Parker Hannifin Corp. (NYSE:PH) stock rose Thursday after the motion and control technologies company reported fiscal fourth-quarter results that topped Wall Street expectations and issued a stronger-than-expected fiscal 2027 earnings outlook.
Fourth-Quarter Results Beat Estimates
The company reported fourth-quarter sales of $5.755 billion, up 9.8% from a year earlier and above the analyst consensus estimate of $5.572 billion. Organic sales increased 8%.
GAAP diluted earnings rose 19% to $8.54 per share, while adjusted earnings increased 21% to a record $9.27 per share, beating the consensus estimate of $8.27.
Shares advanced after the release, supported by earnings and revenue beats, record profitability, strong order growth and an upbeat fiscal 2027 outlook.
Margin Expansion and Segment Performance
Net income rose to $1.091 billion from $923 million, while adjusted net income increased 20% to $1.186 billion. Adjusted segment operating margin improved to 28.0% from 26.9%.
North America industrial sales rose 7.0% to $2.221 billion, with 4.9% organic growth. International sales increased 9.5% to $1.634 billion, with 6.5% organic growth.
Aerospace Systems sales climbed 13.4% to $1.900 billion, with 13.3% organic growth. Aerospace backlog reached $8.5 billion, while total backlog rose to a record $12.8 billion.
Orders, Cash Flow and Capital Deployment
Parker’s quarterly order rate rose 19%, including 16% growth in North America industrial, 24% internationally and 18% in Aerospace. On a rolling 12-month basis, orders increased 12%.
Fiscal 2026 operating cash flow reached a record $4.364 billion, with free cash flow of $3.9 billion. Cash totaled $501 million, while debt was $8.520 billion.
Parker returned nearly $2 billion through buybacks and dividends, raised its dividend 11%, completed the Curtis Instruments acquisition and announced the Filtration Group and CIRCOR aerospace deals.
Adjusted results excluded an $84 million tariff-refund benefit after the U.S. Supreme Court ruled certain IEEPA tariffs unauthorized. Parker described the benefit as discrete, nonoperating and not expected to recur.
Fiscal 2027 Outlook and Long-Term Targets
Parker forecast adjusted EPS of $34.25 to $35.25, above the $34.04 estimate, and GAAP EPS of $30.00 to $31.00, compared with the $30.33 estimate.
Based on fiscal 2026 sales, its projected reported growth of 5.5% to 8.5% implies fiscal 2027 sales of about $22.681 billion to $23.326 billion, versus the $22.734 billion estimate.
The outlook excludes the pending Filtration Group and CIRCOR acquisitions.
Parker raised its fiscal 2031 adjusted segment operating margin target by 300 basis points to 30%, alongside targets of 4% to 6% organic growth, a 17% free cash flow margin and more than 10% adjusted EPS growth.
PH Price Action: Parker Hannifin shares were up 6.47% at $1061.35 at the time of publication on Thursday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
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