Parker-Hannifin reports $884 million net income for fiscal Q1 2027
- Form
- 10-Q
- Filed
- Importance
- Notable
- Accession
- 0000076334-26-000172
- Revenue of $5.99 billion for the three months ended Sep 30, 2026
- Net income of $884 million for the three months ended Sep 30, 2026
- Diluted EPS of $6.92 for the three months ended Sep 30, 2026
- Cash and equivalents of $711 million as of Sep 30, 2026
Written from the 10-Q on EDGAR. AI can make mistakes. Check the filing.
The reading, claim by claim
- Its income statement for the three months ended September 30, 2026 shows net sales of $5,992 million, compared with $5,084 million for the same period in 2025.
- Net income was $884 million for the three months ended September 30, 2026, against $808 million a year earlier.
- Diluted earnings per share were $6.92, compared with $6.29, and basic earnings per share were $7.01, compared with $6.39.
- Selling, general and administrative expenses were $1,065 million, up from $873 million.
- Interest expense was $146 million, compared with $101 million.
- Income taxes were $253 million, compared with $232 million.
- The balance sheet shows total assets of $41,927 million at September 30, 2026, against $30,877 million at June 30, 2026.
- Goodwill rose to $16,216 million from $11,109 million, and intangible assets, net, rose to $11,686 million from $7,280 million.
- Long-term debt was $12,734 million, compared with $6,766 million.
- The cash flow statement shows net cash provided by operating activities of $752 million, compared with $782 million a year earlier.
- Acquisitions, net of cash acquired, used $9,102 million, and proceeds from borrowings were $12,478 million.
- Cash and cash equivalents ended the period at $711 million.
12 of 12 claims matched the filing text.
From the filing
Item 1. Financial Statements
Item 1. Financial Statements
Consolidated Statements of Income
(In millions, except per share amounts)
(Unaudited)
Three Months Ended
September 30,
Selling, general and administrative expenses 1,065 8734
See accompanying notes to consolidated financial statements.
- 2 -
Consolidated Statements of Comprehensive Income
(In millions)
(Unaudited)
Three Months Ended
September 30,
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment and other ( 36 ) ( 45 )
See accompanying notes to consolidated financial statements.
- 3 -
Consolidated Balance Sheets
(In millions, except par value)
(Unaudited)
September 30,
2026 June 30,
2026
Assets
Current assets:
Cash and cash equivalents $ 711 $ 501
Trade accounts receivable, net of allowances of $ 8 and $ 7
3,492 3,170
Non-trade and notes receivable 334 303
Property, plant and equipment, net of accumulated depreciation of $ 4,682 and $ 4,625
Liabilities and equity
Current liabilities:
Notes payable and current portion of long-term debt $ 4,744 $ 1,754
Accounts payable, trade 2,673 2,439
Accrued payrolls and other compensation 475 658
Pensions and other postretirement benefits 237 224
Equity
Shareholders' equity:
Serial preferred stock, $ .50 par value; authorized 3.0 shares; none issued
— —
Treasury shares at cost: 54.9 shares and 55.0 shares
See accompanying notes to consolidated financial statements.
- 4 -
Consolidated Statements of Cash Flows
(In millions)
(Unaudited)
Three Months Ended
September 30,
2026 2025
Cash flows from operating activities
Net income $ 884 $ 808
Adjustments to reconcile net income to net cash provided by operating activities:
Pensions and other postretirement benefits, net ( 24 ) ( 18 )
Net cash provided by operating activities 752 78210
Cash flows from investing activities
Acquisitions, net of cash acquired ( 9,102 ) ( 1,013 )11
Capital expenditures ( 109 ) ( 89 )
Proceeds from sale of property, plant and equipment 22 6
Other, net 3 18
Net cash used in investing activities ( 9,186 ) ( 1,078 )
Cash flows from financing activities
Payments for common shares ( 118 ) ( 522 )
Proceeds from notes payable, net 1,785 1,057
Proceeds from borrowings 12,478 —11
Other, net 1 —
Net cash provided by financing activities 8,637 306
Effect of exchange rate changes on cash 7 ( 4 )
Net change in cash and cash equivalents 210 6
Cash and cash equivalents at beginning of year 501 467
Cash and cash equivalents at end of period $ 711 $ 47312
See accompanying notes to consolidated financial statements.
- 5 -
Notes to Consolidated Financial Statements
(In millions, except per share amounts or as otherwise noted)
Note 1. Basis of Presentation
In the opinion of the management of the Company, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the Company's financial position as of September 30, 2026, the results of operations for the three months ended September 30, 2026 and 2025 and cash flows for the three months then ended. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's 2026 Annual Report on Form 10-K.
As used in this Quarterly Report on Form 10-Q, unless the context otherwise requires, the terms "Company", "Parker", "we" or "us" refer to Parker-Hannifin Corporation and its subsidiaries.
Note 2. Recent Accounting Pronouncements
In December 2025, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2025-10, "Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities," which adds guidance on the recognition, measurement, and presentation of government grants. The amendments are effective for fiscal years beginning after December 15, 2028, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the ASU to determine its impact on the Company's disclosures and consolidated financial statements.
In November 2025, the FASB issued ASU 2025-09, "Derivatives and Hedging (Topic 815): Hedge Accounting Improvements," which includes amendments intended to more closely align hedge accounting with the
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