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 mm | FY26 Q4 | FY25 Q4 | Change | Organic Growth | |||||||||||||||||||||||||||||||
| Sales | $ | 2,221 | $ | 2,075 | 7.0 | % | 4.9 | % | |||||||||||||||||||||||||||
| Segment Operating Income | $ | 606 | $ | 513 | 18.1 | % | |||||||||||||||||||||||||||||
| Segment Operating Margin | 27.3 | % | 24.7 | % | 260 | bps | |||||||||||||||||||||||||||||
| Adjusted Segment Operating Income | $ | 609 | $ | 555 | 9.7 | % | |||||||||||||||||||||||||||||
| Adjusted Segment Operating Margin | 27.4 | % | 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 Q4 | FY25 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 Q4 | FY25 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.
###
PARKER HANNIFIN CORPORATION - JUNE 30, 2026
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| (Unaudited) | June 30, | June 30, | ||||||||||||||||||||||||
| (In millions, except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Net sales | $ | 5,755 | $ | 5,243 | $ | 21,499 | $ | 19,850 | ||||||||||||||||||
| Cost of sales | 3,508 | 3,285 | 13,397 | 12,535 | ||||||||||||||||||||||
| Selling, general and administrative expenses | 874 | 839 | 3,468 | 3,255 | ||||||||||||||||||||||
| Interest expense | 95 | 99 | 401 | 409 | ||||||||||||||||||||||
| Other expense (income), net | (62) | (51) | (330) | (456) | ||||||||||||||||||||||
| Income before income taxes | 1,340 | 1,071 | 4,563 | 4,107 | ||||||||||||||||||||||
| Income taxes | 248 | 148 | 914 | 575 | ||||||||||||||||||||||
| Net income | 1,092 | 923 | 3,649 | 3,532 | ||||||||||||||||||||||
| Less: Noncontrolling interests | 1 | — | 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: | ||||||||||||||||||||||||||
| Basic | 126.1 | 127.2 | 126.3 | 128.3 | ||||||||||||||||||||||
| Diluted | 127.8 | 129.0 | 128.1 | 130.2 | ||||||||||||||||||||||
| Cash dividends per common share | $ | 2.00 | $ | 1.80 | $ | 7.40 | $ | 6.69 | ||||||||||||||||||
| BUSINESS SEGMENT INFORMATION | ||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| (Unaudited) | June 30, | June 30, | ||||||||||||||||||||||||
| (Dollars in millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||
| Diversified Industrial | $ | 3,855 | $ | 3,567 | $ | 14,438 | $ | 13,665 | ||||||||||||||||||
| Aerospace Systems | 1,900 | 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 Systems | 522 | 407 | 1,833 | 1,441 | ||||||||||||||||||||||
| Total segment operating income | 1,524 | 1,254 | 5,273 | 4,561 | ||||||||||||||||||||||
| Corporate general and administrative expenses | 50 | 65 | 205 | 214 | ||||||||||||||||||||||
| Income before interest expense and other expense (income), net | 1,474 | 1,189 | 5,068 | 4,347 | ||||||||||||||||||||||
| Interest expense | 95 | 99 | 401 | 409 | ||||||||||||||||||||||
| Other expense (income), net | 39 | 19 | 104 | (169) | ||||||||||||||||||||||
| Income before income taxes | $ | 1,340 | $ | 1,071 | $ | 4,563 | $ | 4,107 | ||||||||||||||||||
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, 2026 | Three Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||||||||||
| Diversified Industrial Segment | Aerospace Systems Segment | Diversified Industrial Segment | Aerospace Systems Segment | ||||||||||||||||||||||||||||||||||||||
| (Unaudited) (Dollars in millions) | North America | Int'l | Total | Total | North America | Int'l | Total | Total | |||||||||||||||||||||||||||||||||
| 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 intangibles | 49 | 23 | 72 | 76 | 148 | 41 | 23 | 64 | 75 | 139 | |||||||||||||||||||||||||||||||
| Business realignment charges | 2 | 18 | 20 | (1) | 19 | 2 | 12 | 14 | — | 14 | |||||||||||||||||||||||||||||||
| Integration costs to achieve | 5 | 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 margin | 27.3% | 24.2% | 26.0% | 27.5% | 26.5% | 24.7% | 22.4% | 23.7% | 24.3% | 23.9% | |||||||||||||||||||||||||||||||
| Adjusted segment operating margin | 27.4% | 26.8% | 27.2% | 29.8% | 28.0% | 26.7% | 24.7% | 25.9% | 29.0% | 26.9% | |||||||||||||||||||||||||||||||
| Reported sales growth | 7.0% | 9.5% | 8.1% | 13.4% | 9.8% | ||||||||||||||||||||||||||||||||||||
| Currency | 0.3% | 0.5% | 0.4% | 0.1% | 0.3% | ||||||||||||||||||||||||||||||||||||
| Acquisitions | 1.8% | 2.5% | 2.1% | —% | 1.5% | ||||||||||||||||||||||||||||||||||||
| Organic sales growth | 4.9% | 6.5% | 5.6% | 13.3% | 8.0% | ||||||||||||||||||||||||||||||||||||
| Twelve Months Ended June 30, 2026 | Twelve Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||||||||||
| Diversified Industrial Segment | Aerospace Systems Segment | Diversified Industrial Segment | Aerospace Systems Segment | ||||||||||||||||||||||||||||||||||||||
| (Unaudited) (Dollars in millions) | North America | Int'l | Total | Total | North America | Int'l | Total | Total | |||||||||||||||||||||||||||||||||
| 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 intangibles | 188 | 92 | 280 | 304 | 584 | 165 | 88 | 253 | 300 | 553 | |||||||||||||||||||||||||||||||
| Business realignment charges | 9 | 62 | 71 | 1 | 72 | 15 | 38 | 53 | — | 53 | |||||||||||||||||||||||||||||||
| Integration costs to achieve | 15 | 2 | 17 | 3 | 20 | 2 | 1 | 3 | 19 | 22 | |||||||||||||||||||||||||||||||
| Acquisition-related expenses | 6 | 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 margin | 24.3% | 23.1% | 23.8% | 26.0% | 24.5% | 23.2% | 22.2% | 22.8% | 23.3% | 23.0% | |||||||||||||||||||||||||||||||
| Adjusted segment operating margin | 26.3% | 25.8% | 26.1% | 29.9% | 27.3% | 25.5% | 24.5% | 25.1% | 28.5% | 26.1% | |||||||||||||||||||||||||||||||
| Reported sales growth | 3.2% | 9.3% | 5.7% | 14.2% | 8.3% | ||||||||||||||||||||||||||||||||||||
| Currency | 0.4% | 3.4% | 1.7% | 0.8% | 1.2% | ||||||||||||||||||||||||||||||||||||
| Divestitures | (1.8)% | —% | (1.1)% | —% | (0.7)% | ||||||||||||||||||||||||||||||||||||
| Acquisitions | 1.5% | 2.0% | 1.7% | —% | 1.2% | ||||||||||||||||||||||||||||||||||||
| Organic sales growth | 3.1% | 3.9% | 3.4% | 13.4% | 6.6% | ||||||||||||||||||||||||||||||||||||
| DIVERSIFIED INDUSTRIAL INTERNATIONAL BUSINESSES - ORGANIC SALES GROWTH SUPPLEMENT | ||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2026 | Twelve Months Ended June 30, 2026 | |||||||||||||||||||||||||||||||
| (Unaudited) | EMEA | Asia Pacific | Latin America | Total | EMEA | Asia Pacific | Latin America | Total | ||||||||||||||||||||||||
| Reported sales growth | 3.0% | 19.6% | 3.0% | 9.5% | 7.0% | 13.6% | 0.7% | 9.3% | ||||||||||||||||||||||||
| Currency | 0.6% | (0.2)% | 5.6% | 0.5% | 5.4% | 0.4% | 4.0% | 3.4% | ||||||||||||||||||||||||
| Acquisitions | 1.8% | 3.9% | —% | 2.5% | 1.5% | 3.0% | —% | 2.0% | ||||||||||||||||||||||||
| Organic sales growth | 0.6% | 15.9% | (2.6)% | 6.5% | 0.1% | 10.2% | (3.3)% | 3.9% | ||||||||||||||||||||||||
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) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| (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 intangibles | 148 | 1.16 | 139 | 1.08 | 584 | 4.56 | 553 | 4.25 | ||||||||||||||||||||||||||||||
| Business realignment charges | 19 | 0.15 | 16 | 0.12 | 72 | 0.56 | 56 | 0.43 | ||||||||||||||||||||||||||||||
| Integration costs to achieve | 7 | 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. | ||||||||||||||||||||||||||||||||||||||
PARKER HANNIFIN CORPORATION - JUNE 30, 2026
| CONSOLIDATED BALANCE SHEETS | ||||||||||||||
| (Unaudited) | June 30, | June 30, | ||||||||||||
| (Dollars in millions) | 2026 | 2025 | ||||||||||||
| Assets | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 501 | $ | 467 | ||||||||||
| Trade accounts receivable, net | 3,170 | 2,910 | ||||||||||||
| Non-trade and notes receivable | 303 | 318 | ||||||||||||
| Inventories | 3,166 | 2,839 | ||||||||||||
| Prepaid expenses | 355 | 263 | ||||||||||||
| Other current assets | 200 | 153 | ||||||||||||
| Total current assets | 7,695 | 6,950 | ||||||||||||
| Property, plant and equipment, net | 3,020 | 2,937 | ||||||||||||
| Deferred income taxes | 238 | 270 | ||||||||||||
| Other long-term assets | 1,535 | 1,269 | ||||||||||||
| Intangible assets, net | 7,280 | 7,374 | ||||||||||||
| Goodwill | 11,109 | 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, trade | 2,439 | 2,126 | ||||||||||||
| Accrued payrolls and other compensation | 658 | 587 | ||||||||||||
| Other current liabilities | 1,245 | 1,315 | ||||||||||||
| Total current liabilities | 6,096 | 5,819 | ||||||||||||
| Long-term debt | 6,766 | 7,494 | ||||||||||||
| Pensions and other postretirement benefits | 224 | 267 | ||||||||||||
| Deferred income taxes | 1,630 | 1,490 | ||||||||||||
| Other long-term liabilities | 748 | 733 | ||||||||||||
| Shareholders' equity | 15,404 | 13,682 | ||||||||||||
| Noncontrolling interests | 9 | 9 | ||||||||||||
| Total liabilities and equity | $ | 30,877 | $ | 29,494 | ||||||||||
PARKER HANNIFIN CORPORATION - JUNE 30, 2026
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
| Twelve Months Ended | ||||||||||||||||||||
| (Unaudited) | June 30, | |||||||||||||||||||
| (Dollars in millions) | 2026 | 2025 | ||||||||||||||||||
| Cash flows from operating activities | ||||||||||||||||||||
| Net income | $ | 3,649 | $ | 3,532 | ||||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
| Depreciation | 353 | 354 | ||||||||||||||||||
| Amortization | 584 | 553 | ||||||||||||||||||
| Stock-based compensation expense | 179 | 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, trade | 290 | 119 | ||||||||||||||||||
| Other liabilities | 10 | (134) | ||||||||||||||||||
| Income taxes | (139) | (65) | ||||||||||||||||||
| Net cash provided by operating activities | 4,364 | 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 equipment | 40 | 32 | ||||||||||||||||||
| Proceeds from sale of businesses | 16 | 623 | ||||||||||||||||||
| Other, net | 27 | 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 borrowings | 23 | 751 | ||||||||||||||||||
| Payments for long-term borrowings | (24) | (1,741) | ||||||||||||||||||
| Dividends paid | (936) | (861) | ||||||||||||||||||
| Other, net | 1 | 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 equivalents | 34 | 45 | ||||||||||||||||||
| Cash and cash equivalents at beginning of year | 467 | 422 | ||||||||||||||||||
| Cash and cash equivalents at end of period | $ | 501 | $ | 467 | ||||||||||||||||
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 growth | 5.5% 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 margin | 24.5% 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 margin | 27.5% 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 charges | 0.74 | |||||||||||||||||||||||||
| Amortization of acquired intangibles | 4.54 | |||||||||||||||||||||||||
| Integration costs to achieve | 0.19 | |||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||