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Sep 30
Parker-Hannifin Q1 2026 Earnings Report
Parker-Hannifin reported record sales, segment operating margin, and earnings per share for the first quarter of fiscal year 2026, driven by organic sales growth and strong demand in aerospace and industrial businesses.
Key Takeaways
Parker-Hannifin delivered a strong first quarter for fiscal year 2026, achieving record sales of $5.1 billion, a 5% organic sales growth, and a significant increase in net income and EPS. The company's adjusted segment operating margin also saw a substantial improvement, leading to an increased outlook for the fiscal year.
Record sales reached $5.1 billion, with organic sales growth of 5% compared to the prior year period.
Net income increased by 16% to $808 million, and adjusted net income rose by 14% to $927 million.
Diluted EPS grew by 18% to $6.29, with adjusted diluted EPS reaching a record $7.22, an increase of 16%.
Segment operating margin improved by 160 basis points to 24.2%, and adjusted segment operating margin increased by 170 basis points to 27.4%.
Parker-Hannifin
Parker-Hannifin
Parker-Hannifin Revenue by Segment
Parker-Hannifin Revenue by Geographic Location
Revenue by Segment
Diversified Industrial Revenue
CapyFin.comAerospace Systems Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Parker-Hannifin has increased its fiscal year 2026 outlook, including the Curtis acquisition, projecting higher total sales growth, improved segment operating margins, and increased EPS.
Positive Outlook
- Total sales growth increased to a range of 4.0% to 7.0%, with organic sales growth at approximately 4% at the midpoint.
- Segment operating margin outlook raised to 23.6% to 24.0%, or 26.8% to 27.2% on an adjusted basis.
- EPS guidance increased to $25.53 to $26.33, or $29.60 to $30.40 on an adjusted basis.
- The outlook now includes the positive impact of the Curtis acquisition.
- Higher order rates contribute to the increased outlook.
Challenges Ahead
- Divestitures are expected to negatively impact total sales growth by approximately 1%.
- Currency fluctuations are projected to have a negative impact of approximately 1.5% on total sales growth.
- The guidance is subject to various risks and uncertainties, including changes in business relationships, supply chain disruptions, and economic conditions.
- Integration costs for acquisitions, such as Curtis Instruments, Inc., could impact financial performance.
- Legal and regulatory developments, as well as cybersecurity risks, remain potential challenges.