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

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

Donaldson Stock Down 11.1%

DCI stock traded down $11.61 during midday trading on Thursday, reaching $92.81. 1,999,419 shares of the company were exchanged, compared to its average volume of 749,199. The company has a market cap of $10.70 billion, a price-to-earnings ratio of 28.87, a price-to-earnings-growth ratio of 2.64 and a beta of 1.00. The company has a debt-to-equity ratio of 0.44, a quick ratio of 1.39 and a current ratio of 2.15. Donaldson has a 1-year low of $57.45 and a 1-year high of $112.84. The stock’s 50-day simple moving average is $99.99 and its 200 day simple moving average is $89.08.

Donaldson Announces Dividend

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

Donaldson News Summary

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 analysts have recently commented on the stock. Jefferies Financial Group upped their price objective on shares of Donaldson to $123.00 and gave the stock a “buy” rating in a report on Monday, February 2nd. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Donaldson in a research note on Friday, January 9th. Stifel Nicolaus increased their target price on Donaldson from $90.00 to $96.00 and gave the stock a “hold” rating in a research note on Friday, December 5th. Robert W. Baird set a $110.00 target price on Donaldson in a research report on Monday, February 2nd. Finally, Morgan Stanley upgraded shares of Donaldson from an “underweight” rating to an “equal weight” rating and boosted their price target for the stock from $72.00 to $84.00 in a research note on Monday, November 24th. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $101.80.

Insiders Place Their Bets

In other Donaldson news, CFO Bradley J. Pogalz sold 566 shares of the company’s 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 transaction, the chief financial officer owned 434 shares in the company, valued at $39,741.38. This represents a 56.60% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Ajita G. Rajendra sold 19,800 shares of Donaldson stock in a transaction dated Friday, December 5th. The stock was sold at an average price of $92.04, for a total value 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 position. Additional details regarding this sale are available in the official SEC disclosure. 2.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Donaldson

Large investors have recently modified their holdings of the stock. Invesco Ltd. increased its stake in Donaldson by 1.6% in 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 during the period. Corient Private Wealth LLC boosted its holdings in shares of Donaldson by 294.3% in the fourth quarter. Corient Private Wealth LLC now owns 169,948 shares of the industrial products company’s stock valued at $15,068,000 after acquiring an additional 126,849 shares in the last quarter. Strive Financial Group LLC acquired a new position in shares of Donaldson during the fourth quarter worth about $57,000. Mercer Global Advisors Inc. ADV raised its holdings in Donaldson by 17.7% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 19,369 shares of the industrial products company’s stock worth $1,717,000 after purchasing an additional 2,917 shares in the last quarter. Finally, Wealthspire Retirement LLC purchased a new position in Donaldson during the fourth quarter worth about $209,000. Hedge funds and other institutional investors own 82.81% of the company’s stock.

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.