Parker-Hannifin Corporation PH reported third-quarter fiscal 2026 (ended March 2026) adjusted earnings (excluding $1.11 from non-recurring items) of $8.17 per share, which beat the Zacks Consensus Estimate of $7.85. The bottom line jumped 18% year over year.
Total sales of $5.50 billion beat the consensus estimate of $5.37 billion. The top line increased 11% year over year. Organic sales grew 6.5%. Orders increased 9% year over year.
PH’s Segmental Details
The Diversified Industrial segment’s sales totaled $3.67 billion, representing 66.9% of total sales. On a year-over-year basis, the segment’s sales increased 8.4%.
Sales from Diversified Industrial North America totaled $2.14 billion, up 5.4% year over year. The Zacks Consensus Estimate was pegged at $2.15 billion. Diversified International sales were $1.53 billion, up 12.7% year over year. The consensus mark was pegged at $1.52 billion.
Orders for Diversified Industrial North America increased 7% year over year, while Diversified Industrial International orders rose 6% on a year-over-year basis.
The Aerospace Systems segment generated sales of $1.81 billion, which accounted for 33.1% of total sales. Sales jumped 15.5% year over year, thanks to commercial OEM growth and continued aftermarket strength. The Zacks Consensus Estimate was pegged at $1.74 billion. Orders for the Aerospace Systems unit increased 14% on a year-over-year basis.
Parker-Hannifin Corporation Price, Consensus and EPS Surprise
Parker-Hannifin Corporation price-consensus-eps-surprise-chart | Parker-Hannifin Corporation Quote
PH’s Margin Profile
Parker-Hannifin’s cost of sales was $3.47 billion, up 10.8% year over year. Selling, general and administrative expenses increased 12.6% from the prior year to $884 million.
Adjusted total segment operating income increased 12.3% year over year to $1.47 billion. Adjusted total segment operating margin increased 40 basis points year over year to 26.7%.
PH’s Balance Sheet & Cash Flow
Exiting the fiscal third quarter, Parker-Hannifin had cash and cash equivalents of $476 million compared with $467 million at the end of fiscal 2025. Long-term debt was $6.77 billion compared with $7.49 billion at the end of fiscal 2025.
In the first nine months of fiscal 2026, Parker-Hannifin generated net cash of $2.63 billion from operating activities compared with $2.31 billion in the year-ago period.
Capital spending totaled $286 million in the first nine months of the fiscal year compared with $304 million in the year-ago period.
Parker-Hannifin paid out cash dividends of $683 million, up 8.4% year over year.
PH’s Fiscal 2026 Guidance Updated
Parker-Hannifin has updated its fiscal 2026 (ending June 2026) guidance. The company now expects total sales to increase approximately 7% year over year compared with 5.5-7.5% expected earlier. Organic sales are projected to increase about 5.5% at the mid-point. Its adjusted operating margin is estimated to be approximately 27.2%.
Parker-Hannifin currently expects adjusted earnings to be $31.20 per share compared with $30.40-$31.00 per share expected earlier.
PH’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Graco Inc. GGG posted quarterly earnings of 66 cents per share in the first quarter of 2026, missing the Zacks Consensus Estimate of 75 cents per share. This compares with earnings of 70 cents per share a year ago.
Graco posted revenues of $540.1 million for the quarter, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $528.3 million.
Stanley Black & Decker, Inc. SWK reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.
Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.
Ingersoll Rand Inc. IR reported first-quarter 2026 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 7% year over year.
Total revenues of $1.85 billion beat the consensus estimate of $1.83 billion. The top line increased 7.6% year over year.
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This article originally published on Zacks Investment Research (zacks.com).