Parker-Hannifin Corporation

Shortcut’s reasoning.

Q1 FY27 guide (6-Aug-26): adjusted EPS ~$8.07, ~9% reported / ~8% organic sales growth, 27.7% adj. segment margin, excluding Filtration Group (FGC). Frozen consensus $8.17 sits only ~$0.10 above guide - the same set-up as each of the last 4 quarters, when Parker beat its own guide by $0.42-1.11.

Filtration Group closed 13-Aug-26: ~$274m of sales in the quarter (pro-rata of the ~$1.8bn 10.5-month contribution), ~60/40 NA/International; issuer says neutral to Q1 adjusted EPS - modelled FGC segment income (~$59m) roughly offsets ~$57m of incremental interest.

Organic growth 8.5% (NA 8.0%, Intl 7.5%, Aero 10.5%) vs ~8% guide: rolling-12 orders +12% and record $12.8bn backlog at Jun-26, ISM PMI 54.5 in Sep-26, Dover +7.1% organic, GE Aerospace revenue +18% and Howmet commercial aero +32% in the Sep-26 quarter (Honeywell Aerospace +2% is the negative read-across).

Legacy adjusted segment margin ~28.1% vs 27.7% guide (Parker beat its quarterly margin guide in 3 of the last 4 quarters); corporate G&A $50m, adjusted other expense $55m (Q1 seasonally high), interest $142m, 22.5% tax, 127.7m diluted shares -> $8.37 adjusted EPS (+2.5% vs consensus), not inflated by beat rate.

GAAP EPS $6.79 is below the $7.10 guide because FGC amortization (~$36m), FGC integration/step-up and transaction costs (~$65m) are new adjustments not in guidance.