Parker Delivers Record Fiscal 2027 First Quarter Results, Raises Full Year Outlook

The updated full-year outlook includes Filtration Group, while quarterly interest expense rose to $146 million from $101 million.

Rhea-AI Summary

Parker Hannifin (NYSE: PH) reported fiscal 2027 first-quarter sales of $5,992 million, with earnings growth and a higher full-year outlook.

For the quarter ended September 30, 2026, sales rose 17.9%, including 11.5% organic growth. Net income increased to $884 million from $808 million; diluted EPS rose to $6.92 from $6.29. Adjusted EPS increased 23% to $8.90, while adjusted segment operating margin reached 28.6%, up 120 basis points.

Parker completed its Filtration Group acquisition and included it in guidance. For fiscal 2027, the company expects reported sales growth of 16.0%–19.0%, organic growth of 7.5%–10.5%, and EPS of $29.65–$30.45, or $36.45–$37.25 adjusted. Backlog reached $13.7 billion. North American segment operating margin fell to 23.0% from 24.8%; long-term debt rose to $12,734 million from $6,766 million at June 30, 2026.

27 points · 1 major

PositiveiHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 12 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Parker raised fiscal 2027 organic sales growth guidance to 7.5%–10.5%.
• Moderate pointFirst-quarter sales rose 17.9% to $5,992 million, with 11.5% organic growth and a 6.9% acquisition contribution.
• Moderate pointSegment operating margin increased 20 basis points to 24.4%; adjusted margin rose 120 basis points to 28.6%.
• Moderate pointFiltration Group acquisition completed, expanding Parker's filtration offering and aftermarket business.
• Moderate pointBacklog reached a record $13.7 billion.
• Moderate pointParker's rolling 12-month order growth reached 13% in Q1 FY27 versus 12% in Q4 FY26.

21 minor points

• Minor pointNet income increased to $884 million from $808 million in the prior-year quarter.
• Minor pointDiluted EPS increased to $6.92 from $6.29 in the prior-year quarter.
• Minor pointAdjusted net income increased 23% to $1,138 million in fiscal 2027's first quarter.
• Minor pointAdjusted EPS increased 23% to $8.90 in fiscal 2027's first quarter.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 reported sales growth is expected at 16.0%–19.0%, including a 9% acquisition contribution.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 segment operating margin is expected at 23.6%–24.0%; raised adjusted guidance is 27.7%–28.1%.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 EPS is expected at $29.65–$30.45; raised adjusted EPS guidance is $36.45–$37.25.
• Minor point. Forward-looking: it has not happened yet and may not happen.Parker raised its fiscal 2027 free cash flow outlook.
• Minor pointNorth American quarterly sales rose 19.6% to $2,445 million, including 9.4% organic growth.
• Minor pointNorth American operating income rose 10.8% to $562 million; adjusted operating income rose 22.1% to $674 million.
• Minor pointNorth American adjusted operating margin rose 60 basis points to 27.6% year over year.
• Minor pointInternational quarterly sales rose 22.0% to $1,707 million, including 11.6% organic growth.
• Minor pointInternational operating income rose 30.6% to $410 million; adjusted operating income rose 35.1% to $473 million.
• Minor pointInternational operating margin rose 160 basis points to 24.0%; adjusted margin rose 270 basis points to 27.7%.
• Minor pointAsia Pacific organic sales grew 23.4%; EMEA organic sales grew 4.0% in the quarter.
• Minor pointAerospace quarterly sales rose 13.8% to $1,867 million, including 13.9% organic growth.
• Minor pointAerospace operating income rose 20.9% to $497 million; adjusted operating income rose 16.7% to $574 million.
• Minor pointAerospace operating margin rose 160 basis points to 26.6%; adjusted margin rose 70 basis points to 30.7%.
• Minor pointNorth American rolling 12-month order growth reached 11% versus 9%; International reached 14% versus 10%.
• Minor pointCash and cash equivalents rose to $711 million at September 30, 2026, from $501 million at June 30.
• Minor pointQuarterly cash dividends per common share increased to $2.00 from $1.80 a year earlier.

Negative

• Moderate pointLong-term debt rose to $12,734 million at September 30, 2026, from $6,766 million at June 30.
• Moderate pointNorth American operating margin declined 180 basis points to 23.0%, including Filtration Group acquisition expenses.
• Minor pointNotes payable and current long-term debt rose to $4,744 million from $1,754 million at June 30, 2026.
• Minor pointQuarterly interest expense increased to $146 million from $101 million a year earlier.
• Minor pointQuarterly acquisition-related expenses increased to $78 million from $14 million a year earlier.

7 minor points

• Minor pointQuarterly acquired-intangible amortization increased to $189 million from $140 million a year earlier.
• Minor pointQuarterly integration costs increased to $23 million from $6 million a year earlier.
• Minor pointQuarterly business realignment charges increased to $17 million from $15 million a year earlier.
• Minor pointIEEPA tariff-related customer returns reduced quarterly sales by $27 million, partially offset by $6 million in government receipts.
• Minor pointLatin American organic sales declined 1.3% in fiscal 2027's first quarter.
• Minor pointAerospace rolling 12-month order growth was 14% in Q1 FY27, versus 18% in Q4 FY26.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 sales guidance includes a (0.5%) currency contribution.

News Explained

For the quarter ended September 30, 2026, Parker reported $9,102 million of net cash used for acquisitions and $12,478 million of borrowing proceeds.

Key Figures

Sales: $6.0 billion, +18% Organic sales growth: 11.5% Adjusted diluted EPS: $8.90, +23% +5 more

Sales

$6.0 billion, +18%

Fiscal 2027 first quarter; record sales

Organic sales growth

11.5%

Fiscal 2027 first quarter

Adjusted diluted EPS

$8.90, +23%

Fiscal 2027 first quarter; record adjusted EPS

Adjusted segment operating margin

28.6%, +120 bps

Fiscal 2027 first quarter

Reported sales growth outlook

16.0% to 19.0%

Fiscal 2027

Organic sales growth outlook

7.5% to 10.5%

Fiscal 2027

Adjusted segment operating margin outlook

27.7% to 28.1%

Fiscal 2027

Adjusted EPS outlook

$36.45 to $37.25

Fiscal 2027

Historical Context

1 past event · Latest: Aug 13

1 event

1. Aug 13

   Filtration Group acquisition

   24h Move

   -1.0%

   Prior acquisition record projected $1.8B in FY27 sales, Q1 EPS neutrality, and full-year accretion.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap financial measures, constant currency exchange rates, rolling 12-month average computations, organic sales growth

4 terms

non-gaap financial measures financial

"This news release contains non-GAAP financial measures."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

constant currency exchange rates financial

"All comparisons are at constant currency exchange rates"

Exchange rates held fixed at the levels used in a comparison period so that financial results can be reported without the effect of currency movements; companies recalculate current-period foreign-currency items using prior-period exchange rates (or a specified constant set of rates) to show how revenue, expenses or growth would have looked absent changes in foreign-exchange rates. This is a presentation tool for comparability and does not change the company’s actual cash receipts or payments, nor does it reflect the economic impact of future currency movements.

rolling 12-month average computations technical

"all order comparisons are on rolling 12-month average computations"

A rolling 12-month average computation takes each month’s figure and replaces it with the average of that month and the previous eleven months, producing a moving value that updates each month as new data arrive and the oldest month drops out. It smooths short-term swings by showing the average level over the most recent year at every point in time; to compute it you sum the twelve monthly values for the relevant window and divide by 12, then repeat the calculation for each successive month. Because successive rolling averages share most of the same data, they change gradually and can mask abrupt one-time events or seasonal patterns unless seasonality is removed separately.

organic sales growth financial

"Organic sales growth of 7.5% to 10.5%"

Organic sales growth measures how much a company’s revenue rises from its regular business activity — like selling more products, charging higher prices, or selling to more customers — without counting money from buying other businesses or one-time currency effects. Investors watch it because it shows whether demand and the company’s core operations are genuinely getting stronger, similar to judging a garden by how much the plants you planted yourself are growing rather than by adding bought potted plants.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Record first quarter sales, segment operating margin and EPS; Completes Filtration Group acquisition

CLEVELAND, Nov. 05, 2026 (GLOBE NEWSWIRE) -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the quarter ended September 30, 2026 that included the following highlights (compared with the prior year period):

Fiscal 2027 First Quarter Highlights:

• Sales increased 18% to a record $6.0 billion; organic sales increased 11.5%; acquisitions added 7%
• Net income was $0.9 billion, an increase of 9%, or $1.1 billion adjusted, an increase of 23%
• EPS increased 10% to $6.92, adjusted EPS increased 23% to a record $8.90
• Segment operating margin was 24.4%, an increase of 20 bps, or 28.6% adjusted, an increase of 120 bps
• FY27 outlook increased for organic sales growth, adjusted segment operating margin, adjusted EPS and free cash flow
  
  

“Parker team members delivered an exceptional quarter of record performance and an impressive start to our fiscal year,” said 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. Strong market conditions, combined with execution of The Win Strategy™, delivered record adjusted segment operating margin of 28.6% and adjusted earnings per share growth of 23%. We are pleased to have completed the acquisition of Filtration Group Corporation, significantly expanding our filtration offering and aftermarket business and are excited to welcome these talented team members to Parker. 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.”

This news release contains non-GAAP financial measures. Reconciliations of adjusted numbers and certain non-GAAP financial measures are included in the financial tables of this press release.

Fiscal 2027 Outlook
The company has updated guidance for the fiscal year ending June 30, 2027, which now includes Filtration Group Corporation.

• Reported sales growth of 16.0% to 19.0%
• Organic sales growth of 7.5% to 10.5%; acquisitions of 9%, and currency of (0.5%)
• Segment operating margin of 23.6% to 24.0%, or 27.7% to 28.1% on an adjusted basis
• EPS of $29.65 to $30.45, or $36.45 to $37.25 on an adjusted basis
  
  

Fiscal 2027 First Quarter Segment Results

Diversified Industrial Segment

North America Businesses
($ in millions)	FY27 Q1				FY26 Q1				Change			Organic Growth
Sales	$	2,445			$	2,044			19.6	%		9.4	%
Segment Operating Income (GAAP)	$	562			$	507			10.8	%
Segment Operating Margin (GAAP)		23.0	%			24.8	%		-180  bps
Adjusted Segment Operating Income (non-GAAP)	$	674			$	552			22.1	%
Adjusted Segment Operating Margin (non-GAAP)		27.6	%			27.0	%		60  bps

• Record sales with growth across all market verticals; Organic sales growth of 9%
• Segment operating margin of 23.0% includes expenses related to the Filtration Group acquisition
• Record adjusted segment operating margin of 27.6%, up 60 bps from 27.0% in the prior-year quarter
  
  

International Businesses
($ in millions)	FY27 Q1				FY26 Q1				Change			Organic Growth
Sales	$	1,707			$	1,399			22.0	%		11.6	%
Segment Operating Income (GAAP)	$	410			$	314			30.6	%
Segment Operating Margin (GAAP)		24.0	%			22.4	%		160  bps
Adjusted Segment Operating Income (non-GAAP)	$	473			$	350			35.1	%
Adjusted Segment Operating Margin (non-GAAP)		27.7	%			25.0	%		270  bps

• Record sales with growth led by APAC
• Organic growth: 23% APAC, 4% EMEA, (1%) LA
• Record adjusted segment operating margin of 27.7%, up 270 bps from 25.0% in the prior-year quarter
  
  

Aerospace Systems Segment

($ in millions)	FY27 Q1				FY26 Q1				Change			Organic Growth
Sales	$	1,867			$	1,641			13.8	%		13.9	%
Segment Operating Income (GAAP)	$	497			$	411			20.9	%
Segment Operating Margin (GAAP)		26.6	%			25.0	%		160  bps
Adjusted Segment Operating Income (non-GAAP)	$	574			$	492			16.7	%
Adjusted Segment Operating Margin (non-GAAP)		30.7	%			30.0	%		70  bps

• Record sales with double-digit OEM and Aftermarket growth
• Record adjusted segment operating margin of 30.7%, up 70 bps from 30.0% in the prior-year quarter
• Strong orders drive backlog to a new record
  
  

Rolling 12-Month Order Rates

	Q1 FY27	Q4 FY26
Parker	+13%	+12%
Diversified Industrial Segment - North America Businesses	+11%	+9%
Diversified Industrial Segment - International Businesses	+14%	+10%
Aerospace Systems Segment	+14%	+18%

• Double digit order rates across all businesses as backlog reaches a record $13.7 billion
  
  

About Parker Hannifin
Parker Hannifin is a Fortune 250 global leader in motion and control technologies. For more than a century the company has been enabling engineering breakthroughs that lead to a better tomorrow. Learn more at www.parker.com or @parkerhannifin.

Contacts:
Media:	Financial Analysts:
Aidan Gormley	Jeff Miller
216-896-3258	216-896-2708
aidan.gormley@parker.com	jeffrey.miller@parker.com

Notice of Webcast
Parker Hannifin's conference call and slide presentation to discuss its fiscal 2027 first quarter results are available to all interested parties via live webcast today at 11:00 a.m. ET, at investors.parker.com. A replay of the webcast will be available on the site approximately one hour after the completion of the call and will remain available for one year. To register for e-mail notification of future events, please visit investors.parker.com.

Note on Orders
The company reported orders for the 12 months ended September 30, 2026, compared with the prior year period. All comparisons are at constant currency exchange rates, with the prior year quarter restated to the current-year rates, and exclude divestitures. Beginning in fiscal year 2027, all order comparisons are on rolling 12-month average computations.

Note on Non-GAAP Financial Measures
This press release contains references to non-GAAP financial information including (a) adjusted net income; (b) adjusted earnings per share; (c) adjusted segment operating margin for Parker and by segment; (d) adjusted segment operating income for Parker and by segment; (e) free cash flow; and (f) organic sales growth. These measures are presented to allow investors and the company to meaningfully evaluate changes in net income, earnings per share, segment operating margins, cash flow and sales growth on a comparable basis from period to period. Although these measures are not measures of performance calculated in accordance with GAAP, we believe that they are useful to an investor in evaluating Parker's performance or expected performance for the periods presented. Additionally, adjusted net income, adjusted earnings per share and organic sales growth include an adjustment related to IEEPA tariff returns to customers, which returns we believe are discrete, non-operating items that are not indicative of our ongoing operations. Comparable descriptions of record adjusted results in this release refer only to the period from the first quarter of FY2011 to the periods presented in this release. This period coincides with recast historical financial results provided in association with our FY2014 change in segment reporting. A reconciliation of non-GAAP measures is included in the financial tables of this press release.

Forward-Looking Statements
Forward-looking statements contained in this and other written and oral reports are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties and risks. Often but not always, these statements may be identified from the use of forward-looking terminology such as “anticipates,” “believes,” “may,” “should,” “could,” “expects,” “targets,” “is likely,” “will,” or the negative of these terms and similar expressions, and may also include statements regarding future performance, orders, earnings projections, events or developments. Parker cautions readers not to place undue reliance on these statements. It is possible that the future performance may differ materially from expectations, including those based on past performance.

Among other factors that may affect future performance are: changes in business relationships with and orders by or from major customers, suppliers or distributors, including delays or cancellations in shipments; disputes regarding contract terms, changes in contract costs and revenue estimates for new development programs; changes in product mix; ability to identify acceptable strategic acquisition targets; uncertainties surrounding timing, successful completion or integration of acquisitions and similar transactions, including the pending acquisition of CIRCOR International Inc.'s Commercial and Defense Aerospace business and the integration of Filtration Group Corporation and Curtis Instruments, Inc.; ability to successfully divest businesses planned for divestiture and realize the anticipated benefits of such divestitures; the determination and ability to successfully undertake business realignment activities and the expected costs, including cost savings, thereof; ability to implement successfully business and operating initiatives, including the timing, price and execution of share repurchases and other capital initiatives; availability, cost increases of or other limitations on our access to raw materials, component products and/or commodities if associated costs cannot be recovered in product pricing; ability to manage costs related to insurance and employee retirement and health care benefits; legal and regulatory developments and other government actions, including related to environmental protection, and associated compliance costs; supply chain and labor disruptions, including as a result of tariffs and labor shortages; threats associated with international conflicts, including geopolitical tensions in the Middle East, and cybersecurity risks and risks associated with protecting our intellectual property; uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals; effects on market conditions, including sales and pricing, resulting from global reactions to U.S. trade policies; manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and economic conditions such as inflation, deflation, interest rates and credit availability; inability to obtain, or meet conditions imposed for, required governmental and regulatory approvals; changes in the tax laws in the United States and foreign jurisdictions and judicial or regulatory interpretations thereof; and large scale disasters, such as floods, earthquakes, hurricanes, industrial accidents and pandemics. Readers should also consider forward-looking statements in light of risk factors discussed in Parker’s Annual Report on Form 10-K for the fiscal year ended June 30, 2026 and other periodic filings made with the SEC.

CONSOLIDATED STATEMENTS OF INCOME
		Three Months Ended
(Unaudited)		September 30,
(In millions, except per share amounts)			2026				2025
Net sales		$	5,992			$	5,084
Cost of sales			3,731				3,177
Selling, general and administrative expenses			1,065				873
Interest expense			146				101
Other expense (income), net			(87	)			(107	)
Income before income taxes			1,137				1,040
Income taxes			253				232
Net income		$	884			$	808
Earnings per share:
Basic		$	7.01			$	6.39
Diluted		$	6.92			$	6.29
Weighted average shares outstanding:
Basic			126.1				126.5
Diluted			127.8				128.4
Cash dividends per common share		$	2.00			$	1.80

BUSINESS SEGMENT INFORMATION
		Three Months Ended
(Unaudited)		September 30,
(In millions)			2026				2025
Net sales
Diversified Industrial		$	4,152			$	3,443
Aerospace Systems			1,867				1,641
Total segment sales		$	6,019			$	5,084
Corporate (1)			(27	)			—
Total net sales		$	5,992			$	5,084
Segment operating income
Diversified Industrial		$	972			$	821
Aerospace Systems			497				411
Total segment operating income			1,469				1,232
Corporate general and administrative expenses			58				49
Income before interest expense and other, net			1,411				1,183
Interest expense			146				101
Other, net			128				42
Income before income taxes		$	1,137			$	1,040
(1) Corporate includes International Emergency Economic Powers Act (“IEEPA”) tariff-related returns to customers.

SUPPLEMENTAL FINANCIAL INFORMATION AND NON-GAAP RECONCILIATIONS ADJUSTED SEGMENT OPERATING INCOME RECONCILIATION
		Three Months Ended September 30, 2026																	Three Months Ended September 30, 2025
		Diversified Industrial Segment									Aerospace Systems Segment								Diversified Industrial Segment									Aerospace Systems Segment
(Unaudited) ($ in millions)		North America			Int'l			Total						Total Segments					North America			Int'l			Total						Total Segments
Net sales		$	2,445		$	1,707		$	4,152		$	1,867		$	6,019				$	2,044		$	1,399		$	3,443		$	1,641		$	5,084
Segment operating income		$	562		$	410		$	972		$	497		$	1,469				$	507		$	314		$	821		$	411		$	1,232
Adjustments:
Amortization of acquired intangibles			75			38			113			76			189					42			22			64			76			140
Business realignment charges			3			14			17			—			17					1			13			14			1			15
Integration costs to achieve			21			1			22			1			23					1			1			2			4			6
Acquisition-related expenses			13			10			23			—			23					1			—			1			—			1
Adjusted segment operating income		$	674		$	473		$	1,147		$	574		$	1,721				$	552		$	350		$	902		$	492		$	1,394
Segment operating margin			23.0	%		24.0	%		23.4	%		26.6	%		24.4	%				24.8	%		22.4	%		23.8	%		25.0	%		24.2	%
Adjusted segment operating margin			27.6	%		27.7	%		27.6	%		30.7	%		28.6	%				27.0	%		25.0	%		26.2	%		30.0	%		27.4	%

ORGANIC SALES GROWTH RECONCILIATION
(Unaudited)		Three Months Ended September 30, 2026
		As Reported Sales Growth		Less: Currency & Other		Less: Acquisitions		Organic Sales Growth
Diversified Industrial:
North America		19.6	%	0.1	%	10.1	%	9.4	%
EMEA		15.4	%	(1.2) %		12.6	%	4.0	%
Asia Pacific		33.4	%	1.6	%	8.4	%	23.4	%
Latin America		1.9	%	3.2	%	—	%	(1.3) %
Total International		22.0	%	0.2	%	10.2	%	11.6	%
Total Diversified Industrial		20.6	%	0.2	%	10.1	%	10.3	%
Aerospace Systems		13.8	%	(0.1) %		—	%	13.9	%
Total (1)		17.9	%	(0.5) %		6.9	%	11.5	%
(1) Total includes Corporate. The Other component of the Currency & Other consists entirely of IEEPA tariff-related returns to customers recorded at Corporate. These returns reduced total net sales growth by 0.5% and are excluded from organic sales growth.

ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE RECONCILIATION
		Three Months Ended September 30,
(Unaudited)			2026							2025
(In millions, except per share amounts)		Net Income			Diluted EPS				Net Income			Diluted EPS
As reported (GAAP)		$	884		$	6.92			$	808		$	6.29
Adjustments:
Amortization of acquired intangibles			189			1.48				140			1.09
Business realignment charges			17			0.13				15			0.12
Integration costs to achieve			23			0.18				6			0.05
Acquisition-related expenses1			78			0.61				14			0.11
Insurance-related charges (recoveries)			—			—				(20	)		(0.15	)
Tariff refunds, net2			21			0.17				—			—
Tax effect of adjustments3			(74	)		(0.59	)			(36	)		(0.29	)
As adjusted (non-GAAP)		$	1,138		$	8.90			$	927		$	7.22
1Acquisition-related expenses include transaction costs and charges related to the fair value step up of acquired inventory.
2In February 2026, the U.S. Supreme Court ruled that tariffs imposed under the IEEPA on goods imported into the U.S. were unauthorized. During the first quarter of fiscal 2027, 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.
3This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.

CONSOLIDATED BALANCE SHEETS
(Unaudited)		September 30,			June 30,
(In millions)			2026			2026
Assets
Current assets:
Cash and cash equivalents		$	711		$	501
Trade accounts receivable, net			3,492			3,170
Non-trade and notes receivable			334			303
Inventories			3,640			3,166
Prepaid expenses			298			355
Other current assets			226			200
Total current assets			8,701			7,695
Property, plant and equipment, net			3,425			3,020
Deferred income taxes			231			238
Other long-term assets			1,668			1,535
Intangible assets, net			11,686			7,280
Goodwill			16,216			11,109
Total assets		$	41,927		$	30,877
Liabilities and equity
Current liabilities:
Notes payable and current portion of long-term debt		$	4,744		$	1,754
Accounts payable, trade			2,673			2,439
Accrued payrolls and other compensation			475			658
Other current liabilities			1,327			1,245
Total current liabilities			9,219			6,096
Long-term debt			12,734			6,766
Pensions and other postretirement benefits			237			224
Deferred income taxes			2,856			1,630
Other long-term liabilities			811			748
Shareholders' equity			15,968			15,404
Noncontrolling interests			102			9
Total liabilities and equity		$	41,927		$	30,877

CONSOLIDATED STATEMENTS OF CASH FLOWS
		Three Months Ended
(Unaudited)		September 30,
(In millions)			2026				2025
Cash flows from operating activities
Net income		$	884			$	808
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			97				92
Amortization			189				140
Stock-based compensation expense			82				80
Deferred income taxes			24				3
Pensions and other postretirement benefits, net			(24	)			(18	)
Other, net			(3	)			(20	)
Changes in assets and liabilities, net of effect of acquisitions:
Accounts receivable, net			(9	)			76
Inventories			(232	)			(163	)
Other assets			(51	)			(55	)
Accounts payable, trade			81				(6	)
Other liabilities			(228	)			(182	)
Income taxes			(58	)			27
Net cash provided by operating activities			752				782
Cash flows from investing activities
Acquisitions, net of cash acquired			(9,102	)			(1,013	)
Capital expenditures			(109	)			(89	)
Proceeds from sale of property, plant and equipment			22				6
Other, net			3				18
Net cash used in investing activities			(9,186	)			(1,078	)
Cash flows from financing activities
Payments for common shares			(118	)			(522	)
Proceeds from notes payable, net			1,785				1,057
Proceeds from borrowings			12,478				—
Payments for borrowings			(5,257	)			(1	)
Dividends paid			(252	)			(228	)
Other, net			1				—
Net cash provided by financing activities			8,637				306
Effect of exchange rate changes on cash			7				(4	)
Net change in cash and cash equivalents			210				6
Cash and cash equivalents at beginning of year			501				467
Cash and cash equivalents at end of period		$	711			$	473

RECONCILIATION OF FORECASTED REPORTED SALES GROWTH TO FORECASTED ORGANIC SALES GROWTH
(Unaudited)
(Amounts in percentages)		Fiscal Year 2027
Forecasted reported sales growth		16.0% to 19.0%
Adjustments:
Currency & Other		~0.5%
Acquisitions		~(9.0%)
Forecasted organic sales growth		7.5% to 10.5%
RECONCILIATION OF FORECASTED SEGMENT OPERATING MARGIN TO ADJUSTED FORECASTED SEGMENT OPERATING MARGIN
(Unaudited)
(Amounts in percentages)		Fiscal Year 2027
Forecasted segment operating margin		23.6% to 24.0%
Adjustments:
Amortization of acquired intangibles		~3.4%
Business realignment charges		~0.4%
Integration costs to achieve		~0.2%
Acquisition-related expenses		~0.1%
Adjusted forecasted segment operating margin		27.7% to 28.1%

RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE
(Unaudited)
(Amounts in dollars)		Fiscal Year 2027
Forecasted earnings per diluted share		$29.65 to $30.45
Adjustments:
Amortization of acquired intangibles		6.77
Business realignment charges		0.74
Integration costs to achieve		0.47
Acquisition-related expenses		0.63
Tariff refunds, net		0.16
Tax effect of adjustments1		(1.97)
Adjusted forecasted earnings per diluted share		$36.45 to $37.25
1This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.
RECONCILIATION OF FORECASTED CASH FLOW FROM OPERATIONS TO FREE CASH FLOW
(Unaudited)
(Dollars in millions)		Fiscal Year 2027
Cash flow from operations		$4,125 to $4,625
Less: Capital expenditures		~(625)
Free cash flow		$3,500 to $4,000
Note: Totals may not foot due to rounding

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Parker Hannifin's fiscal 2027 first-quarter earnings?

Parker Hannifin reported $884 million in net income and diluted EPS of $6.92 for the quarter ended September 30, 2026. The prior-year figures were $808 million and $6.29. Adjusted net income was $1,138 million, and adjusted EPS was $8.90.

What is Parker Hannifin's updated fiscal 2027 outlook?

Parker expects 16.0%–19.0% reported sales growth and EPS of $29.65–$30.45 for the fiscal year ending June 30, 2027. The outlook includes Filtration Group. Organic sales growth guidance is 7.5%–10.5%, and adjusted EPS guidance is $36.45–$37.25.

How does Parker Hannifin calculate its fiscal 2027 order growth rates?

Parker uses rolling 12-month average computations for all order comparisons beginning in fiscal 2027. The reported orders cover the 12 months ended September 30, 2026, compared with the prior-year period. Comparisons use constant currency exchange rates and exclude divestitures.