Donaldson Reports Q3 EPS $1.06, Revenue Up 5.8% to $995.1M
DCI•Donaldson posted Q3 adjusted EPS of $1.06, beating estimates by $0.01, while revenue rose 5.8% to $995.1M versus forecasts. Record operating margin of 16.6% was driven by Mobile Solutions (+8.1%) and Life Sciences (+12.7%), offsetting a 0.6% Industrial Solutions decline; fiscal 2026 EPS guidance narrowed to $3.94–4.01.
1. Q3 Financial Highlights
Donaldson posted adjusted EPS of $1.06 in its third fiscal quarter, topping consensus by $0.01, while revenue rose to $995.1 million, a 5.8% year-over-year increase. Shares climbed nearly 4% in premarket trading following the results.
2. Segment Performance
Growth was led by Mobile Solutions, with sales up 8.1%, including off-road sales rising 8.8% and aftermarket revenue up 8.1%, and Life Sciences, where sales increased 12.7%. These gains more than offset a 0.6% decline in Industrial Solutions sales.
3. Record Operating Margin
Adjusted operating margin reached a record 16.6%, up 30 basis points from the prior year, driven by higher margins in key business units and operational efficiencies. Management cited the diversified portfolio as a buffer against headwinds in the Industrial segment.
4. Fiscal 2026 Outlook
Donaldson narrowed its full-year EPS guidance to $3.94–$4.01, with a midpoint of $3.98 in line with consensus, and maintains expectations for 3%–5% organic sales growth. The outlook excludes an estimated $0.03 per share dilution from the Facet Filtration acquisition.
