U.S. stocks edge higher after weekly jobless claims; Salesforce gains
Investing.com - Donaldson Company, Inc. (NYSE:DCI) shares gained 3.5% on Thursday after the filtration products maker reported better-than-expected first quarter fiscal 2026 results and raised its full-year guidance, driven by strong replacement parts sales and improved operating margins.
The company posted adjusted earnings per share of $0.94, exceeding analyst estimates of $0.92, while revenue rose 3.9% to $935.4 million, surpassing the consensus forecast of $922.62 million.
First quarter sales growth was supported by pricing benefits, favorable currency translation, and higher volumes, particularly in the Aftermarket business.
"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."
Donaldson’s Mobile Solutions segment, its largest business unit, saw sales increase 4.5%, with Aftermarket sales rising 6.5% due to share gains in the independent channel. The Life Sciences segment delivered the strongest growth, with sales up 13.1% YoY.
The company improved its adjusted operating margin to 15.5%, up 60 basis points from the previous year, benefiting from operating expense leverage and cost optimization initiatives. This margin expansion helped convert 3.9% sales growth into 13.3% adjusted EPS growth.
Based on the strong first quarter performance, Donaldson raised its full-year adjusted operating margin guidance to between 16.2% and 16.8%, up from previous guidance of 16.1% to 16.7%. The company also increased its adjusted EPS forecast to a range of $3.95 to $4.11, compared to its earlier projection of $3.92 to $4.08.
Donaldson maintained its full-year sales growth forecast of 1% to 5%, which includes approximately one percentage point benefit from pricing.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.