Parker Hannifin Corporation (NYSE:PH) reported fiscal 2026 second-quarter results on Thursday, delivering earnings and revenue that topped Wall Street expectations. Shares were trading higher following the release.
The motion and control technologies company posted adjusted EPS of $7.65, beating the $7.17 analyst estimate. Net sales totaled $5.174 billion, exceeding the $5.066 billion estimate. Sales increased 9% year over year with organic sales growth of 6.6%.
GAAP diluted EPS was $6.60, down 9% from the prior-year quarter, which included a one-time after-tax gain from divestitures of $1.70.
Net income declined 11% to $845 million, as the year-ago period included a one-time after-tax gain from divestitures of $223 million. Adjusted net income rose 15% to $980 million.
Segment operating margin expanded 180 basis points to 23.9% on an unadjusted basis, or 27.1% on an adjusted basis, an increase of 150 basis points.
Segment Performance
Diversified Industrial segment sales rose to $3.468 billion from $3.253 billion. Segment operating income increased to $792 million from $710 million. Adjusted segment operating income was $889 million.
Order rates increased 7% in North America and 6% in international markets.
Aerospace Systems sales climbed to $1.706 billion from $1.490 billion. Segment operating income rose to $443 million from $338 million. Segment operating margin was 26.0%, while adjusted segment operating margin reached 30.2%.
The company said Aerospace Systems backlog increased to a record $8 billion, with order rates up 14%.
Orders, Backlog And Cash Flow
Overall order rates increased 9%, and total backlog rose to a record $11.7 billion.
Operating cash flow was $1.644 billion for the six months ended Dec. 31, 2025. Capital expenditures totaled $183 million, and acquisitions, net of cash acquired, were $1.013 billion.
Cash and cash equivalents were $427 million, with $2.386 billion of debt due within one year and $7.484 billion of long-term debt.
CEO Jenny Parmentier said, “This was another outstanding quarter that reflected the performance of our global team, the power of our business system The Win Strategy, and the strength of our transformed portfolio.”
She added, “We also announced a definitive agreement to acquire Filtration Group Corporation, expanding our aftermarket business and presence in life sciences, HVAC/R, and in-plant and industrial market verticals. On the strength of our second quarter results, robust aerospace demand, and continued gradual recovery in our industrial markets, we are increasing our outlook for the full year.”
Outlook
For fiscal 2026, Parker raised GAAP EPS guidance to $26.26 to $26.86 from $25.53 to $26.33, versus a $26.46 estimate. Adjusted EPS guidance was raised to $30.40 to $31.00 from $29.60 to $30.40, versus a $30.33 estimate.
Sales guidance was increased to $20.942 billion to $21.339 billion from $20.644 billion to $21.239 billion, compared with a $21.106 billion estimate. Reported sales growth is expected to be 5.5% to 7.5%, with organic sales growth approximately 5% at the midpoint.
Segment operating margin guidance was raised to 23.7% to 24.1%, or 27.0% to 27.4% on an adjusted basis. The company cited risks including “supply chain and labor disruptions, including as a result of tariffs,” and “effects on market conditions, including sales and pricing, resulting from global reactions to U.S. trade policies.”
PH Price Action: Parker Hannifin shares were up 2.85% at $942.37 at the time of publication on Thursday. The stock is trading near its 52-week high of $954.30, according to Benzinga Pro data.
Photo by JHVEPhoto via Shutterstock
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