CLEVELAND, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the quarter and fiscal year ended June 30, 2026, that included the following highlights (compared with the prior year period):

Fiscal 2026 Fourth Quarter Highlights:

• Sales increased 9.8% to a record $5.8 billion; organic sales increased 8.0%
• Net income was $1.1 billion, an increase of 18%, or $1.2 billion adjusted, an increase of 20%
• EPS increased 19% to $8.54, adjusted EPS increased 21% to a record $9.27
• Segment operating margin was 26.5%, an increase of 260 bps, or 28.0% adjusted, an increase of 110 bps

Fiscal 2026 Full Year Highlights:

• Sales increased 8.3% to a record $21.5 billion; organic sales increased 6.6%
• Net income was $3.6 billion, an increase of 3%, or $4.1 billion adjusted, an increase of 16%
• EPS increased 5% to $28.48, adjusted EPS increased 18% to a record $32.31
• Segment operating margin was 24.5%, an increase of 150 bps, or 27.3% adjusted, an increase of 120 bps
• Cash flow from operations was a record $4.4 billion, or 20.3% of sales
• Completed acquisition of Curtis Instruments, Inc. and announced agreements to acquire Filtration Group Corporation and CIRCOR's Commercial and Defense Aerospace Business
• Returned nearly $2 billion to shareholders, through a combination of share repurchases and dividends
• Increased the annual dividend 11%, marking 70 consecutive fiscal years of increasing annual dividends per share paid

“On behalf of the entire leadership team, thank you to our global team members for their outstanding contributions in fiscal year 2026,” said Jenny Parmentier, Chairman and Chief Executive Officer. “We had our safest year ever, continued enhancing our portfolio of interconnected technologies through strategic acquisitions, and demonstrated operational excellence to deliver record results. We also returned value to shareholders with balanced capital deployment through share repurchases and a dividend increase of 11%.   

“We are forecasting fiscal 2027 to be a record year for Parker supported by a broadening recovery in industrial markets and positive organic growth across all market verticals. Our proven ability to execute The Win Strategy™ and successfully integrate accretive acquisitions gives us the confidence to raise our adjusted segment operating margin target by 300 basis points to 30% by fiscal 2031, after surpassing our previous margin target of 27% this year. In addition, we remain committed to achieving 4 to 6% organic growth, 17% free cash flow margin and greater than 10% adjusted earnings per share growth by fiscal 2031. We are proud of what Parker achieved in fiscal 2026, and we are even more excited about the opportunities ahead.”

This news release contains non-GAAP financial measures. Reconciliations of adjusted numbers and certain non-GAAP financial measures are included in the financial tables of this press release.

Fiscal 2027 Outlook

The company has issued guidance for the fiscal year ending June 30, 2027 and noted that it excludes the pending acquisitions of Filtration Group Corporation and CIRCOR's Commercial and Defense Aerospace Business. In fiscal 2027, the company expects:

• Reported sales growth of 5.5% to 8.5%
• Organic sales growth of 5.5% to 8.5%; previously completed acquisitions of 0.5%, and unfavorable currency of 0.5%
• Segment operating margin of 24.5% to 24.9%, or 27.5% to 27.9% on an adjusted basis
• EPS of $30.00 to $31.00, or $34.25 to $35.25 on an adjusted basis

Fiscal 2026 Fourth Quarter Segment Results

Diversified Industrial Segment

• Organic sales growth of 5% as industrial recovery broadens
• Record adjusted segment operating margin
• Sales improvement across all market verticals

• Record sales led by Asia with 16% organic growth
• Record adjusted segment operating margin
• Organic growth: 16% APAC, 1% EMEA, (3%) LA

• Record sales: double-digit growth in all market segments
• Record adjusted segment operating margin
• Backlog increased to record $8.5B

Order Rates

• Backlog increased to a record $12.8 billion, with increases in all segments

Parmentier added, “As a result of our ongoing portfolio transformation with a higher concentration of aerospace, longer cycle and more resilient end markets, we will harmonize all order rate comparisons to a 12 month rolling calculation starting in fiscal 2027. This method provides a stronger correlation to near-term organic growth rates.”

Order rate comparisons using both methodologies are included below:

¹Diversified Industrial order rates are on 3-month average computations; Aerospace order rates are on a rolling 12-month average

²All order rate comparisons are on a rolling 12-month average

About Parker Hannifin
Parker Hannifin is a Fortune 250 global leader in motion and control technologies. For more than a century the company has been enabling engineering breakthroughs that lead to a better tomorrow. Learn more at www.parker.com or @parkerhannifin.

Notice of Webcast
Parker Hannifin's conference call and slide presentation to discuss its fiscal 2026 fourth quarter and full year results are available to all interested parties via live webcast today at 11:00 a.m. ET, at investors.parker.com. A replay of the webcast will be available on the site approximately one hour after the completion of the call and will remain available for one year. To register for e-mail notification of future events please visit investors.parker.com.

Note on Orders
The company reported orders for the quarter ending June 30, 2026, compared with the same quarter a year ago. All comparisons are at constant currency exchange rates, with the prior year quarter restated to the current-year rates, and exclude divestitures. Through fiscal year 2026, Diversified Industrial comparisons have been on 3-month average computations and Aerospace Systems comparisons have been on rolling 12-month average computations. Beginning in fiscal year 2027, all comparisons will be on rolling 12-month average computations.

Note on Non-GAAP Financial Measures
This press release contains references to non-GAAP financial information including (a) adjusted net income; (b) adjusted earnings per share; (c) adjusted segment operating margin for Parker and by segment; (d) adjusted segment operating income for Parker and by segment; and (e) organic sales growth. These measures are presented to allow investors and the company to meaningfully evaluate changes in net income, earnings per share and segment operating margins on a comparable basis from period to period. Although these measures are not measures of performance calculated in accordance with GAAP, we believe that they are useful to an investor in evaluating Parker's performance or expected performance for the periods presented. Adjusted results for the current period exclude a reduction of cost of sales related to tariff refunds, which we believe is useful to investors because it reflects a discrete, non-operating item that is not indicative of the Company’s ongoing operations and is not expected to recur. Comparable descriptions of record adjusted results in this release refer only to the period from the first quarter of FY2011 to the periods presented in this release. This period coincides with recast historical financial results provided in association with our FY2014 change in segment reporting. A reconciliation of non-GAAP measures is included in the financial tables of this press release. The non-GAAP metrics included in our 5-year targets for fiscal year 2031 could not be reconciled without unreasonable effort and applicable reconciliations are not included in this press release.

Forward-Looking Statements
Forward-looking statements contained in this and other written and oral reports are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties and risks. Often but not always, these statements may be identified from the use of forward-looking terminology such as “anticipates,” “believes,” “may,” “should,” “could,” “expects,” “targets,” “is likely,” “will,” or the negative of these terms and similar expressions, and may also include statements regarding future performance, orders, earnings projections, events or developments. Parker cautions readers not to place undue reliance on these statements. It is possible that the future performance may differ materially from expectations, including those based on past performance.

Among other factors that may affect future performance are: changes in business relationships with and orders by or from major customers, suppliers or distributors, including delays or cancellations in shipments; disputes regarding contract terms, changes in contract costs and revenue estimates for new development programs; changes in product mix; ability to identify acceptable strategic acquisition targets; uncertainties surrounding timing, successful completion or integration of acquisitions and similar transactions, including the pending acquisition of Filtration Group Corporation and CIRCOR International Inc.'s Commercial and Defense Aerospace business and the integration of Curtis Instruments, Inc.; ability to successfully divest businesses planned for divestiture and realize the anticipated benefits of such divestitures; the determination and ability to successfully undertake business realignment activities and the expected costs, including cost savings, thereof; ability to implement successfully business and operating initiatives, including the timing, price and execution of share repurchases and other capital initiatives; availability, cost increases of or other limitations on our access to raw materials, component products and/or commodities if associated costs cannot be recovered in product pricing; ability to manage costs related to insurance and employee retirement and health care benefits; legal and regulatory developments and other government actions, including related to environmental protection, and associated compliance costs; supply chain and labor disruptions, including as a result of tariffs and labor shortages; threats associated with international conflicts, including geopolitical tensions in the Middle East, and cybersecurity risks and risks associated with protecting our intellectual property; uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals; effects on market conditions, including sales and pricing, resulting from global reactions to U.S. trade policies; manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and economic conditions such as inflation, deflation, interest rates and credit availability; inability to obtain, or meet conditions imposed for, required governmental and regulatory approvals; changes in the tax laws in the United States and foreign jurisdictions and judicial or regulatory interpretations thereof; and large scale disasters, such as floods, earthquakes, hurricanes, industrial accidents and pandemics. Readers should also consider forward-looking statements in light of risk factors discussed in Parker’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025 and other periodic filings made with the SEC.