Parker-Hannifin Delivers Record Q1 FY27 Results and Raises Full-Year Guidance

Parker-Hannifin Corp (NYSE: PH) Q1 FY27 Earnings Report Summary

Parker-Hannifin Corporation filed a Current Report on Form 8-K under Item 2.02 (Results of Operations and Financial Condition) announcing financial results for its fiscal 2027 first quarter ended September 30, 2026, and updated full-year guidance.

Key Financial Highlights (Q1 FY27 vs. Q1 FY26)

• Net Sales: Increased 18% year-over-year to a record $6.0 billion (organic growth of 11.5%; acquisitions contributed 7.0%).
• Net Income & EPS: Net income reached $0.9 billion (GAAP) or $1.1 billion (adjusted, +23%). GAAP EPS was $6.92 (+10%), while adjusted EPS reached a record $8.90 (+23%).
• Operating Margins: Total segment operating margin was 24.4% (GAAP), and adjusted segment operating margin reached a record 28.6% (up 120 bps).
• Backlog & Orders: 12-month rolling order rates increased 13% company-wide, driving total backlog to a record $13.7 billion.

Segment Performance

1. Diversified Industrial – North America:
   • Sales of $2,445M (+19.6% reported, +9.4% organic).
   • Adjusted segment operating margin of 27.6% (+60 bps).
2. Diversified Industrial – International:
   • Sales of $1,707M (+22.0% reported, +11.6% organic, led by +23% APAC).
   • Adjusted segment operating margin of 27.7% (+270 bps).
3. Aerospace Systems:
   • Sales of $1,867M (+13.8% reported, +13.9% organic).
   • Adjusted segment operating margin of 30.7% (+70 bps).

Strategic Developments & Updated FY27 Guidance

• M&A: Successfully completed the acquisition of Filtration Group Corporation, which is now incorporated into forward projections.
• Reported Sales Growth: 16.0% to 19.0% (Organic: 7.5% to 10.5%).
• Segment Operating Margin: 23.6% to 24.0% GAAP; 27.7% to 28.1% adjusted.
• Full-Year EPS: $29.65 to $30.45 GAAP; $36.45 to $37.25 adjusted.