Parker-Hannifin Corporation · PH · FY2026 Q3 · Calendar Q2 2026

Parker-Hannifin Q3 FY2026: Record EPS Above $8, Backlog Hits $12.5B, Guidance Raised

Parker-Hannifin's interconnected motion-control, filtration, and aerospace platform delivered a third consecutive record quarter, with adjusted EPS exceeding $8 for the first time ($8.17 vs $7.84 consensus). Revenue of $5.49B beat estimates of $5.40B. Record backlog of $12.5B and a second consecutive guidance raise underscore management's confidence in sustained organic growth. The pending Filtration Group acquisition would expand the company's filtration franchise. Despite these strong results, shares fell 4% on the report (abnormal move of -5% vs SPY) and drifted an additional 7% lower, suggesting investors are weighing tariff risk, margin sustainability above 40%, and integration execution against the operational beat.

Reported Before market openNYSEIndustrials $124.49B market cap
100quality score

Company context

Snapshot as of publication

Parker-Hannifin Corporation is a global enterprise specializing in the production and distribution of advanced motion and control technologies and systems. These solutions serve a broad spectrum of international markets, including mobile applications, industrial operations, and the aerospace sector. Its organizational structure is primarily divided into two key business units: Diversified Industrial and Aerospace Systems. Within the Diversified Industrial division, the product portfolio is extensive, covering sealing, protective shielding, thermal management systems, bonding agents, surface coatings, and technologies designed to reduce noise, vibration, and harshness. This segment also provides filtration units, diagnostic tools, and related solutions for purifying fuel, air, oil, water, and various other liquids and gases by eliminating contaminants.…

Earnings scorecard

Reported versus consensus
Reported EPS $8.17 Consensus $8
EPS surprise +4.2% Reported versus consensus
Reported revenue $5.49B Consensus $5.40B
Revenue surprise +1.6% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move -4.0% Event window
SPY move +1.0% Same window
Abnormal move -5.0% Stock minus SPY
Volume 3.8× Versus trailing sessions
Subsequent drift -7.1% Up to 20 sessions
PHSPY benchmark

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Transcript intelligence

What changed

Revenue grew to $5.49B from $5.2B in Q2, with 6.5% organic growth. Adjusted EPS rose to $8.17 from $7.65, the first quarterly print above $8. Backlog climbed to a new all-time high of $12.5B from $11.7B. Aerospace & defense delivered double-digit organic growth, with FY2026 segment guidance raised to 12%. Transportation heavy-truck orders emerged as a new demand driver. Free cash flow reached $2.6B, the dividend was increased to $2/share, and $825M of share repurchases were completed. The Filtration Group acquisition continued to progress, with expected synergies of $20M. A severe weather event damaged a Texas facility but is not expected to materially affect Q4. Segment margin expansion moderated to 40bp from 150bp in the prior quarter.

Guidance delta

FY2026 guidance was raised for the second consecutive quarter. Organic sales growth guidance was lifted to 5.5% from a prior midpoint of approximately 5%. Adjusted EPS guidance was raised to $31.20. Aerospace & defense FY2026 organic growth guidance was increased to 12%. The dividend was increased to $2/share and share repurchases of $825M were completed. Management also expressed confidence in FY2027 as another record year with continued organic growth.

Key takeaways

  • Record Q3 sales of $5.49B with 6.5% organic growth and adjusted EPS of $8.17, beating consensus of $7.84 EPS and $5.40B revenue
  • Backlog reached an all-time high of $12.5B, up from $11.7B in the prior quarter
  • Aerospace & defense delivered double-digit organic growth; FY2026 segment guidance raised to 12%
  • FY2026 guidance raised: organic sales growth to 5.5% and adjusted EPS to $31.20
  • Free cash flow reached $2.6B; dividend increased to $2/share and $825M of share repurchases completed
  • Filtration Group acquisition integration progressing; severe weather damaged a Texas facility but Q4 impact not expected to be material

Management priorities

  • Complete Filtration Group acquisition and realize planned synergies
  • Continue lean Kaizen initiatives to expand industrial margins
  • Invest in data-center cooling product development
  • Maintain dividend growth and share-repurchase program
  • Target FY2027 as another record year with continued organic growth

Related earnings events

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-07-28T23:41:53.018886+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-28T23:41:53.015884+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated . For educational purposes only; not investment advice.