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Parker-Hannifin Tops Q2 Earnings & Sales Estimates, Raises 26' View
Key Takeaways
PH beat Q2 estimates as earnings jumped 17% and sales rose 9.1% on strong organic growth.
Parker-Hannifin's Aerospace Systems sales surged 14.5%, supported by OEM growth and aftermarket strength.
PH raised its fiscal 2026 sales and earnings outlook, citing higher margins and solid order momentum.
Parker-Hannifin Corporation (PH Quick QuotePH - Free Report) reported second-quarter fiscal 2026 (ended December 2025) adjusted earnings (excluding $1.05 from non-recurring items) of $7.65 per share, which beat the Zacks Consensus Estimate of $7.15. The bottom line jumped 17% year over year.
Total sales of $5.17 billion beat the consensus estimate of $5.04 billion. The top line increased 9.1% year over year. Organic sales grew 6.6%. Orders increased 9% year over year.
PH’s Segmental Details
The Diversified Industrial segment’s sales totaled $3.47 billion, representing 67.1% of total sales. On a year-over-year basis, the segment’s sales increased 6.8%.
Sales from Diversified Industrial North America totaled $1.99 billion, up 3% year over year. The Zacks Consensus Estimate was pegged at $1.96 billion. Diversified International sales were $1.48 billion, up 11.8% year over year. The consensus mark was pegged at $1.44 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 $1.70 billion, which accounted for 32.9% of total sales. Sales jumped 14.5% year over year, thanks to commercial OEM growth and continued aftermarket strength. The Zacks Consensus Estimate was pegged at $1.67 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 and EPS SurpriseParker-Hannifin Corporation price-consensus-eps-surprise-chart | Parker-Hannifin Corporation Quote
PH’s Margin Profile
Parker-Hannifin’s cost of sales was $3.24 billion, up 7.3% year over year. Selling, general and administrative expenses increased 7% from the prior year to $837 million.
Adjusted total segment operating income increased 15.7% year over year to $1.40 billion. Adjusted total segment operating margin increased 150 basis points year over year to 27.1%.
PH’s Balance Sheet & Cash Flow
Exiting the fiscal second quarter, Parker-Hannifin had cash and cash equivalents of $427 million compared with $467 million at the end of fiscal 2025. Long-term debt was $7.48 billion compared with $7.49 billion at the end of fiscal 2025.
In the first six months of fiscal 2026, Parker-Hannifin generated net cash of $1.64 billion from operating activities compared with $1.68 billion in the year-ago period.
Capital spending totaled $183 million in the first six months of the fiscal year compared with $216 million in the year-ago period.
Parker-Hannifin paid out cash dividends of $456 million, up 8.6% 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 5.5-7.5% year over year compared with 4-7% expected earlier. Organic sales are projected to increase 5% at the mid-point. Its adjusted operating margin is estimated to be 27.0-27.4%.
Parker-Hannifin currently expects adjusted earnings to be in the band of $30.40-$31.00 per share compared with $29.60-$30.40 per share expected earlier.
