PH Q4 Earnings Beat Estimates on Aerospace and Industrial Growth

Parker-Hannifin Corporation PH reported fourth-quarter fiscal 2026 (ended June 2026) adjusted earnings of $9.27 per share, which beat the Zacks Consensus Estimate of $8.29. The bottom line jumped 21% year over year.

Total sales of $5.8 billion beat the consensus estimate of $5.61 billion. The top line increased 9.8% year over year. Organic sales grew 8%. Orders increased 19% year over year.

In fiscal 2026, adjusted earnings were $32.3 per share, up 18.2% year over year. Total sales increased 8.3% to $21.5 billion.

PH’s Segmental Details

The Diversified Industrial segment’s sales totaled $3.89 billion, representing 67% of total sales. On a year-over-year basis, the segment’s sales increased 8.1%.

Sales from Diversified Industrial North America totaled $2.22 billion, up 7% year over year. The Zacks Consensus Estimate was pegged at $2.19 billion. Diversified International sales were $1.63 billion, up 9.5% year over year. The consensus mark was pegged at $1.56 billion.

Orders for Diversified Industrial North America increased 16% year over year, while Diversified Industrial International orders rose 24% on a year-over-year basis.

The Aerospace Systems segment generated sales of $1.90 billion, which accounted for 33% of total sales. The Zacks Consensus Estimate was pegged at $1.83 billion. Sales jumped 13.4% year over year, driven by double-digit growth across all market segments. Orders for the Aerospace Systems unit increased 18% on a year-over-year basis.

PH’s Margin Profile

Parker-Hannifin’s cost of sales was $3.51 billion, up 6.8% year over year. Selling, general and administrative expenses increased 4.2% from the prior year to $874 million.

Adjusted total segment operating income increased 14.5% year over year to $1.61 billion. Adjusted total segment operating margin increased 110 basis points year over year to 28%.

PH’s Balance Sheet & Cash Flow

Exiting fiscal 2026, Parker-Hannifin had cash and cash equivalents of $501 million compared with $467 million at the end of fiscal 2025. Long-term debt was $6.77 billion compared with $7.49 billion at the end of fiscal 2025. 

In fiscal 2026, Parker-Hannifin generated net cash of $4.36 billion from operating activities compared with $3.78 billion in the prior year.

Capital spending totaled $459 million in fiscal 2026 compared with $435 million in fiscal 2025. Parker-Hannifin paid out cash dividends of $936 million, up 8.7% year over year.

PH’s Fiscal 2027 Guidance

Parker-Hannifin has issued its fiscal 2027 guidance. The company expects total sales to increase 5.5-8.5% year over year. Organic sales are also projected to grow 5.5-8.5%. Previously completed acquisitions are expected to contribute 0.5% and unfavorable currency movements are anticipated to reduce sales growth by 0.5%.

The company expects an adjusted segment operating margin of 27.5-27.9%. Parker-Hannifin currently projects adjusted earnings of $34.25-$35.25 per share. The outlook excludes the pending acquisitions of Filtration Group and CIRCOR’s Commercial and Defense Aerospace business.

PH’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

Constellium SE CSTM came out with quarterly earnings of $1.04 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $0.91 per share. This compares with earnings of $0.25 per share a year ago.

Constellium posted revenues of $2.75 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $2.1 billion.

Generac Holdings Inc. GNRC came out with quarterly earnings of $2.91 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $1.95 per share. This compares with earnings of $1.65 per share a year ago.

Generac Holdings posted revenues of $1.17 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.37%. This compares with year-ago revenues of $1.06 billion.

Graco Inc. GGG reported second-quarter 2026 adjusted earnings of 91 cents per share, up 17% from 78 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 81 cents by 12.4%.

The company’s net sales rose 3% year over year to $590.6 million but lagged the consensus estimate of $609 million by 3%. Organic order backlog (excluding acquisitions) rose 28% from the end of 2025.

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This article originally published on Zacks Investment Research (zacks.com).

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