Abstract

Donaldson Company, Inc. will report fiscal Q2 2026 results on February 26, 2026 Pre-Market; this preview summarizes current-quarter estimates for revenue, margins, and EPS, reviews last quarter’s performance, and compiles institutional expectations alongside key segment dynamics and catalysts.

Market Forecast

Consensus indicators embedded in Donaldson’s own guidance framework and aggregated estimates point to fiscal Q2 2026 revenue of $898.74 million, implying 3.30% year-over-year growth, with estimated EBIT of $139.71 million and projected EPS of $0.889, indicating 4.85% growth year over year. Margin expectations suggest stable-to-firmer profitability versus the prior year, while adjusted EPS growth in the mid-single digits reflects a balance of pricing, product mix, and cost discipline.

Donaldson’s core Mobile Solutions, Industrial Products, and Life Sciences businesses remain supported by a mix of aftermarket filtration demand, industrial end-market resilience, and continued expansion in higher-value life sciences applications. The most promising growth runway appears in Life Sciences, where recent quarters have shown compounding gains from bioprocessing, microelectronics filtration, and specialized media solutions, positioning the segment for outsized growth as new projects ramp.

Last Quarter Review

In the prior fiscal quarter, Donaldson reported revenue of $935.40 million, with a gross profit margin of 35.36%, GAAP net profit attributable to the parent of $114.00 million, a net profit margin of 12.18%, and adjusted EPS of $0.94, which increased 13.25% year over year. The company exceeded revenue and EPS estimates, with EBIT near plan, reflecting solid execution in pricing, procurement, and mix.

A notable highlight was operating leverage from aftermarket and premium filtration solutions that supported both gross margin expansion and earnings growth. By business line, Mobile Solutions delivered $598.30 million, Industrial Products posted $257.80 million, and Life Sciences contributed $79.30 million, underscoring diversification and the steady rise of higher-margin specialty filtration.

Current Quarter Outlook

Main business: Mobile Solutions and Industrial Products

Mobile Solutions is the largest revenue contributor and a critical earnings anchor for Donaldson this quarter. Aftermarket demand in heavy-duty on-road and off-road applications generally provides a recurring revenue base, helping buffer cyclical OE order variability. Pricing actions and an improving supply chain backdrop should aid stable revenue conversion, while mix shifts toward higher-specification filtration elements can support gross margin resilience even if unit volumes normalize. In Industrial Products, project timing in dust collection, process filtration, and compressed air solutions may result in moderate quarter-to-quarter variability, but the installed base and replacement cycles typically reinforce revenue visibility. The combined performance of these mature businesses is likely to determine whether consolidated margins hold at mid-30s on gross margin and low-teens on net margin, consistent with last quarter’s profile.

The market will watch order intake trends from industrial customers, as capex pacing and utilization rates influence filter changeouts and project commitments. A steady cadence of aftermarket sales can mitigate any temporary softness in original equipment activity, while international exposure introduces FX considerations that may slightly affect reported growth. Management’s execution on cost control, procurement savings, and price adherence remains pivotal to keeping EBIT on course with the upper end of implied plans.

Most promising business: Life Sciences

Life Sciences presents Donaldson’s most attractive long-term growth vector, driven by bioprocessing filtration, microelectronics contamination control, and adjacent high-specification applications. The segment’s increasing mix of validated, consumable-heavy solutions offers a favorable margin profile relative to the corporate average, and it is strategically aligned with end markets that prioritize reliability and quality. As new product qualifications and customer production ramps progress, revenue contribution should scale at a rate above the consolidated average, with operating leverage supporting EBIT.

This quarter, investors are looking for confirmation of pipeline conversion in bioprocessing and semiconductor-related opportunities. Early-stage wins can take time to translate into full-scale production revenue, but incremental purchase orders and repeat consumable demand are constructive indicators. Sustained double-digit growth in Life Sciences would enhance overall mix and help offset cyclical ebbs in more economically sensitive verticals, reinforcing the company’s path to mid-single-digit EPS growth even in a mixed macro setting.

Key stock price drivers this quarter

The stock’s near-term reaction is likely to hinge on three sensitivities. First, revenue cadence versus the $898.74 million estimate will matter; a modest beat, when paired with stable gross margin near the mid-30s, could support a constructive reaction given recent delivery against expectations. Second, updated commentary on demand trends across heavy-duty transportation and industrial end markets will shape the trajectory for the fiscal second half, including any signals on backlog health and aftermarket momentum. Third, the slope of Life Sciences growth and the visibility of its backlog and qualification funnel will influence how investors model out mix improvement and margin durability.

FX and input costs appear manageable but remain watch points, particularly if raw materials or logistics costs deviate from recent normalization. Execution on pricing discipline, supplier negotiations, and production efficiency should continue to support EBIT near the $139.71 million mark embedded in models. If management pairs in-line results with a confident read on aftermarket stability and Life Sciences ramp, the market may tilt toward incremental multiple support.

Analyst Opinions

Across recent commentary, the balance of opinions skews mildly bullish, with a majority expecting Donaldson to deliver in-line to modestly above-consensus results and maintain constructive guidance on margins and Life Sciences momentum. Several well-followed sell-side desks highlight the resilient aftermarket base in Mobile Solutions and the structural margin benefits of mix upgrade and cost discipline, while acknowledging that industrial order timing can inject some volatility. The positive camp emphasizes the company’s consistent execution against expectations, coupled with an improving medium-term outlook as Life Sciences expands from a smaller base into a more material earnings contributor.

Analysts pointing to the upside case argue that Donaldson’s recurring aftermarket dynamics, combined with disciplined pricing and procurement programs, should keep gross margin around the mid-30s even as volumes ebb and flow. They also note that higher-value consumables in Life Sciences create a tailwind for EBIT and EPS, aligning with the projected EPS of $0.889 this quarter and suggesting the company remains on track for mid-single-digit EPS growth year over year. On valuation and sentiment, the prevailing view is that dependable operational delivery and clarity on Life Sciences trajectories can support a constructive setup into and after the print, provided management’s commentary on demand, backlog, and margin levers remains steady.