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 up 18% to $32.31.

• Q4 FY26 sales reached $5.8B (+10% YoY), adjusted EPS $9.27 (+21% YoY), and net income $1.19B (+20% YoY).

• Surpassed FY29 adjusted segment margin target, raising FY31 target to 30%.

• Strategic acquisitions (Curtis Instruments completed; Filtration Group and CIRCOR Aerospace & Defense pending) 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

• Q4 sales up 10% year-over-year to $5.8B; organic growth 8%, strongest quarter of the year.

• Adjusted segment operating margin for Q4 at 28.0%, up 110 basis points; adjusted EBITDA margin at 28.6%.

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

• Record cash flow from operations at $4.4 billion and free cash flow at $3.9 billion, with 107% conversion.

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

Outlook and guidance

• FY 2027 organic growth forecast at 7% midpoint; reported sales growth 5.5%-8.5% to ~$23 billion.

• Adjusted segment operating margin guidance at 27.7% midpoint, 40 basis points above prior year.

• Adjusted EPS guidance for FY 2027 at $34.25–$35.25, up 8% year-over-year.

• Free cash flow expected between $3.4-$3.9 billion with ~100% conversion.

• Long-term targets: 4–6% organic growth, 30% adjusted segment margin, 17% free cash flow margin, >10% adjusted EPS growth by FY31.