Donaldson Company, Inc. research snapshot
DCI AI stock analysis currently reads Donaldson Company as a durable, technology-led filtration franchise with record fiscal Q3 2026 sales and an all-time-high adjusted operating margin, a narrowed organic growth guidance range, and a recently closed Facet Filtration acquisition. At the August 3, 2026 data cutoff, DCI closed near $94.24 on July 31 with a verified market capitalization near $10.92 billion. The stock has recovered from the mid-July $89 area and now trades above its 20-day, 50-day and 200-day averages, so the setup mixes solid business execution with a constructive technical posture, yet a trailing earnings multiple near 25x and mid-single-digit organic growth still require discipline. This page uses scenario ranges and source checks, not a certain stock price prediction, and is for informational use only.
Current price
$94.24
Market cap
$10.92 billion
AI score
71 / 100
Rating
High-quality filtration compounder with aftermarket resilience; improved technical posture, fair valuation
Trend status
Recovered above the 20-day, 50-day and 200-day averages; about 16.5% below the $112.84 52-week high after trading near $89 in mid-July
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Donaldson designs and sells filtration systems and replacement parts across Mobile Solutions, Industrial Solutions, and Life Sciences, with aftermarket filters and service creating recurring demand after OEM installs. | High |
| Moat | Moat comes from OEM specification, installed bases, aftermarket replacement cycles, filtration IP and application know-how, global scale, and channel reach. It is a durable portfolio moat, not a single product monopoly. | Medium-high |
| Management | CEO Rich Lewis has emphasized diversified segment execution, operating expense leverage, capital returns (dividends and buybacks), and the May 2026 Facet acquisition to deepen industrial filtration. Proof points are the all-time-high adjusted operating margin and the narrowed organic sales guidance. | Medium-high |
| Financial trend | Q3 fiscal 2026 sales were a record $995.1 million (+5.8% y/y), adjusted operating margin hit an all-time high 16.6%, adjusted EPS was $1.06, and nine-month sales reached $2.827 billion. Organic FY2026 sales guidance is +3% to +5% with organic adjusted EPS $3.94 to $4.01. | High |
| Valuation | At $94.24, DCI screens near 25.3x TTM EPS of $3.72, about 23.9x the $3.95 FY2026 analyst EPS estimate, roughly 6.4x book value, about 3.6% FCF yield on TTM free cash flow, and a ~1.4% dividend yield. | High |
| Technical trend | Price recovered from the $89 area in mid-July to $94.24, trading above the 20-day average near $90.94, the 50-day average near $87.64 and the 200-day average near $90.20, which is a constructive repair regime after the pullback from highs. | Medium-high |
| Risk level | Main risks include industrial and aerospace cycle softness, Facet integration and higher interest expense, gross margin headwinds in power generation, FX, tariffs and input costs, competition in filtration, and multiple compression if growth disappoints. | Medium-high |
| AI confidence | High for descriptive company facts and audited calculations; medium for forward scenarios and day-to-day chart levels. | High data confidence |
| Investment certainty | Medium certainty. The page frames scenarios and monitoring rules, not a buy or sell instruction. | Medium |
DCI AI stock forecast
The DCI AI stock forecast uses scenario math around the $94.24 quote and analyst FY2026 EPS estimates near $3.95, consistent with the company organic adjusted EPS guidance range of $3.94 to $4.01 before roughly $0.03 of Facet dilution. The tool-audited three-year framework used 10%/6%/2% EPS growth with 26x/22x/16x terminal PE and produced a bullish area near $137, a base area near $103, and a bearish area near $67 before dividends. These are research ranges, not promises.
$130 to $140 before dividends
More likely if organic sales sustain mid-single-digit to high-single-digit momentum, adjusted operating margin holds near 16%, Facet contributes accretive industrial filtration with limited dilution, Life Sciences stays double-digit, and investors re-rate DCI toward the mid-20s PE on rising EPS.
$100 to $108 before dividends
More likely if Donaldson delivers mid-single-digit organic growth, organic adjusted EPS near $4.00, free cash flow conversion in the 85% to 95% guided band, steady dividends and modest buybacks, and the market values the stock near low-20s earnings multiples.
$64 to $72 before dividends
More likely if truck or industrial OE demand rolls over, Facet integration raises leverage without margin lift, aerospace and defense stays soft, gross margins compress further, or the stock is repriced closer to mid-teens PE on stalled EPS growth.
DCI AI technical analysis
DCI AI technical analysis as of the August 3, 2026 data cutoff is a repaired uptrend. StockAnalysis daily data show a July 31 close of $94.24, with the 20-day average near $90.94, the 50-day average near $87.64, the 200-day average near $90.20, and 14-day RSI near 63. The 52-week range is $70.17 to $112.84, so price sits about 16.5% below the high and well above the low.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $94.24 | StockAnalysis chart close on July 31, 2026. Recent sessions included $95.36 on July 28, $92.50 on July 29 and $92.66 on July 30. |
| Near support | $92 to $93 | Clustered with the July 29 to July 31 closes. A hold here keeps the short-term recovery intact. |
| Deeper support | $90 to $91 | Aligned with the 20-day moving average near $90.94 and the 200-day average near $90.20. A loss of this band would pull price back toward the 50-day. |
| Major support | $87.64 | 50-day moving average from StockAnalysis. A decisive close below this level would weaken the intermediate trend repair. |
| 52-week low | $70.17 | 52-week low from StockAnalysis metadata, with Yahoo Finance showing a nearby low near $71.03. A break would signal a broader trend failure, not only a normal pullback. |
| Near resistance | $95 to $96.5 | July 28 high near $96.35 and the analyst average price target near $96.80. Reclaiming the mid-$90s on rising volume would extend the recovery. |
| Upper resistance | $112.84 | 52-week high from StockAnalysis and Yahoo Finance. A return to that area needs both earnings delivery and multiple expansion. |
| Momentum | 14-day RSI near 63 | Computed from daily closes through July 31, 2026. Momentum is constructive but not extreme after the recovery off the lows. |
| Volume | 20-day average volume near 0.70 million shares | StockAnalysis 20-session average volume near 697,000 shares, so moves well above that level carry more signal. |
| Volatility | About 16.5% below 52-week high; beta near 0.93 | Beta near 0.93 implies market-like risk, while the wide 52-week band shows investors still reprice industrial filtration multiples quickly. |
| Invalidation | Close below $90 or $87.6 | A decisive close under the 20-day and 200-day area near $90 would weaken the recovery, and a close under the 50-day near $87.64 would raise odds of a retest toward the high $70s or lower. |
DCI AI trading strategy
The DCI AI trading strategy is a rules-based research framework for a quality filtration compounder that has recovered above its key averages. It is not personal advice and should be paired with fresh chart data, segment results, Facet updates, position sizing, and a defined invalidation level.
Watch for DCI to hold the $92 to $93 zone above the 20-day average, then reclaim $95 to $96.5 on volume above the roughly 0.70 million share average. A later push through $100 would need confirmation from Q4 or full-year fiscal 2026 results, organic growth, and Facet contribution.
A close below $90 (near the 20-day and 200-day averages), or a failed reclaim of $96.5 after the next earnings update, should invalidate the near-term trend setup.
If DCI pulls toward the $90 to $91 band without a negative guidance reset, compare price action with Mobile aftermarket trends, Industrial Filtration Solutions orders, Life Sciences growth, free cash flow conversion, and net leverage after Facet before treating the dip as normal.
Do not average down without a maximum loss rule. Quality industrials can still re-rate lower when OE cycles or acquisition leverage surprise the market.
Track organic sales by Mobile, Industrial, and Life Sciences; adjusted operating margin; Facet sales and EPS dilution; free cash flow conversion versus the 85% to 95% guide; debt and interest expense; buyback pace; and aerospace and defense timing. The next earnings report is expected around August 26, 2026.
Reduce confidence if EPS growth relies mainly on buybacks or one-time items while organic volume, gross margin, and cash conversion weaken.
Investment research summary
Customers pay Donaldson to keep engines, factories, aerospace systems, power-generation equipment, food and beverage processes, and disk-drive or life-science lines free of harmful particles and contaminants. The essential model is technology-led filters and systems plus a large replacement aftermarket once equipment is installed.
The moat is multi-layered: OEM design-ins, replacement filter cycles, global manufacturing and distribution, brand trust in mission-critical filtration, and application engineering. Facet adds fuel and fluid filtration niches in aerospace, defense, and power generation. Switching can be slow when filters are specified into platforms, but competitors such as Parker, Mann+Hummel, and OEM captive filtration still press pricing.
The thesis fails if Mobile OE and aftermarket utilization fall together, Industrial Filtration and aerospace stay soft, Facet fails to earn its $829 million cost of capital, leverage rises without margin lift, or investors refuse mid-20s multiples for mid-single-digit growth. Historical analogs are industrial compounders that looked safe until a cycle and acquisition combination compressed both earnings and PE.
Judge management on organic growth quality, adjusted margin sustainability near the mid-teens, Facet integration, free cash flow conversion, dividend growth, buyback timing after leverage from the deal, and whether Life Sciences becomes a meaningful third growth engine rather than a small cyclical add-on. Fiscal 2026 guidance was narrowed with organic sales raised to +3% to +5%.
Long-duration demand for cleaner air, stricter emissions, industrial dust collection, power generation filtration, food and beverage purity, and semiconductor or disk-drive process cleanliness supports filtration as a civilization-level need. End markets remain cyclical with truck production, construction equipment, factory capex, and project timing.
At about 24x to 25x earnings on mid-single-digit organic growth, DCI is priced as a quality compounder, not as a distressed turnaround. Margin of safety improves if price holds above the 200-day average while organic guidance, margins, and cash conversion stay intact after Facet closes into the run-rate.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| DCI price | July 31, 2026 close $94.24; prior closes $95.36 (July 28), $92.50 (July 29) and $92.66 (July 30) | StockAnalysis and Yahoo Finance daily chart | August 3, 2026 |
| Market capitalization | $10.92 billion, verified as $94.24 x 115.91 million shares (0.03% variance vs reported $10.92B) | financial_rigor.py market cap verification | August 3, 2026 |
| Shares outstanding | 115.91 million shares (StockAnalysis / Yahoo Finance); shares down about 2.98% year over year | Multi-source share count cross-check | August 3, 2026 |
| Q3 fiscal 2026 sales and EPS | Net sales $995.1 million (+5.8% y/y); GAAP diluted EPS $1.00; adjusted diluted EPS $1.06 (+7.1%); adjusted operating margin 16.6% (all-time high) | Donaldson Q3 fiscal 2026 results release | August 3, 2026 |
| Nine-month fiscal 2026 results | Sales $2,826.8 million (+4.3%); net earnings $324.5 million; GAAP diluted EPS $2.75; dividends $104.0 million; buybacks about 1.2% of shares for $108.5 million | Donaldson Q3 fiscal 2026 results release | August 3, 2026 |
| Segment sales (Q3 fiscal 2026) | Mobile Solutions $629.9M (+8.1%), Industrial Solutions $281.7M (-0.6%), Life Sciences $83.5M (+12.7%); within Mobile, Aftermarket +8.1%, Off-Road +8.8%, On-Road +5.2%; Industrial Filtration +2.3%, Aerospace and Defense -13.5% | Donaldson Q3 fiscal 2026 segment detail | August 3, 2026 |
| Fiscal 2026 organic guidance | Organic sales +3% to +5%; organic adjusted EPS $3.94 to $4.01; adjusted operating margin 15.8% to 16.2%; Facet sales $25M to $30M with about $0.03 net EPS dilution; adjusted FCF conversion 85% to 95% | Donaldson Q3 fiscal 2026 outlook | August 3, 2026 |
| Cash, debt, and equity (April 30, 2026) | Cash $204.1 million; total debt $608.3 million (long-term $591.6 million, short-term borrowings $10.3 million, current maturities $6.4 million); stockholders equity $1,695.3 million; net debt about $404 million | Donaldson condensed consolidated balance sheet | August 3, 2026 |
| TTM revenue, net income and cash flow | Revenue about $3.81 billion; net income about $438.8 million; TTM EPS about $3.72; operating cash flow $461.6 million; free cash flow $390.5 million (cross-validated across StockAnalysis and Yahoo Finance) | Multi-source TTM fundamentals | August 3, 2026 |
| Valuation ratios (tool-audited) | Trailing PE 25.3x on $3.72 EPS; forward PE about 23.9x on $3.95 FY2026 estimate; earnings yield 3.95%; PB about 6.44x on $14.63 book value per share; FCF yield about 3.6%; dividend yield about 1.36% on $1.28 annualized dividend | financial_rigor.py valuation verification | August 3, 2026 |
| Moving averages and RSI | 20-day SMA about $90.94; 50-day SMA about $87.64; 200-day SMA about $90.20; 14-day RSI about 63 (StockAnalysis daily series through July 31, 2026) | StockAnalysis daily chart calculations | August 3, 2026 |
| Facet acquisition | Closed May 4, 2026 all-cash acquisition of Facet Filtration for $829 million; results report in Industrial Solutions from Q4 fiscal 2026 | Donaldson Q3 fiscal 2026 results release | August 3, 2026 |
| Analyst consensus and price targets | Consensus Hold from 8 analysts; average price target $96.80, range $79 to $123; Stifel lowered to $91, Morgan Stanley to $91, Baird to $95; Argus raised toward $100 in late July 2026 | StockAnalysis forecast and Yahoo Finance analyst insights | August 3, 2026 |
| Dividend | Quarterly dividend raised 6.7% to 32 cents per share on May 29, 2026; annualized $1.28; next quarterly dividend payable August 31, 2026; ex-dividend date June 15, 2026 | Donaldson dividend announcement and StockAnalysis | August 3, 2026 |
| 52-week range and beta | 52-week range $70.17 to $112.84 (StockAnalysis; Yahoo shows low near $71.03); beta about 0.93 | StockAnalysis and Yahoo Finance snapshots | August 3, 2026 |
This DCI AI stock analysis is an informational research tool only. It is not investment advice, financial advice, or a recommendation to buy or sell Donaldson Company, Inc. stock. Forecast scenarios are based on available public data, assumptions, and valuation ranges as of the stated data cutoff and can be wrong. Always verify figures with primary filings and current market data before making decisions.
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