Donaldson Gears Up to Report Q4 Earnings: What's in the Cards?

Donaldson Company, Inc. DCI is scheduled to release fourth-quarter fiscal 2026 (ended July 2026) results on Aug. 26, before market open.

The Zacks Consensus Estimate for this Bloomington, MN-based tool maker’s fiscal fourth-quarter revenues is pegged at $1.04 billion, indicating 6.4% growth from the year-ago quarter. The consensus estimate for adjusted earnings is pinned at $1.12 per share. The figure indicates an increase of 8.7% from the year-ago quarter’s number.

The consensus estimate for earnings has been stable over the past 60 days. The company has outperformed the consensus estimate thrice and missed once in the preceding four quarters.

Let’s see how things have shaped up for Donaldson before the announcement.

Factors Likely to Have Shaped DCI’s Quarterly Performance

The Mobile Solutions segment’s results are likely to benefit from strong demand for products in the aftermarket business, supported by growth across all regions and both original equipment (OE) and independent channels.

Strong momentum in the off-road business, along with higher truck production in the Europe, the Middle East and Africa region, is likely to have driven its on-road business in the quarter. The consensus mark for the Mobile Solutions segment’s revenues is pegged at $620 million, indicating a 5.4% increase from the year-ago figure.

Strength in the Industrial Filtration Solutions business, driven by strong demand in the power generation market, is likely to have been favorable for the Industrial Solutions segment. Recovery in demand for new equipment in the aerospace & defense market also augurs well. The consensus mark for the Industrial Solutions segment’s revenues is pegged at $336 million, indicating an 8.4% growth from the year-ago figure.

Growth in demand for disk drives and food & beverage products is expected to boost the Life Sciences segment’s results. The consensus mark for the segment’s revenues is pegged at $84 million, indicating a 2.4% increase from the year-ago figure.

In May 2026, Donaldson acquired Filtration Group’s Facet Filtration business. The buyout, which enhanced the company’s product portfolio of fuel and fluid filtration used in critical applications, is expected to have boosted its top line during the quarter.

However, rising costs and operating expenses have been concerns for DCI for some time now. The impacts of high operating costs are likely to have affected its margins and profitability. Also, investments associated with product development and growth initiatives are expected to have hurt the company’s performance.

Earnings Whispers for DCI

Our proven model does not conclusively predict 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 not 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 $1.12 per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: DCI presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other Companies

Graco Inc. GGG posted quarterly earnings of 91 cents per share in the second quarter of 2026, beating the Zacks Consensus Estimate of 81 cents per share. This compares with earnings of 75 cents per share a year ago.

Graco posted revenues of $591 million for the quarter, missing the Zacks Consensus Estimate by 3%. This compares with year-ago revenues of $572 million.

Stanley Black & Decker, Inc. SWK reported second-quarter 2026 adjusted earnings of $1.57 per share, which beat the Zacks Consensus Estimate of $1.20. The bottom line increased 45.4% year over year.

Stanley Black’s net sales of $3.96 billion beat the consensus estimate of $3.93 billion. The top line increased 0.4% from the year-ago quarter.

Ingersoll Rand Inc. IR reported second-quarter 2026 adjusted earnings of 86 cents per share, which surpassed the Zacks Consensus Estimate of 83 cents. The bottom line increased 7.5% year over year.

Total revenues of $2.05 billion beat the consensus estimate of $1.96 billion. The top line increased 8.5% year over year.

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This article originally published on Zacks Investment Research (zacks.com).

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