Parker-Hannifin Corp
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.90%.
Did PH Beat Earnings? Q1 2026 Results
Parker Hannifin delivered a record fiscal first quarter for 2026, posting adjusted EPS of $7.22 against a consensus estimate of $6.62, a beat of 9.01%, while revenue of $5.08 billion topped expectations by 2.86% and grew 3.7% year over year. The headline driver was the Aerospace Systems segment, which posted 12.8% organic growth fueled by commercial OEM strength and resilient aftermarket demand, helping lift total adjusted segment operating margin 170 basis points to a record 27.4%. The Diversified Industrial segment also turned a corner, with North America returning to positive organic growth at 2.1%, signaling an inflection after a prolonged soft patch. Order momentum reinforced the outlook, with total company orders up 8% and backlog reaching a record $11.30 billion. Against that backdrop, Parker raised full-year adjusted EPS guidance to a range of $29.60 to $30.40 and guided total sales growth of 4% to 7%. The quarter's strong free cash generation and earnings power also provide a foundation as the company moves ahead with its announced $9.25 billion acquisition of Filtration Group, a deal expected to meaningfully expand Parker's aftermarket revenue base.
- 5% organic sales growth driven by strong aerospace demand and gradual industrial recovery
- Adjusted segment operating margin expanded 170 basis points to 27.4%
- Aerospace Systems delivered 12.8% organic growth on commercial OEM growth and aftermarket strength
- North America Diversified Industrial organic growth turned positive at 2.1%
- Total company order rates increased 8%
- Record backlog of $11.3 billion
- Asia Pacific organic growth of 6.1%
- Win Strategy business system driving operational excellence
“Our global team produced record sales, segment operating margin, earnings per share and year-to-date cash flow. These results demonstrate our ability to consistently deliver operational excellence fueled by our business system The Win Strategy™. First quarter organic sales grew 5%, as strong demand continued in aerospace and our industrial businesses showed a gradual return to growth. Positive sales growth and an adjusted segment margin increase of 170 basis points, contributed to an adjusted earnings per share increase of 16%. With this strong first quarter performance and higher order rates, we have increased our outlook.”
Parker Hannifin CEO, on the earnings call
Forward Guidance & Outlook
Parker Hannifin raised its FY2026 guidance. Total sales growth is now expected in the range of 4.0% to 7.0%, with organic sales growth of approximately 4% at the midpoint, acquisitions contributing approximately 1%, previously completed divestitures of approximately 1%, and favorable currency of 1.5%. Segment operating margin outlook has been increased to 23.6% to 24.0% (26.8% to 27.2% adjusted). EPS guidance has been raised to $25.53 to $26.33 ($29.60 to $30.40 adjusted). Organic sales growth is forecast at 2.5% to 5.5%.
PH YoY Financials
PH Revenue by Segment
PH Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.