Parker Hannifin (Parker Hannifin (PH)) just gave investors a lot to like. The industrial giant reported fiscal third-quarter results that beat expectations, raised its full-year outlook, and revealed a record backlog of $12.5 billion. Oh, and it also hiked its dividend for the 70th year in a row. Not bad for a quarter.

Let's start with the numbers. Adjusted earnings per share came in at $8.17, topping the $7.83 analysts were looking for. Revenue hit $5.486 billion, also ahead of the $5.400 billion estimate, and that's an 11% jump from last year. Organic growth contributed 6.5 percentage points of that increase. On a GAAP basis, EPS was $7.06, down 4% from a year ago, but that's because the prior year had a one-time tax benefit. Adjusted net income rose 16% to $1.0 billion.

Margins are looking healthy too. Segment operating margin was 23.4%, up 20 basis points, and on an adjusted basis it was 26.7%, up 40 basis points. Year-to-date operating cash flow hit a record $2.6 billion, or 16.7% of sales. The company also bought back $275 million of its own shares during the quarter.

Demand is strong across the board. Orders increased 9% overall, with Aerospace up 14%, North America Industrial up 7%, and International Industrial up 6%. That order strength helped push backlog to a record $12.5 billion, which gives Parker good visibility into future revenue.

Breaking down the segments: Diversified Industrial North America posted sales of $2.14 billion with a 22.6% margin, while International contributed $1.53 billion with a 22.3% margin. Aerospace Systems was the standout, with sales up 15.5% to $1.81 billion and margin expanding to 25.2%. Within Aerospace, commercial OEM grew 22% and aftermarket increased 14%.

Chairman and CEO Jenny Parmentier summed it up: "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." She added, "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."

Speaking of the outlook, Parker raised its full-year 2026 guidance. GAAP EPS is now expected to be $27.10, up from the prior range of $26.26 to $26.86 and above the $26.95 consensus. Adjusted EPS guidance was lifted to $31.20 from $30.40–$31.00, compared with the $30.96 estimate. Sales guidance was narrowed to about $21.24 billion, versus the previous range of $20.942 billion to $21.339 billion and the $21.276 billion consensus. The company also expects segment operating margin of 23.9%, or 27.2% on an adjusted basis.

Of course, no outlook is without risks. Parker cited potential headwinds from tariffs, supply chain disruptions, inflation, and geopolitical factors. But for now, the trajectory is clearly upward.

Investors seemed to focus on the stock's recent run-up rather than the good news. Shares were down 5.39% at $896.46 on Thursday, but the stock is still up nearly 48% over the past 12 months. That's a pretty solid return for a company that just raised its dividend for the 70th consecutive year.