Parker Hannifin Corporation has reported its fiscal 2026 second-quarter results, showcasing impressive growth and performance. The company's sales increased by 9% to a record $5.2 billion, with organic sales growing by 6.6% compared to the prior year period.
The segment operating margin saw a significant increase, rising by 180 basis points to 23.9%. Adjusted segment operating margin also experienced notable growth, increasing by 150 basis points to 27.1%.
Net income for the quarter was reported at $845 million, though this represented a decrease of 11% compared to the second quarter of fiscal 2025, which included a one-time after-tax gain from divestitures of $223 million. However, adjusted net income increased by 15% to $980 million.
Earnings per share (EPS) were $6.60, reflecting a decrease of 9% compared to the prior year period. Adjusted EPS, on the other hand, increased by 17% to a record $7.65.
The company's outlook for the fiscal year ending June 30, 2026, has been revised upwards. Reported sales growth is now expected to be in the range of 5.5% to 7.5%, with organic sales growth estimated at approximately 5% at the midpoint. The segment operating margin outlook has also been increased to the range of 23.7% to 24.1%, or 27.0% to 27.4% on an adjusted basis. EPS guidance has been raised to the range of $26.26 to $26.86, or $30.40 to $31.00 on an adjusted basis.
Looking at the segment results, the diversified industrial segment in North America saw a 3.0% increase in sales, with a 2.5% organic growth. The international businesses within the same segment reported an 11.8% increase in sales, with a 4.6% organic growth. The aerospace systems segment displayed a remarkable 14.5% increase in sales, with 13.5% organic growth.
The company's order rates increased across the board, with the aerospace systems segment showing a particularly strong 14% growth. The total backlog increased to a record $11.7 billion.
Parker Hannifin's CEO, Jenny Parmentier, attributed the outstanding quarter to the performance of the global team, the effectiveness of the company's business system, and the strength of its transformed portfolio. She also highlighted the announcement of a definitive agreement to acquire Filtration Group Corporation, which is expected to expand the company's aftermarket business and presence in various market verticals.
Following these announcements, the company's shares moved -0.03%, and are now trading at a price of $944.27. For the full picture, make sure to review Parker-Hannifin Corp's 8-K report.
