Parker Hannifin Corp. ( PH ) stock is trading higher on Thursday after it reported first-quarter FY26 sales of record $5.08 billion, exceeding analyst expectations of $4.94 billion.

PH shares are testing new highs. Check the full analysis here

Parker Hannifin ( PH ) designs, manufactures, and distributes motion and control technologies and systems for serving aerospace, transportation, industrial machinery, energy, and life sciences industries.

The industrial giant clocked a net income growth of 16% year over year (Y/Y) to $808 million, or $6.29 per diluted share (up 18% Y/Y).

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The backlog grew to a record $11.3 billion, with order rates up 8% Y/Y.

Adjusted earnings reached $927 million, or a record $7.22 per share, beating the consensus estimate of $6.63.

Segment Performance

In the Diversified Industrial segment, North America sales declined 2.7% Y/Y to $2.04 billion, while adjusted segment operating margin expanded 170 basis points Y/Y to 27.0%. Order rates rose 3% Y/Y in the quarter.

International sales grew 3.2% Y/Y to $1.40 billion, with adjusted operating margin improving 90 basis points to 25.0%. Order rates rose 6% in the segment.

Aerospace Systems revenue climbed 13.3% Y/Y to $1.64 billion, driven by 12.8% Y/Y organic growth on commercial OEM growth and continued aftermarket strength. Adjusted operating margin improved 210 basis points Y/Y to 30.0% in the quarter.

Dividend & Buyback

On October 22, the company’s Board of Directors declared a quarterly cash dividend of $1.80 per share payable on December 5 to shareholders of record as of November 7, 2025.

Parker generated $782 million in operating cash flow and ended the fiscal quarter with $473 million in cash and cash equivalents. Parker repurchased $475 million in shares in the quarter.

“First quarter organic sales grew 5%, as strong demand continued in aerospace and our industrial businesses showed a gradual return to growth,” commented Chairman and CEO Jenny Parmentier.

Outlook

For fiscal 2026, Parker Hannifin ( PH ) raised adjusted EPS guidance to $29.60–$30.40 from $28.40–$29.40, vs. the $29.21 analyst estimate.

The company also raised its FY26 sales outlook to $20.644 billion–$21.239 billion from $20.247 billion–$20.843 billion, vs. the $20.711 billion consensus.

PH Price Action: Parker Hannifin ( PH ) shares were up 8.42% at $839.37 at the time of publication on Thursday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

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