Key Points
Donaldson Company, Inc. (DCI) surged in today’s session, climbing from a previous close of $87.60 to $92.87. The advance amounts to a robust 6.02% gain, with shares adding $5.27 on the day. The move was orderly with below-average volume, signaling steady interest rather than a speculative spike, and it pushed the stock to trade at its 52-week high of $90.94. The price action reflected steady buying throughout the session and an increasingly constructive tone among investors.
Momentum has been building for weeks, and today’s action reinforces that favorable trajectory. Breaking to a 52-week high is often a sign that institutional demand is outpacing supply, and the stock’s ability to hold gains intraday adds to that constructive read. The magnitude of the rally, paired with disciplined volume, suggests conviction buyers stepping in on strengthening fundamentals and a solid outlook.
Technically, closing at or near a 52-week high is a bullish confirmation and often attracts additional attention from trend-followers and quality-focused investors. The stock’s advance also signals growing confidence in the company’s margin profile and cash generation, which historically have supported durable compounding. With price, volume, and sentiment all aligned, DCI now has a favorable backdrop for follow-through buying and continued positive momentum, barring broader market headwinds.
Why Donaldson Company, Inc. Price is Moving Higher
DCI’s strong move to $92.87 aligns with a powerful set of fundamentals and catalysts. The company reported an upbeat Q1 FY2026, delivering adjusted EPS of $0.94 versus $0.93 expected and revenue of $935.4 million, slightly above the $931.9 million consensus. Importantly, revenue expanded 3.9% year over year, while operating margin improved to 16% from 14.5%, and free cash flow margin nearly doubled to 11.9%. Management also raised its fiscal 2026 adjusted EPS outlook to $3.95–$4.11, signaling confidence in continued growth and margin expansion. These gains are supported by an EPS (TTM) of $3.04 and a market cap of $10.15 billion, underpinning scale and earnings durability. Shares are trading around the 52-week high of $90.94, which reinforces a constructive technical setup alongside fundamental strength.
Volume today was 159,053, below the 90-day average of 630,098, yet price advanced decisively—an encouraging sign when a stock responds positively to earnings quality and guidance. Analyst sentiment added fuel: Robert W. Baird raised its price target to $96 with an “outperform” rating, while other major firms shifted to more favorable views in late November, amplifying investor enthusiasm. Together, a modest top-line beat, visible margin expansion, improved free cash flow, and refreshed guidance provide a clear narrative for today’s rally.
From a valuation lens, the stock’s premium is increasingly supported by operating execution and recurring aftermarket revenue. With fundamentals improving and technicals confirming a breakout, DCI’s bullish momentum appears well-grounded by both earnings power and confidence in forward performance.
What is the Donaldson Company, Inc. Rating - Should I Buy?
Weiss Ratings assigns DCI a B rating. Current recommendation is Buy.
The rating is built on six indices: the Excellent Growth Index (reflecting expanding revenue and earnings, supported by 4.84% revenue growth); the Excellent Efficiency Index (signaling strong margins and asset use, consistent with a 9.94% profit margin and 24.94% ROE); the Excellent Solvency Index (indicating sound balance sheet health and prudent debt management); the Fair Total Return Index (showing market-like appreciation when combining price and dividends); the Good Volatility Index (indicating comparatively stable price action and balanced risk); and the Fair Dividend Index (a sustainable, if modest, income profile aligned with the 1.30% yield and a 28.77 P/E that prioritizes quality and growth over yield).
Versus peers, the competitive set also carries strong ratings. Sector peers include GE (B), CAT (B), and RTX (B). DCI’s profile sits comfortably alongside these names, backed by high-quality operations, strong margin control, and a durable aftermarket revenue base that supports consistency through cycles.
Overall, the mix of Excellent growth, efficiency, and solvency—tempered by Fair total return and dividends and supported by Good volatility—yields a balanced, risk-adjusted picture. That is why DCI earns a B rating: it combines improving fundamentals with disciplined execution and manageable risk, positioning the stock to potentially outperform on a risk-adjusted basis while maintaining financial strength.
About Donaldson Company, Inc.
Donaldson Company, Inc. is a global filtration leader within the Industrials sector and the Capital Goods industry. The company develops, manufactures, and markets filtration solutions that protect equipment performance, enhance air quality, and safeguard critical processes. Its portfolio spans engine air intake, fuel, lube, and hydraulic filtration for on-road and off-road equipment, as well as emission and exhaust products. Donaldson’s technologies support heavy-duty trucks, agriculture, construction, mining, and other mobile applications where reliability, uptime, and clean operation are essential.
Beyond mobile equipment, Donaldson offers a broad range of industrial filtration products. These include dust, fume, and mist collection systems for manufacturing environments; gas turbine inlet filtration for power generation; and compressed air and process filtration for applications in food and beverage, pharmaceuticals, microelectronics, and general industrial production. The company’s proprietary filter media and designs—such as advanced cellulose and synthetic blends—deliver high efficiency, long service life, and lower total cost of ownership for customers.
A significant portion of Donaldson’s business comes from replacement filters and parts, creating a recurring aftermarket revenue stream that complements original equipment placements. The company serves customers through OEM partnerships, a global distribution network, and a broad catalog of aftermarket elements. Its competitive advantages include deep application expertise, a reputation for consistent quality, continuous R&D investment in filtration media, and a global manufacturing footprint that supports fast delivery and local service. Together, these capabilities help Donaldson address critical filtration challenges while supporting productivity and regulatory compliance across diverse end markets.
Investor Outlook
DCI’s bullish price action, margin expansion, and raised guidance point to a favorable setup for continued progress. The B rating (Buy) underscores a solid risk-reward profile supported by excellent growth, efficiency, and solvency metrics.
See full rankings of all B-rated Industrials stocks inside the Weiss Stock Screener.