Parker Delivers Record Fiscal 2027 First Quarter Results, Raises Full Year
Exhibit 99.1 Parker Delivers Record Fiscal 2027 First Quarter Results, Raises Full Year Outlook
Record first quarter sales, segment operating margin and EPS; Completes Filtration Group acquisition
-- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the quarter ended September 30, 2026 that included the following highlights (compared with the prior year period):
• Net income was $0.9 billion, an increase of 9%, or $1.1 billion adjusted, an increase of 23%
• Segment operating margin was 24.4%, an increase of 20 bps, or 28.6% adjusted, an increase of 120 bps
• FY27 outlook increased for organic sales growth, adjusted segment operating margin, adjusted EPS and free cash flow
“Parker team members delivered an exceptional quarter of record performance and an impressive start to our fiscal year,” said Jenny Parmentier, Chairman and Chief Executive Officer. “We experienced increased demand across all market verticals, resulting in double-digit organic sales growth and record backlog levels. Strong market conditions, combined with execution of The Win Strategy™, delivered record adjusted segment operating margin of 28.6% and adjusted earnings per share growth of 23%. We are pleased to have completed the acquisition of Filtration Group Corporation, significantly expanding our filtration offering and aftermarket business and are excited to welcome these talented team members to Parker. With strong first quarter performance and increased order rates, we are raising our full year fiscal 2027 guidance for organic sales growth, adjusted segment operating margin, adjusted earnings per share and free cash flow.”
This news release contains non-GAAP financial measures. Reconciliations of adjusted numbers and certain non-GAAP financial measures are included in the financial tables of this press release.
The company has updated guidance for the fiscal year ending June 30, 2027, which now includes Filtration Group Corporation.
• Organic sales growth of 7.5% to 10.5%; acquisitions of 9%, and currency of (0.5%)
• Segment operating margin of 23.6% to 24.0%, or 27.7% to 28.1% on an adjusted basis
• Record sales with growth across all market verticals; Organic sales growth of 9%
• Segment operating margin of 23.0% includes expenses related to the Filtration Group acquisition
• Record adjusted segment operating margin of 27.6%, up 60 bps from 27.0% in the prior-year quarter
• Record adjusted segment operating margin of 27.7%, up 270 bps from 25.0% in the prior-year quarter
• Record adjusted segment operating margin of 30.7%, up 70 bps from 30.0% in the prior-year quarter
Q1 FY27 Q4 FY26 Parker +13% +12% Diversified Industrial Segment - North +11% +9% America Businesses Diversified Industrial Segment - +14% +10% International Businesses Aerospace Systems Segment +14% +18%
• Double digit order rates across all businesses as backlog reaches a record $13.7 billion
Parker Hannifin is a Fortune 250 global leader in motion and control technologies. For more than a century the company has been enabling engineering breakthroughs that lead to a better tomorrow. Learn more at www.parker.com or @parkerhannifin .
Contacts: Media: Financial Analysts: Aidan Gormley Jeff Miller 216-896-3258 216-896-2708 aidan.gormley@parker.com jeffrey.miller@parker.com
Parker Hannifin's conference call and slide presentation to discuss its fiscal 2027 first quarter results are available to all interested parties via live webcast today at 11:00 a.m. ET, at investors.parker.com . A replay of the webcast will be available on the site approximately one hour after the completion of the call and will remain available for one year. To register for e-mail notification of future events, please visit investors.parker.com .
The company reported orders for the 12 months ended September 30, 2026, compared with the prior year period. All comparisons are at constant currency exchange rates, with the prior year quarter restated to the current-year rates, and exclude divestitures. Beginning in fiscal year 2027, all order comparisons are on rolling 12-month average computations.
This press release contains references to non-GAAP financial information including (a) adjusted net income; (b) adjusted earnings per share; (c) adjusted segment operating margin for Parker and by segment; (d) adjusted segment operating income for Parker and by segment; (e) free cash flow; and (f) organic sales growth. These measures are presented to allow investors and the company to meaningfully evaluate changes in net income, earnings per share, segment operating margins, cash flow and sales growth on a comparable basis from period to period. Although these measures are not measures of performance calculated in accordance with GAAP, we believe that they are useful to an investor in evaluating Parker's performance or expected performance for the periods presented. Additionally, adjusted net income, adjusted earnings per share and organic sales growth include an adjustment related to IEEPA tariff returns to customers, which returns we believe are discrete, non-operating items that are not indicative of our ongoing operations. Comparable descriptions of record adjusted results in this release refer only to the period from the first quarter of FY2011 to the periods presented in this release. This period coincides with recast historical financial results provided in association with our FY2014 change in segment reporting. A reconciliation of non-GAAP measures is included in the financial tables of this press release.
Forward-looking statements contained in this and other written and oral reports are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties and risks. Often but not always, these statements may be identified from the use of forward-looking terminology such as “anticipates,” “believes,” “may,” “should,” “could,” “expects,” “targets,” “is likely,” “will,” or the negative of these terms and similar expressions, and may also include statements regarding future performance, orders, earnings projections, events or developments. Parker cautions readers not to place undue reliance on these statements. It is possible that the future performance may differ materially from expectations, including those based on past performance.
Among other factors that may affect future performance are: changes in business relationships with and orders by or from major customers, suppliers or distributors, including delays or cancellations in shipments; disputes regarding contract terms, changes in contract costs and revenue estimates for new development programs; changes in product mix; ability to identify acceptable strategic acquisition targets; uncertainties surrounding timing, successful completion or integration of acquisitions and similar transactions, including the pending acquisition of CIRCOR International Inc.'s Commercial and Defense Aerospace business and the integration of Filtration Group Corporation and Curtis Instruments, Inc.; ability to successfully divest businesses planned for divestiture and realize the anticipated benefits of such divestitures; the determination and ability to successfully undertake business realignment activities and the expected costs, including cost savings, thereof; ability to implement successfully business and operating initiatives, including the timing, price and execution of share repurchases and other capital initiatives; availability, cost increases of or other limitations on our access to raw materials, component products and/or commodities if associated costs cannot be recovered in product pricing; ability to manage costs related to insurance and employee retirement and health care benefits; legal and regulatory developments and other government actions, including related to environmental protection, and associated compliance costs; supply chain and labor disruptions, including as a result of tariffs and labor shortages; threats associated with international conflicts, including geopolitical tensions in the Middle East, and cybersecurity risks and risks associated with protecting our intellectual property; uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals; effects on market conditions, including sales and pricing, resulting from global reactions to U.S. trade policies; manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and economic conditions such as inflation, deflation, interest rates and credit availability; inability to obtain, or meet conditions imposed for, required governmental and regulatory approvals; changes in the tax laws in the United States and foreign jurisdictions and judicial or regulatory interpretations thereof; and large scale disasters, such as floods, earthquakes, hurricanes, industrial accidents and pandemics. Readers should also consider forward-looking statements in light of risk factors discussed in Parker’s Annual Report on Form 10-K for the fiscal year ended June 30, 2026 and other periodic filings made with the SEC. ### Exhibit 99.1
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In millions, except per share amounts) Net sales Cost of sales Selling, general and administrative expenses Interest expense 5,992 5,084 Other expense 3,731 3,177 (income), net 1,065 873 Income before income 146 101 taxes (87) (107) Income taxes 1,137 1,040 Net income Three Months Ended 253 232 Earnings per share: September 30, 884 2026 808 2025 ────────────────────────────────────────────────────────────────────────────── Basic $ 7.01 $ 6.39 Diluted $ 6.92 $ 6.29 Weighted average shares outstanding: Basic 126.1 126.5 Diluted 127.8 128.4 Cash dividends per $ 2.00 $ 1.80 common share
BUSINESS SEGMENT INFORMATION (Unaudited) (In millions) Three Months Ended Net sales September 30, 2026 2025 ────────────────────────────────────────────────────────────────────────────── Diversified Industrial $ 4,152 $ 3,443 Aerospace Systems 1,867 1,641 Total segment sales $ 6,019 $ 5,084 Corporate(1) -27 — Total net sales $ 5,992 $ 5,084 Segment operating income Diversified Industrial $ 972 $ 821 Aerospace Systems 497 411 Total segment operating 1,469 1,232 income Corporate general and administrative 58 49 expenses Income before interest expense and 1,411 1,183 other, net Interest expense 146 101 Other, net 128 42 Income before income $ 1,137 $ 1,040 taxes (1)Corporate includes International Emergency Economic Powers Act ("IEEPA") tariff-related returns to customers.
ADJUS… NET INCOME AND ADJUS… DILUT… EARNI… PER SHARE RECON… Three (Unau… Months (In Ended milli… Septem… except 30, per 2026 2025 share Net Diluted Net Diluted amoun… Income EPS Income EPS ────────────────────────────────────────────────────────────────────────────── As repor… $ 884 $ 6.92 $ 808 $ 6.29 (GAAP) Adjus… Amort… of 189 1.48 140 1.09 acqui… intan… Busin… reali… 17 0.13 15 0.12 charg… Integ… costs 23 0.18 6 0.05 to achie… Acqui… 78 0.61 14 0.11 expen… Insur… charg… — — -20 -0.15 (reco… Tariff refun… 21 0.17 — — net2 Tax effect -74 -0.59 -36 -0.29 of adjus… As adjus… $ 1,138 $ 8.90 $ 927 $ 7.22 (non-… 1Acqu… expen… inclu… trans… costs and charg… relat… to the fair value step up of acqui… inven… 2In Febru… 2026, the U.S. Supre… Court ruled that tarif… impos… under the IEEPA on goods impor… into the U.S. were unaut… During the first quart… of fiscal 2027, net sales were reduc… by $27 milli… for IEEPA tarif… retur… to custo… parti… offset by $6 milli… recei… from the U.S. gover… 3This line item refle… the aggre… tax effect of all non-t… adjus… refle… in the prece… line items of the table. We estim… the tax effect of each adjus… item by apply… our overa… effec… tax rate for conti… opera… to the pre-t… amoun… unless the nature of the item and/or the tax juris… in which the item has been recor… requi… appli… of a speci… tax rate or tax treat… in which case the tax effect of such item is estim… by apply… such speci… tax rate or tax treat…
CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions) Assets September 30, June 30, Current assets: 2026 2026 ────────────────────────────────────────────────────────────────────────────── Cash and cash equivalents $ 711 $ 501 Trade accounts 3,492 3,170 receivable, net Non-trade and notes 334 303 receivable Inventories 3,640 3,166 Prepaid expenses 298 355 Other current assets 226 200 Total current assets 8,701 7,695 Property, plant and 3,425 3,020 equipment, net Deferred income taxes 231 238 Other long-term assets 1,668 1,535 Intangible assets, net 11,686 7,280 Goodwill 16,216 11,109 Total assets $ 41,927 $ 30,877 Liabilities and equity Current liabilities: Notes payable and current portion of $ 4,744 $ 1,754 long-term debt Accounts payable, trade 2,673 2,439 Accrued payrolls and 475 658 other compensation Other current liabilities 1,327 1,245 Total current liabilities 9,219 6,096 Long-term debt 12,734 6,766 Pensions and other postretirement 237 224 benefits Deferred income taxes 2,856 1,630 Other long-term 811 748 liabilities Shareholders' equity 15,968 15,404 Noncontrolling interests 102 9 Total liabilities and $ 41,927 $ 30,877 equity
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Cash flows from Three Months Ended operating activities September 30, 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 884 $ 808 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 97 92 Amortization 189 140 Stock-based 82 80 compensation expense Deferred income taxes 24 3 Pensions and other postretirement -24 -18 benefits, net Other, net -3 -20 Changes in assets and liabilities, net of effect of acquisitions:
Accounts receivable, -9 76 net Inventories -232 -163 Other assets -51 -55 Accounts payable, 81 -6 trade Other liabilities -228 -182 Income taxes -58 27 Net cash provided by operating 752 782 activities Cash flows from investing activities Acquisitions, net of -9,102 -1,013 cash acquired Capital expenditures -109 -89 Proceeds from sale of property, plant 22 6 and equipment Other, net 3 18 Net cash used in -9,186 -1,078 investing activities Cash flows from financing activities Payments for common -118 -522 shares Proceeds from notes 1,785 1,057 payable, net Proceeds from 12,478 — borrowings Payments for -5,257 -1 borrowings Dividends paid -252 -228 Other, net 1 — Net cash provided by financing 8,637 306 activities Effect of exchange 7 -4 rate changes on cash Net change in cash 210 6 and cash equivalents Cash and cash equivalents at 501 467 beginning of year Cash and cash equivalents at end of $ 711 $ 473 period
RECONCILIATION OF FORECASTED REPORTED SALES GROWTH TO FORECASTED ORGANIC SALES GROWTH (Unaudited) (Amounts in percentages) Fiscal Year 2027 Forecasted reported sales growth 16.0% to 19.0% Adjustments: Currency & Other ~0.5% Acquisitions ~(9.0%) Forecasted organic sales growth 7.5% to 10.5% RECONCILIATION OF FORECASTED SEGMENT OPERATING MARGIN TO ADJUSTED FORECASTED SEGMENT OPERATING MARGIN (Unaudited) (Amounts in percentages) Fiscal Year 2027 Forecasted segment operating margin 23.6% to 24.0% Adjustments: Amortization of acquired intangibles ~3.4% Business realignment charges ~0.4% Integration costs to achieve ~0.2% Acquisition-related expenses ~0.1% Adjusted forecasted segment operating margin 27.7% to 28.1%
RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE (Unaudited) (Amounts in dollars) Fiscal Year 2027 Forecasted earnings per diluted share $29.65 to $30.45 Adjustments: Amortization of acquired intangibles 6.77 Business realignment charges 0.74 Integration costs to achieve 0.47 Acquisition-related expenses 0.63 Tariff refunds, net 0.16 Tax effect of adjustments1 -1.97 Adjusted forecasted earnings per diluted share $36.45 to $37.25 1This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. RECONCILIATION OF FORECASTED CASH FLOW FROM OPERATIONS TO FREE CASH FLOW (Unaudited) (Dollars in millions) Fiscal Year 2027 Cash flow from operations $4,125 to $4,625 Less: Capital expenditures ~(625) Free cash flow $3,500 to $4,000 Note: Totals may not foot due to rounding
Full text with the tables
Exhibit 99.1
Parker Delivers Record Fiscal 2027 First Quarter Results, Raises Full Year
Outlook
Record first quarter sales, segment operating margin and EPS; Completes
Filtration Group acquisition
CLEVELAND, November 5, 2026
-- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and
control technologies, today reported results for the quarter ended September 30,
2026 that included the following highlights (compared with the prior year
period):
Fiscal 2027 First Quarter Highlights:
• Sales increased 18% to a record $6.0 billion; organic sales increased 11.5%;
acquisitions added 7%
• Net income was $0.9 billion, an increase of 9%, or $1.1 billion adjusted, an
increase of 23%
• EPS increased 10% to $6.92, adjusted EPS increased 23% to a record $8.90
• Segment operating margin was 24.4%, an increase of 20 bps, or 28.6% adjusted,
an increase of 120 bps
• FY27 outlook increased for organic sales growth, adjusted segment operating
margin, adjusted EPS and free cash flow
“Parker team members delivered an exceptional quarter of record performance and
an impressive start to our fiscal year,” said Jenny Parmentier, Chairman and
Chief Executive Officer. “We experienced increased demand across all market
verticals, resulting in double-digit organic sales growth and record backlog
levels. Strong market conditions, combined with execution of The Win Strategy™,
delivered record adjusted segment operating margin of 28.6% and adjusted
earnings per share growth of 23%. We are pleased to have completed the
acquisition of Filtration Group Corporation, significantly expanding our
filtration offering and aftermarket business and are excited to welcome these
talented team members to Parker. With strong first quarter performance and
increased order rates, we are raising our full year fiscal 2027 guidance for
organic sales growth, adjusted segment operating margin, adjusted earnings per
share and free cash flow.”
This news release contains non-GAAP financial measures. Reconciliations of
adjusted numbers and certain non-GAAP financial measures are included in the
financial tables of this press release.
Fiscal 2027 Outlook
The company has updated guidance for the fiscal year ending June 30, 2027, which
now includes Filtration Group Corporation.
• Reported sales growth of 16.0% to 19.0%
• Organic sales growth of 7.5% to 10.5%; acquisitions of 9%, and currency of
(0.5%)
• Segment operating margin of 23.6% to 24.0%, or 27.7% to 28.1% on an adjusted
basis
• EPS of $29.65 to $30.45, or $36.45 to $37.25 on an adjusted basis
Fiscal 2027 First Quarter Segment Results
Diversified Industrial Segment
North
Amer… ($ in FY27 Organ…
Busi… milli… Q1 FY26 Q1 Change Growth
──────────────────────────────────────────────────────────────────────────────
Sales $ 2,445 $ 2,044 19.6 % 9.4 %
Segm…
Oper… $ 562 $ 507 10.8 %
Inco…
(GAA…
Segm…
Oper… 23.0 % 24.8 % -180 bps
Marg…
(GAA…
Adju…
Segm…
Oper… $ 674 $ 552 22.1 %
Inco…
(non…
Adju…
Segm…
Oper… 27.6 % 27.0 % 60 bps
Marg…
(non…
• Record sales with growth across all market verticals; Organic sales growth of
9%
• Segment operating margin of 23.0% includes expenses related to the Filtration
Group acquisition
• Record adjusted segment operating margin of 27.6%, up 60 bps from 27.0% in the
prior-year quarter
Inte… ($ in FY27 Organ…
Busi… milli… Q1 FY26 Q1 Change Growth
──────────────────────────────────────────────────────────────────────────────
Sales $ 1,707 $ 1,399 22.0 % 11.6 %
Segm…
Oper… $ 410 $ 314 30.6 %
Inco…
(GAA…
Segm…
Oper… 24.0 % 22.4 % 160 bps
Marg…
(GAA…
Adju…
Segm…
Oper… $ 473 $ 350 35.1 %
Inco…
(non…
Adju…
Segm…
Oper… 27.7 % 25.0 % 270 bps
Marg…
(non…
• Record sales with growth led by APAC
• Organic growth: 23% APAC, 4% EMEA, (1%) LA
• Record adjusted segment operating margin of 27.7%, up 270 bps from 25.0% in
the prior-year quarter
Aerospace Systems Segment
($ in FY27 Organ…
milli… Q1 FY26 Q1 Change Growth
──────────────────────────────────────────────────────────────────────────────
Sales $ 1,867 $ 1,641 13.8 % 13.9 %
Segm…
Oper… $ 497 $ 411 20.9 %
Inco…
(GAA…
Segm…
Oper… 26.6 % 25.0 % 160 bps
Marg…
(GAA…
Adju…
Segm…
Oper… $ 574 $ 492 16.7 %
Inco…
(non…
Adju…
Segm…
Oper… 30.7 % 30.0 % 70 bps
Marg…
(non…
• Record sales with double-digit OEM and Aftermarket growth
• Record adjusted segment operating margin of 30.7%, up 70 bps from 30.0% in the
prior-year quarter
• Strong orders drive backlog to a new record
Rolling 12-Month Order Rates
Q1 FY27 Q4 FY26
Parker +13% +12%
Diversified Industrial Segment - North +11% +9%
America Businesses
Diversified Industrial Segment - +14% +10%
International Businesses
Aerospace Systems Segment +14% +18%
• Double digit order rates across all businesses as backlog reaches a record
$13.7 billion
About Parker Hannifin
Parker Hannifin is a Fortune 250 global leader in motion and control
technologies. For more than a century the company has been enabling engineering
breakthroughs that lead to a better tomorrow. Learn more at www.parker.com or
@parkerhannifin .
Contacts:
Media: Financial Analysts:
Aidan Gormley Jeff Miller
216-896-3258 216-896-2708
aidan.gormley@parker.com jeffrey.miller@parker.com
Notice of Webcast
Parker Hannifin's conference call and slide presentation to discuss its fiscal
2027 first quarter results are available to all interested parties via live
webcast today at 11:00 a.m. ET, at investors.parker.com . A replay of the
webcast will be available on the site approximately one hour after the
completion of the call and will remain available for one year. To register for
e-mail notification of future events, please visit investors.parker.com .
Note on Orders
The company reported orders for the 12 months ended September 30, 2026, compared
with the prior year period. All comparisons are at constant currency exchange
rates, with the prior year quarter restated to the current-year rates, and
exclude divestitures. Beginning in fiscal year 2027, all order comparisons are
on rolling 12-month average computations.
Note on Non-GAAP Financial Measures
This press release contains references to non-GAAP financial information
including (a) adjusted net income; (b) adjusted earnings per share; (c) adjusted
segment operating margin for Parker and by segment; (d) adjusted segment
operating income for Parker and by segment; (e) free cash flow; and (f) organic
sales growth. These measures are presented to allow investors and the company to
meaningfully evaluate changes in net income, earnings per share, segment
operating margins, cash flow and sales growth on a comparable basis from period
to period. Although these measures are not measures of performance calculated in
accordance with GAAP, we believe that they are useful to an investor in
evaluating Parker's performance or expected performance for the periods
presented. Additionally, adjusted net income, adjusted earnings per share and
organic sales growth include an adjustment related to IEEPA tariff returns to
customers, which returns we believe are discrete, non-operating items that are
not indicative of our ongoing operations. Comparable descriptions of record
adjusted results in this release refer only to the period from the first quarter
of FY2011 to the periods presented in this release. This period coincides with
recast historical financial results provided in association with our FY2014
change in segment reporting. A reconciliation of non-GAAP measures is included
in the financial tables of this press release.
Forward-Looking Statements
Forward-looking statements contained in this and other written and oral reports
are made based on known events and circumstances at the time of release, and as
such, are subject in the future to unforeseen uncertainties and risks. Often but
not always, these statements may be identified from the use of forward-looking
terminology such as “anticipates,” “believes,” “may,” “should,” “could,”
“expects,” “targets,” “is likely,” “will,” or the negative of these terms and
similar expressions, and may also include statements regarding future
performance, orders, earnings projections, events or developments. Parker
cautions readers not to place undue reliance on these statements. It is possible
that the future performance may differ materially from expectations, including
those based on past performance.
Among other factors that may affect future performance are: changes in business
relationships with and orders by or from major customers, suppliers or
distributors, including delays or cancellations in shipments; disputes regarding
contract terms, changes in contract costs and revenue estimates for new
development programs; changes in product mix; ability to identify acceptable
strategic acquisition targets; uncertainties surrounding timing, successful
completion or integration of acquisitions and similar transactions, including
the pending acquisition of CIRCOR International Inc.'s Commercial and Defense
Aerospace business and the integration of Filtration Group Corporation and
Curtis Instruments, Inc.; ability to successfully divest businesses planned for
divestiture and realize the anticipated benefits of such divestitures; the
determination and ability to successfully undertake business realignment
activities and the expected costs, including cost savings, thereof; ability to
implement successfully business and operating initiatives, including the timing,
price and execution of share repurchases and other capital initiatives;
availability, cost increases of or other limitations on our access to raw
materials, component products and/or commodities if associated costs cannot be
recovered in product pricing; ability to manage costs related to insurance and
employee retirement and health care benefits; legal and regulatory developments
and other government actions, including related to environmental protection, and
associated compliance costs; supply chain and labor disruptions, including as a
result of tariffs and labor shortages; threats associated with international
conflicts, including geopolitical tensions in the Middle East, and cybersecurity
risks and risks associated with protecting our intellectual property;
uncertainties surrounding the ultimate resolution of outstanding legal
proceedings, including the outcome of any appeals; effects on market conditions,
including sales and pricing, resulting from global reactions to U.S. trade
policies; manufacturing activity, air travel trends, currency exchange rates,
difficulties entering new markets and economic conditions such as inflation,
deflation, interest rates and credit availability; inability to obtain, or meet
conditions imposed for, required governmental and regulatory approvals; changes
in the tax laws in the United States and foreign jurisdictions and judicial or
regulatory interpretations thereof; and large scale disasters, such as floods,
earthquakes, hurricanes, industrial accidents and pandemics. Readers should also
consider forward-looking statements in light of risk factors discussed in
Parker’s Annual Report on Form 10-K for the fiscal year ended June 30, 2026 and
other periodic filings made with the SEC.
###
Exhibit 99.1
PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2026
CONSOLIDATED
STATEMENTS OF INCOME
(Unaudited)
(In millions, except
per share amounts)
Net sales
Cost of sales
Selling, general and
administrative
expenses
Interest expense 5,992 5,084
Other expense 3,731 3,177
(income), net 1,065 873
Income before income 146 101
taxes (87) (107)
Income taxes 1,137 1,040
Net income Three Months Ended 253 232
Earnings per share: September 30, 884 2026 808 2025
──────────────────────────────────────────────────────────────────────────────
Basic $ 7.01 $ 6.39
Diluted $ 6.92 $ 6.29
Weighted average
shares outstanding:
Basic 126.1 126.5
Diluted 127.8 128.4
Cash dividends per $ 2.00 $ 1.80
common share
BUSINESS SEGMENT
INFORMATION
(Unaudited)
(In millions) Three Months Ended
Net sales September 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Diversified Industrial $ 4,152 $ 3,443
Aerospace Systems 1,867 1,641
Total segment sales $ 6,019 $ 5,084
Corporate(1) -27 —
Total net sales $ 5,992 $ 5,084
Segment operating
income
Diversified Industrial $ 972 $ 821
Aerospace Systems 497 411
Total segment operating 1,469 1,232
income
Corporate general and
administrative 58 49
expenses
Income before interest
expense and 1,411 1,183
other, net
Interest expense 146 101
Other, net 128 42
Income before income $ 1,137 $ 1,040
taxes
(1)Corporate includes
International
Emergency Economic
Powers Act ("IEEPA")
tariff-related returns
to customers.
Exhibit 99.1
PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2026
SUPPLEMENTAL FINANCIAL INFORMATION AND NON-GAAP RECONCILIATIONS
…
…
…
…
…
…
──────────────────────────────────────────────────────────────────────────────
… … …
… … …
… … …
… … … … …
… …
$ … $ … … … … $ $ $ $ $
$ … $ … … … … $ $ $ $ $
… … … … …
3 … … — …
… 1 … 1 …
… … … — …
$ … $ … … … … $ $ $ $ $
… … … … … … …
… … … … … … …
Three
ORGA… Months
SALES Ended
GROW… Septe…
RECO… 30,
(Una… 2026
──────────────────────────────────────────────────────────────────────────────
As Less: Organic
Repor… Curre… Less: Sales
Sales & Acqui… Growth
Growth Other
Dive…
Indu…
North 19.6 % 0.1 % 10.1 % 9.4 %
Amer…
EMEA 15.4 % -1.2 % 12.6 % 4.0 %
Asia 33.4 % 1.6 % 8.4 % 23.4 %
Paci…
Latin 1.9 % 3.2 % — % -1.3 %
Amer…
Total 22.0 % 0.2 % 10.2 % 11.6 %
Inte…
Total
Dive… 20.6 % 0.2 % 10.1 % 10.3 %
Indu…
Aero… 13.8 % -0.1 % — % 13.9 %
Syst…
Tota… 17.9 % -0.5 % 6.9 % 11.5 %
(1)T…
incl…
Corp…
The
Other
comp…
of
the
Curr…
&
Other
cons…
enti…
of
IEEPA
tari…
retu…
to
cust…
reco…
at
Corp…
These
retu…
redu…
total
net
sales
grow…
by
0.5%
and
are
excl…
from
orga…
sales
grow…
Exhibit 99.1
PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2026
SUPPLEMENTAL FINANCIAL INFORMATION AND NON-GAAP RECONCILIATIONS
ADJUS…
NET
INCOME
AND
ADJUS…
DILUT…
EARNI…
PER
SHARE
RECON… Three
(Unau… Months
(In Ended
milli… Septem…
except 30,
per 2026 2025
share Net Diluted Net Diluted
amoun… Income EPS Income EPS
──────────────────────────────────────────────────────────────────────────────
As
repor… $ 884 $ 6.92 $ 808 $ 6.29
(GAAP)
Adjus…
Amort…
of 189 1.48 140 1.09
acqui…
intan…
Busin…
reali… 17 0.13 15 0.12
charg…
Integ…
costs 23 0.18 6 0.05
to
achie…
Acqui… 78 0.61 14 0.11
expen…
Insur…
charg… — — -20 -0.15
(reco…
Tariff
refun… 21 0.17 — —
net2
Tax
effect -74 -0.59 -36 -0.29
of
adjus…
As
adjus… $ 1,138 $ 8.90 $ 927 $ 7.22
(non-…
1Acqu…
expen…
inclu…
trans…
costs
and
charg…
relat…
to
the
fair
value
step
up of
acqui…
inven…
2In
Febru…
2026,
the
U.S.
Supre…
Court
ruled
that
tarif…
impos…
under
the
IEEPA
on
goods
impor…
into
the
U.S.
were
unaut…
During
the
first
quart…
of
fiscal
2027,
net
sales
were
reduc…
by $27
milli…
for
IEEPA
tarif…
retur…
to
custo…
parti…
offset
by $6
milli…
recei…
from
the
U.S.
gover…
3This
line
item
refle…
the
aggre…
tax
effect
of all
non-t…
adjus…
refle…
in the
prece…
line
items
of
the
table.
We
estim…
the
tax
effect
of
each
adjus…
item
by
apply…
our
overa…
effec…
tax
rate
for
conti…
opera…
to the
pre-t…
amoun…
unless
the
nature
of the
item
and/or
the
tax
juris…
in
which
the
item
has
been
recor…
requi…
appli…
of a
speci…
tax
rate
or
tax
treat…
in
which
case
the
tax
effect
of
such
item
is
estim…
by
apply…
such
speci…
tax
rate
or tax
treat…
Exhibit 99.1
PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2026
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(In millions)
Assets September 30, June 30,
Current assets: 2026 2026
──────────────────────────────────────────────────────────────────────────────
Cash and cash equivalents $ 711 $ 501
Trade accounts 3,492 3,170
receivable, net
Non-trade and notes 334 303
receivable
Inventories 3,640 3,166
Prepaid expenses 298 355
Other current assets 226 200
Total current assets 8,701 7,695
Property, plant and 3,425 3,020
equipment, net
Deferred income taxes 231 238
Other long-term assets 1,668 1,535
Intangible assets, net 11,686 7,280
Goodwill 16,216 11,109
Total assets $ 41,927 $ 30,877
Liabilities and equity
Current liabilities:
Notes payable and current
portion of $ 4,744 $ 1,754
long-term debt
Accounts payable, trade 2,673 2,439
Accrued payrolls and 475 658
other compensation
Other current liabilities 1,327 1,245
Total current liabilities 9,219 6,096
Long-term debt 12,734 6,766
Pensions and other
postretirement 237 224
benefits
Deferred income taxes 2,856 1,630
Other long-term 811 748
liabilities
Shareholders' equity 15,968 15,404
Noncontrolling interests 102 9
Total liabilities and $ 41,927 $ 30,877
equity
Exhibit 99.1
PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2026
CONSOLIDATED
STATEMENTS OF CASH
FLOWS
(Unaudited)
(In millions)
Cash flows from Three Months Ended
operating activities September 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 884 $ 808
Adjustments to
reconcile net income
to
net cash provided by
operating
activities:
Depreciation 97 92
Amortization 189 140
Stock-based 82 80
compensation expense
Deferred income taxes 24 3
Pensions and other
postretirement -24 -18
benefits, net
Other, net -3 -20
Changes in assets and
liabilities, net
of effect of
acquisitions:
Accounts receivable, -9 76
net
Inventories -232 -163
Other assets -51 -55
Accounts payable, 81 -6
trade
Other liabilities -228 -182
Income taxes -58 27
Net cash provided by
operating 752 782
activities
Cash flows from
investing activities
Acquisitions, net of -9,102 -1,013
cash acquired
Capital expenditures -109 -89
Proceeds from sale of
property, plant 22 6
and equipment
Other, net 3 18
Net cash used in -9,186 -1,078
investing activities
Cash flows from
financing activities
Payments for common -118 -522
shares
Proceeds from notes 1,785 1,057
payable, net
Proceeds from 12,478 —
borrowings
Payments for -5,257 -1
borrowings
Dividends paid -252 -228
Other, net 1 —
Net cash provided by
financing 8,637 306
activities
Effect of exchange 7 -4
rate changes on cash
Net change in cash 210 6
and cash equivalents
Cash and cash
equivalents at 501 467
beginning
of year
Cash and cash
equivalents at end of $ 711 $ 473
period
Exhibit 99.1
PARKER HANNIFIN CORPORATION - SEPTEMBER 30, 2026
RECONCILIATION OF FORECASTED REPORTED SALES GROWTH
TO FORECASTED ORGANIC SALES GROWTH
(Unaudited)
(Amounts in percentages) Fiscal Year 2027
Forecasted reported sales growth 16.0% to 19.0%
Adjustments:
Currency & Other ~0.5%
Acquisitions ~(9.0%)
Forecasted organic sales growth 7.5% to 10.5%
RECONCILIATION OF FORECASTED SEGMENT OPERATING
MARGIN TO ADJUSTED FORECASTED SEGMENT OPERATING
MARGIN
(Unaudited)
(Amounts in percentages) Fiscal Year 2027
Forecasted segment operating margin 23.6% to 24.0%
Adjustments:
Amortization of acquired intangibles ~3.4%
Business realignment charges ~0.4%
Integration costs to achieve ~0.2%
Acquisition-related expenses ~0.1%
Adjusted forecasted segment operating margin 27.7% to 28.1%
RECONCILIATION OF FORECASTED EARNINGS PER DILUTED
SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED
SHARE
(Unaudited)
(Amounts in dollars) Fiscal Year 2027
Forecasted earnings per diluted share $29.65 to $30.45
Adjustments:
Amortization of acquired intangibles 6.77
Business realignment charges 0.74
Integration costs to achieve 0.47
Acquisition-related expenses 0.63
Tariff refunds, net 0.16
Tax effect of adjustments1 -1.97
Adjusted forecasted earnings per diluted share $36.45 to $37.25
1This line item reflects the aggregate tax effect
of all non-tax adjustments reflected in the
preceding line items of the table. We estimate the
tax effect of each adjustment item by applying our
overall effective tax rate for continuing
operations to the pre-tax amount, unless the
nature of the item and/or the tax jurisdiction in
which the item has been recorded requires
application of a specific tax rate or tax
treatment, in which case the tax effect of such
item is estimated by applying such specific tax
rate or tax treatment.
RECONCILIATION OF FORECASTED CASH FLOW FROM
OPERATIONS TO FREE CASH FLOW
(Unaudited)
(Dollars in millions) Fiscal Year 2027
Cash flow from operations $4,125 to $4,625
Less: Capital expenditures ~(625)
Free cash flow $3,500 to $4,000
Note: Totals may not foot due to rounding