Parker Raises Fiscal 2027 Outlook After Record Quarter

The Tip Desk · November 5, 2026 · 3 min read

Organic sales growth accelerated to 11.5% as the company lifted full-year organic growth, adjusted margin, adjusted EPS and free cash flow.

Parker Hannifin Corporation (PH), the global leader in motion and control technologies, reported record sales of $6.0 billion for the quarter ended September 30, 2026, an 18% increase from a year earlier, and raised its fiscal 2027 outlook for organic sales growth, adjusted segment operating margin, adjusted earnings per share and free cash flow.

Organic sales growth accelerated to 11.5% from 8.0% in the fiscal 2026 fourth quarter, after 6.5% in the third quarter. Acquisitions added 7 percentage points to reported growth. Chairman and Chief Executive Officer Jenny Parmentier said demand increased across all market verticals, producing double-digit organic sales growth and record backlog.

Net income was $884 million, up 9% from a year earlier. Diluted earnings were $6.92 a share, up 10%. Adjusted net income rose 23% to $1.1 billion, and adjusted diluted EPS increased 23% to a record $8.90. Adjusted EPS growth accelerated from 21% in the prior quarter, after 18% in the quarter before that.

Adjusted segment operating margin reached a record 28.6%, up 120 basis points from the year-ago quarter. GAAP segment operating margin was 24.4%.

Diversified Industrial sales were $4.15 billion. North America businesses posted sales of $2.45 billion, with organic growth of 9.4%. International businesses posted sales of $1.71 billion, with organic growth of 11.6% led by Asia Pacific at 23% organic, EMEA at 4% and Latin America at minus 1%. Adjusted segment operating margin was a record 27.6% in North America and 27.7% in International. GAAP North America margin of 23.0% included expenses related to the Filtration Group acquisition.

Aerospace Systems sales were $1.87 billion, with organic growth of 13.9% and double-digit OEM and aftermarket growth. Adjusted segment operating margin was a record 30.7%.

Rolling 12-month order rates were +13% for Parker overall, +11% for Diversified Industrial North America, +14% for Diversified Industrial International and +14% for Aerospace Systems. Backlog reached a record $13.7 billion.

The company completed the acquisition of Filtration Group Corporation, which it said significantly expanded its filtration offering and aftermarket business. Cash used for acquisitions, net of cash acquired, was $9.10 billion in the quarter. Cash and cash equivalents were $711 million at September 30.

Net sales were $5.99 billion. Corporate included International Emergency Economic Powers Act tariff-related returns to customers of $27 million, partially offset by $6 million received from the U.S. government. Those returns reduced total net sales growth by 0.5% and are excluded from organic sales growth.

Updated guidance for the fiscal year ending June 30, 2027, now includes Filtration Group. The company now expects reported sales growth of 16.0% to 19.0%, organic sales growth of 7.5% to 10.5%, 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, and free cash flow of $3.50 billion to $4.00 billion.