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Parker-Hannifin (NYSE: PH) lifts FY31 margin goal after record FY26

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Parker-Hannifin reported record results for the quarter and fiscal year ended June 30, 2026. Fourth-quarter sales rose 9.8% to $5.8 billion, with net income of $1.1 billion, up 18%. Diluted EPS increased 19% to $8.54, and adjusted EPS grew 21% to a record $9.27. Total segment operating margin reached 26.5%, or 28.0% on an adjusted basis.

For fiscal 2026, sales increased 8.3% to a record $21.5 billion. Net income was $3.6 billion, up 3%, or $4.1 billion on an adjusted basis, up 16%. Diluted EPS rose 5% to $28.48, while adjusted EPS grew 18% to a record $32.31. Segment operating margin was 24.5%, or 27.3% adjusted. Cash flow from operations was a record $4.4 billion, or 20.3% of sales. The company completed the Curtis Instruments acquisition, announced agreements to acquire Filtration Group Corporation and CIRCOR’s Commercial and Defense Aerospace Business, returned nearly $2 billion to shareholders, and increased its annual dividend 11%, marking 70 consecutive years of dividend-per-share increases.

For fiscal 2027, Parker-Hannifin expects reported and organic sales growth of 5.5%–8.5%, segment operating margin of 24.5%–24.9% (27.5%–27.9% adjusted), and EPS of $30.00–$31.00, or $34.25–$35.25 adjusted. The company raised its adjusted segment operating margin target by 300 bps to 30% by fiscal 2031 and reiterated long-term goals of 4%–6% organic growth, 17% free cash flow margin, and greater than 10% adjusted EPS growth.

Positive

  • Record fiscal 2026 sales of $21.5 billion (up 8.3%) and adjusted EPS of $32.31 (up 18%) highlight broad top- and bottom-line growth.
  • Fiscal 2026 cash flow from operations reached a record $4.4 billion, or 20.3% of sales, supporting acquisitions and nearly $2 billion returned to shareholders.
  • The company issued FY27 adjusted EPS guidance of $34.25–$35.25 and raised its FY31 adjusted segment operating margin target by 300 bps to 30%.

Negative

  • None.

Insights

Analyzing...

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, and exhibit attachments filed with this report.
Q4 2026 net sales $5,755 million Three months ended June 30, 2026; up 9.8% from $5,243 million in Q4 2025
FY26 net sales $21,499 million Twelve months ended June 30, 2026; sales increased 8.3% to a record $21.5 billion
FY26 diluted EPS $28.48 Earnings per diluted share for fiscal 2026, a 5% increase vs fiscal 2025
FY26 adjusted diluted EPS $32.31 Adjusted EPS for fiscal 2026, up 18% and described as a record level
Operating cash flow $4.4 billion Fiscal 2026 cash flow from operations, equal to 20.3% of sales and described as a record
Total backlog $12.8 billion Backlog increased to a record $12.8 billion with increases in all segments
FY27 EPS guidance $30.00–$31.00 Forecasted GAAP earnings per diluted share for fiscal year 2027
FY27 adjusted EPS guidance $34.25–$35.25 Forecasted adjusted earnings per diluted share for fiscal year 2027
organic sales growth financial
"Sales increased 9.8% to a record $5.8 billion; organic sales increased 8.0%"
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.
segment operating margin financial
"Segment operating margin was 24.5%, an increase of 150 bps, or 27.3% adjusted"
Segment operating margin measures how much profit a specific part of a company keeps from its sales after paying the costs to run that part, expressed as a percentage. Investors use it like a slice-size indicator to compare which divisions are more efficient at turning revenue into operating profit, helping spot strengths, weaknesses, and where management might focus resources or improvements.
tariff refunds financial
"reduction to cost of sales of $84 million related to IEEPA tariff refunds"
business realignment charges financial
"Business realignment charges of $72 million were included in adjustments"
Business realignment charges are one-time costs a company records when it reorganizes its operations, such as closing facilities, laying off staff, consolidating divisions, or writing down assets. Investors watch these charges because they can temporarily reduce reported profits but may signal management is reshaping the business to cut future costs or focus on more profitable activities—think of paying upfront to reorganize a cluttered closet to make it easier to find and use things later.
rolling 12-month average financial
"Beginning in fiscal year 2027, all comparisons will be on rolling 12-month average"
A rolling 12-month average is the average of a metric (such as revenue, sales, or expenses) calculated over the most recent 12 months and updated each period by dropping the oldest month and adding the newest one. Like looking through a moving window that smooths out bumps and seasonal swings, it reveals underlying trends and makes short-term noise less distracting, helping investors assess consistent performance and compare results across time.
Q4 2026 sales $5.8 billion Sales increased 9.8% year over year; organic sales increased 8.0%.
Q4 2026 EPS $8.54 GAAP; $9.27 adjusted GAAP EPS increased 19%; adjusted EPS increased 21% vs prior-year quarter.
FY26 sales $21.5 billion Sales increased 8.3% year over year; organic sales increased 6.6%.
FY26 EPS $28.48 GAAP; $32.31 adjusted GAAP EPS increased 5%; adjusted EPS increased 18% vs fiscal 2025.
FY26 segment operating margin 24.5% GAAP; 27.3% adjusted Margin increased 150 bps; adjusted margin increased 120 bps year over year.
Guidance

For fiscal 2027, the company expects reported and organic sales growth of 5.5%–8.5%, segment operating margin of 24.5%–24.9% or 27.5%–27.9% adjusted, and EPS of $30.00–$31.00, or $34.25–$35.25 on an adjusted basis.

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FAQ

How did Parker-Hannifin (PH) perform in Q4 fiscal 2026?
Parker-Hannifin’s Q4 FY26 sales rose 9.8% to $5.8 billion, with net income of $1.1 billion, up 18%. Diluted EPS increased 19% to $8.54, and adjusted EPS grew 21% to a record $9.27, with total segment operating margin at 26.5%.

What were Parker-Hannifin (PH) full-year fiscal 2026 results?
For FY26, Parker-Hannifin reported record sales of $21.5 billion, up 8.3%, and net income of $3.6 billion, up 3%. Diluted EPS rose 5% to $28.48, while adjusted EPS increased 18% to a record $32.31, with segment operating margin at 24.5%.

What fiscal 2027 guidance did Parker-Hannifin (PH) provide?
For FY27, Parker-Hannifin expects reported and organic sales growth of 5.5%–8.5%, segment operating margin of 24.5%–24.9% (adjusted 27.5%–27.9%), and EPS of $30.00–$31.00, or adjusted EPS of $34.25–$35.25.

What are Parker-Hannifin (PH) long-term financial targets to fiscal 2031?
Parker-Hannifin raised its adjusted segment operating margin target by 300 bps to 30% by FY31 and remains committed to 4%–6% organic growth, 17% free cash flow margin, and greater than 10% adjusted EPS growth by fiscal 2031.

How much did Parker-Hannifin (PH) return to shareholders in fiscal 2026?
In FY26, Parker-Hannifin returned nearly $2 billion to shareholders through share repurchases and dividends. The company also increased its annual dividend 11%, marking 70 consecutive fiscal years of increasing annual dividends per share paid.

What were Parker-Hannifin (PH) FY26 cash flow and balance sheet highlights?
Fiscal 2026 cash flow from operations was a record $4.4 billion, or 20.3% of sales. Total assets were $30.9 billion, shareholders’ equity was $15.4 billion, and long-term debt declined to $6.8 billion from $7.5 billion a year earlier.

How did Parker-Hannifin (PH) orders and backlog trend in fiscal 2026?
Order rates for Q4 FY26 increased 19% company-wide, including 16% in Diversified Industrial North America, 24% in Diversified International, and 18% in Aerospace Systems. Total backlog grew to a record $12.8 billion, with Aerospace backlog at a record $8.5 billion.
0000076334false00000763342026-08-062026-08-06

        

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): August 6, 2026

PARKER-HANNIFIN CORPORATION
(Exact Name of Registrant as Specified in Charter)
Ohio
1-498234-0451060
(State or other jurisdiction of
Incorporation or Organization)
(Commission File Number)
(I.R.S. Employer
Identification No.)
6035 Parkland Boulevard, Cleveland, Ohio
44124-4141
(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:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on which Registered
Common Shares, $.50 par valuePHNew York Stock Exchange


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 August 6, 2026, Parker-Hannifin Corporation issued a press release announcing results of operations for the quarter ended June 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 August 6, 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:August 6, 2026





Exhibit 99.1
blk_parkerlogo20150x50a.jpg
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 and control technologies, today reported results for the quarter and fiscal year ended June 30, 2026, that included the following highlights (compared with the prior year period):
Fiscal 2026 Fourth Quarter Highlights:
•Sales increased 9.8% to a record $5.8 billion; organic sales increased 8.0%
•Net income was $1.1 billion, an increase of 18%, or $1.2 billion adjusted, an increase of 20%
•EPS increased 19% to $8.54, adjusted EPS increased 21% to a record $9.27
•Segment operating margin was 26.5%, an increase of 260 bps, or 28.0% adjusted, an increase of 110 bps
Fiscal 2026 Full Year Highlights:
•Sales increased 8.3% to a record $21.5 billion; organic sales increased 6.6%
•Net income was $3.6 billion, an increase of 3%, or $4.1 billion adjusted, an increase of 16%
•EPS increased 5% to $28.48, adjusted EPS increased 18% to a record $32.31
•Segment operating margin was 24.5%, an increase of 150 bps, or 27.3% adjusted, an increase of 120 bps
•Cash flow from operations was a record $4.4 billion, or 20.3% of sales
•Completed acquisition of Curtis Instruments, Inc. and announced agreements to acquire Filtration Group Corporation and CIRCOR's Commercial and Defense Aerospace Business
•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
“On behalf of the entire leadership team, thank you to our global team members for their outstanding contributions in fiscal year 2026,” said Jenny Parmentier, Chairman and Chief Executive Officer. “We had our safest year ever, continued enhancing our portfolio of interconnected technologies through strategic acquisitions, and demonstrated operational excellence to deliver record results. We also returned value to shareholders with balanced capital deployment through share repurchases and a dividend increase of 11%.
“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. 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. In addition, we remain committed to achieving 4 to 6% organic growth, 17% free cash flow margin and greater than 10% adjusted earnings per share growth by fiscal 2031. We are proud of what Parker achieved in fiscal 2026, and we are even more excited about the opportunities ahead.”
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 issued guidance for the fiscal year ending June 30, 2027 and noted that it excludes the pending acquisitions of Filtration Group Corporation and CIRCOR's Commercial and Defense Aerospace Business. In fiscal 2027, the company expects:
•Reported sales growth of 5.5% to 8.5%
•Organic sales growth of 5.5% to 8.5%; previously completed acquisitions of 0.5%, and unfavorable currency of 0.5%
•Segment operating margin of 24.5% to 24.9%, or 27.5% to 27.9% on an adjusted basis
•EPS of $30.00 to $31.00, or $34.25 to $35.25 on an adjusted basis
Fiscal 2026 Fourth Quarter Segment Results
Diversified Industrial Segment
North America Businesses
$ in mmFY26 Q4FY25 Q4
Change
Organic Growth
Sales$2,221 $2,075 7.0 %4.9 %
Segment Operating Income$606 $513 18.1 %
Segment Operating Margin27.3 %24.7 %260  bps
Adjusted Segment Operating Income$609 $555 9.7 %
Adjusted Segment Operating Margin27.4 %26.7 %70  bps
•Organic sales growth of 5% as industrial recovery broadens
•Record adjusted segment operating margin
•Sales improvement across all market verticals
International Businesses
$ in mm
FY26 Q4FY25 Q4
Change
Organic Growth
Sales
$1,634 $1,492 9.5 %6.5 %
Segment Operating Income
$396 $334 18.6 %
Segment Operating Margin
24.2 %22.4 %180  bps
Adjusted Segment Operating Income$438 $369 18.7 %
Adjusted Segment Operating Margin
26.8 %24.7 %210  bps
•Record sales led by Asia with 16% organic growth
•Record adjusted segment operating margin
•Organic growth: 16% APAC, 1% EMEA, (3%) LA
Aerospace Systems Segment
$ in mm
FY26 Q4FY25 Q4
Change
Organic Growth
Sales
$1,900 $1,676 13.4 %13.3 %
Segment Operating Income
$522 $407 28.3 %
Segment Operating Margin
27.5 %24.3 %320  bps
Adjusted Segment Operating Income$567 $486 16.7 %
Adjusted Segment Operating Margin
29.8 %29.0 %80  bps
•Record sales: double-digit growth in all market segments
•Record adjusted segment operating margin
•Backlog increased to record $8.5B


Order Rates
Q4 FY26
Parker
+19%
Diversified Industrial Segment - North America Businesses
+16%
Diversified Industrial Segment - International Businesses
+24%
Aerospace Systems Segment
+18%
•Backlog increased to a record $12.8 billion, with increases in all segments
Parmentier added, "As a result of our ongoing portfolio transformation with a higher concentration of aerospace, longer cycle and more resilient end markets, we will harmonize all order rate comparisons to a 12-month rolling calculation starting in fiscal 2027. This method provides a stronger correlation to near-term organic growth rates."
Order rate comparisons using both methodologies are included below:
Order rates as previously disclosed1
FY25
FY26
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Diversified North America
(3%)
3%
3%
2%
3%
7%
7%
16%
Diversified International
1%
4%
11%
0%
6%
6%
6%
24%
Aerospace Systems
7%
9%
14%
12%
15%
14%
14%
18%
Parker
1%
5%
9%
5%
8%
9%
9%
19%
1.Diversified Industrial order rates are on 3-month average computations; Aerospace order rates are on a rolling 12-month average
Updated rolling 12- month order rates2
FY25
FY26
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Diversified North America
(5%)
(3%)
0%
2%
3%
4%
5%
9%
Diversified International
(5%)
(3%)
3%
3%
4%
5%
4%
10%
Aerospace Systems
7%
9%
14%
12%
15%
14%
14%
18%
Parker
(2%)
1%
5%
5%
7%
8%
8%
12%
2. All order rate comparisons on a rolling 12-month average
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 2026 fourth quarter and full year 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 quarter ending June 30, 2026, compared with the same quarter a year ago. All comparisons are at constant currency exchange rates, with the prior year quarter restated to the current-year rates, and exclude divestitures. Through fiscal year 2026, Diversified Industrial comparisons have been on 3-month average computations and Aerospace Systems comparisons have been on rolling 12-month average computations. Beginning in fiscal year 2027, all comparisons will be 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; and (e) organic sales growth. These measures are presented to allow investors and the company to meaningfully evaluate changes in net income, earnings per share and segment operating margins 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. Adjusted results for the current period exclude a reduction of cost of sales related to tariff refunds, which we believe is useful to investors because it reflects a discrete, non-operating item that is not indicative of the Company’s ongoing operations and is not expected to recur. 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. The non-GAAP metrics included in our 5-year targets for fiscal year 2031 could not be reconciled without unreasonable effort and applicable reconciliations are not included in 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 Filtration Group Corporation and CIRCOR International Inc.'s Commercial and Defense Aerospace business and the integration of 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, 2025 and other periodic filings made with the SEC.


###

Exhibit 99.1
PARKER HANNIFIN CORPORATION - JUNE 30, 2026
CONSOLIDATED STATEMENTS OF INCOME
Three Months EndedTwelve Months Ended
(Unaudited)June 30,June 30,
(In millions, except per share amounts)2026202520262025
Net sales$5,755 $5,243 $21,499 $19,850 
Cost of sales3,508 3,285 13,397 12,535 
Selling, general and administrative expenses874 839 3,468 3,255 
Interest expense95 99 401 409 
Other expense (income), net(62)(51)(330)(456)
Income before income taxes1,340 1,071 4,563 4,107 
Income taxes248 148 914 575 
Net income1,092 923 3,649 3,532 
Less: Noncontrolling interests1 — 1 1 
Net income attributable to common shareholders$1,091 $923 $3,648 $3,531 
Earnings per share attributable to common shareholders:
Basic$8.66 $7.25 $28.89 $27.52 
Diluted$8.54 $7.15 $28.48 $27.12 
Weighted average shares outstanding:
Basic126.1127.2126.3128.3
Diluted127.8129.0128.1130.2
Cash dividends per common share$2.00 $1.80 $7.40 $6.69 

BUSINESS SEGMENT INFORMATION
Three Months EndedTwelve Months Ended
(Unaudited)June 30,June 30,
(Dollars in millions)2026202520262025
Net sales
Diversified Industrial$3,855 $3,567 $14,438 $13,665 
Aerospace Systems1,900 1,676 7,061 6,185 
Total net sales$5,755 $5,243 $21,499 $19,850 
Segment operating income
Diversified Industrial$1,002 $847 $3,440 $3,120 
Aerospace Systems522 407 1,833 1,441 
Total segment operating income1,524 1,254 5,273 4,561 
Corporate general and administrative expenses50 65 205 214 
Income before interest expense and other expense (income), net1,474 1,189 5,068 4,347 
Interest expense95 99 401 409 
Other expense (income), net39 19 104 (169)
Income before income taxes$1,340 $1,071 $4,563 $4,107 


Exhibit 99.1
PARKER HANNIFIN CORPORATION - JUNE 30, 2026
SUPPLEMENTAL FINANCIAL INFORMATION AND NON-GAAP RECONCILIATIONS
ADJUSTED SEGMENT OPERATING INCOME AND ORGANIC SALES GROWTH RECONCILIATION
Three Months Ended June 30, 2026Three Months Ended June 30, 2025
Diversified Industrial SegmentAerospace Systems SegmentDiversified Industrial SegmentAerospace Systems Segment
(Unaudited)
(Dollars in millions)		North AmericaInt'lTotalTotalNorth AmericaInt'lTotalTotal
Net sales$2,221 $1,634 $3,855 $1,900 $5,755 $2,075 $1,492 $3,567 $1,676 $5,243 
Segment operating income$606 $396 $1,002 $522 $1,524 $513 $334 $847 $407 $1,254 
Adjustments:
 Amortization of acquired intangibles49 23 72 76 148 41 23 64 75 139 
 Business realignment charges2 18 20 (1)19 2 12 14 — 14 
 Integration costs to achieve5 1 6 1 7 (1)— (1)4 3 
 Tariff refunds1
(53)— (53)(31)(84)— — — — — 
Adjusted segment operating income$609 $438 $1,047 $567 $1,614 $555 $369 $924 $486 $1,410 
Segment operating margin27.3%24.2%26.0%27.5%26.5%24.7%22.4%23.7%24.3%23.9%
Adjusted segment operating margin27.4%26.8%27.2%29.8%28.0%26.7%24.7%25.9%29.0%26.9%
Reported sales growth7.0%9.5%8.1%13.4%9.8%
Currency0.3%0.5%0.4%0.1%0.3%
Acquisitions1.8%2.5%2.1%—%1.5%
Organic sales growth4.9%6.5%5.6%13.3%8.0%
Twelve Months Ended June 30, 2026Twelve Months Ended June 30, 2025
Diversified Industrial SegmentAerospace Systems SegmentDiversified Industrial SegmentAerospace Systems Segment
(Unaudited)
(Dollars in millions)		North AmericaInt'lTotalTotalNorth AmericaInt'lTotalTotal
Net sales$8,392 $6,046 $14,438 $7,061 $21,499 $8,134 $5,531 $13,665 $6,185 $19,850 
Segment operating income$2,041 $1,399 $3,440 $1,833 $5,273 $1,891 $1,229 $3,120 $1,441 $4,561 
Adjustments:
 Amortization of acquired intangibles188 92 280 304 584 165 88 253 300 553 
 Business realignment charges9 62 71 1 72 15 38 53 — 53 
 Integration costs to achieve15 2 17 3 20 2 1 3 19 22 
 Acquisition-related expenses6 5 11 — 11 — — — — — 
Tariff refunds1
(53)— (53)(31)(84)— — — — — 
Adjusted segment operating income$2,206 $1,560 $3,766 $2,110 $5,876 $2,073 $1,356 $3,429 $1,760 $5,189 
Segment operating margin24.3%23.1%23.8%26.0%24.5%23.2%22.2%22.8%23.3%23.0%
Adjusted segment operating margin26.3%25.8%26.1%29.9%27.3%25.5%24.5%25.1%28.5%26.1%
Reported sales growth3.2%9.3%5.7%14.2%8.3%
Currency0.4%3.4%1.7%0.8%1.2%
Divestitures(1.8)%—%(1.1)%—%(0.7)%
Acquisitions1.5%2.0%1.7%—%1.2%
Organic sales growth3.1%3.9%3.4%13.4%6.6%
DIVERSIFIED INDUSTRIAL INTERNATIONAL BUSINESSES - ORGANIC SALES GROWTH SUPPLEMENT
Three Months Ended June 30, 2026Twelve Months Ended June 30, 2026
(Unaudited)EMEAAsia PacificLatin AmericaTotalEMEAAsia PacificLatin AmericaTotal
Reported sales growth3.0%19.6%3.0%9.5%7.0%13.6%0.7%9.3%
Currency0.6%(0.2)%5.6%0.5%5.4%0.4%4.0%3.4%
Acquisitions1.8%3.9%—%2.5%1.5%3.0%—%2.0%
Organic sales growth0.6%15.9%(2.6)%6.5%0.1%10.2%(3.3)%3.9%


Exhibit 99.1
PARKER HANNIFIN CORPORATION - JUNE 30, 2026
SUPPLEMENTAL FINANCIAL INFORMATION AND NON-GAAP RECONCILIATIONS
ADJUSTED NET INCOME6 AND ADJUSTED DILUTED EARNINGS PER SHARE RECONCILIATION
Three Months Ended June 30,Twelve Months Ended June 30,
(Unaudited)2026202520262025
(Dollars in millions, except per share amounts)
Net Income6
Diluted EPS
Net Income6
Diluted EPS
Net Income6
Diluted EPS
Net Income6
Diluted EPS
As reported$1,091 $8.54 $923 $7.15 $3,648 $28.48 $3,531 $27.12 
Adjustments:
Amortization of acquired intangibles148 1.16 139 1.08 584 4.56 553 4.25 
Business realignment charges19 0.15 16 0.12 72 0.56 56 0.43 
Integration costs to achieve7 0.05 3 0.03 20 0.15 22 0.17 
Gain on divestitures— — (2)(0.02)— — (252)(1.94)
Acquisition-related expenses2
7 0.05 — — 41 0.31 — — 
Insurance-related charges (recoveries)(3)(0.02)— — (23)(0.18)8 0.06 
Tariff refunds1
(84)(0.65)— — (84)(0.65)— — 
Other adjustments3
28 0.21 (14)(0.10)28 0.21 (24)(0.18)
Tax effect of adjustments4
(27)(0.22)(38)(0.30)(147)(1.13)(120)(0.93)
Discrete tax benefits5
— — (35)(0.27)— — (215)(1.65)
As adjusted$1,186 $9.27 $992 $7.69 $4,139 $32.31 $3,559 $27.33 
1In February 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") on goods imported into the U.S. were unauthorized. During the fourth quarter of fiscal 2026, the Company recognized a reduction to cost of sales of $84 million related to IEEPA tariff refunds received from the U.S. government. The Company has applied for additional refunds under the same program, though for lesser amounts. No receivable has been recorded for these additional refunds as the amount and timing remain uncertain.
2Acquisition-related expenses include transaction costs and charges related to the fair value step up of acquired inventory.
3Other adjustments include impairment charges and a pension buyout charge for $22 million and $6 million, respectively, in fiscal 2026. Other adjustments in the prior year consist of gains on sales of buildings.
4This 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.
5Discete tax benefits in fiscal 2025 relates to a release of a tax valuation allowance.
6Represents net income attributable to common shareholders.


Exhibit 99.1
PARKER HANNIFIN CORPORATION - JUNE 30, 2026

CONSOLIDATED BALANCE SHEETS
(Unaudited)June 30,June 30,
(Dollars in millions)20262025
Assets
Current assets:
Cash and cash equivalents$501 $467 
Trade accounts receivable, net3,170 2,910 
Non-trade and notes receivable303 318 
Inventories3,166 2,839 
Prepaid expenses 355 263 
Other current assets200 153 
Total current assets7,695 6,950 
Property, plant and equipment, net3,020 2,937 
Deferred income taxes238 270 
Other long-term assets1,535 1,269 
Intangible assets, net7,280 7,374 
Goodwill11,109 10,694 
Total assets$30,877 $29,494 
Liabilities and equity
Current liabilities:
Notes payable and long-term debt payable within one year$1,754 $1,791 
Accounts payable, trade2,439 2,126 
Accrued payrolls and other compensation658 587 
Other current liabilities1,245 1,315 
Total current liabilities6,096 5,819 
Long-term debt6,766 7,494 
Pensions and other postretirement benefits224 267 
Deferred income taxes1,630 1,490 
Other long-term liabilities748 733 
Shareholders' equity15,404 13,682 
Noncontrolling interests9 9 
Total liabilities and equity$30,877 $29,494 

Exhibit 99.1
PARKER HANNIFIN CORPORATION - JUNE 30, 2026

CONSOLIDATED STATEMENTS OF CASH FLOWS
Twelve Months Ended
(Unaudited)June 30,
(Dollars in millions)20262025
Cash flows from operating activities
Net income$3,649 $3,532 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation353 354 
Amortization584 553 
Stock-based compensation expense179 159 
Deferred income taxes(4)(304)
Pensions and other postretirement benefits, net(68)(152)
Gain on sale of businesses(9)(253)
Other, net(24)40 
Changes in assets and liabilities, net of effect of acquisitions and divestitures:
Accounts receivable, net(114)6 
Inventories(272)(94)
Other assets(71)15 
Accounts payable, trade290 119 
Other liabilities10 (134)
Income taxes(139)(65)
Net cash provided by operating activities4,364 3,776 
Cash flows from investing activities
Acquisitions, net of cash acquired(1,014)— 
Capital expenditures(459)(435)
Proceeds from sale of property, plant and equipment40 32 
Proceeds from sale of businesses16 623 
Other, net27 4 
Net cash (used in) provided by investing activities(1,390)224 
Cash flows from financing activities
Payments for common shares(1,262)(1,766)
Proceeds from (payments for) notes payable, net(736)(364)
Proceeds from long-term borrowings23 751 
Payments for long-term borrowings(24)(1,741)
Dividends paid(936)(861)
Other, net1 4 
Net cash used in financing activities(2,934)(3,977)
Effect of exchange rate changes on cash(6)22 
Net increase (decrease) in cash and cash equivalents34 45 
Cash and cash equivalents at beginning of year467 422 
Cash and cash equivalents at end of period$501 $467 




Exhibit 99.1
PARKER HANNIFIN CORPORATION - JUNE 30, 2026

RECONCILIATION OF FORECASTED REPORTED SALES GROWTH TO FORECASTED ORGANIC SALES GROWTH
(Unaudited)
(Amounts in percentages)Fiscal Year 2027
Forecasted reported sales growth 5.5% to 8.5%
Adjustments:
Currency~0.5%
Acquisitions~(0.5%)
Forecasted organic sales growth5.5% to 8.5%
RECONCILIATION OF FORECASTED SEGMENT OPERATING MARGIN TO ADJUSTED FORECASTED SEGMENT OPERATING MARGIN
(Unaudited)
(Amounts in percentages)Fiscal Year 2027
Forecasted segment operating margin24.5% to 24.9%
Adjustments:
Business realignment charges~0.4%
Amortization of acquired intangibles~2.5%
Integration costs to achieve~0.1%
Adjusted forecasted segment operating margin27.5% to 27.9%
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$30.00 to $31.00
Adjustments:
Business realignment charges0.74
Amortization of acquired intangibles4.54
Integration costs to achieve0.19
Tax effect of adjustments1
(1.22)
Adjusted forecasted earnings per diluted share$34.25 to $35.25
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.
Note: Totals may not foot due to rounding




Source: View Original Filing on SEC EDGAR

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