Parker-Hannifin (PH) Q4 2026 earnings summary

Executive summary

• Achieved record FY 2026 sales of $21.5 billion, up 8.3% reported and 6.6% organic, with adjusted EPS of $32.31, up 18%.

• Q4 FY26 sales were $5.76 billion (+10% YoY), adjusted EPS $9.27 (+21% YoY), and net income $1.19 billion (+20% YoY).

• Surpassed FY 2029 adjusted segment margin target, raising FY 2031 target to 30%.

• Strategic acquisitions (Curtis Instruments, Filtration Group, CIRCOR Aerospace & Defense) enhanced portfolio and growth prospects.

• Returned nearly $2 billion to shareholders via dividends and share repurchases, increasing the annual dividend for the 70th consecutive year.

Financial highlights

• FY26 adjusted segment operating margin reached 27.3% (+120 bps YoY); adjusted EBITDA margin 27.7% (+130 bps YoY).

• Record cash flow from operations at $4.4 billion (+16% YoY); free cash flow $3.9 billion (+17% YoY), with 107% conversion.

• Q4 adjusted segment operating margin was 28.0% (+110 bps YoY); adjusted EBITDA margin 28.6% (+180 bps YoY).

• Adjusted net income for Q4 was $1.2 billion (21% return on sales); adjusted EPS $9.27, up 21%.

• Backlog reached a record $12.8 billion, up 16% year-over-year.

Outlook and guidance

• FY27 organic sales growth forecast at 5.5%–8.5%; adjusted EPS guidance of $34.25–$35.25.

• Adjusted segment operating margin expected at 27.5%–27.9%; free cash flow $3.4–$3.9 billion with ~100% conversion.

• Raised long-term adjusted segment operating margin target by 300 bps to 30% by FY31; committed to 4–6% organic growth, 17% free cash flow margin, and >10% adjusted EPS growth by FY31.

• Guidance excludes pending Filtration Group and CIRCOR acquisitions.

• Corporate G&A expected at $200 million; interest expense $340 million; tax rate 22.5% for FY27.