Parker Hannifin 8-K
PositiveEarningsNew guidance
Aerospace Systems strength and a broadening industrial recovery drive growth; FY2031 adjusted segment margin target rises to 30%.
Filed 2026-08-06 07:59 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Fiscal 2026 fourth-quarter and full-year results, with fiscal 2027 guidance. Parker reported record sales and earnings; stronger aerospace results and a broadening industrial recovery supported growth. Fiscal 2027 guidance excludes the pending Filtration Group and CIRCOR acquisitions. Parker raised its fiscal 2031 adjusted segment operating margin target to 30% from 27%.
Key Figures
| Metric | Q4 FY2026 | Q4 FY2025 | Y/Y |
|---|---|---|---|
| Revenue | $5.76B | $5.24B | 9.8% |
| Net income attributable to common shareholders | $1.09B | $923M | 18.2% |
| Adjusted net income attributable to common shareholders (non-GAAP) | $1.19B | $992M | 19.6% |
| Diluted EPS | $8.54 | $7.15 | 19.4% |
| Adjusted diluted EPS (non-GAAP) | $9.27 | $7.69 | 20.5% |
| Segment operating margin | 26.5% | 23.9% | +260 bp |
| Adjusted segment operating margin (non-GAAP) | 28.0% | 26.9% | +110 bp |
| Metric | FY2026 | FY2025 | Y/Y |
|---|---|---|---|
| Revenue | $21.5B | $19.9B | 8.3% |
| Net income attributable to common shareholders | $3.65B | $3.53B | 3.3% |
| Adjusted net income attributable to common shareholders (non-GAAP) | $4.14B | $3.56B | 16.3% |
| Diluted EPS | $28.48 | $27.12 | 5.0% |
| Adjusted diluted EPS (non-GAAP) | $32.31 | $27.33 | 18.2% |
| Operating cash flow | $4.36B | $3.78B | 15.6% |
| Segment operating margin | 24.5% | 23.0% | +150 bp |
| Adjusted segment operating margin (non-GAAP) | 27.3% | 26.1% | +120 bp |
- FY2026 organic sales growth was 6.6% versus reported sales growth of 8.3%. Q4 organic sales growth was 8.0%; Aerospace Systems sales rose 13.4%, while the company cited a broadening industrial recovery. Backlog reached a record $12.8B; Parker’s updated rolling 12-month Q4 order rate was +12%.
- FY2026 operating cash flow was a record $4.36B, or 20.3% of sales. At 6/30/2026, cash was $501M vs $467M; total debt carrying value was $8.52B vs $9.29B.
- Share repurchases were $1.26B vs $1.77B in FY2025; diluted weighted-average shares were 128.1M vs 130.2M. Dividends paid were $936M vs $861M, and the annual dividend increased 11%.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Reported sales growth | FY2027 | 5.5%-8.5% | — | — |
| Organic sales growth | FY2027 | 5.5%-8.5%; ≈0.5% from completed acquisitions; ≈0.5% unfavorable currency | — | — |
| Segment operating margin | FY2027 | 24.5%-24.9% | — | — |
| Adjusted segment operating margin (non-GAAP) | FY2027 | 27.5%-27.9% | — | — |
| Diluted EPS | FY2027 | $30.00-$31.00 | — | — |
| Adjusted diluted EPS (non-GAAP) | FY2027 | $34.25-$35.25 | — | — |
| Adjusted segment operating margin target (non-GAAP) | FY2031 | 30% | 27% | Raised |
| Organic sales growth target | FY2031 | 4%-6% | — | Reaffirmed |
| Free cash flow margin target | FY2031 | 17% | — | Reaffirmed |
| Adjusted EPS growth target (non-GAAP) | FY2031 | >10% | — | Reaffirmed |
Investor Takeaways
- Track FY2027 sales, margins and EPS against guidance; the outlook excludes the two pending acquisitions.
- Watch order trends under the rolling 12-month comparison method introduced in FY2027, alongside progress toward the FY2031 margin target.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3