Parker-Hannifin Corp
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.86%.
Did PH Beat Earnings? Q4 2025 Results
Parker Hannifin capped fiscal 2025 on a high note, posting a fourth quarter that beat Wall Street expectations on both the top and bottom lines as the industrial conglomerate recorded $5.24 billion in revenue, up 1.1% year over year and ahead of the $5.12 billion consensus. GAAP EPS of $7.15 edged past the $7.08 estimate by 0.99%, reflecting broad operational discipline across the portfolio. The clearest engine behind the outperformance was Aerospace Systems, which delivered record sales of $1.68 billion on 8.6% organic growth, expanded adjusted segment operating margin by 190 basis points to a record 29.0%, and saw backlog climb to a record $7.40 billion on 12% order growth across commercial and defense markets. Management extended its streak of annual dividend increases, recently announcing a quarterly payout of $1.80 per share, underscoring confidence in the company's cash generation. Looking ahead, Parker guided fiscal 2026 adjusted EPS to a range of $28.40 to $29.40, with total sales growth of 2% to 5% as Aerospace momentum continues and Industrial businesses are expected to return to positive organic growth.
- Aerospace aftermarket strength driving record segment sales
- Record adjusted segment operating margins across all segments
- 2% overall organic sales growth in Q4
- Aerospace backlog increased to a record $7.4 billion
- Order rates positive at 5% for Parker overall, 12% for Aerospace
- Gradual broad-based improvement across market verticals in North America Industrial
- International organic growth turned positive with 5.6% APAC and 3.8% Latin America growth
“Our outstanding performance contributed to a record year for safety, engagement, earnings per share, margins and cash flow. Delivering strong margin expansion and earnings growth in a dynamic macro environment is a testament to the resilience of our portfolio and the power of our business system, The Win Strategy™. We generated full year cash flow of $3.8 billion and through balanced capital deployment, increased our quarterly cash dividend by 10 percent, repurchased $1.6 billion of shares, and announced an agreement to acquire Curtis Instruments to expand our electrification offering. Thanks to our global team for another record year and the continued transformation of Parker.”
Parker Hannifin CEO, on the earnings call
Forward Guidance & Outlook
For fiscal year 2026 (ending June 30, 2026), Parker expects total sales growth of 2% to 5%, with organic sales growth of approximately 3% at the midpoint, previously completed divestitures impacting by 1%, and favorable currency of 1.5%. Total segment operating margin is guided at 23.3% to 23.7% (26.3% to 26.7% adjusted). GAAP EPS is expected at $24.68 to $25.68, or $28.40 to $29.40 on an adjusted basis. Aerospace is expected to remain the fastest-growing business, with a return to positive organic growth anticipated in Industrial businesses.
PH YoY Financials
PH Revenue by Segment
PH Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.