Donaldson (NYSE:DCI) Releases Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Donaldson (NYSE:DCI) announced its quarterly earnings data on Tuesday. The industrial products company reported $1.06 EPS for the quarter, topping the consensus estimate of $1.05 by $0.01, FiscalAI reports. The company had revenue of $995.10 million during the quarter, compared to the consensus estimate of $973.65 million. Donaldson had a net margin of 11.52% and a return on equity of 29.17%. The company’s quarterly revenue was up 5.9% on a year-over-year basis. During the same quarter last year, the firm posted $0.99 EPS. Donaldson updated its FY 2026 guidance to 3.940-4.010 EPS.

Here are the key takeaways from Donaldson’s conference call:

• Donaldson posted its strongest quarter to date on sales, adjusted operating margin, and adjusted EPS, with record sales of $995 million, operating margin of 16.6%, and adjusted EPS of $1.06.
• Mobile Solutions was a standout, with sales up 8% as aftermarket growth accelerated across regions and channels, including a major North America fleet win that management said should create future pull-through opportunities.
• Industrial Solutions remained pressured by temporary operational inefficiencies tied to power generation production shifts and footprint optimization, but management said the quarter was the low point and expects recovery through fiscal 2027.
• The company completed its Facet Filtration acquisition, which expands exposure to aerospace and power generation and adds a business with about 70% recurring aftermarket revenue; management also sees potential procurement and commercial synergies over time.
• Donaldson raised its full-year outlook, now expecting 3% to 5% organic sales growth, adjusted operating margin of 15.8% to 16.2%, and adjusted EPS of $3.94 to $4.01 excluding Facet, while maintaining strong cash conversion and balance-sheet flexibility.

Donaldson Price Performance

Shares of NYSE:DCI opened at $85.32 on Thursday. The company has a current ratio of 2.35, a quick ratio of 1.46 and a debt-to-equity ratio of 0.35. The stock’s fifty day simple moving average is $85.82 and its two-hundred day simple moving average is $91.78. Donaldson has a 1-year low of $67.71 and a 1-year high of $112.84. The stock has a market cap of $9.88 billion, a PE ratio of 22.93, a price-to-earnings-growth ratio of 2.16 and a beta of 0.95.

Donaldson Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be paid a dividend of $0.32 per share. This is a boost from Donaldson’s previous quarterly dividend of $0.30. The ex-dividend date is Monday, June 15th. This represents a $1.28 annualized dividend and a yield of 1.5%. Donaldson’s dividend payout ratio (DPR) is 37.50%.

Analysts Set New Price Targets

Several brokerages have recently commented on DCI. UBS Group set a $96.00 price objective on shares of Donaldson in a research report on Tuesday, February 24th. Robert W. Baird cut their target price on Donaldson from $104.00 to $95.00 and set an “outperform” rating on the stock in a report on Monday, March 30th. Weiss Ratings cut Donaldson from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, April 15th. Morgan Stanley cut their target price on Donaldson from $93.00 to $91.00 and set an “equal weight” rating on the stock in a report on Monday, March 9th. Finally, Wall Street Zen cut Donaldson from a “buy” rating to a “hold” rating in a report on Saturday, March 7th. Two equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, Donaldson currently has a consensus rating of “Hold” and an average target price of $100.20.

Insiders Place Their Bets

In other Donaldson news, Director James Owens sold 13,753 shares of the firm’s stock in a transaction on Tuesday, April 14th. The stock was sold at an average price of $89.21, for a total transaction of $1,226,905.13. Following the transaction, the director directly owned 22,565 shares in the company, valued at approximately $2,013,023.65. This trade represents a 37.87% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In the last quarter, insiders sold 19,800 shares of company stock worth $1,765,184. 2.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Donaldson

Several large investors have recently made changes to their positions in the business. State Street Corp increased its holdings in Donaldson by 0.7% in the 2nd quarter. State Street Corp now owns 5,221,808 shares of the industrial products company’s stock worth $362,132,000 after acquiring an additional 36,866 shares during the last quarter. Morgan Stanley increased its holdings in Donaldson by 1.9% in the 4th quarter. Morgan Stanley now owns 2,542,166 shares of the industrial products company’s stock worth $225,389,000 after acquiring an additional 47,062 shares during the last quarter. Fuller & Thaler Asset Management Inc. increased its holdings in Donaldson by 22.0% in the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 2,109,595 shares of the industrial products company’s stock worth $187,037,000 after acquiring an additional 380,419 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in Donaldson by 0.8% during the 4th quarter. Dimensional Fund Advisors LP now owns 2,010,010 shares of the industrial products company’s stock valued at $178,224,000 after buying an additional 15,799 shares in the last quarter. Finally, Invesco Ltd. grew its holdings in Donaldson by 1.6% during the 4th quarter. Invesco Ltd. now owns 1,355,944 shares of the industrial products company’s stock valued at $120,218,000 after buying an additional 21,268 shares in the last quarter. 82.81% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Donaldson

Here are the key news stories impacting Donaldson this week:

• Positive Sentiment: Donaldson posted fiscal Q3 EPS of $1.06, edging past estimates, while revenue of $995.1 million also beat forecasts and rose 5.9% year over year. Donaldson Reports Record Third Quarter Fiscal 2026 Sales and Earnings
• Positive Sentiment: The company said it is seeing margin recovery and described the quarter’s issues as largely execution-related rather than a broader demand problem, which should reassure investors about the underlying business. DCI Q3 Earnings Call Highlights Margin Recovery, Facet Deal
• Positive Sentiment: Donaldson also raised its quarterly dividend by 6.7%, reinforcing confidence in cash generation and shareholder returns. Donaldson Rewards Shareholders With 6.7% Dividend Increase
• Neutral Sentiment: The company narrowed FY2026 EPS guidance to $3.94-$4.01, which is broadly in line with expectations but not a major upside surprise. DCI Q3 Earnings Call Highlights Margin Recovery, Facet Deal
• Neutral Sentiment: Donaldson’s acquisition of Facet adds expected Q4 sales and future annualized benefits, but investors are still waiting to see how quickly those synergies show up in results. Donaldson forecasts 3%-5% organic sales growth as Facet adds $25M-$30M in Q4 sales and $10M annualized benefits target in fiscal 2027
• Negative Sentiment: Despite the strong quarter, management’s guidance was only modestly above consensus on revenue and roughly in line on EPS, which may limit upside if investors were hoping for a bigger outlook raise. Press Release

About Donaldson

Donaldson Company, Inc (NYSE: DCI) is a global provider of filtration systems and replacement parts for a wide range of industries. The company develops and manufactures air, liquid and gas filtration solutions for engine and industrial applications, helping customers improve performance, lower emissions and extend equipment life. Donaldson’s product portfolio includes engine air intake filters, fuel filters, hydraulic filters, compressor filters, dust collection systems and gas turbine air intake systems.

Serving markets such as agriculture, construction, mining, power generation, aerospace and original equipment manufacturing, Donaldson operates through two primary business segments: Engine Products and Industrial Products.