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Jun 03, 2026
Donaldson Company (DCI) Delivers Record Q3 Sales of $995.1 Million and Raises Full-Year Outlook

Donaldson Company (DCI) Delivers Record Q3 Sales of $995.1 Million and Raises Full-Year Outlook

Key Takeaways

  • Third quarter fiscal 2026 sales reached a record $995.1 million, up 5.8% year over year.
  • Adjusted diluted earnings per share rose 7.1% to $1.06, beating the consensus estimate of $1.05.
  • Adjusted operating margin hit an all-time high of 16.6%, up 30 basis points from the prior year.
  • GAAP diluted EPS came in at $1.00, compared with $0.48 in the year-ago quarter.
  • The company completed the margin-accretive Facet acquisition, expanding its Industrial Solutions portfolio.
  • Full-year fiscal 2026 outlook was raised, reflecting continued strength in Mobile Solutions and Life Sciences.

Earnings Context and Why It Matters

Donaldson Company, Inc. operates in the filtration industry, serving mobile, industrial, and life sciences markets with technology-led products. Third quarter fiscal 2026 results mark the latest in a series of strong performances, building on prior periods of steady sales growth and margin expansion. In my view, investors closely monitor these reports for signals on aftermarket demand, pricing power, and acquisition integration, all of which influence the company’s ability to deliver consistent earnings growth amid varying industrial cycles.

Reported Results

Donaldson reported record third quarter fiscal 2026 net sales of $995.1 million, an increase of 5.8% from the prior year, driven by volume growth, net pricing benefits, and favorable currency translation. GAAP net earnings totaled $118.1 million, or $1.00 per diluted share, compared with $57.8 million, or $0.48 per diluted share, in the year-ago period. Adjusted net earnings reached $125.5 million, or $1.06 per diluted share, up from $118.9 million, or $0.99 per diluted share. The adjusted operating margin expanded to a company-record 16.6%. Revenue and adjusted EPS both exceeded analyst expectations. The company also closed the Facet acquisition during the quarter. To place these numbers in context with peers, I also checked this using Tickeron’s AI Screener.

Market Reaction and Investor Sentiment

Shares of DCI reacted positively to the better-than-expected results and raised outlook. The earnings beat on both revenue and adjusted EPS, combined with record margins and the acquisition announcement, supported investor confidence heading into the final quarter of the fiscal year. Analysts highlighted the strength in aftermarket channels and the company’s ability to leverage higher sales into margin expansion.

Forward Outlook and Key Factors to Monitor

Management raised its full-year fiscal 2026 guidance following the strong third quarter performance. Investors will focus on execution of the raised organic sales growth target and the new adjusted operating margin range.

Segment trends remain important. Continued volume strength in Mobile Solutions, particularly aftermarket channels, and Life Sciences will be watched closely. Industrial Solutions performance, including integration of the recent Facet acquisition, will also influence results.

Broader factors include raw material costs, supply chain stability, and demand in end markets such as transportation, power generation, and bioprocessing. Currency movements and pricing actions will continue to affect reported sales and margins. One thing that stands out is how these elements could shape the final quarter.

Enhancing My Research with Tickeron’s AI Screener

In my regular analysis workflow, I find Tickeron’s AI Screener helpful for quickly filtering stocks and ETFs by technical patterns, fundamentals, and industry metrics. It allows me to scan for comparable companies in filtration or industrial sectors and spot trends that might otherwise take longer to identify manually. This fits naturally into reviewing earnings like Donaldson’s, where I can cross-check performance against peers without overcomplicating the process. The tool’s customizable filters make it straightforward to explore additional opportunities once the core financial picture is clear.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations

Related Ticker: DCI

Momentum Indicator for DCI turns positive, indicating new upward trend

DCI saw its Momentum Indicator move above the 0 level on June 11, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 102 similar instances where the indicator turned positive. In of the 102 cases, the stock moved higher in the following days. The odds of a move higher are at .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where DCI's RSI Indicator exited the oversold zone, of 22 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for DCI just turned positive on June 02, 2026. Looking at past instances where DCI's MACD turned positive, the stock continued to rise in of 53 cases over the following month. The odds of a continued upward trend are .

DCI moved above its 50-day moving average on June 24, 2026 date and that indicates a change from a downward trend to an upward trend.

The 10-day moving average for DCI crossed bullishly above the 50-day moving average on June 23, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DCI advanced for three days, in of 333 cases, the price rose further within the following month. The odds of a continued upward trend are .

Bearish Trend Analysis

The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 69 cases where DCI's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .

Following a 3-day decline, the stock is projected to fall further. Considering past instances where DCI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

DCI broke above its upper Bollinger Band on June 02, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

The Aroon Indicator for DCI entered a downward trend on June 10, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Fundamental Analysis (Ratings)

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.875) is normal, around the industry mean (7.136). P/E Ratio (23.167) is within average values for comparable stocks, (55.783). Projected Growth (PEG Ratio) (1.640) is also within normal values, averaging (2.122). Dividend Yield (0.014) settles around the average of (0.020) among similar stocks. P/S Ratio (2.662) is also within normal values, averaging (139.649).

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 71, placing this stock slightly better than average.

The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. DCI’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

Notable companies

The most notable companies in this group are Illinois Tool Works (NYSE:ITW), Ingersoll Rand (NYSE:IR), Generac Holdings (NYSE:GNRC).

Industry description

The industry makes and maintains machines for consumers, the industry, and most other companies. While it has traditionally been categorized as heavy industry, some smaller companies are also branching into the light category. The industry is pivotal in providing the equipment for production in businesses like agriculture, mining, industry and construction, gas, electricity and water utilities. It also supplies supporting equipment for almost all sectors of the economy, such as equipment for heating, and air conditioning of buildings. Illinois Tool Works Inc., Parker-Hannifin Corporation and Rockwell Automation Inc are some of the major U.S. companies operating in this industry.

Market Cap

The average market capitalization across the Industrial Machinery Industry is 16.81B. The market cap for tickers in the group ranges from 1.55K to 284.21B. GEV holds the highest valuation in this group at 284.21B. The lowest valued company is XEBEF at 1.55K.

High and low price notable news

The average weekly price growth across all stocks in the Industrial Machinery Industry was -2%. For the same Industry, the average monthly price growth was 3%, and the average quarterly price growth was 8%. XCH experienced the highest price growth at 14%, while INLF experienced the biggest fall at -91%.

Volume

The average weekly volume growth across all stocks in the Industrial Machinery Industry was 30%. For the same stocks of the Industry, the average monthly volume growth was 177% and the average quarterly volume growth was 328%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 54
P/E Growth Rating: 52
Price Growth Rating: 50
SMR Rating: 70
Profit Risk Rating: 71
Seasonality Score: 39 (-100 ... +100)
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General Information

a maker of air cleaners, sound filters and exhaust systems

Industry IndustrialMachinery

Profile
Details
Industry
Industrial Specialties
Address
1400 West 94th Street
Phone
+1 952 887-3131
Employees
13000
Web
https://ir.donaldson.com
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Donaldson Company (DCI) Delivers Record Q3 Sales of $995.1 Million and Raises Full-Year Outlook