The stock may react negatively to the lowered full-year guidance despite record sales, as margin compression and guidance cuts typically outweigh top-line beats. Monitor the Facet acquisition integration and second-half margin recovery claims.
Price Chart
Executive Summary
Donaldson Company (DCI) reported record second-quarter fiscal 2026 sales of $896.3 million, up 3.0% year-over-year, driven by favorable currency translation and pricing. However, GAAP EPS declined 1.3% to $0.78 due to margin pressure, though adjusted EPS held flat at $0.83. The company lowered full-year adjusted EPS guidance to $3.93–$4.01 (from $3.95–$4.11) and adjusted operating margin guidance to 16.0–16.4% (from 16.2–16.8%), citing gross margin headwinds. It also announced a $820 million acquisition of Facet to expand its filtration portfolio.
Key Financial Metrics
Key Facts
- Q2 sales: $896.3 million (+3.0% YoY), record high
- GAAP EPS: $0.78 (-1.3% YoY), adjusted EPS: $0.83 (flat YoY)
- Gross margin declined to 33.5% from 35.2% in prior year
- Full-year adjusted EPS guidance lowered to $3.93–$4.01 (from $3.95–$4.11)
- Adjusted operating margin guidance lowered to 16.0–16.4% (from 16.2–16.8%)
- Announced $820 million acquisition of Facet in all-cash transaction
Financial Impact
Revenue up 3.0% YoY to $896.3M, but margins compressed; full-year EPS guidance reduced by $0.02 at midpoint
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Mobile Solutions | $556.6M | +1.6% |
| Industrial Solutions | $259.7M | +2.4% |
| Life Sciences | $80.0M | +16.2% |
Risk Factors
- Continued margin pressure from production inefficiencies and footprint optimization costs
- Execution risk on second-half margin improvement to meet lowered guidance
- Integration risk from $820 million Facet acquisition
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000029644-26-000024 |
| Document: dci-20260226.htm | 0000029644-26-000024 |
| Document: 0000029644-26-000024-index-headers.html | 0000029644-26-000024 |
| Document: 0000029644-26-000024-index.html | 0000029644-26-000024 |
| Document: 0000029644-26-000024.txt | 0000029644-26-000024 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 18, 2026 6w ago | Institutional Cluster | $93.97 $87.38 | ▼ −7.01% | ▼ −6.02% | $89.47 (−4.79%) |
Apr 10, 2026 24w ago | 8-K | $88.92 $85.59 | ▼ −3.74% | ▼ −11.47% | $89.47 (+0.62%) |
Feb 26, 2026 31w ago | 8-K | $92.17 $84.74 | ▼ −8.06% | ▼ −1.66% | $89.47 (−2.93%) |
US Market Status
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