Parker-Hannifin Corp 10-Q for FY2027 Q1

Parker-Hannifin Corp (PH)

10-Q 2026-11-05 For: 2026-09-30

Added on November 05, 2026

About this 10-Q

Parker-Hannifin Corp filed this 10-Q on November 5, 2026, covering the quarter ended September 30, 2026 (FY2027 Q1).

Parker-Hannifin Corporation reported 17.9% net sales growth for the three months ended September 30, 2026, driven by organic growth and the FGC and Curtis acquisitions. Organic sales growth was 11.5%. AI summary

Headline figures

Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $5.99B; up 17.9% from $5.08B a year earlier
Net income: $884M; up 9.4% from net income of $808M a year earlier
Diluted EPS: $6.92; up 10.0% from $6.29 a year earlier

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Ohio			34-0451060
(State or other jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification No.)

6035 Parkland Boulevard,	Cleveland,	Ohio	44124-4141
(Address of Principal Executive Offices)			(Zip Code)


	Three Months Ended
	September 30,
	2026		2025
Net sales	$	5,992	$	5,084
Cost of sales	3,731		3,177
Selling, general and administrative expenses	1,065		873

Interest expense	146		101
Other expense (income), net	(87)		(107)
Income before income taxes	1,137		1,040
Income taxes	253		232
Net income	$	884	$	808



Earnings per share:
Basic	$	7.01	$	6.39
Diluted	$	6.92	$	6.29


	Three Months Ended
	September 30,
	2026		2025
Net income	$	884	$	808



Other comprehensive income (loss), net of tax
Foreign currency translation adjustment and other	(36)		(45)
Retirement benefits plan activity	2		4
Other comprehensive loss	(34)		(41)


Total comprehensive income	$	850	$	767


	September 30, 2026		June 30, 2026
Assets
Current assets:
Cash and cash equivalents	$	711	$	501
Trade accounts receivable, net of allowances of $8 and $7	3,492		3,170
Non-trade and notes receivable	334		303
Inventories	3,640		3,166
Prepaid expenses	298		355
Other current assets	226		200
Total current assets	8,701		7,695
Property, plant and equipment, net of accumulated depreciation of $4,682 and $4,625	3,425		3,020
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 long-term debt	$	4,744	$	1,754
Accounts payable, trade	2,673		2,439
Accrued payrolls and other compensation	475		658
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 benefits	237		224
Deferred income taxes	2,856		1,630
Other long-term liabilities	811		748
Total liabilities	25,857		15,464
Equity
Shareholders’ equity:
Serial preferred stock, $.50 par value; authorized 3.0 shares; none issued	—		—
Common stock, $.50 par value; authorized 600.0 shares; issued 181.0 shares	91		91
Additional paid-in capital	876		818
Retained earnings	25,119		24,487
Accumulated other comprehensive loss	(837)		(803)
Treasury shares at cost: 54.9 shares and 55.0 shares	(9,281)		(9,189)
Total shareholders’ equity	15,968		15,404
Noncontrolling interests	102		9
Total equity	16,070		15,413
Total liabilities and equity	$	41,927	$	30,877


	Three Months Ended
	September 30,
	2026		2025
Cash flows from operating activities
Net income	$	884	$	808
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	97		92
Amortization	189		140
Stock-based compensation expense	82		80
Deferred income taxes	24		3
Pensions and other postretirement benefits, net	(24)		(18)

Other, net	(3)		(20)
Changes in assets and liabilities, net of effect of acquisitions:
Accounts receivable, net	(9)		76
Inventories	(232)		(163)
Other assets	(51)		(55)
Accounts payable, trade	81		(6)
Other liabilities	(228)		(182)
Income taxes	(58)		27
Net cash provided by operating activities	752		782
Cash flows from investing activities
Acquisitions, net of cash acquired	(9,102)		(1,013)
Capital expenditures	(109)		(89)
Proceeds from sale of property, plant and equipment	22		6

Other, net	3		18
Net cash used in investing activities	(9,186)		(1,078)
Cash flows from financing activities

Payments for common shares	(118)		(522)

Proceeds from notes payable, net	1,785		1,057
Proceeds from borrowings	12,478		—
Payments for borrowings	(5,257)		(1)

Dividends paid	(252)		(228)
Other, net	1		—
Net cash provided by financing activities	8,637		306
Effect of exchange rate changes on cash	7		(4)
Net change in cash and cash equivalents	210		6
Cash and cash equivalents at beginning of year	501		467
Cash and cash equivalents at end of period	$	711	$	473


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	September 30, 2026		June 30, 2026
Contract assets, current (included within other current assets)	$	218	$	196
Contract assets, noncurrent (included within other long-term assets)	12		15
Total contract assets	230		211
Contract liabilities, current (included within other current liabilities)	(197)		(192)
Contract liabilities, noncurrent (included within other long-term liabilities)	(91)		(95)
Total contract liabilities	(288)		(287)
Net contract liabilities	$	(58)	$	(76)


	August 13, 2026
Cash and cash equivalents	$	204
Accounts receivable	321
Inventories	244
Prepaid expenses	19
Other current assets	4
Intangible assets	4,630
Property, plant and equipment	412
Other long-term assets	127
Accounts payable, trade	(151)
Other current liabilities	(266)
Deferred income taxes	(1,202)
Other long-term liabilities	(99)
Noncontrolling interests	(92)
Net assets acquired	4,151
Goodwill	5,153
Total purchase price	$	9,304



	Three Months Ended
	September 30,
(Unaudited)	2026		2025
Net sales	$	6,226	$	5,587
Net income attributable to common shareholders	899		651


	September 18, 2025
Cash and cash equivalents	$	53
Accounts receivable	38
Inventories	74
Prepaid expenses	4
Intangible assets	551
Property, plant and equipment	53
Other long-term assets	22
Accounts payable, trade	(32)
Other current liabilities	(21)
Deferred income taxes	(139)
Other long-term liabilities	(24)
Net assets acquired	579
Goodwill	488
Total purchase price	$	1,067


	September 30, 2026		June 30, 2026
Notes receivable	$	60	$	60


Accounts receivable, other	274		243
Total	$	334	$	303


	September 30, 2026		June 30, 2026
Finished products	$	990	$	849
Work in process	1,869		1,678
Raw materials	781		639
Total	$	3,640	$	3,166


	Number of Common Shares Outstanding	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Shares		Non- controlling Interests		Total Equity
Balance at June 30, 2026	126.1	$	91	$	818	$	24,487	$	(803)	$	(9,189)	$	9	$	15,413
Net income	—	—		—		884		—		—		—		884

Other comprehensive loss	—	—		—		—		(34)		—		—		(34)
Dividends paid ($2.00 per share)	—	—		—		(252)		—		—		—		(252)
Stock incentive plan activity	0.1	—		58		—		—		(17)		—		41
Acquisition activity	—	—		—		—		—		—		92		92
Other	—	—		—		—		—		—		1		1
Shares purchased at cost, including excise tax	(0.1)	—		—		—		—		(75)		—		(75)
Balance at September 30, 2026	126.1	$	91	$	876	$	25,119	$	(837)	$	(9,281)	$	102	$	16,070


	Diversified Industrial Segment		Aerospace Systems Segment		Total
Balance at June 30, 2026	$	8,162	$	2,947	$	11,109
Acquisitions	5,155		—		5,155



Foreign currency translation	(39)		(9)		(48)
Balance at September 30, 2026	$	13,278	$	2,938	$	16,216


	Three Months Ended
	September 30,
	2026		2025
Diversified Industrial
Motion Systems	$	926	$	824
Flow and Process Control	1,335		1,158
Filtration and Engineered Materials	1,891		1,461
Total Diversified Industrial	4,152		3,443
Aerospace Systems
Commercial original equipment manufacturer ("OEM")	642		539
Commercial aftermarket	671		594
Defense OEM	323		294
Defense aftermarket	231		214
Total Aerospace Systems	1,867		1,641
Corporate	(27)		—
Total net sales	$	5,992	$	5,084


	September 30, 2026				June 30, 2026
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Patents and technology	$	2,649	$	699	$	2,338	$	666
Trade names	1,278		567		1,085		550
Customer relationships and other	12,495		3,470		8,404		3,331
Total	$	16,422	$	4,736	$	11,827	$	4,547



2027 (excluding the three months ended September 30, 2026)	$	676
2028	892
2029	871
2030	822
2031	778


(Maturity dates reflect fiscal years)	September 30, 2026		June 30, 2026
Domestic:
4.20% Fixed-rate medium term notes, due 2035	$	500	$	500
6.25% Fixed-rate medium term notes, due 2038	325		325
4.45% Fixed-rate medium term notes, due 2045	500		500
3.25% Senior Notes, due 2027	700		700
4.25% Senior Notes, due 2028	1,200		1,200
4.75% Senior Notes, due 2029	525		—
3.25% Senior Notes, due 2029	1,000		1,000
4.875% Senior Notes, due 2030	500		—
4.50% Senior Notes, due 2030	1,000		1,000
5.125% Senior Notes, due 2032	750		—
5.30% Senior Notes, due 2034	625		—
4.10% Senior Notes, due 2047	600		600
4.00% Senior Notes, due 2049	800		800
Term Loan Facility, due 2030	2,500		—
Foreign:
2.90% Euro Senior Notes, due 2030	795		800
3.80% Euro Senior Notes, due 2030	795		—
4.04% Euro Senior Notes, due 2032	908		—
4.375% Euro Senior Notes, due 2036	596		—
Other long-term debt (includes finance leases)	102		92
Deferred debt issuance costs	(81)		(45)
Total	14,640		7,472
Less: Current portion of long-term debt	1,906		706
Long-term debt	$	12,734	$	6,766


	U.S. Pension Benefits				Non-U.S. Pension Benefits				Other Postretirement Benefits
	Three Months Ended				Three Months Ended				Three Months Ended
	September 30,				September 30,				September 30,
	2026		2025		2026		2025		2026		2025
Service cost	$	4	$	6	$	5	$	6	$	—	$	—
Interest cost	41		42		18		18		1		1
Expected return on plan assets	(56)		(58)		(26)		(23)		—		—
Amortization of prior service cost	1		1		—		—		—		—
Amortization of net actuarial loss (gain)	—		1		1		2		(1)		(1)
Net periodic benefit cost (credit)	$	(10)	$	(8)	$	(2)	$	3	$	—	$	—



2027 (excluding the three months ended September 30, 2026)	$	707
2028	1,208
2029	1,533
2030	5,596
2031	5


	Balance Sheet Caption	September 30, 2026		June 30, 2026
Net investment hedges
Cross-currency swap contracts	Other long-term assets	$	6	$	7
Cross-currency swap contracts	Other long-term liabilities	14		17
Non-designated derivative contracts
Forward exchange contracts	Non-trade and notes receivable	23		22
Forward exchange contracts	Other current liabilities	9		5


	September 30, 2026		June 30, 2026
Carrying value of long-term debt	$	14,721	$	7,517
Estimated fair value of long-term debt	14,012		7,144


	Property Additions				Depreciation				Amortization

	Three Months Ended September 30,
	2026		2025		2026		2025		2026		2025
Diversified Industrial	$	77	$	74	$	69	$	59	$	113	$	64
Aerospace Systems	31		12		24		30		76		76
Corporate	1		3		4		3		—		—
Total	$	109	$	89	$	97	$	92	$	189	$	140


	Three Months Ended
	September 30, 2026
Reported sales growth	17.9	%
Less: currency & other (1)	(0.5)	%

Less: acquisitions	6.9	%
Organic sales growth	11.5	%

(1) The Other component of the Currency & Other consists entirely of IEEPA tariff-related returns to customers recorded at Corporate. These returns reduced total net sales growth by 0.5% and are excluded from organic sales growth.


	Three Months Ended September 30, 2026
	North America		International		Total
Reported sales growth	19.6	%	22.0	%	20.6	%
Less: currency	0.1	%	0.2	%	0.2	%

Less: acquisitions	10.1	%	10.2	%	10.1	%
Organic sales growth	9.4	%	11.6	%	10.3	%


	September 30, 2026		June 30, 2026		September 30, 2025
Backlog	$	5,016	$	4,332	$	3,622


	Three Months Ended September 30, 2026
Reported sales growth	13.8	%
Less: currency	(0.1)	%


Organic sales growth	13.9	%


Period	(a) Total Number of Shares Purchased	(b) Average Price Paid Per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)	(d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (1)
July 1, 2026 through July 31, 2026	27,700	$	963.01	27,700	18,822,151
August 1, 2026 through August 31, 2026	24,000	$	1,029.34	24,000	18,798,151
September 1, 2026 through September 30, 2026	24,788	$	952.89	24,788	18,773,363
Total:	76,488			76,488

(1)On August 21, 2025, the Board of Directors approved an update to the number of shares available under the Company's previous share repurchase authorization so that the aggregate number of shares available for repurchase as of such date was 20.0 million. There is no limitation on the number of shares that can be repurchased in a year and there is no expiration date for the program.


Exhibit No.						Description of Exhibit



10(a)						Form of 2026 Parker-Hannifin Corporation Stock Appreciation Rights Award Agreement.*

10(b)						2026 Parker-Hannifin Corporation Stock Appreciation Rights Terms and Conditions.*

31(a)						Certification of the Principal Executive Officer Pursuant to 17 CFR 240.13a-14(a), as Adopted Pursuant to §302 of the Sarbanes-Oxley Act of 2002.*

31(b)						Certification of the Principal Financial Officer Pursuant to 17 CFR 240.13a-14(a), as Adopted Pursuant to §302 of the Sarbanes-Oxley Act of 2002.*

32						Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to §906 of the Sarbanes-Oxley Act of 2002.*

101.INS						Inline XBRL Instance Document.*

101.SCH						Inline XBRL Taxonomy Extension Schema Document.*

101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document.*

101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document. *

101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document.*

101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document.*

104						Cover page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101).



		PARKER-HANNIFIN CORPORATION
		(Registrant)

		/s/ Todd M. Leombruno
		Todd M. Leombruno
		Executive Vice President and Chief Financial Officer



Date:	November 5, 2026


If your Termination is due to:			SARs that have not yet vested and become exercisable shall:
Death or Disability			Immediately vest and become exercisable as of the date of such termination of employment.
Retirement			Immediately vest as of the date of your Retirement and become exercisable upon the applicable Vesting Date(s).
Qualifying Termination			Immediately vest and become exercisable as of the date of your termination of employment.
Any other reason			Immediately be forfeited.


Termination Reason			End of Exercise Period
If your continuous full-time employment terminates due to:			Then your vested and exercisable SARs will lapse and cease to be exercisable on:
Disability			The Expiration Date.
Retirement			The Expiration Date.
Death			If you are Retirement-eligible at the time of death, the Expiration Date. Otherwise, the earlier of (i) two (2) years after the date of death or (ii) the Expiration Date.
Qualifying Termination			If you are Retirement-eligible at the time of termination, the Expiration Date. Otherwise, the earlier of: (i) three (3) months from the date of termination or (ii) the Expiration Date
Any other reason			The earlier of: (i) three (3) months from the date of termination or (ii) the Expiration Date


			/s/ Jennifer A. Parmentier
			Jennifer A. Parmentier
			Chief Executive Officer


			/s/ Jennifer A. Parmentier
			Name: Jennifer A. Parmentier
			Title: Chief Executive Officer

			/s/ Todd M. Leombruno
			Name: Todd M. Leombruno
			Title: Executive Vice President and Chief Financial Officer