Parker-Hannifin reported a record Q4 and FY26, with strong organic growth (8% in Q4, 6.6% for the year), record margins, and record cash flow. Management provided a very bullish FY27 guidance, expecting 7% organic growth across all verticals, and raised its long-term margin target to 30% by FY31. Record FY26: Sales $21.5B, EPS $32.31, operating margin 27.3%, FCF $3.9B, all records.
Parker-Hannifin reported a record Q4 and FY26, with strong organic growth (8% in Q4, 6.6% for the year), record margins, and record cash flow. Management provided a very bullish FY27 guidance, expecting 7% organic growth across all verticals, and raised its long-term margin target to 30% by FY31. Record FY26: Sales $21.5B, EPS $32.31, operating margin 27.3%, FCF $3.9B, all records.
Parker-Hannifin reported a record Q4 and FY26, with strong organic growth (8% in Q4, 6.6% for the year), record margins, and record cash flow. Management provided a very bullish FY27 guidance, expecting 7% organic growth across all verticals, and raised its long-term margin…
Reported gross margin was 39.04%, reinforcing the quarter's better-than-guided profitability.
Guidance · revenue to $23B
Management reported strong order acceleration across all businesses, with total orders up 19% on a three-month comparison and 12% on a rolling 12-month basis. They see a broadening industrial recovery, with distribution orders strong in Q4 and a positive outlook across all…
Management reported strong order acceleration across all businesses, with total orders up 19% on a three-month comparison and 12% on a rolling 12-month basis. They see a broadening industrial recovery, with distribution orders strong in Q4 and a positive outlook across all market verticals for FY27, guiding to 7% organic growth at the midpoint.
Management discussed CapEx of $500 billion in fiscal 2026 (which appears to be a typo in the transcript; likely $500 million) and guided for CapEx at approximately 2.5% of sales for FY27. They noted recent investments in capacity expansion and expect to continue investing in capacity, but do not anticipate increasing CapEx beyond current guidance.
Management expressed confidence and pride in record results, raised margin targets, and provided a positive FY27 outlook with growth across all verticals.
“These technology platforms combined now represent approximately 65% of our pro-form sales today. This is clearly a different Parker, with greater exposure to longer cycles, secular trends, and more resilient end markets.”
“We provide liquid cooling systems and subsystem components. Our teams are doing a really fantastic job in this space.”
“So we just saw really, really nice growth across all the market verticals.”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| EPS | FY2027 | $34.25–$35.25 | $34.75 | MAINTAINED |
| EPS | FY2027 Q1 | $8.07 | $8.07 | MAINTAINED |
| Free cash flow | FY2027 | $3.4B–$3.9B | $3.65B | MAINTAINED |
| Op margin | FY2027 | 27.7% | 27.7% | MAINTAINED |
| Op margin | FY2031 | 30% | 30% | RAISED |
| Revenue | FY2027 | $23Binline 컨센서스 대비 | $23B | MAINTAINED |
| 제시 시점 | 지표 | 목표 기간 | 가이던스 | 실제 | 결과 |
|---|---|---|---|---|---|
| FY2026 Q2 | EPS | FY2026 Q3 | $7.75 | $8.17 | Met / beat |
| FY2026 Q2 | Revenue | FY2026 Q3 | $5.4B | $5.486B | Met / beat |
Acquisition of Circor's aerospace/defense unit will add high-margin, flight-critical capabilities to Parker's portfolio.
“And just this past May, we announced the pending acquisition of Circor's commercial aerospace and defense business, adding complimentary flight critical capabilities.”
… giving our application engineers and channel partners more ways to create value for customers. We enhanced our electrification capabilities with the acquisition of Curtis Instruments completed last September. In November, we announced the pending acquisition of Filtration Group Corporation, which expands our offering of proprietary filtration technologies and increases our filtration aftermarket by 500 basis points. And just this past May, we announced the pending acquisition of Circor's commercial aerospace and defense business, adding complimentary flight critical capabilities. We are committed to actively deploying capital and these transactions are right in line with our stated strategy to acquire companies where we are the clear best owner, building on our interconnected technology, creating value for customers and further compounding earnings growth. We look forward to welcoming our new team members into Parker. Moving to slide five. After setting our fiscal year 29 targets just over two years ago, we are raising the bar once again and setting a new margin target. As I said earlier, we achieved our fiscal year 29 margin target early. And now for the fifth time …
Parker sees strong demand from data center customers for liquid cooling systems, which is a growing application for its hoses, couplings, and thermal management products. — Confirms the accelerating adoption of liquid cooling in data centers, creating incremental demand for fluid-handling components, a positive signal for both Parker and data center infrastructure suppliers.
I know this is small, but can you comment on your data center exposure? I believe you have some interesting equipment, hoses and connectors that play into the space. and I'm wondering if we're seeing interesting order activity there and then any comments you can make on are you seeing any specification activity related to liquid cooling as an interesting growth driver?
Yeah, so we do have really nice exposure and it grew nicely last year and we think it's going to continue to grow. It's about one and a half percent of our sales and we've been previously saying one percent so it is growing but it's Not quite large enough yet to have its own market vertical. This is a great story for our interconnected technologies because you mentioned a few of our products, but it's hoses, couplings, manifolds, fittings, engineered materials for thermal management. So really, really a good showcase of all of the Parker technologies. And we are working with the industry leaders. We are seeing good orders here. We provide liquid cooling systems and subsystem components. Our teams are doing a really fantastic job in this space. We have a very highly skilled, high performance team serving these data center customers. And as I mentioned, it's a nice growth area.