Donaldson Company, Inc. shares fall over 12% pre-market, currently trading at $91.70.

Donaldson Company, Inc. shares fall over 12% pre-market, currently trading at $91.70.

Donaldson Company, Inc. Shares Drop Over 12% Pre-Market Amid Q2 Earnings Disappointment

Donaldson Company, Inc. (NYSE: DCI) shares fell more than 12% in pre-market trading on February 26, 2026, trading at $91.70, following a decline in Q2 profitability. The industrial filtration firm reported weaker-than-expected earnings for the quarter, with net income dropping year-over-year, according to a prior report.

The company operates in three segments: Mobile Solutions, Industrial Products, and Life Sciences, providing filtration systems for industries ranging from construction and agriculture to bioprocessing as reported by CNBC. Despite strong performance in its Q1 2026 earnings—where it exceeded revenue and EPS forecasts—Q2 results highlighted ongoing challenges, including supply chain disruptions and reduced demand in key markets according to market analysis.

Recent data shows DCI's stock has traded within a 52-week range of $57.45 to $95.00, with a market capitalization of approximately $10.99 billion. The stock's price-to-earnings (P/E) ratio stands at 31.05, reflecting a premium valuation relative to peers as cited in financial data. Analysts have issued mixed recommendations, with an average 12-month price target of $85.80, implying a potential downside of 9.24% from current levels. Baird maintains a "Buy" rating, while Morgan Stanley has downgraded its stance to "Hold" according to analyst reports.

In its Q1 2026 earnings call, Donaldson cited a 15.5% operating profit margin and raised full-year guidance to a midpoint of $4.03 EPS, citing strategic investments in power generation and data center infrastructure. However, the company acknowledged risks from supply chain bottlenecks and reduced tariff impacts, which could pressure margins in the near term as noted in earnings commentary.

Investors are now weighing the Q2 earnings shortfall against the company's long-term growth prospects in industrial filtration and life sciences. With a dividend yield of 1.37% and a 5-year dividend growth rate of 6.3%, DCI remains a focus for income-oriented investors, though the recent selloff underscores near-term volatility according to investment analysis.

The stock's sharp decline reflects market skepticism about its ability to sustain profitability amid macroeconomic headwinds, despite its dominant position in filtration technologies.