Donaldson Analysts Boost Their Forecasts Following Strong Q1 Earnings

Core Insights - Donaldson Company, Inc. reported strong first-quarter fiscal 2026 results with sales increasing by 3.9% year over year to $935.4 million, surpassing the consensus estimate of $922.9 million, driven by favorable currency translation and volume growth [1] - GAAP net earnings rose to $113.9 million (97 cents per share) from $99.0 million (81 cents per share) in the previous year, with adjusted EPS of 94 cents exceeding the consensus of 92 cents [1] Fiscal Guidance - The company raised its fiscal 2026 guidance for adjusted EPS to a range of $3.95-$4.11, compared to the previous range of $3.92-$4.08, while the consensus was $4.01 [2] - Sales growth guidance was revised to 1%-5% year over year, up from the earlier guidance of 1%-3%, with a pricing benefit of approximately one percentage point [2] Market Performance - CEO Tod Carpenter highlighted that the company gained market share in key businesses and grew replacement part sales, achieving a 13% adjusted EPS growth from a 4% sales growth [3] - Following the earnings announcement, Donaldson shares dipped by 1.8% to trade at $92.16 [3] Analyst Ratings - Baird analyst Richard Eastman maintained an Outperform rating on Donaldson and raised the price target from $96 to $100 [6] - Stifel analyst Adam Farley maintained a Hold rating and increased the price target from $90 to $96 [6]