Parker-Hannifin Q1 Earnings Beat, Aerospace Systems Sales Up Y/Y

Parker-Hannifin Corporation PH reported first-quarter fiscal 2026 (ended September 2025) adjusted earnings (excluding 93 cents from non-recurring items) of $7.22 per share, which beat the Zacks Consensus Estimate of $6.67. The bottom line jumped 16% year over year.

Total sales of $5.08 billion beat the consensus estimate of $4.94 billion. The top line increased 3.7% year over year. Organic sales grew 5%. Orders increased 8% year over year.

PH’s Segmental Details

The Diversified Industrial segment’s sales totaled $3.44 billion, representing 67.7% of total sales. On a year-over-year basis, the segment’s sales decreased 0.4%.

Sales from Diversified Industrial North America totaled $2.04 billion, down 2.7% year over year. The Zacks Consensus Estimate was pegged at $1.97 billion. Diversified International sales were $1.40 billion, up 3.2% year over year. The consensus mark was pegged at $1.40 billion.

Orders for Diversified Industrial North America increased 3% year over year, while Diversified Industrial International orders rose 6% on a year-over-year basis.

The Aerospace Systems segment generated sales of $1.64 billion, which accounted for 32.3% of total sales. Sales jumped 13.3% year over year, thanks to commercial OEM growth and continued aftermarket strength. The Zacks Consensus Estimate was pegged at $1.57 billion. Orders for the Aerospace Systems unit increased 15% on a year-over-year basis.

PH’s Margin Profile

Parker-Hannifin’s cost of sales was $3.18 billion, up 2.6% year over year. Selling, general and administrative expenses increased 2.8% from the prior year to $873 million.

Adjusted total segment operating income increased 10.5% year over year to $1.39 billion. Adjusted total segment operating margin increased 170 basis points year over year to 27.4%.

PH’s Balance Sheet & Cash Flow

Exiting the fiscal first quarter, Parker-Hannifin had cash and cash equivalents of $473 million compared with $467 million at the end of fiscal 2025. Long-term debt was $7.49 billion compared with $7.49 billion at the end of fiscal 2025.

In the first three months of fiscal 2026, Parker-Hannifin generated net cash of $782 million from operating activities compared with $744 million in the year-ago period.

Capital spending totaled $89 million in the first three months of the fiscal year compared with $95 million in the year-ago period.

Parker-Hannifin paid out cash dividends of $228 million, up 8.6% year over year.

PH’s Fiscal 2026 Guidance Updated

Parker-Hannifin has updated its fiscal 2026 (ending June 2026) guidance. The company now expects total sales to increase 4-7% year over year compared with 2-5% expected earlier. Organic sales are projected to increase 2.5-5.5%. Its adjusted operating margin is estimated to be 26.8-27.2%.

Parker-Hannifin currently expects adjusted earnings to be in the band of $29.60-$30.40 per share compared with $28.40-$29.40 per share expected earlier.

PH’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

Dover Corporation DOV reported earnings of $2.62 per share in third-quarter 2025, beating the Zacks Consensus Estimate of $2.50. This compares with earnings of $2.27 per share a year ago.

Dover posted revenues of $2.08 billion in the quarter, missing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $1.98 billion.

Ardagh Metal Packaging S.A. AMBP came out with earnings of eight cents per share in the third quarter of 2025, beating the Zacks Consensus Estimate of seven cents. This compares with earnings of eight cents per share a year ago.

Ardagh Metal posted revenues of $1.43 billion in the quarter, beating the Zacks Consensus Estimate by 2.7%. This compares with year-ago revenues of $1.31 billion. 

Packaging Corporation of America PKG reported earnings of $2.73 per share in the third quarter, missing the Zacks Consensus Estimate of $2.83. This compares with earnings of $2.65 per share a year ago.

Packaging Corp. posted revenues of $2.31 billion in the quarter, surpassing the Zacks Consensus Estimate by 2.2%. This compares with year-ago revenues of $2.18 billion.

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This article originally published on Zacks Investment Research (zacks.com).

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