PH · 10-K · 2026A · Full report

Segment Operating Margins

Parker-Hannifin Corp · 2026-08-21 · Importance 42 · Surprise 40

Diversified Industrial operating income increased to $3,440 million from $3,120 million, and its operating margin rose 100 basis points to 23.8%. North America margin increased 110 basis points to 24.3%, primarily from favorable pricing and benefits from prior-year divestitures, partly offset by unfavorable mix, material costs, and higher intangible amortization. International margin increased 90 basis points to 23.1%, driven primarily by favorable mix and pricing, partly offset by higher business realignment charges. Aerospace Systems operating income increased to $1,833 million from $1,441 million, and its margin rose 270 basis points to 26.0%, primarily due to higher sales volume and also supported by aftermarket profitability and cost-containment initiatives.

Key facts

• Diversified Industrial operating margin increased by 100 basis points in 2026 compared with 2025. source
• North America Diversified Industrial operating margin increased by 110 basis points in 2026, mainly due to favorable pricing and benefits from prior-year divestitures, partly offset by unfavorable product mix, increased material costs and higher intangible amortization. source
• International Diversified Industrial operating margin increased by 90 basis points in 2026, mainly due to favorable mix and pricing, partly offset by higher business realignment charges. source
• Aerospace Systems operating margin increased by 270 basis points in 2026 compared with 2025, primarily due to higher sales volume, partly offset by unfavorable mix; aftermarket profitability and cost-containment initiatives also contributed. source