Parker Hannifin Corp. (NYSE:PH) stock is trading higher on Thursday after it reported first-quarter FY26 sales of record $5.08 billion, exceeding analyst expectations of $4.94 billion.
- PH shares are testing new highs. Check the full analysis here
Parker Hannifin designs, manufactures, and distributes motion and control technologies and systems for serving aerospace, transportation, industrial machinery, energy, and life sciences industries.
The industrial giant clocked a net income growth of 16% year over year (Y/Y) to $808 million, or $6.29 per diluted share (up 18% Y/Y).
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The backlog grew to a record $11.3 billion, with order rates up 8% Y/Y.
Adjusted earnings reached $927 million, or a record $7.22 per share, beating the consensus estimate of $6.63.
Segment Performance
In the Diversified Industrial segment, North America sales declined 2.7% Y/Y to $2.04 billion, while adjusted segment operating margin expanded 170 basis points Y/Y to 27.0%. Order rates rose 3% Y/Y in the quarter.
International sales grew 3.2% Y/Y to $1.40 billion, with adjusted operating margin improving 90 basis points to 25.0%. Order rates rose 6% in the segment.
Aerospace Systems revenue climbed 13.3% Y/Y to $1.64 billion, driven by 12.8% Y/Y organic growth on commercial OEM growth and continued aftermarket strength. Adjusted operating margin improved 210 basis points Y/Y to 30.0% in the quarter.
Dividend & Buyback
On October 22, the company’s Board of Directors declared a quarterly cash dividend of $1.80 per share payable on December 5 to shareholders of record as of November 7, 2025.
Parker generated $782 million in operating cash flow and ended the fiscal quarter with $473 million in cash and cash equivalents. Parker repurchased $475 million in shares in the quarter.
“First quarter organic sales grew 5%, as strong demand continued in aerospace and our industrial businesses showed a gradual return to growth,” commented Chairman and CEO Jenny Parmentier.
Outlook
For fiscal 2026, Parker Hannifin raised adjusted EPS guidance to $29.60–$30.40 from $28.40–$29.40, vs. the $29.21 analyst estimate.
The company also raised its FY26 sales outlook to $20.644 billion–$21.239 billion from $20.247 billion–$20.843 billion, vs. the $20.711 billion consensus.
PH Price Action: Parker Hannifin shares were up 8.42% at $839.37 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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