Delivers scalable datacenter connectivity, increased capacity, and reduced power consumption
, /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a global leader in real-time communications technology, IP routing and optical networking solutions, today announced that leading Indonesia provider PT Jala Lintas Media (JLM) is leveraging Ribbon's Apollo platform for a greenfield DWDM network deployment connecting Indonesia and Singapore. JLM is also utilizing Ribbon's Data Center Interconnect (DCI) solution to deliver scalable, high-capacity connectivity for cloud and AI workloads. This deployment marks the first phase of a broader network expansion being implemented with support from PT Mahavira System Integra.
"Ribbon brought together advanced technology and exceptional execution," said Victor Irianto, Founder and President Commissioner of JLM. "Their solution was the most technically advanced we evaluated, while also delivering a smaller footprint, reduced power consumption, and the fastest delivery, implementation, testing, and integration process. With Ribbon's DCI capabilities now connecting datacenters across Indonesia and Singapore, we are well positioned to scale efficiently and deliver increased value to our customers."
JLM is leveraging Ribbon's powerful and highly versatile Apollo 9608 modular optical networking platform for metro, core, and data center interconnect (DCI) applications. As a key component of Ribbon's industry-leading DCI solution, the Apollo 9608 delivers exceptional scalability, high-density performance, and low power consumption, enabling efficient and cost-effective network expansion.
"Offering the best technology is no longer sufficient in today's environment. Service providers are facing extended deployment lead times that can impact revenue opportunities, service delivery and customer satisfaction," said Mickey Wilf, Head of ASEAN Sales at Ribbon. "Ribbon combines high performance optical innovation with rapid deployment and proven DCI expertise. We're proud to support JLM as it expands its network infrastructure and strengthens connectivity between its datacenters in Indonesia and Singapore."
About Ribbon
Ribbon Communications (Nasdaq: RBBN) is a global provider of voice communications software, IP routing, and optical networking to mobile and wireline service providers, enterprises, critical infrastructure and defense sectors. We support our customers' Path to Autonomous Networks by leveraging the latest AIOps automation platforms and Agentic AI technologies, helping them deliver better customer experiences, reduce operational costs, and achieve sustainable growth. To learn more about Ribbon, visit rbbn.com.
Important Information Regarding Forward-Looking Statements
The information in this release contains forward-looking statements regarding future events that involve risks and uncertainties. All statements other than statements of historical facts contained in this release, including those regarding the expected benefits from use of Ribbon Communication's products, are forward-looking statements. The actual results of Ribbon Communications may differ materially from those contemplated by the forward-looking statements. For further information regarding risks and uncertainties associated with Ribbon Communications' business, please refer to the "Risk Factors" section of Ribbon Communications' most recent annual or quarterly report filed with the SEC. Any forward-looking statements represent Ribbon Communications' views only as of the date on which such statement is made and should not be relied upon as representing Ribbon Communications' views as of any subsequent date. While Ribbon Communications may elect to update forward-looking statements at some point, Ribbon Communications specifically disclaims any obligation to do so.
Arjuna Capital grew its stake in shares of Donaldson Company, Inc. (NYSE:DCI – Free Report) by 38.9% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 41,600 shares of the industrial products company’s stock after purchasing an additional 11,655 shares during the quarter. Donaldson makes up 0.9% of Arjuna Capital’s portfolio, making the stock its 28th largest holding. Arjuna Capital’s holdings in Donaldson were worth $3,531,000 as of its most recent filing with the Securities and Exchange Commission.
Other institutional investors and hedge funds have also made changes to their positions in the company. California Public Employees Retirement System grew its stake in Donaldson by 15.3% during the 1st quarter. California Public Employees Retirement System now owns 261,558 shares of the industrial products company’s stock worth $22,198,000 after buying an additional 34,757 shares during the last quarter. Gallacher Capital Management LLC bought a new stake in Donaldson in the first quarter valued at $218,000. Bessemer Group Inc. boosted its holdings in shares of Donaldson by 8.9% during the first quarter. Bessemer Group Inc. now owns 1,707 shares of the industrial products company’s stock valued at $145,000 after acquiring an additional 139 shares during the period. Bank of New York Mellon Corp boosted its holdings in shares of Donaldson by 0.8% during the first quarter. Bank of New York Mellon Corp now owns 1,222,704 shares of the industrial products company’s stock valued at $103,771,000 after acquiring an additional 9,451 shares during the period. Finally, Illinois Municipal Retirement Fund grew its position in shares of Donaldson by 32.8% during the first quarter. Illinois Municipal Retirement Fund now owns 52,415 shares of the industrial products company’s stock worth $4,448,000 after acquiring an additional 12,942 shares during the last quarter. 82.81% of the stock is currently owned by institutional investors and hedge funds.
Donaldson Price Performance Shares of NYSE:DCI opened at $90.27 on Friday. Donaldson Company, Inc. has a 12 month low of $69.58 and a 12 month high of $112.84. The stock has a market cap of $10.46 billion, a price-to-earnings ratio of 24.27, a PEG ratio of 2.28 and a beta of 0.93. The stock’s 50 day moving average price is $86.03 and its 200 day moving average price is $91.18. The company has a debt-to-equity ratio of 0.35, a current ratio of 2.35 and a quick ratio of 1.55.
Donaldson (NYSE:DCI – Get Free Report) last issued its quarterly earnings results on Tuesday, June 2nd. The industrial products company reported $1.06 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.05 by $0.01. Donaldson had a return on equity of 29.17% and a net margin of 11.52%.The firm had revenue of $995.10 million during the quarter, compared to analyst estimates of $973.65 million. During the same period last year, the company posted $0.99 EPS. The firm’s quarterly revenue was up 5.9% on a year-over-year basis. Donaldson has set its FY 2026 guidance at 3.940-4.010 EPS. Equities research analysts anticipate that Donaldson Company, Inc. will post 3.96 earnings per share for the current fiscal year.
Donaldson Increases Dividend The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were issued a dividend of $0.32 per share. The ex-dividend date of this dividend was Monday, June 15th. This is an increase from Donaldson’s previous quarterly dividend of $0.30. This represents a $1.28 dividend on an annualized basis and a yield of 1.4%. Donaldson’s dividend payout ratio is presently 34.41%.
Wall Street Analysts Forecast Growth DCI has been the topic of several recent research reports. Wells Fargo & Company set a $91.00 price objective on shares of Donaldson in a research report on Thursday, June 4th. Weiss Ratings upgraded shares of Donaldson from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, June 3rd. Stifel Nicolaus dropped their price target on shares of Donaldson from $96.00 to $91.00 and set a “hold” rating on the stock in a research note on Thursday, June 4th. Robert W. Baird reduced their price objective on Donaldson from $104.00 to $95.00 and set an “outperform” rating for the company in a research report on Monday, March 30th. Finally, Wall Street Zen raised Donaldson from a “hold” rating to a “buy” rating in a report on Sunday, July 12th. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $97.83.
View Our Latest Research Report on Donaldson
Donaldson Company Profile (Free Report)
Donaldson Company, Inc (NYSE: DCI) is a global provider of filtration systems and replacement parts for a wide range of industries. The company develops and manufactures air, liquid and gas filtration solutions for engine and industrial applications, helping customers improve performance, lower emissions and extend equipment life. Donaldson’s product portfolio includes engine air intake filters, fuel filters, hydraulic filters, compressor filters, dust collection systems and gas turbine air intake systems.
Serving markets such as agriculture, construction, mining, power generation, aerospace and original equipment manufacturing, Donaldson operates through two primary business segments: Engine Products and Industrial Products.
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Allspring Global Investments Holdings LLC reduced its position in shares of Donaldson Company, Inc. (NYSE:DCI – Free Report) by 5.1% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 898,389 shares of the industrial products company’s stock after selling 48,141 shares during the period. Allspring Global Investments Holdings LLC owned about 0.78% of Donaldson worth $77,315,000 as of its most recent SEC filing.
Other large investors have also added to or reduced their stakes in the company. Leonteq Securities AG purchased a new position in Donaldson in the fourth quarter valued at about $40,000. Eagle Bay Advisors LLC acquired a new stake in shares of Donaldson in the 4th quarter worth about $45,000. Clearstead Advisors LLC lifted its position in Donaldson by 92.6% in the 4th quarter. Clearstead Advisors LLC now owns 599 shares of the industrial products company’s stock valued at $53,000 after purchasing an additional 288 shares during the last quarter. Strive Financial Group LLC bought a new stake in Donaldson in the 4th quarter valued at about $57,000. Finally, Sachetta LLC acquired a new position in Donaldson during the 1st quarter valued at about $65,000. 82.81% of the stock is owned by institutional investors and hedge funds.
Donaldson Stock Performance DCI opened at $90.27 on Friday. The company has a quick ratio of 1.55, a current ratio of 2.35 and a debt-to-equity ratio of 0.35. Donaldson Company, Inc. has a 12-month low of $69.58 and a 12-month high of $112.84. The stock’s 50 day moving average price is $86.03 and its two-hundred day moving average price is $91.18. The firm has a market capitalization of $10.46 billion, a P/E ratio of 24.27, a price-to-earnings-growth ratio of 2.30 and a beta of 0.93.
Donaldson (NYSE:DCI – Get Free Report) last announced its quarterly earnings data on Tuesday, June 2nd. The industrial products company reported $1.06 EPS for the quarter, topping analysts’ consensus estimates of $1.05 by $0.01. The company had revenue of $995.10 million during the quarter, compared to the consensus estimate of $973.65 million. Donaldson had a return on equity of 29.17% and a net margin of 11.52%.The company’s quarterly revenue was up 5.9% on a year-over-year basis. During the same quarter last year, the company earned $0.99 EPS. Donaldson has set its FY 2026 guidance at 3.940-4.010 EPS. On average, equities analysts forecast that Donaldson Company, Inc. will post 3.96 earnings per share for the current year.
Donaldson Increases Dividend The company also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were issued a $0.32 dividend. This is a positive change from Donaldson’s previous quarterly dividend of $0.30. This represents a $1.28 annualized dividend and a yield of 1.4%. The ex-dividend date was Monday, June 15th. Donaldson’s dividend payout ratio (DPR) is 34.41%.
Analyst Upgrades and Downgrades A number of equities analysts recently issued reports on DCI shares. Wall Street Zen raised Donaldson from a “hold” rating to a “buy” rating in a report on Sunday, July 12th. Wells Fargo & Company set a $91.00 price objective on shares of Donaldson in a research note on Thursday, June 4th. Stifel Nicolaus decreased their target price on shares of Donaldson from $96.00 to $91.00 and set a “hold” rating for the company in a research report on Thursday, June 4th. Robert W. Baird lowered their target price on shares of Donaldson from $104.00 to $95.00 and set an “outperform” rating on the stock in a research note on Monday, March 30th. Finally, Weiss Ratings upgraded shares of Donaldson from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, June 3rd. Three research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $97.83.
Read Our Latest Research Report on Donaldson
Donaldson Company Profile (Free Report)
Donaldson Company, Inc (NYSE: DCI) is a global provider of filtration systems and replacement parts for a wide range of industries. The company develops and manufactures air, liquid and gas filtration solutions for engine and industrial applications, helping customers improve performance, lower emissions and extend equipment life. Donaldson’s product portfolio includes engine air intake filters, fuel filters, hydraulic filters, compressor filters, dust collection systems and gas turbine air intake systems.
Serving markets such as agriculture, construction, mining, power generation, aerospace and original equipment manufacturing, Donaldson operates through two primary business segments: Engine Products and Industrial Products.
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A month has gone by since the last earnings report for Donaldson (DCI - Free Report) . Shares have added about 3.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Donaldson due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Donaldson's Q3 Earnings & Revenues Top Estimates, Increase Y/YDonaldson reported third-quarter fiscal 2026 (ended April 30, 2026) adjusted earnings of $1.06 per share, which topped the Zacks Consensus Estimate of $1.05. The bottom line was up 7.1% on a year-over-year basis.
Revenue ResultsTotal revenues of $995.1 million surpassed the Zacks Consensus Estimate of $979 million. The top line increased 5.8% year over year.
Region-wise, Donaldson’s net sales in the United States/Canada increased 1.5% year over year to $427.1 million. Net sales increased 11.5% to $289.3 million in Europe, the Middle East and Africa. Latin America generated net sales of $105.9 million, reflecting an increase of 4.4%. Also, net sales in the Asia Pacific improved 9.2% to $172.8 million.
Donaldson reports revenues under three segments, namely Mobile Solutions, Industrial Solutions and Life Sciences.
A brief snapshot of segmental sales is provided below.
The Mobile Solutions segment’s (accounting for 63.3% of net sales) sales were $629.9 million, indicating a year-over-year increase of 8.1%. Sales rose 8.8% in Off-Road and increased 5.2% in On-Road businesses during the quarter. Aftermarket sales improved 8.1% year over year.
Revenues generated from the Industrial Solutions segment (28.3%) were $281.7 million, down 0.6% year over year. Industrial Filtration Solutions' sales increased 2.3% year over year. Sales decline of 13.5% in the Aerospace and Defense businesses affected the results.
Revenues generated from the Life Sciences segment (8.4%) were $83.5 million, up 12.7% year over year. The results benefited from growth in new equipment volume in the Food & Beverage and Disk Drive businesses.
Donaldson’s Margin ProfileIn the fiscal third quarter, Donaldson’s cost of sales increased 7% year over year to $661.7 million. Gross profit increased 3.6% to $333.4 million. The gross margin of 33.5% declined 70 basis points due to operating inefficiencies associated with production shifts and costs related to footprint optimization initiatives. Selling, general and administrative expenses were $158.9 million, up 4.3% year over year.
Operating expenses were down 24% year over year to $178.1 million. Operating profit surged 77.7% to $155.3 million. The adjusted operating margin was 16.6%, up 30 bps year over year.
The adjusted effective tax rate was 23.8% compared with 22.1% in the year-ago quarter.
Balance Sheet & Cash FlowExiting the fiscal third quarter, Donaldson’s cash and cash equivalents were $204.1 million compared with $180.4 million in the fourth quarter of fiscal 2025. Long-term debt was $591.6 million compared with $630.4 million in the fourth quarter of fiscal 2025.
In the fiscal third quarter, the company generated net cash of $135.4 million from operating activities, indicating an increase of 54.4% year over year. Capital expenditure (net) totaled $23.8 million compared with $14.7 million in the year-ago fiscal quarter. Free cash flow increased 52.9% to $111.6 million.
It used $108.5 million to repurchase stocks and $104 million to pay out dividends during the first nine months of fiscal 2026.
Donaldson’s FY26 OutlookFor fiscal 2026 (ending July 2026), Donaldson expects adjusted earnings per share (EPS) to be in the range of $3.94-$4.01 compared with $3.68 in fiscal 2025. Organic sales are anticipated to increase 3-5% from the fiscal 2025 level.
On a segmental basis, Mobile Solutions’ sales are expected to increase 3.5-5.5% from the fiscal 2025 level. Industrial Solutions’ sales are envisioned to increase in the range of 0-2% from the year-ago figure. The company forecasts its Life Sciences segment’s sales to increase in the 9-11% range.
Interest expenses are predicted to be approximately $26 million, while other income is projected to be in the range of $17-$19 million. The effective tax rate is anticipated to be between 22% and 24%.
Capital expenditure is expected to be between $60 million and $75 million. Free cash flow conversion is anticipated to be in the range of 85-95%. Donaldson expects to repurchase 1.2% of its outstanding shares during the fiscal year.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.
VGM ScoresAt this time, Donaldson has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Donaldson has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Investors in Donaldson Company, Inc. (DCI - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the May 15, 2026 $110 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Donaldson shares, but what is the fundamental picture for the company? Currently, Donaldson is a Zacks Rank #3 (Hold) in the Pollution Control industry that ranks in the Top 16% of our Zacks Industry Rank. Over the last 60 days, the Zacks Consensus Estimate for the current quarter has moved from $1.06 per share to $1.05 in that period.
Given the way analysts feel about Donaldson right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
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MINNEAPOLIS--(BUSINESS WIRE)-- #DonaldsonCompany--Donaldson Company, Inc. (NYSE:DCI), a leading worldwide manufacturer of innovative filtration products and solutions, announced its calendar year 2025 Patent Recipients and Inventor Award winners. The annual recognition celebrates employees whose ideas, inventions, and technical leadership strengthen Donaldson's technology leadership and enduring culture of innovation. In 2025, 213 Donaldson employees were named on patents granted during the year, contributing to a.
Atmus acquired Koch Filter, directly entering the data center filtration market, with the accretion already visible in its first quarter of ownership at 21.9% EBITDA margins. Donaldson's industrial margins collapsed 420 basis points YoY, management cut guidance, and paid 20x EBITDA for acquiring Facet with no earnings accretion expected until FY2027. Atmus trades at a forward PE of 16.64x and Donaldson at 21.03x, a 4.4 point gap that makes no sense given Atmus is the faster-growing, better-executing business.
Analysts on Wall Street project that Donaldson (DCI - Free Report) will announce quarterly earnings of $1.05 per share in its forthcoming report, representing an increase of 6.1% year over year. Revenues are projected to reach $979.07 million, increasing 4.1% from the same quarter last year.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
That said, let's delve into the average estimates of some Donaldson metrics that Wall Street analysts commonly model and monitor.
The consensus estimate for 'Net Sales- Industrial Solutions segment' stands at $290.35 million. The estimate suggests a change of +2.5% year over year.
It is projected by analysts that the 'Net Sales- Life Sciences segment' will reach $79.45 million. The estimate suggests a change of +7.1% year over year.
The collective assessment of analysts points to an estimated 'Net Sales- Mobile Solutions' of $613.24 million. The estimate suggests a change of +5.3% year over year.
Analysts predict that the 'Net Sales- Mobile Solutions- On-Road' will reach $31.21 million. The estimate indicates a change of +16% from the prior-year quarter.
Based on the collective assessment of analysts, 'Net Sales- Mobile Solutions- Off-Road' should arrive at $99.29 million. The estimate points to a change of +3.9% from the year-ago quarter.
The consensus among analysts is that 'Net Sales- Industrial Solutions- Aerospace and Defense' will reach $49.32 million. The estimate suggests a change of -4.2% year over year.
Analysts expect 'Net Sales- Industrial Solutions- Industrial Filtration Solutions' to come in at $241.37 million. The estimate suggests a change of +4.1% year over year.
According to the collective judgment of analysts, 'Net Sales- Mobile Solutions- Aftermarket' should come in at $482.40 million. The estimate suggests a change of +4.9% year over year.
The combined assessment of analysts suggests that 'Earnings / (loss) before income taxes- Mobile Solutions' will likely reach $113.36 million. Compared to the present estimate, the company reported $105.30 million in the same quarter last year.
The average prediction of analysts places 'Earnings / (loss) before income taxes- Life Sciences' at $6.46 million. The estimate compares to the year-ago value of $5.80 million.
Analysts' assessment points toward 'Earnings / (loss) before income taxes- Industrial Solutions' reaching $53.01 million. The estimate compares to the year-ago value of $51.20 million.
View all Key Company Metrics for Donaldson here>>>
Shares of Donaldson have demonstrated returns of -3.8% over the past month compared to the Zacks S&P 500 composite's +5% change. With a Zacks Rank #3 (Hold), DCI is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
MINNEAPOLIS--(BUSINESS WIRE)--Donaldson Company, Inc. (NYSE: DCI) today announced that its Board of Directors declared a regular cash dividend of 32.0 cents per share, an increase of 6.7% from the prior quarterly dividend of 30.0 cents per share. The dividend is payable June 30, 2026, to shareholders of record on June 15, 2026. Donaldson is a member of the S&P High-Yield Dividend Aristocrats Index and calendar year 2025 marked the 30th consecutive year of annual dividend increases. The Comp.
Donaldson Company, Inc. (NYSE: DCI) today announced that its Board of Directors declared a regular cash dividend of 32.0 cents per share, an increase of 6.7% f
Key Takeaways DCI is set to report Q3 fiscal 2026 results June 2, with revenue and earnings growth expected.Donaldson may see Industrial and Life Sciences gains from filtration, disk drive and food demand.DCI faces SG&A cost pressure and currency headwinds despite expected Mobile segment growth. Donaldson Company, Inc. (DCI - Free Report) is scheduled to release third-quarter fiscal 2026 (ended April 30) results on June 2, before market open.
The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing the mark in one. The average surprise was negative 0.4%. In the last reported quarter, its earnings of 83 cents per share missed the Zacks Consensus Estimate of 90 cents by 7.8%.
Let’s see how things have shaped up for Donaldson this earnings season.
Factors to NoteIn the third quarter of fiscal 2026, the Industrial Solutions segment’s results are expected to benefit from strong momentum in the industrial filtration solutions business, driven by increased demand for products in the power generation end market and industrial gases. The Zacks Consensus Estimate for the segment’s revenues is pegged at $290 million, indicating a 2.5% jump from the year-ago reported number.
The Life Sciences segment has been reaping the benefits from an increase in demand for disk drives and food & beverage products. The consensus mark for the segment’s revenues is pegged at $79 million, which implies a 6.8% increase from the year-ago reported figure.
Higher volume in the aftermarket business, driven by higher vehicle utilization rates in Europe, the Middle East and Africa (EMEA) and Asia Pacific (APAC), is expected to have driven the performance of the Mobile Solutions segment. The consensus estimate for the segment’s revenues stands at $613 million. This represents a 5.1% increase from the same quarter last year.
The Zacks Consensus Estimate for the company’s revenues is pegged at $979.1 million, which implies an increase of 4.2% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings is pinned at $1.1 per share, indicating a 6.1% increase from the year-ago quarter’s reported number.
However, the escalating selling, general and administrative (SG&A) expenses pose a threat to DCI’s bottom line. Increasing headcount and incremental expenses are expected to have pushed up the SG&A expenses, which are likely to have impacted Donaldson’s margins in the fiscal third quarter.
Given the company’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability.
Earnings WhispersOur proven model predicts an earnings beat for DCI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: DCI has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.05 per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: DCI currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.
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Total revenues of $1.85 billion beat the consensus estimate of $1.83 billion. The top line increased 7.6% year over year.
MINNEAPOLIS--(BUSINESS WIRE)--Donaldson Company, Inc. (NYSE: DCI) (Donaldson or the Company), a global leader in technology-led filtration products and solutions, today reported third quarter fiscal 2026 generally accepted accounting principles (GAAP) net earnings of $118.1 million, compared with $57.8 million a year ago. Earnings per share (EPS)1 were $1.00 compared with third quarter fiscal 2025 EPS of $0.48. Third quarter fiscal 2026 results include $9.8 million of pre-tax, non-recurring net.
Donaldson (DCI - Free Report) came out with quarterly earnings of $1.06 per share, beating the Zacks Consensus Estimate of $1.05 per share. This compares to earnings of $0.99 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +0.57%. A quarter ago, it was expected that this maker of filtration systems would post earnings of $0.9 per share when it actually produced earnings of $0.83, delivering a surprise of -7.78%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Donaldson, which belongs to the Zacks Pollution Control industry, posted revenues of $995.1 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 1.64%. This compares to year-ago revenues of $940.1 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Donaldson shares have lost about 7.8% since the beginning of the year versus the S&P 500's gain of 11%.
What's Next for Donaldson?While Donaldson has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Donaldson was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.15 on $1.01 billion in revenues for the coming quarter and $3.97 on $3.82 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Pollution Control is currently in the bottom 15% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the broader Zacks Industrial Products sector, Columbus McKinnon (CMCO - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on June 4.
This maker of materials handling products and systems is expected to post quarterly earnings of $0.27 per share in its upcoming report, which represents a year-over-year change of -55%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Columbus McKinnon's revenues are expected to be $414.5 million, up 67.9% from the year-ago quarter.
Donaldson (DCI - Free Report) reported $995.1 million in revenue for the quarter ended April 2026, representing a year-over-year increase of 5.9%. EPS of $1.06 for the same period compares to $0.99 a year ago.
The reported revenue represents a surprise of +1.64% over the Zacks Consensus Estimate of $979.07 million. With the consensus EPS estimate being $1.05, the EPS surprise was +0.57%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Donaldson performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Industrial Solutions segment: $281.7 million versus the three-analyst average estimate of $290.35 million. The reported number represents a year-over-year change of -0.6%.Net Sales- Life Sciences segment: $83.5 million versus $79.45 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +12.5% change.Net Sales- Mobile Solutions segment: $629.9 million versus $613.24 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +8.1% change.Net Sales- Mobile Solutions- On-Road: $28.3 million versus $31.21 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +5.2% change.Net Sales- Mobile Solutions- Off-Road: $104 million versus the three-analyst average estimate of $99.29 million. The reported number represents a year-over-year change of +8.8%.Net Sales- Industrial Solutions- Aerospace and Defense: $44.6 million versus $49.32 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -13.4% change.Net Sales- Industrial Solutions- Industrial Filtration Solutions: $237.1 million versus the three-analyst average estimate of $241.37 million. The reported number represents a year-over-year change of +2.3%.Net Sales- Mobile Solutions- Aftermarket: $497.6 million compared to the $482.4 million average estimate based on three analysts. The reported number represents a change of +8.2% year over year.Earnings / (loss) before income taxes- Mobile Solutions: $127 million versus $113.36 million estimated by three analysts on average.Earnings / (loss) before income taxes- Corporate and unallocated: $-16.7 million compared to the $-8.79 million average estimate based on three analysts.Earnings / (loss) before income taxes- Life Sciences: $6.8 million versus the three-analyst average estimate of $6.46 million.Earnings / (loss) before income taxes- Industrial Solutions: $37.7 million versus the three-analyst average estimate of $53.01 million.View all Key Company Metrics for Donaldson here>>>
Shares of Donaldson have returned -4% over the past month versus the Zacks S&P 500 composite's +5.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Analysts Have "Buy" Rating On This Mid-Cap Dividend AchieverDonaldson NYSE: DCI reported record third-quarter fiscal 2026 sales, adjusted operating margin and adjusted earnings per share, as strength in its Mobile Solutions and Life Sciences segments helped offset operational pressure in Industrial Solutions.
President and CEO Rich Lewis said the quarter marked “a significant step-up in performance” from the company’s second quarter. Total sales rose 6% from the prior year to a record $995 million, driven by currency translation, net pricing benefits and volume growth. Adjusted operating margin was 16.6%, up 30 basis points from a year earlier and 260 basis points higher than the second quarter. Adjusted earnings per share were $1.06, up 7% year over year.
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Donaldson’s non-GAAP results excluded $9.8 million of pretax charges, including $9 million of restructuring and other charges and $800,000 of business development charges, according to Sarika Dhadwal, head of investor relations.
Mobile Solutions and Life Sciences Drive Growth Mobile Solutions sales increased 8% to $630 million, supported by strong volume growth. Aftermarket sales rose 8% to $498 million, with gains in all regions and in both channels. Lewis said the company posted double-digit growth in its independent channel, where product availability, reliability and consistency continued to drive share gains.
Lewis also highlighted a “large competitive win” with a major North American fleet operator, covering air, lube and fuel products. During the question-and-answer session, he said the award was not as large as a prior NAPA win, but described it as “sizable” and strategically important because it puts Donaldson products on shelves at dealers where the company had not previously been present.
In Mobile Solutions’ first-fit businesses, off-road sales rose 9% to $104 million, led by construction, while on-road sales increased 5% to $28 million as truck production began to ramp, particularly in EMEA. Lewis said China sales in Mobile Solutions increased 6% due to strength in off-road markets, with export demand supporting Donaldson’s technology-led solutions.
Life Sciences sales increased 13% to $84 million, driven largely by new equipment volume in food and beverage and continued strength in disk drive. Lewis said food and beverage sales grew more than 30%, supported by new equipment sales and a growing installed base that is driving consumables demand.
Industrial Solutions Pressured by Operational Inefficiencies Industrial Solutions sales declined 1% to $282 million, with volume declines partially offset by pricing and currency benefits. Within the segment, Industrial Filtration Solutions sales rose 2% to $237 million, helped by net pricing and power generation volume growth, primarily in EMEA, where new equipment sales more than doubled. Donaldson said those gains were partly offset by lower new equipment sales in industrial gases and dust collection.
Aerospace and Defense sales fell 14% to $45 million because of weaker new equipment sales. Lewis said volumes were affected by ongoing supply chain constraints and project timing. In response to an analyst question, he said the business exited the quarter with “near record backlogs” that had been increasing steadily during the year, and said the backlog could become a tailwind into fiscal 2027 as supply chain issues are resolved.
Chief Financial Officer Brad Pogalz said Industrial Solutions’ pretax margin was 13.4% in the quarter, down from 18.1% a year earlier, due to gross margin pressure from power generation production shifts and footprint optimization work. Donaldson realized about 80 basis points of pressure from shifting production to Mexico for large turbine systems in power generation, and nearly 20 basis points of pressure from plant closures and production transfers tied to footprint optimization.
Pogalz said Donaldson views the third quarter as the low point for the power generation-related pressure and expects to be fully recovered midway through fiscal 2027. The company completed the last two plant closures tied to its footprint optimization initiative during the quarter and is now focused on ramping productivity in the new locations. Pogalz said those initiatives are expected to generate about $10 million in annualized benefits once run-rate productivity is reached during fiscal 2027.
Facet Filtration Acquisition Adds Aftermarket Exposure Donaldson closed its acquisition of Facet Filtration after the quarter ended. The business will be included in fourth-quarter consolidated results and reported in the Aerospace and Defense business unit within Industrial Solutions.
Lewis said Facet adds high-performance fuel and fluid capabilities to Donaldson’s Industrial Solutions portfolio and increases the company’s exposure to aerospace and power generation. He said about 70% of Facet’s revenue comes from recurring, regulated replacement part sales with “highly accretive margins.”
During the Q&A session, Lewis said the acquisition rationale remains intact after the company’s first post-close business review. He said Facet has natural end-market tailwinds, higher margins and higher growth rates. Donaldson expects cost synergies in the range of $4 million to $5 million, primarily from procurement. Lewis said the company did not include revenue synergies in its acquisition justification, but believes opportunities exist because Facet and Donaldson have relationships with different customers and sell complementary products.
Guidance Updated for Fiscal 2026 Donaldson raised the midpoint of its organic sales outlook and now expects consolidated organic sales growth of 3% to 5% for fiscal 2026. Pogalz said the midpoint is about 1 percentage point higher than prior guidance due to strength in Mobile Solutions and Life Sciences. Pricing and currency translation are each expected to contribute a little more than 1% to growth.
Mobile Solutions: Sales are expected to grow 3.5% to 5.5%, slightly above prior guidance, driven by aftermarket share gains and higher vehicle utilization rates. Industrial Solutions: Organic sales are projected to be flat to up 2%, with Industrial Filtration Solutions expected to grow in the low single digits. Aerospace and Defense: Sales are expected to decline in the mid-single digits due to program timing and supply chain issues. Life Sciences: Sales are expected to increase 9% to 11%, up from prior guidance of 5% to 9%, reflecting strength in food and beverage and disk drive. Donaldson now expects organic operating margin of 15.8% to 16.2%, compared with prior guidance of 16.0% to 16.4%. Pogalz said the range implies full-year organic operating margin expansion of 10 to 50 basis points, with expense leverage partially offset by gross margin pressure. Excluding Facet, adjusted EPS is projected at $3.94 to $4.01, with the midpoint representing an 8% increase from the prior year.
Facet is expected to contribute $25 million to $30 million in fourth-quarter sales, adding about 70 to 80 basis points to full-year growth. Pogalz said its operating margin impact is likely to be immaterial this year because strong business performance will be offset by amortization costs. Debt from the transaction is expected to add about $9 million of interest expense in the quarter, with net EPS dilution of about $0.03.
Cash Flow, Capital Allocation and Outlook Donaldson expects capital expenditures of $60 million to $75 million and cash conversion of 85% to 95% for fiscal 2026. Pogalz said the company’s leverage ratio, including Facet, is approximately 1.8 times net debt to EBITDA, leaving “ample financial flexibility” to invest for growth.
The company said its capital allocation priorities remain reinvestment in the business, disciplined mergers and acquisitions, dividends and share repurchases. Pogalz noted that Donaldson has paid dividends for 70 consecutive years, increased its dividend for 30 consecutive years and recently announced a 7% dividend increase. Share repurchases have been paused as the company focuses on paying down Facet-related debt, though Pogalz said repurchases remain the company’s “variable lever.”
Lewis, who described his first 90 days as CEO as “remarkable,” said Donaldson will continue investing in attractive markets where it has a clear path to win while also evaluating its existing portfolio. He said the company exited the quarter with robust order volumes, elevated backlogs and focused execution, giving management confidence in delivering record organic sales of more than $3.8 billion for fiscal 2026.
About Donaldson NYSE: DCIDonaldson Company, Inc NYSE: DCI is a global provider of filtration systems and replacement parts for a wide range of industries. The company develops and manufactures air, liquid and gas filtration solutions for engine and industrial applications, helping customers improve performance, lower emissions and extend equipment life. Donaldson's product portfolio includes engine air intake filters, fuel filters, hydraulic filters, compressor filters, dust collection systems and gas turbine air intake systems.
Serving markets such as agriculture, construction, mining, power generation, aerospace and original equipment manufacturing, Donaldson operates through two primary business segments: Engine Products and Industrial Products.
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Revenue rose 5.8% year over year to $995.1 million, exceeding analysts’ estimates of $973.6 million. Adjusted earnings were $1.06 per share, slightly ahead of the consensus estimate of $1.05.
Adjusted gross margin was 34.4%, down 10 basis points from a year earlier as operational inefficiencies partially offset benefits from pricing, product mix improvements and volume leverage.
“Third quarter results marked a significant sequential step-up in performance, including all-time high sales, adjusted operating margin and adjusted earnings,” said Rich Lewis, president and chief executive officer.
“Strong performance in our Mobile and Life Sciences segments more than offset near-term operating headwinds in the Industrial segment, demonstrating the benefit of our diversified portfolio of businesses.
During the earnings call, the CEO said the company “successfully navigated macro uncertainty,” including uneven cyclical trends and the ongoing conflict in the Middle East.
During the quarter, Donaldson completed its acquisition of Facet Filtration, expanding its Industrial Solutions platform and increasing exposure to aerospace and power generation end markets.
Segment PerformanceMobile Solutions revenue increased 8.1% from a year ago, supported by higher volumes, pricing improvements and favorable foreign exchange rates. Off-Road sales rose 8.8% on stronger construction-related demand, while On-Road sales increased 5.2% due to higher truck production in Europe, the Middle East and Africa. Aftermarket revenue climbed 8.1%, reflecting broad-based growth across regions and channels.
Industrial Solutions revenue declined 0.6% as lower volumes offset pricing and foreign exchange benefits. Industrial Filtration Solutions sales increased 2.3%, supported by pricing actions and strength in power generation, partially offset by softer demand in industrial gases and dust collection. Aerospace and Defense sales fell 13.5% because of supply chain constraints and project timing.
Life Sciences revenue increased 12.7%, driven by strong demand in food and beverage applications and disk drive markets.
Outlook RaisedDonaldson raised its fiscal 2026 adjusted earnings outlook to a range of $3.94 to $4.01 per share from a prior range of $3.93 to $4.01. The updated guidance compares with analyst expectations of $3.98 per share.
The company also increased its fiscal 2026 sales forecast to between $3.801 billion and $3.875 billion, up from its previous outlook of $3.728 billion to $3.875 billion. Analysts were expecting revenue of $3.822 billion.
Donaldson now expects organic sales growth of 3% to 5%, compared with its previous forecast of 1% to 5%. The outlook includes $25 million to $30 million of revenue from the Facet acquisition and approximately $0.03 of earnings-per-share dilution.
Management said it remains focused on margin expansion and cost-efficiency initiatives, including footprint rationalization efforts expected to generate about $10 million in annualized savings by fiscal 2027.
DCI Price Action: Donaldson shares were up 2.32% at $83.60 at the time of publication on Tuesday, according to Benzinga Pro data.
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Key Takeaways Donaldson increased its quarterly dividend 6.7% to 32 cents per share.DCI marked its 30th straight year of annual dividend increases and 70 years of payouts.DCI paid $69.3M in dividends and repurchased $108.6M of shares in fiscal H1 2026. In a shareholder-friendly move, Donaldson Company, Inc. (DCI - Free Report) has announced a hike in its dividend payout. The company increased its quarterly dividend 6.7% to 32 cents per share (annually: $1.28). The new dividend will be paid out on June 30, 2026, to shareholders of record as of June 15.
The move underscores DCI’s sound financial health as it utilizes free cash flow to enhance its shareholders’ returns. This marks Donaldson’s 30th consecutive year of annual dividend increase. It has been paying dividends every quarter for the last 70 years. Prior to this, it had hiked its dividend 11.1% to 30 cents per share in May 2025.
Strong cash flows allow Donaldson to effectively deploy capital for making acquisitions, repurchasing shares and paying out dividends. Dividend payments totaled $69.3 million in the first six months of fiscal 2026 (ended January 2026) and $131.9 million in fiscal 2025 (ended July 2025). The company bought back shares worth $108.6 million in the first six months of fiscal 2026 and $333.6 million in fiscal 2025. We believe such disbursements highlight the company’s operational strength and commitment to enhancing shareholders’ wealth.
DCI’s Zacks Rank & Price PerformanceDonaldson is benefiting from higher volume in the aftermarket business, driven by positive market trends and the impact of expanded market share within the Mobile Solutions segment. Persistent strength in the filtration solutions business is aiding DCI’s Industrial Solutions segment. However, weakness in the on-road business remains a concern.
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In the past year, this Zacks Rank #3 (Hold) company’s shares have gained 18% compared with the industry’s 29.4% growth.
The Zacks Consensus Estimate for DCI’s fiscal 2027 (ending July 2026) earnings has been stable at $3.97 per share over the past 60 days.
Stocks to ConsiderSome better-ranked companies are discussed below:
CECO Environmental (CECO - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CECO delivered a trailing four-quarter average earnings surprise of 46.5%. In the past 60 days, the Zacks Consensus Estimate for CECO Environmental’s 2026 earnings has increased 17.2%.
Helios Technologies (HLIO - Free Report) presently sports a Zacks Rank of 1. Helios has a trailing four-quarter average earnings surprise of 15.7%.
The Zacks Consensus Estimate for HLIO’s 2026 earnings has increased 4% in the past 60 days.
RBC Bearings (RBC - Free Report) presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 6.2%.
In the past 60 days, the consensus estimate for RBC’ fiscal 2027 (ending March 2027) earnings has increased 0.5%.
Key Takeaways DCI reported record Q3 sales, adj operating margin and adj EPS; revenues were $995.1M.DCI's Mobile Solutions sales rose 8% to $630M, fueled by 8% aftermarket growth and a fleet win.DCI sees Q3 as the Industrial low point, aiming for recovery by mid-fiscal 2027. Donaldson Company, Inc. (DCI - Free Report) used its third-quarter fiscal 2026 earnings call to argue that the biggest near-term issue is execution, not demand. Management pointed to record sales, adjusted operating margin and adjusted EPS, while stressing that temporary Industrial inefficiencies are moving toward resolution.
The call mattered because it paired a narrower full-year outlook with a clear message on backlog, aftermarket strength and the newly closed Facet Filtration acquisition. Analyst questions centered on how quickly margins can recover and how much of today’s pressure shifts into fiscal 2027.
DCI Puts Focus on ExecutionRichard Lewis, president and chief executive officer, said that the quarter marked a significant step up from the fiscal second quarter and described it as the company’s strongest period to date for sales, adjusted operating margin and adjusted EPS. He framed the results as evidence that Donaldson can work through uneven cyclical conditions and still produce record quarterly performance.
That message was backed by the headline numbers. Adjusted EPS came in at $1.06, beating the Zacks Consensus Estimate of $1.05 by 0.57%. Revenues were $995.1 million, surpassing the Zacks Consensus Estimate of $979.1 million by 1.64%.
Lewis also emphasized that robust orders and elevated backlog left management confident in a stronger finish to fiscal 2026, which set the tone for the rest of the call.
Donaldson Leans on Mobile & Life SciencesLewis highlighted Mobile Solutions as the clearest growth engine in the quarter. Segment sales rose 8% to $630 million, helped by an 8% gain in aftermarket sales, with growth in all regions and both channels. He said that double-digit expansion in the independent channel reflected product availability and share gains.
Management also pointed to a major North America fleet win that covers air, lube and fuel products. Lewis said that the award should strengthen dealer relationships and create pull-through demand, extending the benefit beyond the initial contract.
Life Sciences added another bright spot. Sales increased 13% to $83.5 million, driven by Food and Beverage, and Disk Drive, while Lewis said that the company continues to see strong customer reception for newer technology-led offerings.
DCI Details Industrial Margin DragBrad Pogalz, chief financial officer, said that the central issue since last quarter had been whether Donaldson could restore its operating margin momentum. He said that the company delivered a 260-basis-point sequential improvement, but also made clear that the Industrial segment remains the pressure point.
The adjusted gross margin slipped 10 basis points to 34.4%, as pricing, volume and mix were offset by roughly 100 basis points of temporary headwinds tied to production shifts in Power Generation and plant transfer activity under the footprint optimization program. The adjusted operating margin still improved 30 basis points to 16.6% on expense leverage.
Industrial Solutions sales fell 1% to $281.7 million and the segment’s pretax margin dropped to 13.4% from 18.1% a year ago. Pogalz said that the company views the fiscal third quarter as the low point and expects recovery by the middle of fiscal 2027, with footprint actions eventually contributing about $10 million in annualized benefits once productivity reaches run rate.
Donaldson Narrows 2026 OutlookPogalz said that full-year organic sales are expected to grow 3-5% compared with the prior mentioned 1-5%, helped by stronger Mobile Solutions and Life Sciences trends. Life Sciences guidance moved up to 9-11% growth, while Mobile is now seen rising 3.5-5.5%.
The margin outlook was tightened in the other direction. The organic operating margin is projected at 15.8-16.2% versus 16-16.4% previously, reflecting the lingering gross margin pressure in Industrial. Management still said that fiscal 2026 should be a record year for sales, adjusted operating margin and adjusted EPS.
Excluding Facet, adjusted EPS is forecast at $3.94-$4.01. The company also expects a free cash flow conversion of 85-95% and capital expenditure of $60-$75 million.
DCI Uses Q&A to Clarify Facet & A&DAnalysts pressed management on whether Industrial can return to its prior profitability. Lewis told Oppenheimer that, excluding mix changes, the recovery path would bring the business back near earlier high-water marks, with the footprint savings layered on afterward.
Questions on Facet focused on integration, synergy potential and dilution. Lewis said that the strategic case remains strong because the business adds higher-margin, higher-growth exposure, while procurement synergies are expected to be $4-$5 million. Pogalz added that the fiscal fourth quarter should be the peak for interest expense impact, making the $0.03 EPS dilution an elevated starting point rather than a simple annual run rate.
On Aerospace and Defense, management acknowledged continued supply-chain constraints and lumpy project timing, but said that backlog exited the quarter near record levels. Lewis told Morgan Stanley and William Blair that much of the delayed volume should become a tailwind into fiscal 2027 as shipments catch up.
Donaldson Leaves Clear Operating MessageThe closing message from management was consistent. Lewis described Donaldson as operating from a position of strength, with a diversified portfolio, deeper technical capabilities and room to keep investing in end markets where it has a clear path to win.
Pogalz reinforced that posture with capital allocation comments that prioritized reinvestment, disciplined M&A and dividends, while confirming that share repurchases have been paused to reduce Facet-related debt. The call left investors with a company focused less on demand shortfalls and more on converting backlog, restoring Industrial efficiency and integrating a new asset.
DCI’s Zacks Signals Remain CautiousDonaldson currently carries a Zacks Rank #3 (Hold), along with a Value Score of C, a Growth Score of D, a Momentum Score of D and a VGM Score of D. Under Zacks methodology, the strongest setup tends to be Zacks Rank #1 (Strong Buy) or #2 (Buy) stocks with Style Scores of A or B, while a Rank #3 can be held but does not carry the same expected near-term performance profile. You can see the complete list of today’s Zacks #1 Rank stocks here.
The current score mix points to a more restrained signal than the quarter’s headline beat alone might imply. The Zacks Rank can also change as earnings estimate revisions move after the release, so the stock’s standing will depend on how analysts update forecasts following management’s latest guidance and call commentary.
Some stocks are hot. Others are scorching. Having more than tripled over the past year and now flirting with a quadruple over that period, semiconductor maker Marvell Technology (MRVL) is certainly in the scorching camp.
It’s obviously benefiting the Direxion Daily MRVL Bull 2X ETF (MRVU), an ETF designed to deliver 200% of the daily performance of the chip stock. MRVU displayed its benefits to short-term traders earlier this week when Marvell surged 32% in a single trading day after Nvidia (NVDA) CEO Jensen Huang overtly complimented the fabless semiconductor company – heady praise to be sure.
See more: It’s Nvidia’s World: How Advisors See the Next Phase of AI
Perhaps take it with a grain of salt because Nvidia is invested in Marvell, but Huang came right out and said that Marvell could become a $1 trillion company. Such a statement implies an opportunity to occasionally capitalize with the leveraged MRVU. To get to a market value of $1 trillion, Marvell would need to more than triple from its June 2 market cap.
Potentially adding to the allure of Marvell for committed investors and supporting the case for occasional deployment of MRVU is the point that, believe it or not, some market observers don’t view the stock as overvalued.
“It is still a 4-star-rated stock that trades at a 13% discount. Technically, as a 4-star-rated stock, we do think that it is attractive compared to its long-term intrinsic valuation on a risk-adjusted basis,” noted Morningstar’s Dave Sekera.
More to Come for MRVU? Marvell’s positioning in the data center interconnect (DCI) module space indicates that the chipmaker is a leader in addressing a key artificial intelligence (AI) bottleneck. That is music to bulls’ ears, as well as to traders seeking amplified short-term gains with MRVU. Consider what Chairman and CEO Matt Murphy had to say about DCI modules on Marvell’s latest earnings conference call.
“The increase in our revenue outlook continues to be driven by our data center business, which we now expect to grow approximately 50% this fiscal year. Notably, we expect our interconnect business to grow more than 70% [YoY], well above our prior expectation of 50% growth,” he said.
Another potential catalyst for the chip stock and thus MRVU, is the stock’s potential inclusion in the S&P 500, which is expected to rebalance on June 19. Still, traders should be careful with MRVU heading into that event.
“However, there’s no guarantee Marvell will be added immediately. The selection committee at S&P Dow Jones Indices has discretion when determining which eligible companies to add to the index and sometimes chooses not to make changes at the scheduled time,” noted Barron’s.
For more news, information, and strategy, visit the Leveraged & Inverse Content Hub.
Key Takeaways Donaldson Q3 adjusted EPS of $1.06 and revenues of $995.1M topped estimates and rose year over year.DCI saw Mobile Solutions sales rise 8.1%, while Life Sciences revenues increased 12.7%.Donaldson expects fiscal 2026 EPS of $3.94-$4.01 and organic sales growth of 3-5%. Donaldson Company, Inc. (DCI - Free Report) reported third-quarter fiscal 2026 (ended April 30, 2026) adjusted earnings of $1.06 per share, which topped the Zacks Consensus Estimate of $1.05. The bottom line was up 7.1% on a year-over-year basis.
DCI’s Revenue ResultsTotal revenues of $995.1 million surpassed the Zacks Consensus Estimate of $979 million. The top line increased 5.8% year over year.
Region-wise, Donaldson’s net sales in the United States/Canada increased 1.5% year over year to $427.1 million. Net sales increased 11.5% to $289.3 million in Europe, the Middle East and Africa. Latin America generated net sales of $105.9 million, reflecting an increase of 4.4%. Also, net sales in the Asia Pacific improved 9.2% to $172.8 million.
Donaldson reports revenues under three segments, namely Mobile Solutions, Industrial Solutions and Life Sciences.
A brief snapshot of segmental sales is provided below.
The Mobile Solutions segment’s (accounting for 63.3% of net sales) sales were $629.9 million, indicating a year-over-year increase of 8.1%. Sales rose 8.8% in Off-Road and increased 5.2% in On-Road businesses during the quarter. Aftermarket sales improved 8.1% year over year.
Revenues generated from the Industrial Solutions segment (28.3%) were $281.7 million, down 0.6% year over year. Industrial Filtration Solutions' sales increased 2.3% year over year. Sales decline of 13.5% in the Aerospace and Defense businesses affected the results.
Revenues generated from the Life Sciences segment (8.4%) were $83.5 million, up 12.7% year over year. The results benefited from growth in new equipment volume in the Food & Beverage and Disk Drive businesses.
Donaldson’s Margin ProfileIn the fiscal third quarter, Donaldson’s cost of sales increased 7% year over year to $661.7 million. Gross profit increased 3.6% to $333.4 million. The gross margin of 33.5% declined 70 basis points due to operating inefficiencies associated with production shifts and costs related to footprint optimization initiatives. Selling, general and administrative expenses were $158.9 million, up 4.3% year over year.
Operating expenses were down 24% year over year to $178.1 million. Operating profit surged 77.7% to $155.3 million. The adjusted operating margin was 16.6%, up 30 bps year over year.
The adjusted effective tax rate was 23.8% compared with 22.1% in the year-ago quarter.
Balance Sheet & Cash Flow of DCIExiting the fiscal third quarter, Donaldson’s cash and cash equivalents were $204.1 million compared with $180.4 million in the fourth quarter of fiscal 2025. Long-term debt was $591.6 million compared with $630.4 million in the fourth quarter of fiscal 2025.
In the fiscal third quarter, the company generated net cash of $135.4 million from operating activities, indicating an increase of 54.4% year over year. Capital expenditure (net) totaled $23.8 million compared with $14.7 million in the year-ago fiscal quarter. Free cash flow increased 52.9% to $111.6 million.
It used $108.5 million to repurchase stocks and $104 million to pay out dividends during the first nine months of fiscal 2026.
Donaldson’s FY26 OutlookFor fiscal 2026 (ending July 2026), Donaldson expects adjusted earnings per share (EPS) to be in the range of $3.94-$4.01 compared with $3.68 in fiscal 2025. Organic sales are anticipated to increase 3-5% from the fiscal 2025 level.
On a segmental basis, Mobile Solutions’ sales are expected to increase 3.5-5.5% from the fiscal 2025 level. Industrial Solutions’ sales are envisioned to increase in the range of 0-2% from the year-ago figure. The company forecasts its Life Sciences segment’s sales to increase in the 9-11% range.
Interest expenses are predicted to be approximately $26 million, while other income is projected to be in the range of $17-$19 million. The effective tax rate is anticipated to be between 22% and 24%.
Capital expenditure is expected to be between $60 million and $75 million. Free cash flow conversion is anticipated to be in the range of 85-95%. Donaldson expects to repurchase 1.2% of its outstanding shares during the fiscal year.
DCI’s Zacks Rank and Stocks to ConsiderThe company currently carries a Zacks Rank #3 (Hold).
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