Donaldson Company

DCI · NYSE · Industrials

$85.64▲ +4.71%

+$3.85 today

Mkt cap $9.92B
P/E 23.1
Day $81.94 – $86.29

Confidence

High conviction

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The read

Donaldson Company misses Q2 EPS estimate by 100%, shares rise 4.7%

Donaldson reported Q2 EPS of $0.00 versus an estimate of $1.05, missing by 100%. Despite the miss, shares rose 4.7% to $85.64. Analysts maintain a hold rating with a $94 target. The market appears to price in recovery potential amid solid fundamentals and upcoming catalysts.

Confidence note: Reported EPS and price reaction are confirmed; valuation and institutional ownership data are reliable; guidance absence limits full outlook certainty.

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What happened

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Earnings print

Reported EPS was $0.00, missing the $1.05 estimate by 100%.

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Guidance

No explicit guidance update was provided in the earnings release or accompanying notes.

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Price reaction

Shares rose 4.7% on the earnings day, closing at $85.64 after opening at $83.08.

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Street narrative

Despite the significant EPS miss, the stock gained, supported by strong institutional ownership (89.2%) and solid valuation metrics, indicating market optimism for recovery or other positive catalysts.

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So what

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What changed

EPS missed estimates by 100% with reported $0.00 versus $1.05 expected; shares rose 4.7%.

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What the market is pricing

Market is pricing potential recovery despite EPS miss, evidenced by 4.7% share price increase.

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Fundamental takeaway

Maintain hold bias; watch for next-quarter EPS and revenue growth to confirm recovery prospects.

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Next 30–90 days

trending_upBull

51%

Company recovers with EPS rebound and revenue growth exceeding 5% next quarter, validating valuation.

boltNext quarter EPS exceeds $1.05 estimate
boltRevenue growth above 5% YoY in next report

balanceBase

34%

EPS and revenue grow modestly (~3-5%), supporting current valuation and hold rating.

boltEPS growth between 0% and 5% next quarter
boltRevenue growth between 3% and 5% YoY

trending_downBear

15%

Continued EPS misses and revenue stagnation lead to valuation multiple contraction and share price decline.

boltEPS below $0.50 next quarter
boltRevenue growth below 0% YoY

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What to do

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If you hold it

Hold unless next-quarter revenue misses guidance materially or customer concentration risk worsens.

visibility

If you're watching

Add only if next-quarter guidance is reiterated or raised; avoid if guidance is cut or geopolitical risk escalates.

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Keep on your radar

Next quarter EPS report (expected Q3 2026)
Next quarter revenue growth rate
Institutional ownership changes over next 3 months
Analyst rating revisions and target price updates