PH · 8-K · 20260806PR000082

Income Tax Rate Changes

Parker-Hannifin Corp · 2026-08-06 · Importance 64 · Surprise 56

Fiscal 2026 income taxes increased to $914 million from $575 million, while pretax income increased to $4,563 million from $4,107 million. The reported effective tax rate rose to approximately 20.0% from approximately 14.0% in fiscal 2025. Fiscal 2025 benefited from a $215 million discrete tax benefit related to a valuation allowance release, whereas fiscal 2026 had no discrete tax benefit.

Key facts

• The company recognized a reduction to cost of sales of $84 million related to IEEPA tariff refunds received from the U.S. government in February 2026 during the fourth quarter of fiscal 2026. source
• Income taxes were $248 million for the three months ended June 30, 2026 and $914 million for the twelve months ended June 30, 2026. source