Parker-Hannifin Q2 sales beat; to buy Filtration Group

Overview

• Motion and control tech firm's Q2 sales grew 9%, beating analyst expectations

• Adjusted EPS for Q2 rose 17%, beating analyst expectations

• Company announced acquisition of Filtration Group Corporation to expand aftermarket business

Outlook

• Company increases fiscal 2026 sales growth guidance to 5.5% to 7.5%

• Parker-Hannifin raises fiscal 2026 EPS guidance to $26.26-$26.86

• Company expects fiscal 2026 adjusted segment operating margin of 27.0% to 27.4%

Result Drivers

• SALES GROWTH - Record sales driven by nearly 7% organic growth across all reported businesses, with notable strength in Aerospace Systems

• MARGIN EXPANSION - Adjusted segment operating margin increased by 150 basis points, reflecting operational efficiencies

• ORDER BACKLOG - Robust order rates, especially in aerospace and defense, increased backlog to a record $11.7 billion

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Parker-Hannifin Corp is $980.00, about 7% above its January 28 closing price of $916.27

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release: ID:nGNXbmCbXD

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