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Donaldson Tops Q1 Estimates and Raises 2026 Outlook as Shares Rally

Expense control plus market‑share gains drove the EPS outperformance, prompting a modest increase to full‑year targets.

Overview

  • Revenue rose 3.9% year over year to $935.4 million, topping the $922.9 million consensus on favorable currency and volume.
  • Adjusted EPS came in at $0.94 versus $0.92 expected, while GAAP EPS was $0.97 helped by a pre‑tax, non‑recurring $4.3 million benefit, with management noting expense discipline and share gains converted roughly 4% sales growth into 13% adjusted EPS growth.
  • Full‑year guidance increased to adjusted EPS of $3.95–$4.11 and sales growth of 1%–5%, with pricing contributing about one percentage point; management projected Mobile flat to up 4%, Industrial up 2%–6%, and Life Sciences up 1%–5%.
  • Segment results were mixed: Mobile Solutions up 4.5%, Aftermarket up 6.5%, Industrial Solutions roughly flat, Aerospace & Defense down 7.1%, and Life Sciences up 13.1%.
  • Cash returns included $34.7 million in dividends and $91.9 million in buybacks, and the company plans to repurchase about 2%–3% of shares this year as the stock rose 4.7% to $91.78, near a 52‑week high.