Parker Hannifin Raises FY 2027 Organic Sales Outlook to 9% Midpoint

Parker Hannifin raised its fiscal 2027 organic sales growth outlook after first-quarter organic growth reached 11.5%, setting a 9% midpoint for the full-year forecast, which includes $1.85 billion in Filtration Group sales.

The Nov. 5 forecast covers the year ending June 30, 2027, and sets organic sales growth at 7.5% to 10.5%. The midpoint is 9%, up from a previous midpoint of 7%. Parker’s reported sales growth range is 16% to 19%. The forecast attributes about 9% of expected sales growth to acquisitions and a negative 0.5% to currency.

The fiscal 2027 outlook includes $1.85 billion in Filtration Group sales. Parker closed its Filtration Group acquisition on Aug. 13 for $9.25 billion in cash. The price is subject to a net working capital adjustment.

Adjusted earnings per share (EPS) is projected at $36.45 to $37.25, with a midpoint of $36.85. The prior adjusted EPS range was $34.25 to $35.25, giving it a midpoint of $34.75. The new midpoint is $2.10 higher. Parker’s separate generally accepted accounting principles (GAAP) EPS range is $29.65 to $30.45. Adjusted EPS is a non-GAAP per-share earnings measure.

For the quarter ended Sept. 30, sales reached $5.992 billion, up 18% from a year earlier. Organic sales grew 11.5%, and adjusted EPS rose 23% to $8.90. The quarter was Parker’s first in fiscal 2027.

At Sept. 30, backlog stood at $13.7 billion, and rolling 12-month order rates were 13% higher. Those demand measures accompanied the company’s higher full-year outlook.

“With strong first quarter performance and increased order rates, we are raising our full year fiscal 2027 guidance,” Parker Hannifin Chairman and CEO Jenny Parmentier said.