Donaldson Company, Inc. (NYSE:DCI) is included among the Top 10 Income Stocks with the Highest Upside Potential.
On June 4, Stifel lowered its price recommendation on Donaldson Company, Inc. (NYSE:DCI) to $91 from $96. It reiterated a Hold rating on the shares. The firm updated its estimates after the company reported a fiscal Q3 earnings beat and narrowed its organic growth guidance.
During the fiscal Q3 2026 earnings call, President, CEO, COO, and Director Richard Lewis described the quarter as a strong one for Donaldson. He said results improved significantly from the second quarter, in line with management’s expectations. Lewis added that it was the strongest quarter in the company’s history based on sales, adjusted operating margin, and adjusted earnings per share.
Lewis also said Donaldson continued to make progress on its cost structure initiatives. The company closed the final two facilities identified under its footprint optimization program and has now turned its focus to increasing production at the locations, taking on those operations. On the strategic front, Lewis noted that Donaldson completed its acquisition of Facet Filtration after the quarter ended. He said the deal strengthens the company’s position in the aftermarket business, with about 70% of Facet’s revenue coming from recurring sales of regulated replacement parts that generate attractive margins.
Chief Financial Officer Brad Pogalz reported that total sales increased 6% year over year, while adjusted EPS rose 7% to $1.06. He also highlighted that third-quarter operating margin reached 16.6%, up 30 basis points from a year earlier and the highest level in Donaldson’s history.
Donaldson Company, Inc. (NYSE:DCI) develops technology-driven filtration products and solutions for a wide range of industries and advanced markets. The company’s operations are organized into three segments: Mobile Solutions, Industrial Solutions, and Life Sciences.
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