Parker-hannifin Stock Earnings Reports

Parker-Hannifin reported a strong start to FY2026 with record Q1 results: sales of $5.1 billion, organic growth of 5%, orders up 8%, adjusted EPS of $7.22 (up 16%), and adjusted segment operating margin of 27.4% (up 170 bps). Cash flow from operations was a record $782 million and free cash flow was $693 million (cash conversion 86% for the quarter). The company closed the Curtis Instruments acquisition (adds ~$235M of sales for the year) and repurchased $475M of shares in the quarter. Management raised full-year guidance: organic sales growth midpoint to 4% (range 2.5–5.5%), reported sales to 4–7% (5.5% midpoint), adjusted segment operating margin to 27.0% for the year (up 50 bps vs. prior guide), adjusted EPS to $30 at the midpoint (guidance range ±$0.40), and full-year free cash flow to $3.1–3.5 billion with conversion >100%. Aerospace was a standout: record sales ($1.6B), 13% organic growth, and record 30% segment operating margin. Diversified Industrial North America returned to positive organic growth (2% in Q1) and margins expanded; International also posted record margins. Management reiterated disciplined M&A appetite (pipeline active) and continued focus on the Win Strategy, safety, and operational execution. Key near-term notes: Q2 guide — reported sales ~6.5%, organic growth ~4%, adjusted segment operating margin ~26.6%, and Q2 adjusted EPS ~$7.10. Investors should focus on margin expansion sustainability, aerospace backlog conversion, integration of Curtis, and free cash flow/return-of-capital execution (buybacks/M&A).