Parker-Hannifin raises FY2027 adjusted EPS to $36.45–$37.25
Updated fiscal 2027 targets include organic sales growth of 7.5% to 10.5% and free cash flow of $3.5 billion to $4.0 billion.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Parker-Hannifin Corp. (PH) reported fiscal 2027 first-quarter net sales of $5.992 billion, up 18% from $5.084 billion a year earlier; organic sales growth was 11.5%, and acquisitions contributed 7%. Net income was $884 million, up 9%, while adjusted net income was $1.138 billion, up 23%. Diluted EPS was $6.92, up 10%, and adjusted diluted EPS was $8.90, up 23%.
Adjusted segment operating margin was 28.6%, compared with 27.4% a year earlier; GAAP segment operating margin was 24.4%, versus 24.2%. Parker completed its acquisition of Filtration Group Corporation. Backlog was a record $13.7 billion, and rolling 12-month order rates rose 13% for Parker overall.
Parker raised its fiscal 2027 outlook, which now includes Filtration Group: 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 diluted EPS of $36.45 to $37.25, and free cash flow of $3.5 billion to $4.0 billion. Adjusted measures are non-GAAP.
2 points · 0 major0 major · 0 points
How this balance works
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.
Positive
- Moderate pointNet sales rose 18% to $5.992 billion in fiscal 2027 Q1.
- Moderate pointAdjusted net income increased 23% to $1.138 billion in fiscal 2027 Q1.
Negative
- None.
Filing Explained
The quarter included
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Net sales: $5.992 billion
Net income: $884 million
Adjusted net income: $1.138 billion
+4 more
7 metrics
Net sales
$5.992 billion
Fiscal 2027 first quarter; up 18% year over year
Net income
$884 million
Fiscal 2027 first quarter; up 9% year over year
Adjusted net income
$1.138 billion
Fiscal 2027 first quarter; up 23% year over year
Diluted EPS
$6.92
Fiscal 2027 first quarter; up 10% year over year
Adjusted diluted EPS
$8.90
Fiscal 2027 first quarter; up 23% year over year
Backlog
$13.7 billion
Record level reported for fiscal 2027 first quarter
Free cash flow outlook
$3.5 billion to $4.0 billion
Fiscal 2027
Key Terms
organic sales growth, adjusted segment operating margin, free cash flow, rolling 12-month average computations, +1 more
5 terms
organic sales growth financial
"organic sales growth of 11.5%"
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.
adjusted segment operating margin financial
"adjusted segment operating margin of 28.6%"
Adjusted segment operating margin is the percentage of a specific business unit’s revenue that remains after removing everyday operating costs and excluding one-time or unusual items, so you see the unit’s recurring profit rate. Think of it like judging how well a bakery branch makes money from its sales after normal expenses, but ignoring rare events; investors use it to compare profitability and efficiency across units and time without distortion.
free cash flow financial
"free cash flow of $3.5 billion to $4.0 billion"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
rolling 12-month average computations financial
"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.
Earnings Snapshot
Net sales: $5.992 billion · Guidance included
Fiscal 2027 first quarter ended September 30, 2026
Net sales
$5.992 billion
Up 18% year over year
Net income
$884 million
Up 9% year over year
Adjusted net income
$1.138 billion
Up 23% year over year
Diluted EPS
$6.92
Up 10% year over year
Adjusted diluted EPS
$8.90
Up 23% year over year
Guidance
Fiscal 2027 outlook: 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 diluted EPS of $36.45 to $37.25; and free cash flow of $3.5 billion to $4.0 billion.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were PH's first-quarter sales and earnings?
PH reported net sales of $5.992 billion, up 18% from a year earlier. Net income was $884 million, and adjusted net income was $1.138 billion. Diluted EPS was $6.92, while adjusted diluted EPS was $8.90.
What is PH's fiscal 2027 outlook?
PH's outlook calls for reported sales growth of 16.0% to 19.0% and organic sales growth of 7.5% to 10.5%. It also gives adjusted segment operating margin of 27.7% to 28.1%, adjusted diluted EPS of $36.45 to $37.25, and free cash flow of $3.5 billion to $4.0 billion.
How did PH's segments perform in the first quarter?
Diversified Industrial sales were $4.152 billion, up 20.6%, with adjusted segment operating margin of 27.6%. Aerospace Systems sales were $1.867 billion, up 13.8%, with adjusted segment operating margin of 30.7%.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): November 5, 2026
(Exact Name of Registrant as Specified in Charter)
(State or other jurisdiction of Incorporation or Organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of Principal Executive Offices) | (Zip Code) | |||||||
Registrant's telephone number, including area code: (216 ) 896-3000
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
240.14d-2(b))
240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of Each Exchange on which Registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company | ||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On November 5, 2026, Parker-Hannifin Corporation issued a press release announcing results of operations for the quarter ended September 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this report.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits:
99.1 Press release issued by Parker-Hannifin Corporation, dated November 5, 2026.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| PARKER-HANNIFIN CORPORATION | |||||||||||
| By: /s/ Todd M. Leombruno | |||||||||||
| Todd M. Leombruno | |||||||||||
| Executive Vice President and Chief Financial Officer | |||||||||||
| Date: | November 5, 2026 | ||||||||||
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 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.
###
Exhibit 99.1
PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2026
| 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. | ||||||||||||||
Exhibit 99.1
PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2026
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. | |||||||||||||||||
Exhibit 99.1
PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2026
SUPPLEMENTAL FINANCIAL INFORMATION AND NON-GAAP RECONCILIATIONS
| 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. | ||||||||||||||||||||
Exhibit 99.1
PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2026
| 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 | ||||||||||
Exhibit 99.1
PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2026
| 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 | ||||||||||
Exhibit 99.1
PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2026
| 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 | ||||||||