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FY2026 Q2
Raised
Parker-Hannifin Corporation earnings call
Buzzberg read
Orders positive across all businesses; backlog record at $11.7B
Parker-Hannifin reported a record second quarter with broad-based strength, notably in aerospace and a turn to positive growth in Europe. Management raised full-year guidance, citing strong orders and margin expansion, and provided a positive outlook for the industrial recovery despite continued selective capex spending. Record Q2 sales of $5.2B, up 9% YoY, with organic growth of 6.6%.
Buzzberg read Orders positive across all businesses; backlog record at $11.7B Parker-Hannifin reported a record second quarter with broad-based strength, notably in aerospace and a turn to positive growth in Europe. Management raised full-year guidance, citing strong orders and margin expansion, and provided a positive outlook for the industrial recovery despite continued selective capex spending. Record Q2 sales of $5.2B, up 9% YoY, with organic growth of 6.6%. Read full analysisCollapse analysis
Parker-Hannifin reported a record second quarter with broad-based strength, notably in aerospace and a turn to positive growth in Europe. Management raised full-year guidance, citing strong orders and margin expansion, and provided a positive outlook for the industrial recovery despite continued selective capex spending. Record Q2 sales of $5.2B, up 9% YoY, with organic growth of 6.6%.
- Adjusted EPS of $7.65, up 17% YoY, driven by strong segment operating income growth.
- Raised FY26 guidance for sales, EPS, and FCF, reflecting confidence in continued momentum.
- Aerospace segment backlog reached a record $8B, with order rates up 14%.
Revenue$5.174BReported
EPS$7.65Reported
Gross margin37.32%Reported
Operating margin21.14%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Guidance
Full-year organic growth guidance raised to 5% midpoint
M&A
Filtration Group synergies reaffirmed at $220M
Show 3 more callouts
Demand
Europe turns positive, Asia Pacific strongest at 9%
Margins
Aerospace margins reach 30.2%, orders up 14%
Guidance
Raising free cash flow guidance to $3.2–3.6B
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $5.174B | Reported |
| EPS | $7.65 | Reported |
| Gross margin | 37.32% | Reported |
| Operating margin | 21.14% | Reported |
| Free cash flow | $0.768B | Reported |
| Capex | $0.094B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 Q3 | $7.75 | $7.75 | Raised |
| EPS | FY2026 | $30.40–$31.00 | $30.70 | Raised |
| Free cash flow | FY2026 | $3.2B–$3.6B | $3.4B | Raised |
| Operating margin | FY2026 | 27.2% | 27.2% | Raised |
| Revenue | FY2026 | 5.5%–7.5% | 6.5% | Raised |
| Revenue | FY2026 Q3 | $5.4B | $5.4B | Raised |
| Revenue | FY2026 | 4%–6% | 5% | Raised |
AI, capex & demand read
Management read
Confident
Management repeatedly highlights record results, raises guidance across the board, and expresses confidence in future growth and margin expansion.
Investment and capacity
Management indicates they are investing in their businesses, with investments around automation and productivity, as well as capacity expansion on both sides of the business. They emphasize keeping up with world-class manufacturing and improving processes, but do not quantify the capex direction beyond a prior raise.
External signals
Supply-chain alpha · 1returns since call
Industrial backlog grew sequentially from Q1 to Q2, a positive inflection indicating broader industrial demand improvement beyond just aerospace.
Evidence
“Industrial backlog has gone up in Q2. Yeah, industrial backlog went up. It remains in the mid-20s, and it grew from Q1 to Q2.”
Methodology & coverage
Management-only analysis. All 0 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.