Parker-Hannifin (PH) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly sales of $5.1 billion, with 5% organic growth year-over-year and 16% adjusted EPS growth to $7.22.

• Net income rose to $808 million, or $927 million adjusted, with cash flow from operations at $782 million.

• Completed the $1.0 billion acquisition of Curtis Instruments, expanding technology offerings and capabilities.

• Operational excellence and safety performance improved, with a 20% reduction in recordable incident rate.

• Repurchased $475 million in shares during the quarter.

Financial highlights

• Adjusted segment operating margin rose to 27.4% (up 170 bps), and adjusted EBITDA margin reached 27.3% (up 240 bps).

• Adjusted net income was $927 million, or 18.2% return on sales.

• Free cash flow was $693 million (13.6% of sales), up 7% year-over-year, with cash flow conversion at 86%.

• Operating income increased to $1.23 billion from $1.11 billion year-over-year.

• Share repurchases totaled $475 million in the quarter.

Outlook and guidance

• FY26 organic sales growth guidance raised from 3% to 4% at the midpoint, with reported sales growth now expected at 4%-7%.

• Adjusted EPS guidance increased to $29.60–$30.40 for FY26, a 10% rise year-over-year.

• Free cash flow guidance raised to $3.1–$3.5 billion, with conversion expected above 100%.

• Segment operating margin outlook increased to 26.8%–27.2% adjusted.

• Fiscal 2026 effective tax rate expected to be approximately 22.5%.