration Group Corporation acquisition during the quarter.
Profitability improved on an adjusted basis. Total segment operating margin was 24.4%, compared with 24.2%, while adjusted segment operating margin was 28.6%, compared with 27.4%. Adjusted net income was $ 1,138 and adjusted diluted EPS was $ 8.90, compared with $ 927 and $ 7.22. GAAP net income was $ 884 and diluted EPS was $ 6.92, compared with $ 808 and $ 6.29. GAAP results included amortization of acquired intangibles, business realignment charges, integration costs to achieve, acquisition-related expenses and tariff refunds, net.
Diversified Industrial North America produced sales of $ 2,445 and reported organic growth of 9.4 %, but its GAAP segment operating margin was 23.0% versus 24.8%; the release attributes the margin to expenses related to the Filtration Group acquisition. International sales were $ 1,707, up 22.0 %, with APAC organic growth of 23.4 %. Aerospace Systems sales were $ 1,867, up 13.8 %, with organic growth of 13.9 % and adjusted segment operating margin of 30.7%.
Cash flow from operations was 752, compared with 782, while capital expenditures were (109). The company spent (9,102) on acquisitions, net of cash acquired, and financing activity included 12,478 of proceeds from borrowings and (5,257) of payments for borrowings. Cash and cash equivalents were $ 711 at September 30, 2026, while notes payable and current portion of long-term debt were $ 4,744 and long-term debt was 12,734.
For FY27, Parker raised outlook and now expects reported sales growth of 16.0% to 19.0%, organic sales growth of 7.5% to 10.5%, adjusted segment operating margin of 27.7% to 28.1%, adjusted EPS of $36.45 to $37.25 and free cash flow of $3,500 to $4,000. The outlook includes Filtration Group Corporation. No previous outlook figures were supplied, so the magnitude of the increase cannot be assessed from the documents.
Management, verbatim
Parker team members delivered an exceptional quarter of record performance and an impressive start to our fiscal year.
Jenny Parmentier, Chairman and Chief Executive Officer
We experienced increased demand across all market verticals, resulting in double-digit organic sales growth and record backlog levels.
Jenny Parmentier, Chairman and Chief Executive Officer
With strong first quarter performance and increased order rates, we are raising our full year fiscal 2027 guidance for organic sales growth, adjusted segment operating margin, adjusted earnings per share and free cash flow.
Jenny Parmentier, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin for FY27 Q1 and FY26 Q1
- Free cash flow for FY27 Q1 and FY26 Q1
- FY27 Q1 effective tax rate
- Prior-quarter comparisons for reported metrics
- Previous Fiscal Year 2027 outlook figures needed to compare actual results with prior guidance
- Fiscal Year 2027 gross-margin, operating-expense and tax-rate guidance
Written by an AI language model 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 checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. 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
The filing is a Form 8‑K item 2.02 earnings release, the first public disclosure of Parker‑Hannifin's FY2027 Q1 performance and updated outlook.
Ticker impact
Parker-Hannifin reported record Q1 FY2027 results and raised full-year guidance for sales, margin and EPS.
likely upward pressure as investors price in the raised guidance
The company posted 18% sales growth, record EPS and increased segment margins, and explicitly raised its FY2027 outlook, which typically drives buying interest.
Market effects
Strong performance may lift the industrial and aerospace sectors that rely on motion and control technologies.
Positive for U.S. industrial equities and may boost related suppliers in North America and APAC.
Adds confidence to global industrial supply chains, supporting broader market risk-on sentiment.
Counterpoint
If the raised guidance already priced in, the stock could face a short-term pullback on profit-taking.
Key entities
- companyParker‑Hannifin Corp
Industrial leader in motion and control technologies.
- companyFiltration Group Corp
Acquired to expand Parker's filtration and aftermarket business.
