PH · Earnings call · 2026Q2T · Full report

Revenue Guidance and Outlook

Parker-Hannifin Corp · 2026-08-06 · Importance 83 · Surprise 76 · In source text

Parker initiated fiscal 2027 reported and organic sales growth guidance of 5.5% to 8.5%, or 7% at the midpoint, equivalent to approximately $23 billion of annual sales. The guidance assumes 6.5% organic growth for North America, 5.5% for international industrial businesses, and 8.5% for Aerospace, with previously completed acquisitions adding approximately 0.5% and currency reducing growth by 0.5 percentage point. Adjusted segment operating margin is guided to 27.7%, up 40 basis points, with adjusted EPS of $34.75 at the midpoint, up 8%, and free cash flow of $3.4 billion to $3.9 billion. Management expects positive sales growth across every market vertical, including high-single-digit Aerospace and defense growth and mid-single-digit growth in in-plant and industrial, transportation, off-highway, energy, and HVAC and refrigeration.

Key facts

• FY '27 reported sales growth guidance: 5.5% to 8.5%, midpoint 7%, equates to approximately $23 billion in annual sales
• FY '27 organic growth guidance: 5.5% to 8.5%, midpoint 7%
• FY '27 first quarter midpoint guidance: reported sales ~+9%, organic ~+8%, adjusted segment operating margins 27.7%, adjusted EPS $8.07
• Committed to organic growth target of 4% to 6% over the cycle
• Committed to >10% adjusted EPS growth over the cycle
• FY '27 sales modeled 48% first half and 52% second half
• FY '27 full-year adjusted EPS guidance: $34.75 at the midpoint, an increase of 8% versus prior year, range +/- $0.50
• FY '27 EPS split guidance: 47% in the first half and 53% in the second half

Impact estimates