Parker-Hannifin Corporation

For FY26, Parker reported record sales of $21.5 billion, organic growth of 6.6%, adjusted segment operating margin of 27.3% (up 120 basis points year over year), adjusted EPS of $32.31 (up 18%), CFO of $4.4 billion, and free cash flow of $3.9 billion. In Q4, sales rose 10% year over year, organic growth was 8%, adjusted segment operating margin was 28.0% (up 110 basis points), adjusted EBITDA margin was 28.6% (up 180 basis points), adjusted net income was $1.2 billion, and adjusted EPS was $9.27 (up 21%). For FY27, the company guided to reported and organic sales growth of 5.5% to 8.5% (7% midpoint), adjusted segment operating margin of 27.7% at the midpoint, adjusted EPS of $34.75 at the midpoint (up 8%), and free cash flow of $3.4 billion to $3.9 billion. Q1 FY27 guidance was for about 9% reported sales growth, about 8% organic growth, adjusted segment operating margin of 27.7%, and adjusted EPS of $8.07.

Jennifer Parmentier framed FY26 as a proof point for the Win Strategy, citing safety, margin expansion, and capital deployment as the main achievements. She emphasized that Parker is now a different company, with more exposure to longer-cycle secular growth areas and resilient end markets, and said the company is raising the bar again after already reaching its prior margin goal early. Her tone was confident and forward-looking, especially around the pending Filtration Group and CIRCOR deals, the new FY31 margin target, and the idea that Win 4.0 is coming.

Todd Leombruno highlighted record fourth-quarter and full-year profitability, pointing to Q4 adjusted EPS of $9.27, adjusted segment operating margin of 28.0%, and FY26 CFO of $4.4 billion. He said cash deployment was substantial, including nearly $2 billion returned to shareholders, $500 million of CapEx, the $1 billion Curtis acquisition, and nearly $12 billion announced for Filtration Group and CIRCOR, while still reducing debt by $1 billion in the quarter to 1.4x net debt to adjusted EBITDA. On FY27, he guided to $200 million of corporate G&A, $340 million of interest expense, a 22.5% tax rate, and reiterated that margin expansion should continue across businesses.

Analysts focused on the pending Filtration Group and CIRCOR closings, the strength and sustainability of order trends, and whether the new rolling 12-month order metric signals lumpy demand. Management said there are no major hurdles to the acquisitions beyond customary regulatory clearances and expects both to close in the second half of calendar 2026. They also said international orders were helped by electronics, North America orders were broad-based, and the 12-month order view is intended to better correlate with near-term organic growth as the portfolio has changed materially.