Donaldson (NYSE:DCI) Releases FY 2026 Earnings Guidance

Key Points

• Donaldson has issued its FY 2026 earnings guidance with an EPS range of $3.920-4.080, exceeding the consensus estimate of $3.665.
• In the latest reports, several analysts have rated Donaldson with mixed opinions, including an "underweight" from Morgan Stanley and an "outperform" from Robert W. Baird, leading to a consensus rating of "Hold".
• The company announced a quarterly dividend of $0.30, which represents an annualized dividend of $1.20 and a yield of 1.6%.

Donaldson (NYSE:DCI - Get Free Report) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 3.920-4.080 for the period, compared to the consensus estimate of 3.665. The company issued revenue guidance of $3.8 billion-$3.8 billion, compared to the consensus revenue estimate of $3.7 billion.

Wall Street Analysts Forecast Growth

Several analysts have commented on the stock. Morgan Stanley restated an "underweight" rating and set a $69.00 price objective (up from $65.00) on shares of Donaldson in a research note on Friday, June 6th. Stifel Nicolaus raised their target price on shares of Donaldson from $69.00 to $84.00 and gave the stock a "hold" rating in a report on Thursday. Robert W. Baird upped their price target on shares of Donaldson from $78.00 to $85.00 and gave the company an "outperform" rating in a report on Friday. Finally, Wall Street Zen downgraded Donaldson from a "buy" rating to a "hold" rating in a research report on Saturday, July 5th. One investment analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $79.33.

Donaldson Price Performance

Shares of DCI stock traded down $0.45 on Friday, reaching $79.68. 868,994 shares of the company were exchanged, compared to its average volume of 661,232. Donaldson has a 1 year low of $57.45 and a 1 year high of $83.31. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.24 and a current ratio of 1.93. The business has a 50-day moving average price of $72.34 and a 200 day moving average price of $69.16. The company has a market cap of $9.28 billion, a price-to-earnings ratio of 26.12, a P/E/G ratio of 1.94 and a beta of 0.99.

Donaldson (NYSE:DCI - Get Free Report) last posted its quarterly earnings data on Wednesday, August 27th. The industrial products company reported $1.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.02 by $0.01. Donaldson had a return on equity of 29.50% and a net margin of 9.94%.The company had revenue of $980.70 million for the quarter, compared to analysts' expectations of $951.59 million. During the same period in the previous year, the firm posted $0.94 EPS. Donaldson's revenue was up 4.8% compared to the same quarter last year. Donaldson has set its FY 2026 guidance at 3.920-4.080 EPS. Equities research analysts forecast that Donaldson will post 3.64 earnings per share for the current fiscal year.

Donaldson Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, August 27th. Stockholders of record on Tuesday, August 12th were paid a $0.30 dividend. The ex-dividend date of this dividend was Tuesday, August 12th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.5%. Donaldson's payout ratio is currently 39.34%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Palisade Capital Management LP grew its position in shares of Donaldson by 5.9% in the second quarter. Palisade Capital Management LP now owns 59,194 shares of the industrial products company's stock valued at $4,105,000 after purchasing an additional 3,283 shares in the last quarter. Curi Capital LLC purchased a new position in Donaldson in the second quarter worth approximately $3,070,000. Squarepoint Ops LLC grew its holdings in shares of Donaldson by 86.8% during the 2nd quarter. Squarepoint Ops LLC now owns 41,111 shares of the industrial products company's stock worth $2,851,000 after purchasing an additional 19,106 shares during the period. Corient Private Wealth LLC raised its holdings in Donaldson by 4.0% in the 2nd quarter. Corient Private Wealth LLC now owns 39,909 shares of the industrial products company's stock valued at $2,807,000 after buying an additional 1,528 shares during the period. Finally, Advisory Services Network LLC lifted its position in Donaldson by 3.2% in the second quarter. Advisory Services Network LLC now owns 31,087 shares of the industrial products company's stock valued at $2,237,000 after buying an additional 974 shares during the last quarter. Hedge funds and other institutional investors own 82.81% of the company's stock.

About Donaldson

Donaldson Company, Inc manufactures and sells filtration systems and replacement parts worldwide. The company operates through three segments: Mobile Solutions, Industrial Solutions, and Life Sciences. Its Mobile Solutions segment provides replacement filters for air and liquid filtration applications, such as air filtration systems; liquid filtration systems for fuel, lube, and hydraulic applications; exhaust and emissions systems and sensors; indicators; and monitoring systems.