Parker Hannifin (1PH) Q4 2026 Earnings Report

The call conveyed a strongly positive performance narrative: record revenue, margins, EPS and cash generation; robust orders, backlog and aerospace strength; active and strategic M&A; and raised medium‑term margin targets. The lowlights were limited to regional/end‑market pockets of softness, order lumpiness/visibility that prompted a change in order reporting, pending acquisition integration/funding uncertainty, modest FX and tax headwinds, and modest CapEx versus some peers. Overall the positives materially outweigh the negatives.

Parker initiated FY‑27 guidance calling for reported sales growth of 5.5–8.5% (7% midpoint), roughly $23.0B in revenue, with organic growth also 5.5–8.5% (7%) and a 48%/52% H1/H2 sales split; segment/region midpoints include North American industrial +6.5%, international industrial +5.5% and Aerospace +8.5%; currency is a ~0.5ppt headwind while the Curtis acquisition contributes ~+0.5ppt. Management guided adjusted segment operating margin to 27.7% (≈+40 bps YoY) with incrementals near the high end of a 30–35% range, corporate G&A ≈$200M, interest ≈$340M (excludes pending acquisition debt), other expense ≈$100M, and a full‑year tax rate of 22.5%. Full‑year adjusted EPS is $34.75 (±$0.50) with a 47%/53% H1/H2 split and Q1 EPS ~ $8.07; free cash flow is expected to be $3.4–3.9B with ≈100% conversion. Management also raised its FY‑31 adjusted segment operating margin target to 30% (up 300 bps) and reiterated over‑cycle targets of 4–6% organic growth, a 17% free cash flow margin and >10% adjusted EPS growth.