01—Abstract
Summary
Summary of the 8-K filed November 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Parker-Hannifin reported fiscal 2026 first-quarter results (quarter ended September 30, 2025) with record sales of $5.1 billiona, up roughly 3.7% reported, and 5% organic growth.
Reported EPS was $6.29b, up 18%, and adjusted EPS was a record $7.22, up 16%. Net income rose 16% to $808 million. Segment operating margin expanded 160 bps to 24.2% reported and 170 bps to 27.4% on an adjusted basis, supported by the Aerospace Systems segment, where sales grew 13.3% and adjusted margin reached 30.0%.
Orders were up 8% company-wide, and total backlog hit a record $11.3 billionc, indicating continued demand strength. Management raised full-year fiscal 2026 guidance, now including the Curtis Instruments acquisition. Total sales growth is now expected at 4.0% to 7.0%, with organic growth of about 4% at the midpoint.
Adjusted segment operating margin is guided to 26.8% to 27.2%, and EPS to $25.53 to $26.33d reported, or $29.60 to $30.40 adjusted. Investors should note that the quarter included about $1.0 billion of acquisition spending, a sharp rise in debt (short-term debt of $2.8 billion versus $1.8 billion at June 30), and roughly $522 million of share repurchases. The Diversified Industrial segment was mixed.
North America reported negative reported sales growth of 2.7% but positive organic growth of 2.1%, while International grew organically only 1.0%, with EMEA down 3% and APAC up 6%. The company is still dependent on aerospace strength to offset gradual industrial recovery, and the filing's forward-looking risk factors, including tariffs, the Curtis integration, and international conflicts, remain relevant.
02—Key points
Key Highlights
- Record quarterly sales of $5.1 billion, with 5% organic growth and 8% company-wide order growth
- Record adjusted EPS of $7.22 (up 16%) and reported diluted EPS of $6.29 (up 18%)
- Adjusted segment operating margin of 27.4%, up 170 bps, with Aerospace Systems adjusted margin at a record 30.0%
- Record total backlog of $11.3 billion, supported by Aerospace Systems orders up 15%
- Full-year FY26 guidance raised: total sales growth 4.0% to 7.0%, adjusted EPS $29.60 to $30.40 (includes Curtis acquisition)
- Diversified Industrial North America returned to organic growth (2.1%) with a record adjusted segment margin of 27.0%
- Quarter included $1.0 billion of acquisition spending and $522 million of share repurchases; short-term debt rose to $2.8 billion
03—Questions
Frequently Asked Questions
Why did Parker raise its fiscal 2026 guidance?
Management cited a strong first quarter with 5% organic sales growth and 170 bps of adjusted segment margin expansion, along with higher order rates. The raised outlook also includes the Curtis Instruments acquisition, which adds about 1% to sales growth.
How much of the EPS growth came from adjusted versus reported results?
Reported diluted EPS of $6.29 rose 18% year over year, while adjusted EPS of $7.22 rose 16%. Adjustments mainly include amortization of acquired intangibles ($1.09 per share), business realignment charges, acquisition-related expenses, and a gain on insurance recoveries. Adjusted EPS excludes these items, and the reported figure is the GAAP measure.
What is driving growth in the Aerospace Systems segment?
Aerospace Systems sales rose 13.3% (12.8% organic), driven by commercial OEM growth and continued aftermarket strength. Segment operating margin reached 25.0% reported and 30.0% adjusted, and orders increased 15%.
Is the Diversified Industrial business recovering?
The recovery is gradual. North America organic growth turned positive at 2.1%, aided by in-plant and industrial, aerospace and defense, and off-highway improvement, and orders rose 3%. International organic growth was 1.0%, with EMEA down 3% and APAC up 6%. Diversified Industrial orders grew 3% in North America and 6% internationally.
What are the key balance sheet and cash flow considerations?
Operating cash flow was $782 million, or 15.4% of sales. Parker spent about $1.0 billion on acquisitions and $522 million on share repurchases, funded in part by net new debt of about $1.06 billion. Short-term debt increased to $2.8 billion from $1.8 billion at June 30, 2025, and total goodwill and intangibles rose meaningfully, to about $18.9 billion.
04—Continue