Donaldson Company, Inc. · DCI · FY2026 Q2 · Calendar Q1 2026

Donaldson Maintains Outlook as Facet Deal and Backlog Support Growth

Donaldson's operating outlook remains constructive but execution-dependent: resilient demand and backlogs support growth, while the Facet acquisition and footprint actions are intended to strengthen the trajectory. The main test is whether management can convert those initiatives into the expected margin improvement without a deeper slowdown in weaker areas.

Reported Before market openNYSEIndustrials $10.17B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $0.83 Consensus $0.90
EPS surprise -7.8% Reported versus consensus
Reported revenue $896.3M Consensus $898.7M
Revenue surprise -0.3% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move -11.7% Event window
SPY move -0.6% Same window
Abnormal move -11.2% Stock minus SPY
Volume 3.4× Versus trailing sessions
Subsequent drift -8.1% Up to 20 sessions
DCISPY benchmark

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Transcript intelligence

What changed

The company added the Facet acquisition as a significant strategic growth initiative and reported continued demand in Power Generation, Mobile Solutions, and Life Sciences. At the same time, footprint optimization created near-term gross-margin pressure, and Aerospace & Defense guidance was lowered because of project timing.

Guidance delta

Full-year guidance was maintained after being raised in the prior quarter; management continues to expect second-half margin improvement.

Key takeaways

  • Record quarterly sales reflected demand across Mobile Solutions, Industrial Solutions, and Life Sciences.
  • Management described the Facet acquisition as a major expansion into high-margin filtration markets.
  • Near-term margin pressure from footprint optimization contrasts with expected second-half benefits.
  • Power Generation, aftermarket demand, backlogs, and AI-related disk-drive demand remain key supports.

Management priorities

  • Complete the Facet acquisition and integrate the business.
  • Finish plant closures and realize footprint-optimization benefits.
  • Ramp Mexico capacity for Power Generation.
  • Continue product and technology investment while maintaining capital returns.

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Earnings History

Estimate Beat Miss Match
DCI EPS earnings history estimate and actual scatter chart 10 reported fiscal quarters and 4 future estimate-only quarters. Q3 '24 estimate $0.84 Q3 '24 actual $0.92, beat Q4 '24 estimate $0.89 Q4 '24 actual $0.94, beat Q3 '25 estimate $0.95 Q3 '25 actual $0.99, beat Q4 '25 estimate $1.02 Q4 '25 actual $1.03, match Q1 '26 estimate $0.92 Q1 '26 actual $0.94, beat Q2 '26 estimate $0.90 Q2 '26 actual $0.83, miss Q3 '26 estimate $1.05 Q3 '26 actual $1.06, match Q4 '26 estimate $1.13 Q4 '26 actual $1.15, beat Q1 '27 estimate $0.97 Q2 '27 estimate $0.89 Q3 '27 estimate $1.17 Q4 '27 estimate $1.29
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Analyst Consensus ?

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

Analyst 52W Price Targets

$89.31Current
$63Low
$92.45Average
$123High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 2, 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
Edward Jones Buy HoldUpgradeMar 29, 2018
Gabelli & Co. Buy NeutralUpgradeMar 7, 2018
CL King Buy BuyMaintainJun 8, 2016
Avondale Partners Market Perform Market PerformMaintainMar 21, 2016
SunTrust Robinson Humphrey Neutral NeutralMaintainNov 3, 2015
Bank of America Underperform BuyDowngradeOct 29, 2013
B of A Securities Underperform BuyDowngradeOct 29, 2013
BMO Capital Underperform Market PerformDowngradeJul 31, 2013
Oppenheimer Perform PerformMaintainOct 19, 2012
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Named analyst price targets

Upside is calculated against the persisted current price $89.31. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Morgan StanleyAnalyst unavailable$95$87.78 +6.4%Sep 29, 2026
Stifel NicolausAnalyst unavailable$95$91.55 +6.4%Aug 28, 2026
Robert W. BairdAnalyst unavailable$105$93.97 +17.6%Aug 19, 2026
Stifel NicolausAnalyst unavailable$91$85.24 +1.9%Jun 4, 2026
Wells FargoAnalyst unavailable$91$85.24 +1.9%Jun 4, 2026
Morgan StanleyAngel Castillo$91$88.95 +1.9%Mar 9, 2026
UBSAnalyst unavailable$96$106.96 +7.5%Feb 24, 2026
JefferiesAnalyst unavailable$123$101.13 +37.7%Feb 2, 2026
Robert W. BairdAnalyst unavailable$110$101.77 +23.2%Feb 2, 2026
JefferiesAnalyst unavailable$120$93.02 +34.4%Jan 9, 2026
Robert W. BairdAnalyst unavailable$100$94.16 +12.0%Dec 5, 2025
Stifel NicolausAdam Farley$96$94.16 +7.5%Dec 5, 2025
Robert W. BairdAnalyst unavailable$96$88.16 +7.5%Dec 3, 2025
Morgan StanleyAnalyst unavailable$84$88.53 -5.9%Nov 24, 2025
Stifel NicolausAdam Farley$90$87.68 +0.8%Nov 24, 2025
Robert W. BairdAnalyst unavailable$85$79.67 -4.8%Aug 29, 2025
Stifel NicolausAnalyst unavailable$84$80.12 -5.9%Aug 28, 2025
Stifel NicolausNathan Jones$63$63.4 -29.5%Apr 14, 2025
Robert W. BairdRichard Eastman$81$77.74 -9.3%Dec 2, 2024
JefferiesLaurence Alexander$81$72.59 -9.3%Jun 4, 2024
Robert W. BairdRichard Eastman$79$73.68 -11.5%Jun 3, 2024
Morgan StanleyAngel Castillo$62$72.46 -30.6%Apr 15, 2024
Robert W. BairdRichard Eastman$80$74.17 -10.4%Apr 11, 2024
Morgan StanleyAnalyst unavailable$66$60.75 -26.1%Dec 1, 2022
Stifel NicolausNathan Jones$51$48.71 -42.9%Jul 18, 2022
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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 · 2026-07-26T00:36:15.940040+00:00
  3. Polygon adjusted daily market bars · 2026-10-02T13:16:09.169095+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-02T13:16:09.166030+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 2026-10-02. For educational purposes only; not investment advice.