Donaldson (NYSE:DCI) Releases Earnings Results, Misses Expectations By $0.07 EPS

Donaldson (NYSE:DCI) announced its quarterly earnings data on Wednesday. The industrial products company reported $0.83 earnings per share for the quarter, missing analysts’ consensus estimates of $0.90 by ($0.07), FiscalAI reports. The business had revenue of $896.30 million for the quarter, compared to analyst estimates of $898.64 million. Donaldson had a return on equity of 30.24% and a net margin of 10.25%.The company’s revenue was up 3.0% on a year-over-year basis. During the same period in the prior year, the company earned $0.83 EPS.

Donaldson Trading Down 11.1%

Shares of DCI traded down $11.61 on Thursday, hitting $92.81. 1,999,419 shares of the stock traded hands, compared to its average volume of 749,199. The firm has a market capitalization of $10.70 billion, a P/E ratio of 28.87, a P/E/G ratio of 2.64 and a beta of 1.00. The company has a quick ratio of 1.39, a current ratio of 2.15 and a debt-to-equity ratio of 0.44. Donaldson has a 1 year low of $57.45 and a 1 year high of $112.84. The stock’s 50 day moving average is $99.99 and its two-hundred day moving average is $89.08.

Donaldson Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Thursday, February 12th will be given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend is Thursday, February 12th. Donaldson’s payout ratio is currently 37.38%.

More Donaldson News

Here are the key news stories impacting Donaldson this week:

• Positive Sentiment: Modest top-line growth and continued profitability — Q2 revenue rose ~3% year-over-year and the company reported positive GAAP net earnings for the quarter, supporting that underlying demand hasn’t collapsed. Donaldson Reports Second Quarter Fiscal Year 2026 Sales and Earnings
• Positive Sentiment: Management expects the recent Facet Filtration acquisition to be accretive by FY2027, which could improve long-term growth and margins if integration goes as planned. Rich Multiple And Weak Results Put Donaldson In The Penalty Box
• Neutral Sentiment: Full Q2 earnings call/transcript and slides are available for investors who want management’s detail on demand trends and cost actions. Use the transcript/slides to assess guidance drivers and segment commentary. Donaldson (DCI) Q2 2026 Earnings Call Transcript
• Negative Sentiment: Earnings and revenue missed expectations — Q2 EPS of $0.83 missed the ~$0.90 consensus and revenue came in slightly below estimates, prompting investor concern about near-term performance. Donaldson shares sink after revenue miss, lowered profit outlook
• Negative Sentiment: Management trimmed FY2026 guidance — updated EPS and revenue ranges fell short of Street expectations, signaling a more cautious near-term outlook and reducing analyst optimism. Donaldson shares sink after revenue miss, lowered profit outlook
• Negative Sentiment: Margin compression and weaker aftermarket demand — management flagged margin pressure (especially in Industrial Solutions) and softer aftermarket volumes, which reduce near-term profit leverage. Rich Multiple And Weak Results Put Donaldson In The Penalty Box
• Negative Sentiment: Acquisition increases leverage and valuation concerns — the Facet deal lifts net leverage to ~1.8–2.0x and was done at a premium, raising short-term balance-sheet and multiple risk until accretion materializes. Rich Multiple And Weak Results Put Donaldson In The Penalty Box
• Negative Sentiment: Short interest is rising — short positions increased meaningfully in February, which can amplify downside on weak news and increase volatility. MarketBeat DCI Page

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on DCI shares. Jefferies Financial Group boosted their target price on shares of Donaldson to $123.00 and gave the stock a “buy” rating in a research report on Monday, February 2nd. UBS Group set a $96.00 target price on shares of Donaldson in a research report on Tuesday. Morgan Stanley raised shares of Donaldson from an “underweight” rating to an “equal weight” rating and increased their target price for the company from $72.00 to $84.00 in a report on Monday, November 24th. Stifel Nicolaus lifted their price target on shares of Donaldson from $90.00 to $96.00 and gave the company a “hold” rating in a research report on Friday, December 5th. Finally, Robert W. Baird set a $110.00 price objective on Donaldson in a report on Monday, February 2nd. Three analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $101.80.

Insiders Place Their Bets

In other news, Director Ajita G. Rajendra sold 19,800 shares of the firm’s stock in a transaction on Friday, December 5th. The stock was sold at an average price of $92.04, for a total transaction of $1,822,392.00. Following the sale, the director owned 43,993 shares in the company, valued at $4,049,115.72. This trade represents a 31.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Bradley J. Pogalz sold 566 shares of Donaldson stock in a transaction on Tuesday, December 9th. The shares were sold at an average price of $91.57, for a total value of $51,828.62. Following the completion of the sale, the chief financial officer directly owned 434 shares of the company’s stock, valued at approximately $39,741.38. This represents a 56.60% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 2.20% of the company’s stock.

Institutional Investors Weigh In On Donaldson

A number of institutional investors have recently bought and sold shares of the stock. Invesco Ltd. increased its position in Donaldson by 1.6% during the fourth quarter. Invesco Ltd. now owns 1,355,944 shares of the industrial products company’s stock worth $120,218,000 after purchasing an additional 21,268 shares during the last quarter. Corient Private Wealth LLC boosted its holdings in shares of Donaldson by 294.3% in the 4th quarter. Corient Private Wealth LLC now owns 169,948 shares of the industrial products company’s stock valued at $15,068,000 after purchasing an additional 126,849 shares during the last quarter. Strive Financial Group LLC purchased a new stake in shares of Donaldson during the 4th quarter valued at $57,000. Mercer Global Advisors Inc. ADV increased its holdings in shares of Donaldson by 17.7% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 19,369 shares of the industrial products company’s stock worth $1,717,000 after buying an additional 2,917 shares during the last quarter. Finally, Wealthspire Retirement LLC acquired a new stake in shares of Donaldson during the 4th quarter worth $209,000. 82.81% of the stock is currently owned by hedge funds and other institutional investors.

Donaldson Company Profile

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.