Parker-Hannifin's stock rises on quarterly results, aerospace strength

[Parker Hannifin Service Center and sales office. Parker Hannifin specializes in motion and control technologies.]
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Shares of Parker-Hannifin (PH [https://seekingalpha.com/symbol/PH]) climbed 5.3% in premarket trading Thursday after the motion and control technologies company posted fiscal first-quarter results that topped Wall Street’s expectations for both earnings and revenue, fueled by strength in its aerospace and industrial businesses.

Parker reported adjusted earnings of $7.22 a share, above analysts’ estimates of $6.62, on revenue of $5.1 billion, beating projections of $4.94 billion.

Net income rose to $808 million, or $6.29 a share, from $697 million, or $5.32 a share, a year earlier.

The company said organic sales grew 5%, led by robust demand in aerospace systems and a return to growth in industrial markets. Segment operating margin improved 160 basis points to 24.2%, or 27.4% on an adjusted basis.

Earnings, before interest, taxes, depreciation and amortization rose on higher volume and stronger pricing, reflecting what Chief Executive Officer Jenny Parmentier called “record sales, segment operating margin, earnings per share and year-to-date cash flow.” She credited the company’s “Win Strategy” for driving consistent execution and operational excellence.

Cash flow from operations reached $782 million, or 15.4% of sales, while Parker repurchased $475 million worth of its own shares during the quarter.

By segment, the aerospace systems division posted a 13% jump in sales and a record adjusted operating margin of 30%, while industrial North America and international divisions both achieved higher margins and order growth. Total company backlog increased 8% to a record $11.3 billion.

Parker (PH [https://seekingalpha.com/symbol/PH]) raised its fiscal 2026 outlook, now projecting total sales growth between 4% and 7% and adjusted earnings of $29.60 to $30.40 a share, up from its prior forecast. Analysts on average estimate $29.11 a share.

“With this strong first quarter performance and higher order rates, we have increased our outlook,” Parmentier said.

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