Parker-Hannifin (PH) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly sales of $5.2 billion, up 9% year-over-year, with 6.6% organic growth and positive currency effects.

• Adjusted EPS reached a record $7.65, up 17% year-over-year; reported EPS was $6.60, down due to a prior-year divestiture gain.

• Announced acquisition of Filtration Group Corporation for $9.25 billion, expected to close in 6-12 months, expanding filtration technologies and presence in key verticals.

• Backlog reached a record $11.7 billion, with positive order rates across all businesses.

• Gross profit margin improved to 37.3% year-over-year, reflecting favorable product mix and cost containment.

Financial highlights

• Sales up 9% year-over-year; organic growth nearly 7%, currency favorable 2%, acquisitions 1.5%, divestitures -1%.

• Adjusted EBITDA margin at 27.7%, up 90 basis points; net income $980 million, 18.9% return on sales.

• Free cash flow for H1 at $1.5 billion (14.2% of sales); cash flow from operations $1.6 billion (16% of sales).

• Capital expenditures for the six months were $183 million.

• Share repurchases totaled $550 million for 0.7 million shares in the six months ended December 31, 2025.

Outlook and guidance

• Full-year reported sales growth guidance raised to 5.5%-7.5% (midpoint 6.5%), organic growth to 4%-6% (midpoint 5%).

• Adjusted segment operating margin guidance increased to 27.0%-27.4%.

• Adjusted EPS guidance raised to $30.40-$31.00; free cash flow guidance increased to $3.2-$3.6 billion.

• Q3 guidance: sales ~$5.4 billion (+8.5%), organic growth 5%, segment margin 27%, adjusted EPS $7.75.

• Fiscal 2026 effective tax rate is expected to be approximately 22%.