Parker Hannifin Corporation (NYSE:PH) reported fiscal third-quarter 2026 results, beating estimates and raising its full-year outlook.

Earnings Beat And Revenue Growth

The company reported adjusted EPS of $8.17, topping the $7.83 estimate, on sales of $5.486 billion, ahead of the $5.400 billion estimate and up 11% year over year with 6.5% organic growth.

GAAP EPS was $7.06, down 4% due to a prior-year one-time tax benefit, while adjusted net income increased 16% to $1.0 billion.

Margins, Cash Flow And Demand Trends

Segment operating margin was 23.4%, up 20 basis points, or 26.7% on an adjusted basis, up 40 basis points. Year-to-date operating cash flow reached a record $2.6 billion, or 16.7% of sales.

The company repurchased $275 million of shares. Orders increased 9%, with Aerospace up 14%, North America Industrial up 7%, and International Industrial up 6%. Backlog rose to a record $12.5 billion.

Segment Performance Breakdown

In Diversified Industrial, North America sales were $2.14 billion with a 22.6% margin. International sales were $1.53 billion with a 22.3% margin.

Aerospace Systems sales increased 15.5% to $1.81 billion, with margin expanding to 25.2%. Commercial OEM grew 22% and aftermarket increased 14%, driving overall growth.

Management Commentary And Capital Returns

Chairman and CEO Jenny Parmentier said, In the third quarter, we reported record sales, adjusted segment operating income and margin, adjusted earnings per share and year-to-date operating cash flow.”

“These results reflect the strength of our focused portfolio and our ability to use the tools in The Win Strategy™ to best serve the needs of our customers. With strong orders and record backlog, we are raising our outlook and now expect mid-teens adjusted EPS growth for the year. “

The company also raised its quarterly dividend by 11%, marking its 70th consecutive year of annual increases.

Outlook And Guidance

Parker raised full-year 2026 guidance, increasing GAAP EPS to $27.10 from $26.26–$26.86, above a $26.95 estimate. Adjusted EPS was raised to $31.20 from $30.40–$31.00, compared with a $30.96 estimate.

Sales guidance was narrowed to about $21.240 billion, compared with prior guidance of $20.942 billion–$21.339 billion and a $21.276 billion estimate.

The company expects segment operating margin of 23.9%, or 27.2% on an adjusted basis.

It cited risks from tariffs, supply chain disruptions, inflation, and geopolitical factors.

Parker Hannifin Price Action

PH Price Action: Parker Hannifin shares were down 5.39% at $896.46 at the time of publication on Thursday, according to Benzinga Pro data. The stock is up 47.76% over the past 12 months.

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