01—Abstract
Summary
Summary of the 10-Q filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
Parker-Hannifin Corporation (PH) reported solid financial results for the nine months ended March 31, 2026, demonstrating revenue growth and improved operating performance across its key segments.
Net sales increased to $15.74 billion compared to $14.61 billiona in the prior year period. The company's strategic focus on innovation, customer service, and operational efficiency, as outlined in its 'Win Strategy,' appears to be driving performance. The acquisition of Curtis Instruments was successfully integrated, contributing to revenue growth, and the pending acquisition of Filtration Group, though significant in scale, is progressing as expected, with financing arrangements in place.
Despite ongoing global economic uncertainties and supply chain challenges, Parker-Hannifin has maintained a strong financial position. The company's ability to generate operating cash flow remains robust, supporting its dividend payouts and share repurchase programs.
While some segments experienced margin pressures due to material costs and product mix, overall profitability remained resilient, supported by pricing actions and cost containment initiatives. Investors should monitor the successful integration of future acquisitions and the company's ability to navigate macroeconomic headwinds.
02—Key points
Key Highlights
- Net sales for the nine months ended March 31, 2026, increased to $15.74 billion from $14.61 billion in the prior year, driven by growth in both Diversified Industrial and Aerospace Systems segments.
- The company completed the acquisition of Curtis Instruments for approximately $1.0 billion and announced an agreement to acquire Filtration Group for approximately $9.25 billion.
- Operating income for the nine months increased to $3.75 billion from $3.31 billion, reflecting improved performance across both segments, particularly Aerospace Systems.
- Diluted EPS for the nine months was $19.95, a slight decrease from $19.97 in the prior year, primarily impacted by changes in accounting for share repurchases and other equity adjustments.
- The company maintained a strong liquidity position, with $476 million in cash and cash equivalents and access to a $3.75 billion revolving credit facility.
- Backlog at March 31, 2026, stood at $12.5 billion, indicating strong future demand across segments.
- Parker-Hannifin continued its commitment to shareholders with consistent dividend payments and share repurchases, returning $683 million in dividends and $825 million in share repurchases during the nine-month period.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Parker-Hannifin Corp kept $0.16.
- Revenue$5.49B100.0%
- Cost of revenue−$3.47B63.2%
- Gross profit$2.02B36.8%
- Operating costs−$788.0M14.4%
- Operating income$1.23B22.4%
- Interest, other & tax−$325.0M5.9%
- Net income$904.0M16.5%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed May 1, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $5.49B$4.96B | +10.6% |
| Cost of Revenue | $3.47B$3.13B | +10.8% |
| Gross Profit | $2.02B$1.83B | +10.2% |
| SG&A Expenses | $884.00M$785.00M | +12.6% |
| Operating Income | $1.23B$1.11B | +10.9% |
| Net Income | $904.00M$962.00M | −6.0% |
| EPS (Basic) | $7.16$7.48 | −4.3% |
| EPS (Diluted) | $7.06$7.37 | −4.2% |
| Shares Outstanding (Basic) | 126.20M128.40M | −1.7% |
| Shares Outstanding (Diluted) | 128.00M130.30M | −1.8% |
05—Questions
Frequently Asked Questions
What is the impact of the pending Filtration Group acquisition on Parker-Hannifin's financials?
The acquisition of Filtration Group, valued at approximately $9.25 billion, is expected to significantly expand Parker-Hannifin's global filtration capabilities. The company has secured financing for the transaction and expects it to close within 12 months. While the full financial impact will be realized upon completion, the company has entered into term loan agreements totaling $7.75 billion to partially finance the acquisition.
How did currency fluctuations affect Parker-Hannifin's results?
Currency exchange rate changes had a positive impact on net sales for the nine months ended March 31, 2026, increasing sales by approximately $242 million. This was primarily driven by favorable currency movements in international markets for both the Diversified Industrial and Aerospace Systems segments.
What is the outlook for the Diversified Industrial and Aerospace Systems segments?
Both segments showed revenue growth. The Diversified Industrial Segment saw increased sales driven by demand in North America and internationally, despite some margin pressures. The Aerospace Systems Segment experienced strong sales growth and improved operating margins due to higher volumes and aftermarket performance. The significant backlog in both segments suggests continued demand.
How is the company managing its supply chain and material costs?
Parker-Hannifin is actively monitoring global trade policies and inflation, managing their impact through cost and pricing measures, continuous improvement, and lean initiatives. Despite increased material costs noted in some segments, the company has implemented favorable pricing and cost containment strategies to mitigate these pressures.
06—Continue