At a glance
Donaldson Company Inc is worth $9.86B, about 22 times its fiscal 2026 earnings. Revenue grew 5.3% to $3.89B in fiscal 2026, with 11.7% kept as profit; over 5 years it has grown 6.4% a year. It pays a 1.46% dividend yield, raised every year for at least 9 years, and returned $1.54B to shareholders in dividends and buybacks over FY2022–FY2026. The stock returned +4.1% over the past year with dividends reinvested and +8.9% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 36.6% in the 2020 crash (S&P 500: 33.7%) and 22.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 5 months after the low.
The business in plain English
Donaldson, founded in 1915, makes filters and filtration systems. Its products remove dust, water and other contaminants from engine air, fuel, hydraulic oil, factory air and industrial gases. Its customers range from small businesses to the world's largest original equipment manufacturers (OEMs, the companies that build new machines). Donaldson sells filter housings for new equipment. It also sells replacement filters, which customers buy again as the old ones wear out. In fiscal 2026, the year ended July 31, 2026, sales were about $3.89 billion.
Mobile Solutions brought in 62.3% of fiscal 2026 net sales. It sells air, fuel, lube, hydraulic and emissions products to companies that build construction, mining, farm and transportation equipment, and to distributors and dealer networks. Industrial Solutions brought in about 29%. It sells dust, fume and mist collectors, systems that purify compressed air and gas, and air intake systems for gas turbines. It also sells filters for aircraft, missiles, military vehicles and ships. Donaldson bought Facet Filtration, a jet fuel filtration business, during fiscal 2026 to grow this area. Life Sciences, at 8.6%, serves food and beverage, disk drive, semiconductor and bioprocessing customers.
By region, the U.S. and Canada supplied 42.5% of fiscal 2026 revenue. Europe, the Middle East and Africa supplied 29.2%, Asia Pacific 17.7% and Latin America about 11%.
Price history
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DCI +4.1% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By business segment
| Mobile Solutions Segment | $2.42B | 62.3% |
| Industrial Solutions Segment | $1.13B | 29.2% |
| Life Sciences Segment | $333.2M | 8.6% |
By geography
| U.S. and Canada | $1.65B | 42.5% |
| EMEA | $1.14B | 29.2% |
| APAC | $689.5M | 17.7% |
| LATAM | $408.1M | 10.5% |
Latest results
- In Q4 FY2026 (ended Jul 31, 2026), revenue was $1.06B, up 8% from a year earlier, and net income was $129.3M (+13.1%).
- For fiscal 2026, revenue was $3.89B (+5.3% year over year; +6.4% a year from FY2021 to FY2026) with a 11.7% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +6.4% good |
|---|---|
| Operating margin | 15.4% good |
| Free cash flow margin | 11% good |
| Return on equity (FY2026) | 25.7% good |
| Return on assets (FY2026) | 11.4% good |
| Net cash (cash minus debt) | $-1.08B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $2.85B | $286.9M | $342.9M |
| FY2022 | $3.31B | $332.8M | $167.3M |
| FY2023 | $3.43B | $358.8M | $426.0M |
| FY2024 | $3.59B | $414.0M | $406.9M |
| FY2025 | $3.69B | $367.0M | $339.9M |
| FY2026 | $3.89B | $453.8M | $426.3M |
Valuation snapshot
| Market value | $9.86B |
|---|---|
| P/E ratio | 22.1 |
| Dividend yield | 1.46% |
Rank among 1514 US companies
Market value at each year end
Donaldson Company’s market value went from $5.56B at the end of 2016 to $9.86B on Oct 28, 2026, up 77%; since the end of 2025 it is down 4%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $9.86B | -3.6% |
| 2025 | $10.23B | +27.1% |
| 2024 | $8.04B | +2.5% |
| 2023 | $7.85B | +9.6% |
| 2022 | $7.16B | -2.1% |
| 2021 | $7.32B | +3.8% |
| 2020 | $7.05B | -3.3% |
| 2019 | $7.29B | +31.4% |
| 2018 | $5.55B | -12.7% |
| 2017 | $6.36B | +14.4% |
| 2016 | $5.56B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| DCI price data to Oct 28, 2026 | -3.1% | +4.1% | +15.8% | +8.9% | +10.6% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -3.1% |
| 2025 | +33.7% |
| 2024 | +4.6% |
| 2023 | +12.8% |
| 2022 | +1.0% |
| 2021 | +7.5% |
| 2020 | -1.4% |
| 2019 | +35.0% |
| 2018 | -9.9% |
| 2017 | +18.2% |
| 2016 | +49.8% |
| 2015 | -24.3% |
| 2014 | -9.7% |
| 2013 | +34.1% |
| 2012 | -2.6% |
| 2011 | +18.0% |
| 2010 | +38.5% |
| 2009 | +28.1% |
| 2008 | -26.7% |
| 2007 | +35.0% |
| 2006 | +9.8% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 47.2% over that stretch · deepest drop along the way 56.9%, back to its old high 19.9 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 36.2% over that stretch · deepest drop along the way 36.6%, back to its old high 4.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 13.3% over that stretch · deepest drop along the way 22.2%, back to its old high 4.8 months after the low |
Insider activity
Form 4 filings from 2025-10-30 to 2026-10-30 (25 read): 0 open-market purchases and 6 sales ($5.0M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Sep 4, 2026 | Tod E. Carpenter Chairman, President and CEO, Director | sell | $2.9M |
| Apr 14, 2026 | James Owens Director | sell | $638K |
| Apr 14, 2026 | James Owens Director | sell | $589K |
| Apr 13, 2026 | James Owens Director | sell | $527K |
| Aug 31, 2026 | Tod E. Carpenter Chairman, President and CEO, Director | sell | $276K |
Who owns it
Large shareholders (13G filings)
| Vanguard Portfolio Management | 5.64% | Mar 31, 2026 |
| Vanguard Capital Management | 5.23% | Mar 31, 2026 |
ETFs with the most weight in DCI
| EVX VanEck Environmental Services ETF | 3.97% |
| IPDP Dividend Performers ETF | 1.99% |
| OUSM ALPS | O’Shares U.S. Small-Cap Quality Dividend ETF | 1.94% |
| TOLL Tema Monopolies and Oligopolies ETF | 1.53% |
| HSMV First Trust Horizon Managed Volatility Small/Mid ETF | 1.23% |
| PEXL Pacer US Export Leaders ETF | 1.04% |
| FSCS First Trust SMID Capital Strength ETF | 0.99% |
| QMID WisdomTree U.S. MidCap Quality Growth Fund | 0.84% |
What could go wrong
- Heavy reliance on cyclical equipment markets. Mobile Solutions, 62.3% of fiscal 2026 sales, serves makers of construction, mining, farm and transportation equipment. These industries rise and fall with the economy together, so one downturn can hit much of the company.
- Shifts in engine technology could cut demand. The company warns that disruptive technologies may threaten its growth in some industries. Much of its business filters engine air, fuel and diesel exhaust, so changes in how machines are powered could shrink demand.
- Tariffs on Mexico, China and the EU. Donaldson says lasting new U.S. tariffs on imports from Mexico, China and the European Union could seriously hurt its business and supply chain. Tariffs from other countries in return could make its products less competitive.
- Acquisitions, including Facet, may disappoint. Buying businesses in high-margin areas is a core part of the growth strategy, and Donaldson bought Facet Filtration in fiscal 2026. Deals can bring unknown problems and may not earn the expected return.
- Few suppliers for key materials. Donaldson buys steel, filter media and petroleum-based materials, often from one or a few suppliers. A late delivery could hold up customer orders, and higher material or shipping costs could squeeze profits.
- Price competition and copycat products. Its markets are highly competitive, with pressure on prices. New competitors may copy its products or infringe its intellectual property. Staying ahead takes steady investment with uncertain payoff.
Recent events
- Major agreement signed; New debt or financial obligation
- Quarterly results released
- Executive or board change
- Quarterly results released
- Major agreement signed; New debt or financial obligation
- Quarterly results released
- Major agreement signed; Investor presentation or announcement
- Executive or board change; Investor presentation or announcement
- Quarterly results released
- Shareholder vote results
For income and retirement investors
Donaldson has raised its dividend for at least 9 fiscal years in a row through fiscal 2026, and the true streak may be longer. Dividends per share grew from $0.86 in fiscal 2021 to $1.24 in fiscal 2026, about 7.6% a year. The dividend took 31.1% of earnings and 33.1% of free cash flow (cash left after capital spending). The yield was 1.46% as of October 28, 2026, so the stock offers dividend growth more than high current income. Buybacks were larger than dividends: $917.8 million versus $620.4 million from fiscal 2022 through 2026. The share count fell 6.2% between November 2021 and September 2026.
In past downturns, the stock fell about 57% during the 2008 financial crisis and took about 20 months to recover. It fell about 37% in the 2020 COVID crash and 22% in the 2022 bear market, and recovered within about five months each time. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Donaldson make money?
Donaldson makes money selling filters and filtration systems, including replacement filters that customers buy again and again. Mobile Solutions, its largest segment, brought in 62.3% of fiscal 2026 net sales from air, fuel, lube, hydraulic and emissions products for construction, mining, farm and transportation equipment. Industrial Solutions, about 29%, sells dust collectors, compressed-air purification, gas turbine air intakes and aerospace and defense filters. Life Sciences, 8.6%, serves food and beverage, disk drive, semiconductor and bioprocessing customers. Fiscal 2026 revenue was about $3.89 billion.
Does Donaldson raise its dividend every year?
Yes. Donaldson has raised its dividend for at least 9 fiscal years in a row through fiscal 2026, and the streak may go back further than the available filings show. The dividend per share rose from $0.86 in fiscal 2021 to $1.24 in fiscal 2026, an average of about 7.6% a year. It took 31.1% of fiscal 2026 earnings. The yield was 1.46% as of October 28, 2026, which is modest for investors seeking high current income.
How has Donaldson stock performed?
Based on share prices through October 28, 2026, Donaldson gained about 10.6% a year over 10 years, or 173% in total. Over five years it gained about 8.9% a year. Over one year it rose 4.1%, and it was down 3.1% year to date as of that date. Returns have been uneven. The stock gained about 34% in 2025 but lost about 24% in 2015. In the year to October 28, 2026, it fell as much as 26% from its high.
What is Donaldson's P/E ratio?
Donaldson traded at about 22.1 times its fiscal 2026 earnings as of October 28, 2026. The price-to-earnings (P/E) ratio shows how many dollars investors pay for each dollar of yearly profit. Fiscal 2026 diluted earnings were $3.85 per share. Net income grew 23.7% in fiscal 2026 after falling in fiscal 2025. The company's market value was about $9.9 billion. Whether that price is reasonable depends on future growth, so it is worth comparing with other industrial companies.
How much debt does Donaldson have?
Donaldson had about $1.33 billion of total debt as of July 31, 2026, against $250.4 million of cash and investments. That left net debt of about $1.08 billion. Shareholders' equity was $1.76 billion. In fiscal 2026, the company produced $426.3 million of free cash flow (cash from operations minus capital spending) and $599.9 million of operating income. The company warns that changes in credit markets could make it harder to raise money for its strategic plans.