Stifel increased its price target for Donaldson Company to $95 from $91, citing the filtration systems manufacturer’s stronger-than-expected fourth-quarter results for fiscal 2026.
The company reported adjusted earnings of $1.15 per share, exceeding the $1.13 per share estimate from analysts. Revenue reached $1.1 billion, surpassing the $1.04 billion projection and marking the first quarter in Donaldson’s history with sales above $1 billion. Total revenue for the trailing twelve months rose 5.3% to $3.89 billion, with a return on equity of 28%.
Stifel maintained its Hold rating on Donaldson shares despite the upward revision. The firm highlighted expected margin expansion in the Industrial segment, driven by sales leverage, recovery in Power Generation margins, and production increases following recent plant closures. Operational improvements are projected to materialize in the second half of fiscal 2027.
For fiscal 2027, Donaldson guided for earnings per share of $4.42. The company has increased its annual dividend for 30 consecutive years, underscoring its commitment to shareholder returns.
Donaldson, which manufactures filtration systems and replacement parts for industrial and engine applications, has faced operational adjustments including plant closures during the 2026 fiscal year to support long-term efficiency gains.
