Parker-Hannifin (PH) Q3 2026 earnings summary

Executive summary

• Achieved record quarterly sales of $5.5B in Q3 FY26, representing 10.6% reported and 6.5% organic growth year-over-year.

• Adjusted EPS reached a record $8.17, up 18% year-over-year; reported EPS was $7.06, down 4% due to a prior-year discrete tax benefit.

• Orders increased 9% with a record backlog of $12.5B.

• Year-to-date operating cash flow hit a record $2.6B, or 16.7% of sales.

• Progress continues on the Filtration Group acquisition and ongoing integration of Curtis Instruments.

Financial highlights

• Q3 FY26 adjusted net income was $1,046M, up 16% year-over-year; as reported net income was $904M.

• Adjusted segment operating margin was 26.7%, up 40 bps year-over-year.

• Adjusted EBITDA margin reached 27.2%, up 20 bps year-over-year.

• Cash flow from operations YTD was $2.6B, with free cash flow at $2.3B and a free cash flow margin of 14.9%.

• Quarterly dividend increased 11% to $2.00 per share.

Outlook and guidance

• FY26 adjusted EPS guidance raised to $31.20 (from $31.00 prior), with reported EPS at $27.10.

• Organic sales growth guidance increased to 5.5% for FY26.

• Adjusted operating margin guidance for FY26 is 27.2%.

• Free cash flow guidance for FY26 is $3.3B–$3.6B, with CapEx at 2–2.5% of sales.

• Mid-teens adjusted EPS growth expected for the full year.