Donaldson Company, Inc. · DCI · FY2026 Q1 · Calendar Q4 2025

Donaldson raises FY2026 outlook as aftermarket demand supports margins

The supplied analysis supports a constructive but conditional view: resilient aftermarket demand, power-generation exposure, secular filtration opportunities, and cost actions are supporting earnings growth. The case remains dependent on execution and on cyclical and trade-sensitive markets not weakening materially.

Reported Before market openNYSEIndustrials $10.34B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $0.94 Consensus $0.92
EPS surprise +1.8% Reported versus consensus
Reported revenue $935.4M Consensus $922.9M
Revenue surprise +1.3% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move +7.5% Event window
SPY move +0.1% Same window
Abnormal move +7.4% Stock minus SPY
Volume 1.4× Versus trailing sessions
Subsequent drift -3.3% Up to 20 sessions
DCISPY benchmark

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What changed

Compared with the prior-quarter analysis, management moved from maintained guidance to a raised full-year outlook. The current analysis also emphasizes a lower tariff impact, continued margin expansion, and specific connected-dust-collector and filtration technology initiatives.

Guidance delta

Management raised its full-year outlook, with confidence tied to aftermarket share gains, power-generation demand, footprint optimization, and lower tariff impact.

Key takeaways

  • Record quarterly sales and operating margin marked a stronger starting point for FY2026.
  • Management pointed to aftermarket gains, data-center-related power-generation demand, and secular food-and-beverage and disk-drive demand.
  • Margin improvement is expected to benefit from footprint optimization and reduced tariff impact, while cyclical exposures remain.

Management priorities

  • Expand aftermarket and connected filtration solutions.
  • Invest in R&D for solvent recovery, disk-drive, air, and alternative-fuel filtration technologies.
  • Complete footprint optimization and pursue disciplined M&A while continuing shareholder returns.

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Earnings History

Estimate Beat Miss Match
DCI REVENUE earnings history estimate and actual scatter chart 10 reported fiscal quarters and 4 future estimate-only quarters. Q1 '24 estimate $855M Q1 '24 actual $846M, miss Q2 '24 estimate $874M Q2 '24 actual $877M, beat Q3 '24 estimate $916M Q3 '24 actual $928M, beat Q4 '24 estimate $943M Q4 '24 actual $935M, miss Q3 '25 estimate $933M Q3 '25 actual $940M, beat Q4 '25 estimate $951M Q4 '25 actual $981M, beat Q1 '26 estimate $923M Q1 '26 actual $935M, beat Q2 '26 estimate $899M Q2 '26 actual $896M, miss Q3 '26 estimate $974M Q3 '26 actual $995M, beat Q4 '26 estimate $1B Q4 '26 actual $1B, beat Q1 '27 estimate $1B Q2 '27 estimate $979M Q3 '27 estimate $1B Q4 '27 estimate $1B
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Analyst Consensus ?

ConsensusHold14 ratings
Bullish535.7%
Neutral642.9%
Bearish321.4%

Analyst 52W Price Targets

$90.2Current
$63Low
$92.45Average
$123High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 6, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
Morgan Stanley Equal Weight Equal WeightMaintainSep 29, 2026
Baird Outperform OutperformMaintainAug 27, 2026
Stifel Hold HoldMaintainJun 4, 2026
Jefferies Buy BuyMaintainFeb 3, 2026
Stifel Nicolaus Hold HoldMaintainSep 14, 2018
Show 9 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $90.2. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Morgan StanleyAnalyst unavailable$95$87.78 +5.3%Sep 29, 2026
Stifel NicolausAnalyst unavailable$95$91.55 +5.3%Aug 28, 2026
Robert W. BairdAnalyst unavailable$105$93.97 +16.4%Aug 19, 2026
Stifel NicolausAnalyst unavailable$91$85.24 +0.9%Jun 4, 2026
Wells FargoAnalyst unavailable$91$85.24 +0.9%Jun 4, 2026
See 20 more

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Company context

Snapshot as of publication

Donaldson Company, Inc. (DCI) is a global enterprise that develops, manufactures, and distributes an extensive range of filtration systems and their corresponding replacement parts. The company's operations are strategically divided into two core business units: Engine Products and Industrial Products. The Engine Products division provides a variety of solutions, including replacement filters for both air and liquid filtration needs, comprehensive air filtration systems, and specialized liquid filtration systems designed for fuel, lubrication, and hydraulic applications. This segment also offers exhaust and emissions control technologies, alongside a suite of sensors, indicators, and monitoring systems. Its clientele primarily consists of Original Equipment Manufacturers (OEMs) within the construction, mining, agriculture, aerospace, defense, and transportation industries.…

Historical context

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-10-06T15:40:45.450015+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-06T15:40:45.447283+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-06. For educational purposes only; not investment advice.