PH · Parker-Hannifin Corporation

Parker-Hannifin delivered record Q3 FY2026 performance with sales reaching $5.5 billion, up 11% reported and 6.5% organically, fueled by strength across segments. Diversified Industrial North America grew 5.4% reported (2.8% organic) driven by in-plant, industrial, off-highway, and energy; International sales surged 12.7% (3.3% organic) led by 9.6% in Asia; Aerospace Systems posted 15.5% growth (14.2% organic) on 22% commercial OEM and 14% aftermarket expansion. Adjusted segment operating margins improved to 26.7% overall (up 40 bps), with records in Aerospace (29.5%) and both Diversified Industrial sub-segments (25.3%). Orders rose 9% company-wide, with Aerospace at 14%, pushing backlog to record $12.5 billion. GAAP net income dipped 6% to $904 million due to absence of prior-year $180 million tax benefit, but adjusted net income climbed 16% to $1.0 billion and adjusted EPS hit record $8.17 (+18%). Year-to-date operating cash flow set a record at $2.6 billion (16.7% of sales), enabling $275 million share repurchases. Management raised FY2026 outlook to 7% sales growth (5.5% organic), 27.2% adjusted segment margin, and $31.20 adjusted EPS implying mid-teens growth, citing strong orders, backlog, and The Win Strategy™ execution. Quarterly dividend hiked 11% to $1.80, marking 70 consecutive years of increases, underscoring cash generation discipline.