Parker Hannifin 8-K
PositiveEarningsGuidanceImpairment / charge
Broad-based demand lifts FY2027 adjusted EPS guidance to $36.45-$37.25; Filtration Group acquisition expands the aftermarket business
Filed 2026-11-05 07:52 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q1 FY2027 results with a revised FY2027 outlook. Revenue growth accelerated to +17.9% Y/Y from +9.8% in Q4, as demand increased across all market verticals; non-GAAP net income growth accelerated to +22.8% Y/Y from +19.6%.
For FY2027, reported sales growth guidance rose to 16.0%-19.0% from 5.5%-8.5%, and organic sales growth guidance rose to 7.5%-10.5% from 5.5%-8.5%. Adjusted EPS guidance rose to $36.45-$37.25 from $34.25-$35.25, and adjusted segment operating margin to 27.7%-28.1% from 27.5%-27.9%; GAAP EPS guidance was lowered to $29.65-$30.45 from $30.00-$31.00 and segment operating margin to 23.6%-24.0% from 24.5%-24.9%. Free cash flow guidance was raised to $3.5B-$4.0B.
Developments
- Completed the acquisition of Filtration Group Corporation, expanding Parker’s filtration offering and aftermarket business.
- Rolling 12-month orders increased 13% Y/Y, and backlog reached a record $13.7B. Order rates were +11% in Diversified Industrial North America, +14% in Diversified Industrial International and +14% in Aerospace Systems.
Results with guidance
| Metric | Q1 FY2027 actual | FY2027 guide |
|---|---|---|
| Diluted EPS | $6.92+10% Y/Y, -19% Q/Q | $29.65-$30.45+5.5% Y/Y at midpointlowered from $30.00-$31.00 |
| Diluted EPS (non-GAAP) | $8.90+23% Y/Y, -4.0% Q/Q | $36.45-$37.25+14% Y/Y at midpointraised from $34.25-$35.25 |
| Operating cash flow | $752M-3.8% Y/Y, -57% Q/Q | $4.125B-$4.625B+0.3% Y/Y at midpoint |
| Capital expenditures | $109M+22% Y/Y | $625M+36% Y/Y at midpoint |
| Operating margin | 24.4% | 23.6%-24.0%lowered from 24.5%-24.9% |
| Adjusted segment operating margin (non-GAAP) | 28.6% | 27.7%-28.1%raised from 27.5%-27.9% |
| Free cash flow (non-GAAP) | — | $3.5B-$4.0B |
| Reported sales growth | — | 16.0%-19.0% growth Y/Yraised from 5.5%-8.5% growth Y/Y |
| Currency | — | 0.5% growth Y/Yreaffirmed from 0.5% growth Y/Y |
| Acquisitions | — | -9.0% growth Y/Ylowered from -0.5% growth Y/Y |
| Amortization of acquired intangibles | — | 3.4%; $6.77raised from 2.5%; $4.54 |
| Business realignment charges | — | 0.4%; $0.74reaffirmed from 0.4%; $0.74 |
| Integration costs to achieve | — | 0.2%; $0.47raised from 0.1%; $0.19 |
| Tax effect of adjustments | — | -$1.97lowered from -$1.22 |
| Organic sales growth (non-GAAP) | — | 7.5%-10.5% growth Y/Yraised from 5.5%-8.5% growth Y/Y |
Results without guidance
| Metric | Q1 FY2027 | Change |
|---|---|---|
| Revenue | $5.99B | +18% Y/Y, +4.1% Q/Q |
| Net income | $884M | +9.4% Y/Y, -19% Q/Q |
| Net income (non-GAAP) | $1.14B | +23% Y/Y, -4.0% Q/Q |
| Cash and cash equivalents | $711M | +42% Q/Q |
| Diluted shares | 128M | -0.5% Y/Y, +0.0% Q/Q |
What moved the numbers
- Diversified Industrial North America: sales $2.45B, +20% Y/Y, with organic growth of 9.4%; GAAP segment operating income was $562M, +11%, and adjusted non-GAAP segment operating income was $674M, +22%. GAAP operating margin was 23.0% vs 24.8%; adjusted margin was 27.6% vs 27.0%.
- Diversified Industrial International: sales $1.71B, +22% Y/Y, with organic growth of 11.6%; GAAP segment operating income was $410M, +31%, and adjusted non-GAAP segment operating income was $473M, +35%. GAAP operating margin was 24.0% vs 22.4%; adjusted margin was 27.7% vs 25.0%. Organic growth was 23.4% in Asia Pacific, 4.0% in EMEA and -1.3% in Latin America.
- Aerospace Systems: sales $1.87B, +14% Y/Y, with organic growth of 13.9%; GAAP segment operating income was $497M, +21%, and adjusted non-GAAP segment operating income was $574M, +17%. GAAP operating margin was 26.6% vs 25.0%; adjusted margin was 30.7% vs 30.0%. Double-digit OEM and aftermarket growth and strong orders supported a record backlog.
- Adjustments between GAAP and non-GAAP results included $189M of acquired-intangible amortization, $78M of acquisition-related expenses, $23M of integration costs and $17M of business realignment charges. Net tariff refunds were a $21M adjustment; tariff-related customer returns reduced sales by $27M, partly offset by $6M received from the U.S. government.
- Acquisition cash outflow, net of cash acquired, was $9.10B. Total debt was $17.5B at 9/30/2026 vs $8.52B at 6/30/2026; common-share payments were $118M vs $522M a year earlier, and dividends were $2.00 per share vs $1.80.
Other guidance (3)
| Metric | Period | Guidance |
|---|---|---|
| Acquisition-related expenses | FY2027 | 0.1% |
| Acquisition-related expenses | FY2027 | $0.63 |
| Tariff refunds, net | FY2027 | $0.16 |
Figures extracted from the filings and checked against their text; changes and verdicts computed from them.
The summary is written by an AI model reading the filing.
Model 005 · prompt v189 · 2026-11-05 21:14:33Z