Parker-Hannifin Tops Q2 Earnings & Sales Estimates, Raises 26' View

Parker-Hannifin Corporation PH reported second-quarter fiscal 2026 (ended December 2025) adjusted earnings (excluding $1.05 from non-recurring items) of $7.65 per share, which beat the Zacks Consensus Estimate of $7.15. The bottom line jumped 17% year over year.

Total sales of $5.17 billion beat the consensus estimate of $5.04 billion. The top line increased 9.1% year over year. Organic sales grew 6.6%. Orders increased 9% year over year.

PH’s Segmental Details

The Diversified Industrial segment’s sales totaled $3.47 billion, representing 67.1% of total sales. On a year-over-year basis, the segment’s sales increased 6.8%.

Sales from Diversified Industrial North America totaled $1.99 billion, up 3% year over year. The Zacks Consensus Estimate was pegged at $1.96 billion. Diversified International sales were $1.48 billion, up 11.8% year over year. The consensus mark was pegged at $1.44 billion.

Orders for Diversified Industrial North America increased 7% year over year, while Diversified Industrial International orders rose 6% on a year-over-year basis.

The Aerospace Systems segment generated sales of $1.70 billion, which accounted for 32.9% of total sales. Sales jumped 14.5% year over year, thanks to commercial OEM growth and continued aftermarket strength. The Zacks Consensus Estimate was pegged at $1.67 billion. Orders for the Aerospace Systems unit increased 14% on a year-over-year basis.

Parker-Hannifin Corporation Price, Consensus and EPS Surprise

Parker-Hannifin Corporation price-consensus-eps-surprise-chart | Parker-Hannifin Corporation Quote

PH’s Margin Profile

Parker-Hannifin’s cost of sales was $3.24 billion, up 7.3% year over year. Selling, general and administrative expenses increased 7% from the prior year to $837 million.

Adjusted total segment operating income increased 15.7% year over year to $1.40 billion. Adjusted total segment operating margin increased 150 basis points year over year to 27.1%.

PH’s Balance Sheet & Cash Flow

Exiting the fiscal second quarter, Parker-Hannifin had cash and cash equivalents of $427 million compared with $467 million at the end of fiscal 2025. Long-term debt was $7.48 billion compared with $7.49 billion at the end of fiscal 2025.

In the first six months of fiscal 2026, Parker-Hannifin generated net cash of $1.64 billion from operating activities compared with $1.68 billion in the year-ago period.

Capital spending totaled $183 million in the first six months of the fiscal year compared with $216 million in the year-ago period.

Parker-Hannifin paid out cash dividends of $456 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 5.5-7.5% year over year compared with 4-7% expected earlier. Organic sales are projected to increase 5% at the mid-point. Its adjusted operating margin is estimated to be 27.0-27.4%.

Parker-Hannifin currently expects adjusted earnings to be in the band of $30.40-$31.00 per share compared with $29.60-$30.40 per share expected earlier.

PH’s Zacks Rank

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other top-ranked stocks from the same space are discussed below:

Nordson Corporation NDSN currently carries a Zacks Rank of 2 . Nordson’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 2.2%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 2.3%.

Quanta Services, Inc. PWR currently carries a Zacks Rank of 2. Quanta Services’ earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 5.8%. In the past 60 days, the Zacks Consensus Estimate for Quanta Services’ fiscal 2026 earnings has increased 0.6%.

Flowserve Corporation FLS presently carries a Zacks Rank of 2. Flowserve’s earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 10.5%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2026 earnings has increased a penny.

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

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