Financial Data and Key Metrics Changes - The company achieved record Q1 sales of $5.1 billion, with organic growth of 5% and a 170 basis points margin expansion, resulting in a 27.4% adjusted segment operating margin [5][10] - Adjusted earnings per share grew 16% to reach a record of $7.22 per share, with cash flow from operations at $782 million [6][11] - Orders increased by 8% versus the prior year, marking the first time in two years that all businesses had positive organic growth [14] Business Line Data and Key Metrics Changes - Diversified industrial North America businesses saw sales over $2 billion, with positive organic growth of 2%, the first positive growth in seven quarters [15] - Aerospace systems delivered record sales of $1.6 billion, with a 13% increase and 13% organic growth, marking the 11th consecutive quarter of double-digit organic growth [16][17] - Adjusted segment operating margins for aerospace reached 30% for the first time, driven by strong aftermarket demand [17] Market Data and Key Metrics Changes - Asia-Pacific was the strongest region for international businesses, with a 6% increase, while EMEA was down 3% and Latin America remained flat [16] - The energy market vertical showed significant growth, particularly in heavy-duty gas turbines for electrical power generation, supported by a multi-year backlog [9] Company Strategy and Development Direction - The company focuses on a decentralized operating structure with 85 divisions, emphasizing a win strategy that leverages innovative products and a strong distribution network [7][8] - The company aims to maintain its number one position in the $145 billion motion and control industry, with a focus on faster-growing, longer-cycle markets [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Q1 performance and the outlook for the remainder of the fiscal year, citing strong operational execution and market demand [11][24] - The company raised its fiscal year 2026 organic sales growth forecast from 3% to 4% at the midpoint, with specific increases in aerospace and HVAC markets [19][20] Other Important Information - The company completed the acquisition of Curtis Instruments, which is expected to contribute $235 million to sales for the remainder of the year [22][24] - The company repurchased $475 million of shares on a discretionary basis within the quarter [18] Q&A Session Summary Question: Organic sales picture in the DI North America business - Management noted that North America performed better than expected, with positive growth driven by aerospace and defense, distribution, HVAC, and electronics [30] Question: Update on industrial international orders - Management indicated that orders have been choppy, with expectations for flat to slightly positive growth in EMEA and low single-digit growth in Asia-Pacific [44] Question: Impact of volume versus price on organic guide raise - Management did not disclose specific pricing details but emphasized that they can expand margins in various climates, with slightly stronger volume contributing to growth [53] Question: M&A pipeline update - Management confirmed an active pipeline for acquisitions, focusing on strategic and disciplined opportunities that enhance growth and margins [59] Question: Aerospace margins and defense versus commercial outlook - Management maintained mid-single-digit growth forecasts for both defense and commercial sectors, with no changes expected [72]

Financial Data and Key Metrics Changes - The company achieved record Q1 sales of $5.1 billion, with organic growth of 5% and a 170 basis points margin expansion, resulting in a 27.4% adjusted segment operating margin [5][10] - Adjusted earnings per share grew 16% to reach a record of $7.22 per share, with adjusted net income at $927 million, representing an 18.2% return on sales [11][12] - Cash flow from operations was $782 million, up 5% year-over-year, and free cash flow reached $693 million, up 7% year-over-year [17][18] Business Line Data and Key Metrics Changes - Diversified industrial North America businesses saw sales over $2 billion with positive organic growth of 2%, marking the first positive growth in seven quarters [14][15] - Aerospace systems delivered record sales of $1.6 billion, a 13% increase with organic growth of 13%, and adjusted segment operating margins reached 30% for the first time [16][17] - International diversified industrial businesses recorded sales of $1.4 billion, up 3% with organic growth of 1%, while Asia-Pacific was the strongest region with a 6% increase [15][16] Market Data and Key Metrics Changes - Orders increased by 8% year-over-year, with positive organic growth across all reported segments [14] - North American orders increased sequentially by 3% versus the prior year, while international orders rebounded to a 6% increase after a flat Q4 [16] - The energy market vertical is seeing significant growth, particularly in heavy-duty gas turbines for electrical power generation [9] Company Strategy and Development Direction - The company emphasizes its interconnected portfolio and the win strategy, which involves a decentralized operating structure with 85 divisions acting like owners [7][8] - The focus is on faster-growing, longer-cycle markets and leveraging proprietary technologies across various sectors [8][9] - The company is committed to strategic acquisitions, with the recent acquisition of Curtis Instruments expected to enhance its portfolio [19][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance and gradual recovery across market verticals, particularly in aerospace and defense [31][32] - The company anticipates continued strength in commercial OEM and aftermarket segments, while acknowledging challenges in the transportation market [19][31] - The updated fiscal year guidance reflects increased organic sales growth forecasts across key market verticals, particularly aerospace [19][22] Other Important Information - The company repurchased $475 million of shares on a discretionary basis within the quarter [18] - Adjusted segment operating margins are forecasted to increase by 90 basis points versus the prior year, reaching 27.0% for the full year [22][24] Q&A Session Summary Question: Organic sales picture in the DI North America business - Management noted that North America performed better than expected, with positive growth driven by aerospace and defense, distribution, HVAC, and electronics [30] Question: Margin performance and guidance - Management confirmed that the margin performance is expected to remain strong, with Q2 margins projected to be 150 basis points higher than the prior year [33][34] Question: Industrial international orders and growth - Management indicated that orders have been choppy, with expectations for slow recovery in EMEA and positive growth in Asia-Pacific [43][44] Question: M&A pipeline and strategy - Management confirmed an active pipeline for acquisitions, focusing on strategic and disciplined opportunities that enhance growth and margins [58][59] Question: Aerospace margins and outlook - Management stated that aerospace margins are expected to remain strong, with a mix of OEM and aftermarket sales contributing positively [64][65] Question: Data center and liquid cooling market - Management highlighted rapid growth in the liquid cooling segment, although it currently represents less than 1% of total sales [105] Question: North America in-plant investment activity - Management noted selective CapEx spending and gradual recovery in in-plant industrial activities [88][89]

Financial Data and Key Metrics Changes - The company achieved record Q1 sales of $5.1 billion, with organic growth of 5% and a 170 basis points margin expansion, resulting in a 27.4% adjusted segment operating margin [4][8] - Adjusted earnings per share grew 16% to reach a record of $7.22 per share, with adjusted net income at $927 million, representing an 18.2% return on sales [9][10] - Cash flow from operations was $782 million, up 5% year-over-year, and free cash flow reached $693 million, up 7% year-over-year [15][16] Business Line Data and Key Metrics Changes - Diversified industrial North America sales exceeded $2 billion, with positive organic growth of 2%, marking the first positive growth in seven quarters [11][12] - Aerospace systems reported record sales of $1.6 billion, a 13% increase with organic growth of 13%, maintaining double-digit growth for the 11th consecutive quarter [14][15] - International diversified industrial sales reached a record $1.4 billion, up 3% year-over-year, with Asia-Pacific being the strongest region at +6% [12][13] Market Data and Key Metrics Changes - Orders increased by 8% year-over-year, with positive organic growth across all reported segments [11] - EMEA market remained down at -3%, while Latin America was flat year-over-year; Asia-Pacific showed positive growth [12][13] - The energy market vertical is experiencing robust growth, particularly in heavy-duty gas turbines for electrical power generation [7][14] Company Strategy and Development Direction - The company emphasizes its interconnected portfolio and competitive advantage through innovative products and a strong distribution network [5][6] - The acquisition of Curtis Instruments is seen as a strategic move to enhance the company's capabilities and market position [4][19] - The company is focused on faster-growing, longer-cycle markets and secular trends, with a commitment to operational excellence and safety [4][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive trajectory of industrial recovery, particularly in aerospace and defense sectors [28][60] - The company anticipates gradual improvements in various market verticals, with selective customer CapEx spending [28][41] - Future guidance for organic sales growth has been increased, reflecting strong demand and operational performance [17][19] Other Important Information - The company raised its full-year guidance for adjusted earnings per share to $30, a 10% increase year-over-year [21] - The adjusted segment operating margin forecast has been raised to 27.0%, reflecting a 90 basis points increase from the prior year [20] - The company remains committed to free cash flow conversion of greater than 100% for the year [16] Q&A Session Summary Question: Organic sales picture in the DI North America business - Management noted that North America performed better than expected, with positive growth driven by aerospace and defense, distribution, HVAC, and electronics [26][28] Question: Clarification on margin performance and EPS guidance - Management explained that Q2 is typically the softest quarter, and the EPS guidance reflects this seasonal trend [33][35] Question: Update on industrial international orders - Management indicated that orders have been choppy, with expectations for slow recovery in EMEA and positive growth in Asia-Pacific [40][41] Question: M&A pipeline and strategy - The company remains committed to strategic acquisitions and is actively evaluating opportunities that align with its growth objectives [54][55] Question: Insights on aerospace margins and defense versus commercial outlook - Management confirmed that the mix between defense and commercial remains stable, with mid-single-digit growth expected for both segments [67][68] Question: Capacity and technology portfolio for new markets - The company is evaluating capacity needs and leveraging its global footprint to meet customer demands in emerging markets [108][111]

Core Insights - Parker-Hannifin's shares increased by 7.6% following the release of third-quarter results that exceeded Wall Street expectations and an upward revision of its full-year financial outlook [1] - The company reported sales of $5.08 billion, surpassing analyst forecasts, with organic sales growing by 5% year on year [1] - Adjusted earnings per share (EPS) reached $7.22, a 16% increase from the previous year, prompting the company to raise its full-year adjusted EPS guidance to a midpoint of $30 [1] Market Reaction - The stock's movement indicates that the market views the news as significant, despite the overall low volatility of Parker-Hannifin's shares, which have only seen five moves greater than 5% in the past year [3] - The previous notable stock movement occurred nine months ago when the stock rose by 6.2% after strong fourth-quarter results, highlighting the company's focus on balancing growth and profits [4] Performance Metrics - Since the beginning of the year, Parker-Hannifin's stock has risen by 33.4%, reaching a new 52-week high of $839.51 per share [5] - An investment of $1,000 in Parker-Hannifin's shares five years ago would now be valued at $3,534, indicating strong long-term performance [5]

Financial Performance - Q1 FY26 - Sales reached $5.1 billion, with organic growth of 5%[6,7] - Adjusted Earnings Per Share (EPS) hit a record $7.22[7] - Cash from Operating Activities reached a record $782 million[7] - Adjusted Segment Operating Margin was 27.4%, an increase of 170 bps year-over-year[6,21] - Adjusted EBITDA Margin was 27.3%, an increase of 240 bps year-over-year[6,21] - Free Cash Flow was $693 million, a 7% increase[6,28] FY26 Guidance Update - Organic Sales Growth guidance increased from 3% to 4%[32] - Reported Sales Growth guidance updated to 4%-7%[33] - Adjusted EPS guidance raised to $29.60-$30.40[33] - Free Cash Flow guidance updated to $3.1 billion - $3.5 billion[33] Segment Performance - Q1 FY26 - North America Businesses sales were $2.044 billion with 2% organic growth and adjusted segment operating margin of 27%[25] - International Businesses sales were $1.399 billion with 1% organic growth and adjusted segment operating margin of 25%[25] - Aerospace Systems sales were $1.641 billion with 13% organic growth and adjusted segment operating margin of 30%[25]

Core Insights - Parker-Hannifin reported quarterly earnings of $7.22 per share, exceeding the Zacks Consensus Estimate of $6.67 per share, and up from $6.2 per share a year ago, representing an earnings surprise of +8.25% [1] - The company achieved revenues of $5.08 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.93% and increasing from $4.9 billion year-over-year [2] - Parker-Hannifin's shares have increased by approximately 21.7% since the beginning of the year, outperforming the S&P 500's gain of 15.6% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $6.77 on revenues of $4.91 billion, while for the current fiscal year, the estimate is $29.12 on revenues of $20.62 billion [7] Industry Context - The Manufacturing - General Industrial industry, to which Parker-Hannifin belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges ahead [8] - Historical data suggests that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than a factor of 2 to 1, highlighting the importance of industry performance on individual stock outcomes [8]

Core Insights - Parker-Hannifin reported $5.08 billion in revenue for the quarter ended September 2025, marking a year-over-year increase of 3.7% and an EPS of $7.22 compared to $6.20 a year ago, exceeding Zacks Consensus Estimates [1] Financial Performance - Revenue surprise of +2.93% over the Zacks Consensus Estimate of $4.94 billion [1] - EPS surprise of +8.25% compared to the consensus estimate of $6.67 [1] Segment Performance - Aerospace Systems reported a year-over-year change of +13.3%, outperforming the three-analyst average estimate of 8.1% [3] - Diversified Industrial - North America showed a year-over-year change of -2.7%, better than the -6% average estimate [3] - Diversified Industrial - International reported a year-over-year change of +3.2%, exceeding the three-analyst average estimate of 2.1% [3] Net Sales Analysis - Aerospace Systems net sales were $1.64 billion, surpassing the $1.57 billion average estimate and reflecting a +13.3% year-over-year change [3] - Diversified Industrial - International net sales reached $1.4 billion, slightly above the $1.39 billion estimate, with a +3.2% year-over-year change [3] - Diversified Industrial - North America net sales were $2.04 billion, compared to the estimated $1.97 billion, showing a -2.7% year-over-year change [3] Operating Income - Adjusted Segment operating income for Diversified Industrial - North America was $552 million, exceeding the estimated $505.54 million [3]

Exhibit 99.1 Outlook Guidance for the fiscal year ending June 30, 2026 has been increased and now includes the Curtis acquisition: • Sales were a record $5.1 billion; organic sales growth was 5% • Net income was $808 million, an increase of 16%, or $927 million adjusted, an increase of 14% • EPS were $6.29, an increase of 18%, or a record $7.22 adjusted, an increase of 16% • Segment operating margin was 24.2%, an increase of 160 bps, or 27.4% adjusted, an increase of 170 bps • Cash flow from operations was ...

Core Insights - Parker Hannifin Corporation reported record sales and earnings for the first quarter of fiscal 2026, driven by strong demand in aerospace and industrial sectors, with organic sales growth of 5% [2][5][6] - The company achieved a net income of $808 million, reflecting a 16% increase year-over-year, and an adjusted earnings per share (EPS) of $7.22, up 16% [5][25] - The outlook for fiscal year 2026 has been raised, with total sales growth projected between 4.0% to 7.0% and adjusted EPS guidance increased to a range of $29.60 to $30.40 [6][32] Financial Performance - Total sales reached $5.1 billion, a 3.7% increase from the previous year, with a segment operating margin of 24.2%, up 160 basis points [5][20] - Cash flow from operations was reported at $782 million, representing 15.4% of sales [5][29] - The company repurchased $475 million of shares during the quarter [5] Segment Results - **Diversified Industrial Segment**: Sales were $3.4 billion, a slight decrease of 2.7% year-over-year, but with an adjusted segment operating margin of 27.0%, an increase of 170 basis points [3][21] - **Aerospace Systems Segment**: Sales increased by 13.3% to $1.6 billion, with a segment operating margin of 25.0%, up 270 basis points [9][21] Order Rates and Backlog - Order rates increased by 3% in the Diversified Industrial Segment and 15% in the Aerospace Systems Segment, contributing to a total company backlog of $11.3 billion [10][17] Geographic Performance - Organic growth varied by region, with a notable 6% growth in the Asia-Pacific region, while EMEA experienced a decline of 3% [8][24] Future Guidance - The company has increased its guidance for segment operating margin to a range of 23.6% to 24.0%, with adjusted margins projected between 26.8% to 27.2% [6][31] - The forecasted net sales growth is adjusted to 2.5% to 5.5% after accounting for currency and acquisitions [30]

Core Insights - Parker-Hannifin Corporation (PH) is set to announce its first-quarter fiscal 2026 results on November 6, with revenue expectations of $4.94 billion, reflecting a 0.7% increase year-over-year, and earnings per share estimated at $6.67, indicating a 7.6% rise from the previous year [1][2] Performance Factors - The Aerospace Systems segment is anticipated to perform well due to strong demand in both commercial and military markets, supported by growth in air transport activities and robust defense spending [3][4] - The Meggitt acquisition is expected to enhance PH's capabilities in the UK, contributing positively to the Aerospace Systems segment, with quarterly revenue estimates of $1.57 billion, representing an 8.4% growth from the prior year [4] - The company's margins are likely to benefit from its Win Strategy, which emphasizes innovation and strategic capital allocation for sustainable growth [5] Segment Analysis - The Diversified Industrial segment is expected to face challenges due to lower demand in the off-highway market, particularly affecting North America, with revenue estimates of $1.97 billion, indicating a 6.2% decline year-over-year [6][7] - Conversely, the International segment of Diversified Industrial is projected to see a 2.9% increase in revenues to $1.39 billion, driven by growth in electronics and semiconductor markets [7] Earnings Expectations - The current Earnings ESP for Parker-Hannifin is -0.42%, indicating a lower likelihood of an earnings beat, as the consensus estimate of $6.67 per share exceeds the most accurate estimate of $6.64 [8][9] - The company holds a Zacks Rank of 3, suggesting a neutral outlook [11]