Donaldson

DCI · NYSE · Industrials · Financials, fiscal 2017 to 2026

DCI · Last close · October 26, 2026

$85.51

Donaldson's revenue rose 5.3% to $3.9 billion in fiscal 2026. Its operating margin was 15.4%, up from 13.4% a year earlier. Free cash flow was $426 million, up 25.4%. It paid out $252 million in dividends and buybacks, 59% of free cash flow. The diluted share count fell 2.1%.

Donaldson Company, Inc. Latest fiscal year ended July 31, 2026 10-K filed September 25, 2026 · 0000029644-26-000085 Updated October 16, 2026

Revenue

$3.9B

5.3%

Operating margin

15.4%

2.0 pts

Net income

$454M

23.6%

Free cash flow

$426M

25.4%

Return on capital

19.4%

0.3 pts

Market cap

$10.1B

Oct 26 close

P/E

22.2x

On $3.85 EPS, FY26

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2017 to 2026, earnings per share grew 9.2% a year and net income 7.7% a year, as buybacks cut the share count by 12%.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Donaldson yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

What Donaldson says to expect

Fiscal 2027: EPS and salesFull-year EPS is forecast to be between $4.22 and $4.38, including approximately $0.12 of dilution from Facet and compared with fiscal 2026 GAAP and adjusted EPS of $3.85 and $3.98, respectively. Sales are projected to increase between 5.5% and 9.5%, including an approximate 2% benefit from Facet sales, pricing of 2%, and a foreign currency translation tailwind of 1%.
Fiscal 2027: operating marginOperating margin is expected to be between 16.6% and 17.2% versus 15.4%, or 16.0% on an adjusted basis, in 2026, driven by gross margin expansion, partially offset by expense deleveraging, largely as a result of the full-year impact of Facet run-rate expenses as well as higher amortization expense.
Fiscal 2027: Life Sciences salesLife Sciences sales are projected to grow between 7% and 11% compared with prior year from continued strength in Food & Beverage and Disk Drive volume growth.

The company's own words, from its earnings release (Form 8-K, Exhibit 99), filed August 26, 2026. They are its expectations, not ours, and not a forecast or price target from The Filing Desk. Replaced when the next release is out.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Donaldson's 10-K and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Donaldson's fiscal 2026 free cash flow of $426M, net cash of −$1.1B at July 31, 2026 and 118 million diluted shares, from its filings. The scenarios are fitted to Donaldson: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 4.2% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 9% for a business of moderate risk (Industrial Machinery & Supplies & Components); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2026.

Net cash, US$ millions Cash and short-term investments minus debt and finance leases at July 31, 2026. Negative means net debt.

Diluted shares, millions Weighted-average diluted shares in fiscal 2026.

Your assumptions

Start from

Fitted to Donaldson's own revenue growth, as above. Cautious: growth of 2% then 2% a year, 2% after year 10, a 10% discount rate. Base: growth of 4% then 3% a year, 2.5% after year 10, a 9% discount rate. Optimistic: growth of 6.5% then 5% a year, 3% after year 10, a 8% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $85.51
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Donaldson's earnings per share of $3.85 (in fiscal 2026). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 26.6×, the middle of Donaldson's own P/E today, its peers' median and its sector's median (its peers' median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 10%, 9% and 8%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$ Diluted earnings per share in fiscal 2026, from the 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: ITT, Valmont Industries, Fortive, Pentair.

Earnings growth in the years ahead (% a year) Starts at Donaldson's revenue growth over the last 3 years, 4.2% a year, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $85.51
Value at this multiple, against the last close: —
Donaldson's P/E at the last close: 22.2×

Company	Last close	Earnings per share	P/E today
ITTITT	$190.79	$5.11	37.3×
FortiveFTV	$60.78	$1.67	36.4×
DonaldsonDCI	$85.51	$3.85	22.2×
Valmont IndustriesVMI	$428.52	$25.62	16.7×
PentairPNR	$55.22	$4.09	13.5×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY22	FY23	FY24	FY25	FY26
Cash and short-term investments	193	187	233	180	250
Debt incl. finance leases	650	658	538	671	1,328
Net debt (negative means net cash)	457	470	306	491	1,078
Net debt to EBITDA	0.8x	0.8x	0.5x	0.8x	1.5x
Debt to equity	0.6x	0.5x	0.4x	0.5x	0.8x
Interest coverage	29.8x	25.0x	25.4x	20.5x	16.7x
Current ratio	2.2x	1.7x	1.8x	1.9x	2.1x
Quick ratio	1.4x	1.1x	1.2x	1.2x	1.4x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Donaldson shares on the open market, and 5 insiders sold $8.6 million.

Date	Insider	Trade	Shares	Price	Value	Filing
Sep 4, 2026	Tod E. CarpenterChairman, President and CEO, Director	Sold	31,968	$91.10	$2.9 million	Form 4
Aug 31, 2026	Tod E. CarpenterChairman, President and CEO, Director	Sold	3,032	$91.00	$275,912	Form 4
Apr 14, 2026	James OwensDirector	Sold	13,753	$89.21	$1.2 million	Form 4
Apr 13, 2026	James OwensDirector	Sold	5,921	$89.02	$527,087	Form 4
Apr 10, 2026	James OwensDirector	Sold	126	$88.82	$11,191	Form 4
Mar 26, 2026	Guillermo BrisenoPresident	Sold	20,600	$84.97	$1.8 million	Form 4
Dec 9, 2025	Bradley J. PogalzChief Financial Officer	Sold	566	$91.57	$51,829	Form 4
Dec 5, 2025	Ajita G RajendraDirector	Sold	19,800	$92.04	$1.8 million	Form 4

Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY24	FY25	FY26
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Fail	Pass
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Fail	Fail
Current ratio rose	Pass	Pass	Pass
Share count didn't rise	Pass	Pass	Pass
Gross margin rose	Pass	Fail	Fail
Revenue rose relative to assets	Fail	Fail	Pass
F-score	8 of 9	5 of 9	7 of 9
Accruals ratio	−2.8%	−1.8%	−1.1%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Donaldson side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Donaldson	FY26	5.3%	15.4%	11.0%	19.4%	1.5x	7
ITT	FY25	8.5%	17.4%	13.9%	16.8%	−1.2x	7	Compare
Valmont Industries	FY25	0.7%	10.1%	7.6%	17.9%	1.2x	7	Compare
Fortive	FY25	1.9%	17.3%	23.5%	5.7%	2.4x	5	Compare
Pentair	FY25	2.3%	20.5%	17.9%	14.0%	1.6x	9	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25	FY26
Income statement
Revenue	2,372	2,734	2,845	2,582	2,854	3,307	3,431	3,586	3,691	3,886
Revenue growth	6.8%	15.3%	4.0%	−9.2%	10.5%	15.9%	3.8%	4.5%	2.9%	5.3%
Gross profit	821	936	948	872	972	1,067	1,161	1,274	1,286	1,346
Research and development	55	60	62	61	68	69	78	94	88	76
Operating income	324	377	388	340	385	444	480	544	495	600
Net income	233	180	267	257	287	333	359	414	367	454
Diluted EPS (US$)	1.74	1.36	2.05	2.00	2.24	2.66	2.90	3.38	3.05	3.85
Diluted shares (millions)	134	132	130	128	128	125	124	123	120	118
Cash flow
Cash from operations	318	263	346	387	402	253	544	492	419	494
Capital expenditure	66	98	151	124	59	86	118	86	79	67
Free cash flow	252	165	195	263	343	167	426	407	340	426
Dividends paid	92	95	100	106	107	110	114	123	132	141
Share buybacks	140	122	129	94	142	171	142	163	332	111
Acquisitions	32	0	96	6	0	69	209	2	2	823
Stock-based compensation	9	17	15	15	14	20	20	22	24	25
Balance sheet at fiscal year end
Cash and short-term investments	308	205	178	237	223	193	187	233	180	250
Debt incl. finance leases	611	543	637	629	512	650	658	538	671	1,328
Total assets	1,980	1,977	2,143	2,245	2,400	2,600	2,770	2,914	2,977	3,987
Total liabilities	1,125	1,119	1,240	1,241	1,263	1,467	1,450	1,425	1,524	2,222
Shareholders' equity	854	858	893	993	1,137	1,133	1,321	1,489	1,454	1,764
Margins and ratios
Gross margin	34.6%	34.2%	33.3%	33.8%	34.0%	32.3%	33.8%	35.5%	34.9%	34.6%
Operating margin	13.6%	13.8%	13.7%	13.2%	13.5%	13.4%	14.0%	15.2%	13.4%	15.4%
Net margin	9.8%	6.6%	9.4%	9.9%	10.1%	10.1%	10.5%	11.5%	9.9%	11.7%
Free cash flow margin	10.6%	6.0%	6.9%	10.2%	12.0%	5.1%	12.4%	11.3%	9.2%	11.0%
Return on capital	20.8%	16.0%	21.7%	19.1%	20.6%	22.3%	21.7%	23.5%	19.8%	19.4%
Return on equity	28.6%	21.1%	30.5%	27.3%	26.9%	29.3%	29.2%	29.5%	24.9%	28.2%
Return on assets	12.4%	9.1%	13.0%	11.7%	12.3%	13.3%	13.4%	14.6%	12.5%	13.0%
Net debt to EBITDA	0.8x	0.8x	1.0x	0.9x	0.6x	0.8x	0.8x	0.5x	0.8x	1.5x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Donaldson's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Donaldson.