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Earnings analysis · 10-Q

PH earnings analysis

Filed November 5, 2026 · Our reading of the company's report

The latest report

Parker-Hannifin reported $5.992 billion of revenue and adjusted EPS of $8.90, beating consensus estimates of $5.793 billion and $8.18, respectively. Reported GAAP diluted EPS was lower at $6.92, reflecting a $1.98 gap…

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Parker-Hannifin reported $5.992 billion of revenue and adjusted EPS of $8.90, beating consensus estimates of $5.793 billion and $8.18, respectively. Reported GAAP diluted EPS was lower at $6.92, reflecting a $1.98 gap to adjusted EPS, but management raised FY27 sales, adjusted EPS, margin, and free-cash-flow outlooks. The principal incremental risks are integration of the FGC acquisition, including controls implementation, as well as quantified foreign-exchange and interest-rate sensitivities of $146 million and $53 million, respectively.

Read the original on SEC.gov

How we read each report

Our analysis across the last few reports.

Read as bullish Read as bearish May 2026 Nov 2026

Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.

Reported figures

Earnings per share
$6.92

What stood out

  • Revenue beat consensus by 3.4%

    Revenue was $5.992 billion, exceeding the $5.793 billion consensus estimate by approximately 3.4%.

  • Adjusted EPS beat estimates

    Adjusted EPS was $8.90 versus the $8.18 consensus estimate, a beat of approximately 8.8%; reported GAAP diluted EPS was $6.92.

  • FY27 sales outlook raised

    Management raised FY27 organic sales growth guidance to 7.5%-10.5% and reported sales growth guidance to 16.0%-19.0%.

  • FY27 earnings outlook raised

    FY27 adjusted EPS guidance was raised to $36.45-$37.25, while reported EPS guidance is $29.65-$30.45.

  • Cash flow and margin outlook improved

    FY27 free cash flow guidance was raised to $3.5-$4.0 billion, with adjusted segment operating margin guidance of 27.7%-28.1%.

  • Share repurchase activity continued

    The company repurchased 76,488 shares during the quarter for total proceeds implied by the disclosed average prices, leaving 18,773,363 shares available under the repurchase authorization at September 30, 2026.

What to watch

  • FGC integration and controls risk

    The acquisition of FGC on August 13, 2026 is creating integration and controls risk: management said it remains in the process of integrating, evaluating, and implementing changes in controls and procedures.

  • Foreign exchange sensitivity

    A 10% change in foreign exchange rates would affect earnings by approximately $146 million before most of the impact is offset by changes in the hedged items.

  • Higher interest expense exposure

    A 100-basis-point increase in near-term interest rates would increase annual interest expense by approximately $53 million based on variable-rate debt outstanding at September 30, 2026.

  • Variable-rate debt exposure

    The company targets a 60/40 fixed-rate-to-variable-rate debt mix, but commercial paper and term-loan borrowings remain exposed to changes in near-term rates.

  • Acquisition and restructuring charges

    GAAP diluted EPS was $6.92 versus adjusted EPS of $8.90, indicating a $1.98 per-share gap from acquisition, restructuring, or other reported-item charges.

Management's outlook

Management raised FY27 reported sales growth guidance to 16.0%-19.0%, organic sales growth guidance to 7.5%-10.5%, adjusted EPS guidance to $36.45-$37.25, adjusted segment operating margin guidance to 27.7%-28.1%, and free cash flow guidance to $3.5-$4.0 billion. The reported EPS range is $29.65-$30.45. Absolute revenue guidance was not provided.

Earlier filings 2

10-K · August 21, 2026

Parker delivered strong fiscal 2026 execution, with sales up 8.3%, organic growth of 6.6%, higher gross margin, diluted EPS of $28.48 and record $12.8 billion backlog. Aerospace Systems was the principal growth and…

10-Q · May 1, 2026

Parker Hannifin's Q3 2026 results showed a robust revenue of $5.486 billion, an 11% increase year-over-year. EPS came in at $8.17, above estimates and reflecting strong underlying growth and margin pressures in specific…

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.