Parker Hannifin reported fiscal first-quarter 2027 results on Thursday, with adjusted EPS rising 23% from $7.22 to a record $8.90, above the $8.19 estimate. Sales increased 18% from $5,084 million a year earlier to $5,992 million, exceeding the $5,735 million forecast. Organic sales grew 11.5%. GAAP diluted EPS increased 10% from $6.29 to $6.92.
Net income increased from $808 million to $884 million. Adjusted net income climbed from $927 million to $1,138 million. Adjusted segment operating margin expanded 120 basis points from 27.4% to a record 28.6%. Adjusted EBITDA margin reached 28.5%, compared with 27.3% a year earlier.
Chief Executive Jenny Parmentier said demand increased in every market vertical, producing double-digit organic sales growth and record backlog. Parmentier attributed the record adjusted segment operating margin and 23% adjusted EPS growth to strong market conditions and execution of The Win Strategy.
Diversified Industrial North America sales increased 19.6% to $2,445 million. North America's adjusted segment margin expanded 60 basis points to 27.6%. International sales grew 22% to $1,707 million. International adjusted margin increased 270 basis points to 27.7%. Aerospace Systems sales climbed 13.8% to $1,867 million. Aerospace Systems adjusted margin expanded 70 basis points to 30.7%.
Total orders over the rolling 12-month period grew 13%. North America orders increased 11% over that period. International orders grew 14% over that period. Aerospace orders increased 14% over that period. Backlog totaled a record $13.7 billion.
Parker completed the Filtration Group acquisition and began integrating the business. Parker expects Filtration Group to contribute about $1.85 billion in fiscal 2027 sales. Parker targets an adjusted EBITDA margin above 30% for Filtration Group by fiscal 2030, supported by expected cumulative cost synergies of $220 million.
Operating cash flow totaled $752 million. Free cash flow amounted to $643 million. Cash stood at $711 million. Gross debt totaled $17,559 million. Net debt amounted to $16,843 million. The quarter's results included net tariff refunds of $21 million.
Parker increased fiscal 2027 adjusted EPS guidance from $34.25 to $35.25 to $36.45 to $37.25, exceeding the $35.55 consensus estimate. Parker raised sales guidance from $22,681 million to $23,326 million to $24,939 million to $25,584 million, above the $24,352 million estimate. However, Parker reduced GAAP EPS guidance from $30.00 to $31.00 to $29.65 to $30.45, below the $31.32 estimate. Parker increased organic sales growth guidance from 5.5% to 8.5% to 7.5% to 10.5%. Parker raised adjusted segment margin guidance from 27.5% to 27.9% to 27.7% to 28.1%. Parker increased free cash flow guidance from $3.4 billion to $3.9 billion to $3.5 billion to $4.0 billion.
Parker shares rose after the results as investors responded to the earnings beat and higher adjusted EPS and sales guidance. Benzinga Pro data showed Parker shares trading 0.73% higher at $916.81 on Thursday.
Parker Hannifin Q1 2027 Earnings Beat Estimates, Raises Outlook
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Summary
Parker Hannifin reported Q1 2027 results, with adjusted EPS rising 23% to $8.90, surpassing estimates. Sales hit $5,992 million, above forecasts. The company raised full-year adjusted EPS guidance to $36.45–$37.25 and sales to $24,939–$25,584 million. Parker also acquired Filtration Group and targets a 30%+ EBITDA margin by 2030. As crypto news and AI-driven insights continue to shape markets, such strong performance highlights industrial resilience amid broader economic trends.
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