Parker-Hannifin (PH) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 sales of $5.5 billion, up 10.6% year-over-year, with 6.5% organic growth and strong performance in both Diversified Industrial and Aerospace Systems segments.

• Adjusted EPS reached a record $8.17, up 18% year-over-year; reported EPS was $7.06, down due to a prior-year discrete tax benefit.

• Orders increased 9% with a record backlog of $12.5 billion.

• Year-to-date operating cash flow reached $2.6 billion, or 16.7% of sales.

• Progress continues on the Filtration Group acquisition, with integration planning underway.

Financial highlights

• Total sales up 10.6% year-over-year to $5.5 billion; organic growth 6.5%, with favorable currency and acquisition contributions.

• Adjusted segment operating margin reached 26.7%, up 40 basis points year-over-year.

• Adjusted EBITDA margin was 27.2%, up 20 basis points year-over-year.

• Adjusted net income surpassed $1 billion for the first time, with a 19.1% return on sales.

• Quarterly dividend increased 11% to $2.00 per share, marking 70 consecutive years of increases.

Outlook and guidance

• FY 2026 organic sales growth guidance raised to 5.5%, with total sales growth expected at 7%.

• Adjusted segment operating margin forecasted at 27.2% for FY 2026.

• Full-year adjusted EPS guidance raised to $31.20, a 14.2% increase.

• Free cash flow forecast raised to $3.3–$3.6 billion, or 16.2% of sales.

• Fiscal 2026 effective tax rate expected to be approximately 21%.