Parker-Hannifin Corp. reported a higher-revenue but lower-profit fiscal third quarter for the period ended March 31, 2026, as acquisition contributions, currency effects and stronger demand lifted sales while margins were pressured by mix, costs and realignment activity. For the three months ended March 31, 2026, Parker reported net sales of $5.486 billion, up from $4.960 billion in the comparable 2025 quarter. The company said sales increased in both its Aerospace Systems and Diversified Industrial segments. Foreign currency changes added about $125 million to quarterly sales, while the acquisition of Curtis contributed about $76 million. Despite the revenue increase, net income attributable to common shareholders declined to $904 million from $962 million a year earlier. For the first nine months of fiscal 2026, net sales rose to $15.744 billion from $14.607 billion, while net income attributable to common shareholders slipped to $2.557 billion from $2.609 billion. Parker’s gross profit margin was 36.8% in the quarter, essentially flat with 36.9% a year earlier. For the first nine months, gross margin improved to 37.2% from 36.7%. Selling, general and administrative expenses increased to $884 million in the quarter from $785 million, and to $2.594 billion for the first nine months from $2.416 billion. The company attributed the SG&A increase primarily to higher stock-based compensation expense, acquisition-related expenses, research and development spending, and amortization of intangible assets. The filing also highlighted business realignment and acquisition integration costs. Cost of sales included $17 million of such charges in the quarter, compared with $4 million a year earlier, and $35 million for the first nine months, compared with $21 million. SG&A included another $14 million of realignment and integration charges in the quarter, compared with $12 million a year earlier, and $31 million for the nine-month period, compared with $38 million. Parker said these costs were tied largely to its simplification initiative, severance actions, and plant closures, particularly in Europe within the Diversified Industrial international businesses. In the Diversified Industrial segment, quarterly sales rose to $3.672 billion from $3.389 billion, while operating income increased to $825 million from $779 million. For the first nine months, segment sales increased to $10.583 billion from $10.098 billion, and operating income rose to $2.438 billion from $2.273 billion. The North America businesses generated $2.141 billion of quarterly sales, up from $2.031 billion, while international businesses generated $1.531 billion, up from $1.358 billion. The Curtis acquisition added about $76 million to Diversified Industrial quarterly sales and $161 million for the first nine months; currency added about $105 million in the quarter and $199 million for the nine-month period. Divestitures reduced first-nine-month segment sales by about $146 million. Parker said Diversified Industrial operating margin declined in the quarter because of unfavorable product mix, higher realignment charges, increased amortization of acquired intangibles, and higher material costs, partly offset by favorable pricing. For the nine-month period, however, the segment’s margin improved due to favorable mix, benefits from prior-year realignment actions and pricing gains. The company said it expects workforce reduction actions taken in the first nine months of fiscal 2026 to have no material effect on fiscal 2026 operating income, but to increase fiscal 2027 operating income by approximately 1%. It also expects about $15 million of additional business realignment charges during the remainder of fiscal 2026.