Donaldson Company, Inc. (NYSE:DCI) saw its stock rise 3.5% on Thursday after the filtration systems manufacturer posted better-than-expected fiscal first-quarter 2026 results and raised its full-year guidance. Strong replacement parts demand and improved operating efficiency helped lift performance.
The company reported adjusted earnings per share of $0.94, slightly above analyst expectations of $0.92. Revenue increased 3.9% year-over-year to $935.4 million, surpassing the consensus estimate of $922.62 million.
Sales during the quarter benefited from improved pricing, favorable currency effects, and higher volumes, especially within the Aftermarket division.
“Our first quarter results represent a strong start to fiscal 2026, driven by solid sales growth, leverage on higher sales and benefits from cost optimization initiatives,” said Tod Carpenter, chairman, president and chief executive officer.
“We gained market share in key businesses and grew replacement part sales through our razor-to-sell-razorblades model.”
Segment performance
Donaldson’s Mobile Solutions segment — its largest — posted a 4.5% increase in sales, with Aftermarket revenue up 6.5% thanks to share gains in the independent channel. The Life Sciences division delivered the strongest performance, with sales rising 13.1% year-over-year.
The company expanded its adjusted operating margin to 15.5%, up 60 basis points from a year earlier, supported by expense leverage and the ongoing benefits of cost optimization efforts. The improved margin allowed Donaldson to translate 3.9% sales growth into a 13.3% increase in adjusted EPS.
Full-year guidance raised
Following the solid first quarter, Donaldson increased its full-year adjusted operating margin guidance to 16.2%–16.8%, compared with the prior range of 16.1%–16.7%. The company also lifted its adjusted EPS outlook to $3.95–$4.11, up from the earlier forecast of $3.92–$4.08.
Donaldson reaffirmed its full-year sales growth expectations of 1% to 5%, which include roughly one percentage point of benefit from pricing.