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Record Sales of $5.5 Billion Drive Record Cash Flow and Adjusted EPS; Orders +9%
CLEVELAND, April 30, 2026 (GLOBE NEWSWIRE) -- Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today reported results for the quarter ended March 31, 2026, that included the following highlights (compared with the prior year period):
Fiscal 2026 Third Quarter Highlights:
Sales increased 11% to a record $5.5 billion; organic sales increased 6.5%
Segment operating margin was 23.4%, an increase of 20 bps, or 26.7% adjusted, an increase of 40 bps
Net income was $0.9 billion, a decrease of 6% compared with the third quarter of fiscal 2025 which included a one-time discrete tax benefit of $180 million
Adjusted net income increased 16% to $1.0 billion
EPS were $7.06, a decrease of 4% compared with the third quarter of fiscal 2025 which included a one-time discrete tax benefit of $1.37
Adjusted EPS increased 18% to a record $8.17
Year-to-date cash flow from operations was a record $2.6 billion, or 16.7% of sales
Repurchased $275 million of shares in the quarter
Company increases outlook for sales and EPS
“Our global team delivered another quarter of record performance,” said Jenny Parmentier, Chairman and Chief Executive Officer. “In the third quarter, we reported record sales, adjusted segment operating income and margin, adjusted earnings per share and year-to-date operating cash flow. These results reflect the strength of our focused portfolio and our ability to use the tools in The Win Strategy™ to best serve the needs of our customers. With strong orders and record backlog, we are raising our outlook and now expect mid-teens adjusted EPS growth for the year. Our focus on being great generators and deployers of cash is underscored by our recent decision to raise our quarterly cash dividend by 11%. This extends our track record of increasing our annual dividend payout, which now stands at 70 consecutive fiscal years.”
This news release contains non-GAAP financial measures. Reconciliations of adjusted numbers and certain non-GAAP financial measures are included in the financial tables of this press release.
Outlook
Guidance for the fiscal year ending June 30, 2026 has been updated. The company expects:
Reported sales growth of 7%.
Organic sales growth of 5.5%; acquisitions of 1%, divestitures of (1%), and currency of 1.5%.
Segment operating margin of 23.9%, or 27.2% on an adjusted basis.
EPS of $27.10, or $31.20 on an adjusted basis.
Segment Results
Diversified Industrial Segment
North America Businesses |
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$ in mm | FY26 Q3 |
| FY25 Q3 |
| Change |
| Organic | ||||||
Sales | $ | 2,141 |
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| $ | 2,031 |
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| 5.4 | % |
| 2.8 | % |
Segment Operating Income | $ | 484 |
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| $ | 467 |
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| 3.6 | % |
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Segment Operating Margin |
| 22.6 | % |
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| 23.0 | % |
| -40 bps |
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Adjusted Segment Operating Income | $ | 541 |
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| $ | 513 |
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| 5.5 | % |
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Adjusted Segment Operating Margin |
| 25.3 | % |
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| 25.2 | % |
| 10 bps |
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Record adjusted segment operating margin
Organic growth of 2.8% driven by in-plant & industrial, off-highway and energy
Order rates remain strong at 7%
International Businesses |
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$ in mm | FY26 Q3 |
| FY25 Q3 |
| Change |
| Organic | ||||||
Sales | $ | 1,531 |
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| $ | 1,358 |
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| 12.7 | % |
| 3.3 | % |
Segment Operating Income | $ | 341 |
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| $ | 312 |
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| 9.3 | % |
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Segment Operating Margin |
| 22.3 | % |
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| 23.0 | % |
| -70 bps |
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Adjusted Segment Operating Income | $ | 387 |
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| $ | 340 |
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| 13.8 | % |
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Adjusted Segment Operating Margin |
| 25.3 | % |
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| 25.1 | % |
| 20 bps |
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Record sales led by Asia with 9.6% organic growth
Record adjusted segment operating margin
Order rates at 6% driven by long-cycle electronics and defense bookings
Aerospace Systems Segment
$ in mm | FY26 Q3 |
| FY25 Q3 |
| Change |
| Organic | ||||||
Sales | $ | 1,814 |
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| $ | 1,571 |
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| 15.5 | % |
| 14.2 | % |
Segment Operating Income | $ | 457 |
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| $ | 373 |
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| 22.5 | % |
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Segment Operating Margin |
| 25.2 | % |
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| 23.7 | % |
| 150 bps |
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Adjusted Segment Operating Income | $ | 536 |
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| $ | 451 |
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| 18.8 | % |
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Adjusted Segment Operating Margin |
| 29.5 | % |
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| 28.7 | % |
| 80 bps |
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Record sales on 22% commercial OEM growth and 14% aftermarket growth
Record adjusted segment operating margin
Order rates at 14%, with double-digit growth across both OEM and aftermarket
Order Rates
| FY26 Q3 | |
Parker | +9 | % |
Diversified Industrial Segment - North America Businesses | +7 | % |
Diversified Industrial Segment - International Businesses | +6 | % |
Aerospace Systems Segment | +14 | % |
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Order rates remain strong at 9% with all reported businesses generating positive growth
Backlog increased to a record $12.5 billion, with increases in both Diversified Industrial and Aerospace Systems Segments
About Parker Hannifin
Parker Hannifin is a Fortune 250 global leader in motion and control technologies. For more than a century the company has been enabling engineering breakthroughs that lead to a better tomorrow. Learn more at www.parker.com or @parkerhannifin.
Contacts: |
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Media: | Financial Analysts: |
Aidan Gormley | Jeff Miller |
216-896-3258 | 216-896-2708 |
Notice of Webcast
Parker Hannifin's conference call and slide presentation to discuss its fiscal 2026 third quarter results are available to all interested parties via live webcast today at 11:00 a.m. ET, at investors.parker.com. A replay of the webcast will be available on the site approximately one hour after the completion of the call and will remain available for one year. To register for e-mail notification of future events please visit investors.parker.com.
Note on Orders The company reported orders for the quarter ending March 31, 2026, compared with the same quarter a year ago. All comparisons are at constant currency exchange rates, with the prior year quarter restated to the current-year rates, and exclude divestitures. Diversified Industrial comparisons are on 3-month average computations and Aerospace Systems comparisons are on rolling 12-month average computations.
Note on Non-GAAP Financial Measures
This press release contains references to non-GAAP financial information including (a) adjusted net income; (b) adjusted earnings per share; (c) adjusted segment operating margin for Parker and by segment; (d) adjusted segment operating income for Parker and by segment; and (e) organic sales growth. These measures are presented to allow investors and the company to meaningfully evaluate changes in net income, earnings per share and segment operating margins on a comparable basis from period to period. Although these measures are not measures of performance calculated in accordance with GAAP, we believe that they are useful to an investor in evaluating the results of this quarter versus the prior period. Comparable descriptions of record adjusted results in this release refer only to the period from the first quarter of FY2011 to the periods presented in this release. This period coincides with recast historical financial results provided in association with our FY2014 change in segment reporting. A reconciliation of non-GAAP measures is included in the financial tables of this press release.
Forward-Looking Statements
Forward-looking statements contained in this and other written and oral reports are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties and risks. Often but not always, these statements may be identified from the use of forward-looking terminology such as “anticipates,” “believes,” “may,” “should,” “could,” “expects,” “targets,” “is likely,” “will,” or the negative of these terms and similar expressions, and may also include statements regarding future performance, orders, earnings projections, events or developments. Parker cautions readers not to place undue reliance on these statements. It is possible that the future performance may differ materially from expectations, including those based on past performance.
Among other factors that may affect future performance are: changes in business relationships with and orders by or from major customers, suppliers or distributors, including delays or cancellations in shipments; disputes regarding contract terms, changes in contract costs and revenue estimates for new development programs; changes in product mix; ability to identify acceptable strategic acquisition targets; uncertainties surrounding timing, successful completion or integration of acquisitions and similar transactions, including the pending acquisition of Filtration Group Corporation and the integration of Curtis Instruments, Inc.; ability to successfully divest businesses planned for divestiture and realize the anticipated benefits of such divestitures; the determination and ability to successfully undertake business realignment activities and the expected costs, including cost savings, thereof; ability to implement successfully business and operating initiatives, including the timing, price and execution of share repurchases and other capital initiatives; availability, cost increases of or other limitations on our access to raw materials, component products and/or commodities if associated costs cannot be recovered in product pricing; ability to manage costs related to insurance and employee retirement and health care benefits; legal and regulatory developments and other government actions, including related to environmental protection, and associated compliance costs; supply chain and labor disruptions, including as a result of tariffs and labor shortages; threats associated with international conflicts, including geopolitical tensions in the Middle East, and cybersecurity risks and risks associated with protecting our intellectual property; uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals; effects on market conditions, including sales and pricing, resulting from global reactions to U.S. trade policies; manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and economic conditions such as inflation, deflation, interest rates and credit availability; inability to obtain, or meet conditions imposed for, required governmental and regulatory approvals; changes in the tax laws in the United States and foreign jurisdictions and judicial or regulatory interpretations thereof; and large scale disasters, such as floods, earthquakes, hurricanes, industrial accidents and pandemics. Readers should also consider forward-looking statements in light of risk factors discussed in Parker’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025 and other periodic filings made with the SEC.
CONSOLIDATED STATEMENTS OF INCOME |
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| Three Months Ended |
| Nine Months Ended | ||||||||||||
(Unaudited) |
| March 31, |
| March 31, | ||||||||||||
(In millions, except per share amounts) |
| 2026 |
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| 2025 |
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| 2026 |
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| 2025 |
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Net sales |
| $ | 5,486 |
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| $ | 4,960 |
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| $ | 15,744 |
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| $ | 14,607 |
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Cost of sales |
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| 3,469 |
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| 3,130 |
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| 9,889 |
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| 9,250 |
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Selling, general and administrative expenses |
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| 884 |
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| 785 |
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| 2,594 |
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| 2,416 |
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Interest expense |
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| 99 |
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| 96 |
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| 306 |
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| 310 |
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Other expense (income), net |
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| (85 | ) |
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| (46 | ) |
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| (268 | ) |
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| (405 | ) |
Income before income taxes |
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| 1,119 |
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| 995 |
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| 3,223 |
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| 3,036 |
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Income taxes |
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| 215 |
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| 33 |
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| 666 |
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| 427 |
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Net income |
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| 904 |
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| 962 |
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| 2,557 |
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| 2,609 |
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Less: Noncontrolling interests |
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| — |
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| 1 |
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| — |
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| 1 |
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Net income attributable to common shareholders |
| $ | 904 |
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| $ | 961 |
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| $ | 2,557 |
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| $ | 2,608 |
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Earnings per share attributable to common shareholders: |
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Basic |
| $ | 7.16 |
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| $ | 7.48 |
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| $ | 20.24 |
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| $ | 20.28 |
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Diluted |
| $ | 7.06 |
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| $ | 7.37 |
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| $ | 19.95 |
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| $ | 19.97 |
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Weighted average shares outstanding: |
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Basic |
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| 126.2 |
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| 128.4 |
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| 126.3 |
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| 128.6 |
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Diluted |
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| 128.0 |
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| 130.3 |
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| 128.2 |
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| 130.6 |
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Cash dividends per common share |
| $ | 1.80 |
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| $ | 1.63 |
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| $ | 5.40 |
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| $ | 4.89 |
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BUSINESS SEGMENT INFORMATION |
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| Three Months Ended |
| Nine Months Ended | |||||||||
(Unaudited) |
| March 31, |
| March 31, | |||||||||
(Dollars in millions) |
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| 2026 |
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| 2025 |
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| 2026 |
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| 2025 |
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Net sales |
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Diversified Industrial |
| $ | 3,672 |
| $ | 3,389 |
| $ | 10,583 |
| $ | 10,098 |
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Aerospace Systems |
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| 1,814 |
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| 1,571 |
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| 5,161 |
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| 4,509 |
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Total net sales |
| $ | 5,486 |
| $ | 4,960 |
| $ | 15,744 |
| $ | 14,607 |
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Segment operating income |
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Diversified Industrial |
| $ | 825 |
| $ | 779 |
| $ | 2,438 |
| $ | 2,273 |
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Aerospace Systems |
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| 457 |
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| 373 |
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| 1,311 |
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| 1,034 |
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Total segment operating income |
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| 1,282 |
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| 1,152 |
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| 3,749 |
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| 3,307 |
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Corporate general and administrative expenses |
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| 53 |
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| 44 |
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| 155 |
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| 149 |
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Income before interest expense and other expense (income), net |
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| 1,229 |
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| 1,108 |
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| 3,594 |
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| 3,158 |
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Interest expense |
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| 99 |
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| 96 |
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| 306 |
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| 310 |
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Other expense (income), net |
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| 11 |
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| 17 |
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| 65 |
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| (188 | ) |
Income before income taxes |
| $ | 1,119 |
| $ | 995 |
| $ | 3,223 |
| $ | 3,036 |
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SUPPLEMENTAL FINANCIAL INFORMATION AND NON-GAAP RECONCILIATIONS | |||||||||||||||||||||||||||||||||
ADJUSTED SEGMENT OPERATING INCOME AND ORGANIC SALES GROWTH RECONCILIATION | |||||||||||||||||||||||||||||||||
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| Three Months Ended March 31, 2026 |
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| Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||||
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| Diversified Industrial Segment | Aerospace Systems Segment |
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| Diversified Industrial Segment | Aerospace Systems Segment |
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(Unaudited) |
| North | Int'l | Total | Total |
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| North | Int'l | Total | Total | ||||||||||||||||||||||
Net sales |
| $ | 2,141 |
| $ | 1,531 |
| $ | 3,672 |
| $ | 1,814 |
| $ | 5,486 |
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| $ | 2,031 |
| $ | 1,358 |
| $ | 3,389 |
| $ | 1,571 |
| $ | 4,960 |
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Segment operating income |
| $ | 484 |
| $ | 341 |
| $ | 825 |
| $ | 457 |
| $ | 1,282 |
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| $ | 467 |
| $ | 312 |
| $ | 779 |
| $ | 373 |
| $ | 1,152 |
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Adjustments: |
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Amortization of acquired intangibles |
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| 48 |
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| 23 |
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| 71 |
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| 77 |
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| 148 |
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| 40 |
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| 21 |
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| 61 |
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| 75 |
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| 136 |
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Business realignment charges |
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| 3 |
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| 21 |
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| 24 |
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| 1 |
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| 25 |
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| 4 |
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| 6 |
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| 10 |
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| — |
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| 10 |
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Integration costs to achieve |
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| 5 |
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| — |
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| 5 |
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| 1 |
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| 6 |
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| 2 |
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| 1 |
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| 3 |
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| 3 |
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| 6 |
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Acquisition-related expenses |
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| 1 |
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| 2 |
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| 3 |
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| — |
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| 3 |
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| — |
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| — |
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| — |
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| — |
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| — |
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Adjusted segment operating income |
| $ | 541 |
| $ | 387 |
| $ | 928 |
| $ | 536 |
| $ | 1,464 |
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| $ | 513 |
| $ | 340 |
| $ | 853 |
| $ | 451 |
| $ | 1,304 |
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Segment operating margin |
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| 22.6 | % |
| 22.3 | % |
| 22.5 | % |
| 25.2 | % |
| 23.4 | % |
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| 23.0 | % |
| 23.0 | % |
| 23.0 | % |
| 23.7 | % |
| 23.2 | % |
Adjusted segment operating margin |
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| 25.3 | % |
| 25.3 | % |
| 25.3 | % |
| 29.5 | % |
| 26.7 | % |
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| 25.2 | % |
| 25.1 | % |
| 25.2 | % |
| 28.7 | % |
| 26.3 | % |
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Reported sales growth |
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| 5.4 | % |
| 12.7 | % |
| 8.4 | % |
| 15.5 | % |
| 10.6 | % |
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Currency |
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| 0.6 | % |
| 6.7 | % |
| 3.2 | % |
| 1.3 | % |
| 2.6 | % |
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Acquisitions |
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| 2.0 | % |
| 2.7 | % |
| 2.2 | % |
| — | % |
| 1.5 | % |
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Organic sales growth |
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| 2.8 | % |
| 3.3 | % |
| 3.0 | % |
| 14.2 | % |
| 6.5 | % |
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| Nine Months Ended March 31, 2026 |
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| Nine Months Ended March 31, 2025 | ||||||||||||||||||||||||||||
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| Diversified Industrial Segment | Aerospace Systems Segment |
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| Diversified Industrial Segment | Aerospace Systems Segment |
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(Unaudited) |
| North America | Int'l | Total | Total |
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| North America | Int'l | Total | Total | ||||||||||||||||||||||
Net sales |
| $ | 6,171 |
| $ | 4,412 |
| $ | 10,583 |
| $ | 5,161 |
| $ | 15,744 |
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| $ | 6,059 |
| $ | 4,039 |
| $ | 10,098 |
| $ | 4,509 |
| $ | 14,607 |
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Segment operating income |
| $ | 1,435 |
| $ | 1,003 |
| $ | 2,438 |
| $ | 1,311 |
| $ | 3,749 |
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| $ | 1,378 |
| $ | 895 |
| $ | 2,273 |
| $ | 1,034 |
| $ | 3,307 |
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Adjustments: |
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Amortization of acquired intangibles |
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| 139 |
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| 69 |
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| 208 |
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| 228 |
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| 436 |
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| 124 |
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| 65 |
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| 189 |
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| 225 |
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| 414 |
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Business realignment charges |
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| 7 |
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| 44 |
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| 51 |
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| 2 |
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| 53 |
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| 13 |
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| 26 |
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| 39 |
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| — |
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| 39 |
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Integration costs to achieve |
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| 10 |
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| 1 |
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| 11 |
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| 2 |
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| 13 |
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| 3 |
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| 1 |
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| 4 |
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| 15 |
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| 19 |
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Acquisition-related expenses |
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| 6 |
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| 5 |
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| 11 |
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| — |
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| 11 |
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| — |
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| — |
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| — |
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| — |
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| — |
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Adjusted segment operating income |
| $ | 1,597 |
| $ | 1,122 |
| $ | 2,719 |
| $ | 1,543 |
| $ | 4,262 |
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| $ | 1,518 |
| $ | 987 |
| $ | 2,505 |
| $ | 1,274 |
| $ | 3,779 |
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Segment operating margin |
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| 23.3 | % |
| 22.7 | % |
| 23.0 | % |
| 25.4 | % |
| 23.8 | % |
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| 22.7 | % |
| 22.2 | % |
| 22.5 | % |
| 22.9 | % |
| 22.6 | % |
Adjusted segment operating margin |
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| 25.9 | % |
| 25.4 | % |
| 25.7 | % |
| 29.9 | % |
| 27.1 | % |
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| 25.0 | % |
| 24.4 | % |
| 24.8 | % |
| 28.3 | % |
| 25.9 | % |
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Reported sales growth |
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| 1.8 | % |
| 9.2 | % |
| 4.8 | % |
| 14.5 | % |
| 7.8 | % |
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Currency |
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| 0.3 | % |
| 4.4 | % |
| 1.9 | % |
| 1.0 | % |
| 1.7 | % |
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Divestitures |
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| (2.4 | )% |
| — | % |
| (1.4 | )% |
| — | % |
| (1.0 | )% |
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Acquisitions |
|
| 1.4 | % |
| 1.8 | % |
| 1.6 | % |
| — | % |
| 1.1 | % |
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Organic sales growth |
|
| 2.5 | % |
| 3.0 | % |
| 2.7 | % |
| 13.5 | % |
| 6.0 | % |
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DIVERSIFIED INDUSTRIAL INTERNATIONAL BUSINESSES - ORGANIC SALES GROWTH SUPPLEMENT | ||||||||||||||||||
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| Three Months Ended March 31, 2026 |
| Nine Months Ended March 31, 2026 | ||||||||||||||
(Unaudited) |
| Europe | Asia Pacific | Latin | Total |
| Europe | Asia Pacific | Latin | Total | ||||||||
Reported sales growth |
| 11.9 | % | 15.9 | % | (1.4 | )% | 12.7 | % |
| 8.6 | % | 11.5 | % | (0.1 | )% | 9.2 | % |
Currency |
| 9.7 | % | 2.5 | % | 6.1 | % | 6.7 | % |
| 7.3 | % | 0.7 | % | 3.4 | % | 4.4 | % |
Acquisitions |
| 2.1 | % | 3.8 | % | — | % | 2.7 | % |
| 1.4 | % | 2.7 | % | — | % | 1.8 | % |
Organic sales growth |
| 0.1 | % | 9.6 | % | (7.5 | )% | 3.3 | % |
| (0.1 | )% | 8.1 | % | (3.5 | )% | 3.0 | % |
ADJUSTED NET INCOME1 AND ADJUSTED DILUTED EARNINGS PER SHARE RECONCILIATION | ||||||||||||||||||||||||||||
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| Three Months Ended March 31, |
| Nine Months Ended March 31, | ||||||||||||||||||||||||
(Unaudited) |
| 2026 |
| 2025 |
| 2026 |
| 2025 | ||||||||||||||||||||
(Dollars in millions, except per share amounts) |
| Net | Diluted |
| Net | Diluted |
| Net | Diluted |
| Net | Diluted | ||||||||||||||||
As reported |
| $ | 904 |
| $ | 7.06 |
|
| $ | 961 |
| $ | 7.37 |
|
| $ | 2,557 |
| $ | 19.95 |
|
| $ | 2,608 |
| $ | 19.97 |
|
Adjustments: |
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|
|
|
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Amortization of acquired intangibles |
|
| 148 |
|
| 1.16 |
|
|
| 136 |
|
| 1.04 |
|
|
| 436 |
|
| 3.40 |
|
|
| 414 |
|
| 3.17 |
|
Business realignment charges |
|
| 25 |
|
| 0.19 |
|
|
| 9 |
|
| 0.08 |
|
|
| 53 |
|
| 0.41 |
|
|
| 40 |
|
| 0.31 |
|
Integration costs to achieve |
|
| 6 |
|
| 0.05 |
|
|
| 6 |
|
| 0.04 |
|
|
| 13 |
|
| 0.10 |
|
|
| 19 |
|
| 0.14 |
|
Gain on sale of building |
|
| — |
|
| — |
|
|
| — |
|
| — |
|
|
| — |
|
| — |
|
|
| (10 | ) |
| (0.08 | ) |
Gain on divestitures |
|
| — |
|
| — |
|
|
| — |
|
| — |
|
|
| — |
|
| — |
|
|
| (250 | ) |
| (1.91 | ) |
Acquisition-related expenses2 |
|
| 6 |
|
| 0.04 |
|
|
| — |
|
| — |
|
|
| 34 |
|
| 0.26 |
|
|
| — |
|
| — |
|
Insurance-related charges (recoveries) |
|
| — |
|
| — |
|
|
| 8 |
|
| 0.06 |
|
|
| (20 | ) |
| (0.15 | ) |
|
| 8 |
|
| 0.06 |
|
Tax effect of adjustments3 |
|
| (43 | ) |
| (0.33 | ) |
|
| (36 | ) |
| (0.28 | ) |
|
| (120 | ) |
| (0.92 | ) |
|
| (82 | ) |
| (0.61 | ) |
Discrete tax benefits4 |
|
| — |
|
| — |
|
|
| (180 | ) |
| (1.37 | ) |
|
| — |
|
| — |
|
|
| (180 | ) |
| (1.37 | ) |
As adjusted |
| $ | 1,046 |
| $ | 8.17 |
|
| $ | 904 |
| $ | 6.94 |
|
| $ | 2,953 |
| $ | 23.05 |
|
| $ | 2,567 |
| $ | 19.68 |
|
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1Represents net income attributable to common shareholders. | ||||||||||||||||||||||||||||
2Acquisition-related expenses include transaction costs and charges related to the fair value step up of acquired inventory. | ||||||||||||||||||||||||||||
3This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. | ||||||||||||||||||||||||||||
4 Fiscal year 2025 relates to a release of a tax valuation allowance. | ||||||||||||||||||||||||||||
CONSOLIDATED BALANCE SHEETS |
|
|
|
| ||
|
|
|
|
| ||
(Unaudited) |
| March 31, |
| June 30, | ||
(Dollars in millions) |
|
| 2026 |
|
| 2025 |
Assets |
|
|
|
| ||
Current assets: |
|
|
|
| ||
Cash and cash equivalents |
| $ | 476 |
| $ | 467 |
Trade accounts receivable, net |
|
| 3,161 |
|
| 2,910 |
Non-trade and notes receivable |
|
| 307 |
|
| 318 |
Inventories |
|
| 3,179 |
|
| 2,839 |
Prepaid expenses |
|
| 292 |
|
| 263 |
Other current assets |
|
| 193 |
|
| 153 |
Total current assets |
|
| 7,608 |
|
| 6,950 |
Property, plant and equipment, net |
|
| 2,959 |
|
| 2,937 |
Deferred income taxes |
|
| 267 |
|
| 270 |
Other long-term assets |
|
| 1,324 |
|
| 1,269 |
Intangible assets, net |
|
| 7,425 |
|
| 7,374 |
Goodwill |
|
| 11,096 |
|
| 10,694 |
Total assets |
| $ | 30,679 |
| $ | 29,494 |
|
|
|
|
| ||
Liabilities and equity |
|
|
|
| ||
Current liabilities: |
|
|
|
| ||
Notes payable and long-term debt payable within one year |
| $ | 2,813 |
| $ | 1,791 |
Accounts payable, trade |
|
| 2,296 |
|
| 2,126 |
Accrued payrolls and other compensation |
|
| 560 |
|
| 587 |
Accrued domestic and foreign taxes |
|
| 233 |
|
| 382 |
Other current liabilities |
|
| 835 |
|
| 933 |
Total current liabilities |
|
| 6,737 |
|
| 5,819 |
Long-term debt |
|
| 6,769 |
|
| 7,494 |
Pensions and other postretirement benefits |
|
| 233 |
|
| 267 |
Deferred income taxes |
|
| 1,606 |
|
| 1,490 |
Other long-term liabilities |
|
| 717 |
|
| 733 |
Shareholders' equity |
|
| 14,609 |
|
| 13,682 |
Noncontrolling interests |
|
| 8 |
|
| 9 |
Total liabilities and equity |
| $ | 30,679 |
| $ | 29,494 |
|
|
|
|
| ||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|
|
| ||||
|
|
|
|
| ||||
|
| Nine Months Ended | ||||||
(Unaudited) |
| March 31, | ||||||
(Dollars in millions) |
|
| 2026 |
|
|
| 2025 |
|
Cash flows from operating activities: |
|
|
|
| ||||
Net income |
| $ | 2,557 |
|
| $ | 2,609 |
|
Depreciation |
|
| 264 |
|
|
| 263 |
|
Amortization |
|
| 436 |
|
|
| 414 |
|
Stock-based compensation expense |
|
| 145 |
|
|
| 130 |
|
Gain on sale of businesses |
|
| (1 | ) |
|
| (253 | ) |
Net change in receivables, inventories and trade payables |
|
| (301 | ) |
|
| (102 | ) |
Net change in other assets and liabilities |
|
| (428 | ) |
|
| (515 | ) |
Other, net |
|
| (44 | ) |
|
| (237 | ) |
Net cash provided by operating activities |
|
| 2,628 |
|
|
| 2,309 |
|
Cash flows from investing activities: |
|
|
|
| ||||
Acquisitions, net of cash acquired |
|
| (1,014 | ) |
|
| — |
|
Capital expenditures |
|
| (286 | ) |
|
| (304 | ) |
Proceeds from sale of property, plant and equipment |
|
| 37 |
|
|
| 32 |
|
Proceeds from sale of businesses |
|
| 1 |
|
|
| 623 |
|
Other, net |
|
| 23 |
|
|
| (6 | ) |
Net cash (used in) provided by investing activities |
|
| (1,239 | ) |
|
| 345 |
|
Cash flows from financing activities: |
|
|
|
| ||||
Payments for common shares |
|
| (1,007 | ) |
|
| (860 | ) |
Net proceeds from (payments for) debt |
|
| 321 |
|
|
| (1,194 | ) |
Dividends paid |
|
| (683 | ) |
|
| (630 | ) |
Other, net |
|
| (1 | ) |
|
| 3 |
|
Net cash used in financing activities |
|
| (1,370 | ) |
|
| (2,681 | ) |
Effect of exchange rate changes on cash |
|
| (10 | ) |
|
| 14 |
|
Net increase (decrease) in cash and cash equivalents |
|
| 9 |
|
|
| (13 | ) |
Cash and cash equivalents at beginning of year |
|
| 467 |
|
|
| 422 |
|
Cash and cash equivalents at end of period |
| $ | 476 |
|
| $ | 409 |
|
|
|
|
|
| ||||
RECONCILIATION OF FORECASTED REPORTED SALES GROWTH TO FORECASTED ORGANIC SALES GROWTH |
| |
|
|
|
(Unaudited) |
|
|
(Amounts in percentages) |
| Fiscal Year 2026 |
Forecasted reported sales growth |
| ~7% |
Adjustments: |
|
|
Currency |
| ~(1.5%) |
Acquisitions |
| ~(1%) |
Divestitures |
| ~1% |
Forecasted organic sales growth |
| ~5.5% |
|
|
|
RECONCILIATION OF FORECASTED SEGMENT OPERATING MARGIN TO ADJUSTED FORECASTED SEGMENT OPERATING MARGIN | ||
|
|
|
(Unaudited) |
|
|
(Amounts in percentages) |
| Fiscal Year 2026 |
Forecasted segment operating margin | ~23.9% | |
Adjustments: |
| |
Business realignment charges | ~0.3% | |
Amortization of acquired intangibles |
| ~2.8% |
Integration costs to achieve |
| ~0.1% |
Acquisition-related expenses |
| ~0.1% |
Adjusted forecasted segment operating margin | ~27.2% | |
|
|
|
RECONCILIATION OF FORECASTED EARNINGS PER DILUTED SHARE TO ADJUSTED FORECASTED EARNINGS PER DILUTED SHARE | ||
|
|
|
(Unaudited) |
|
|
(Amounts in dollars) |
| Fiscal Year 2026 |
Forecasted earnings per diluted share | ~$27.10 | |
Adjustments: |
| |
Business realignment charges | 0.53 | |
Amortization of acquired intangibles |
| 4.56 |
Acquisition-related expenses |
| 0.26 |
Integration costs to achieve |
| 0.13 |
Insurance-related charges (recoveries) |
| (0.16) |
Tax effect of adjustments1 |
| (1.22) |
Adjusted forecasted earnings per diluted share | ~$31.20 | |
|
|
|
1This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. We estimate the tax effect of each adjustment item by applying our overall effective tax rate for continuing operations to the pre-tax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. | ||
|
|
|
Note: Totals may not foot due to rounding | ||
