Donaldson Earnings: Aftermarket Sales Growth Boosts Profitability Despite Lagging Life Sciences
Narrow-moat Donaldson reported mixed fourth-quarter results, as solid financial performance was overshadowed by updated guidance for fiscal 2026. Management lowered its growth and profitability expectations for the life sciences segment. Shares closed down 3.5%, though we believe the market overlooked improved profitability expectations in the other two segments. As a result, we have slightly increased our fair value estimate by $1 to $68 per share.