Donnelley Financial Solutions (NYSE:DFIN) Shares Gap Up Following Strong Earnings

Donnelley Financial Solutions (NYSE:DFIN) shares gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $39.12, but opened at $42.97. Donnelley Financial Solutions shares last traded at $39.8590, with a volume of 67,898 shares.

The company reported $0.70 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.40 by $0.30. Donnelley Financial Solutions had a return on equity of 22.46% and a net margin of 4.33%.The business had revenue of $172.50 million during the quarter, compared to analysts’ expectations of $155.27 million. During the same quarter in the previous year, the business earned $0.40 earnings per share. The firm’s quarterly revenue was up 10.4% compared to the same quarter last year.

Key Donnelley Financial Solutions News

Here are the key news stories impacting Donnelley Financial Solutions this week:

• Positive Sentiment: Q4 beat on both EPS and revenue — DFIN reported $0.70 EPS vs. $0.40 consensus and $172.5M revenue vs. ~$155M expected; revenue rose 10.4% YoY and adjusted EBITDA and adjusted net earnings expanded materially, signaling improving operating leverage. DFIN Reports Fourth-Quarter and Full-Year 2025 Results
• Positive Sentiment: Strong cash flow — Q4 operating cash flow and free cash flow increased vs. prior year (free cash flow up ~16% Q/Q comparison cited), supporting balance-sheet stability and potential capital allocation flexibility. DFIN Reports Fourth-Quarter and Full-Year 2025 Results
• Neutral Sentiment: Management is guiding Q1 revenue to $200M–$210M (consensus ~ $207.2M) — range overlaps consensus but leans slightly conservative at the low end; Q1 EPS guidance was not clearly specified in the release, leaving near-term earnings visibility limited.
• Neutral Sentiment: Strategic shift to software-led, compliance-focused offerings may drive higher-margin recurring revenue over time, but investors should view this as a medium-term story rather than an immediate revenue lever. Is Donnelley Financial (DFIN) Quietly Shifting…
• Negative Sentiment: Full-year GAAP results show a large decline in GAAP net earnings (down ~64.9% YoY), reflecting non‑recurring items or restructuring impacts — a reminder that GAAP volatility still exists and could pressure headline metrics. DFIN Reports Fourth-Quarter and Full-Year 2025 Results

Analyst Ratings Changes

DFIN has been the subject of a number of analyst reports. Weiss Ratings restated a “hold (c-)” rating on shares of Donnelley Financial Solutions in a research note on Monday, December 29th. Zacks Research cut shares of Donnelley Financial Solutions from a “strong-buy” rating to a “hold” rating in a report on Friday, December 19th. Needham & Company LLC restated a “buy” rating and issued a $57.00 price objective on shares of Donnelley Financial Solutions in a report on Wednesday, January 14th. CJS Securities raised Donnelley Financial Solutions to a “strong-buy” rating in a research report on Thursday, December 11th. Finally, DA Davidson reissued a “buy” rating and issued a $66.00 target price on shares of Donnelley Financial Solutions in a report on Friday, January 30th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, Donnelley Financial Solutions currently has an average rating of “Moderate Buy” and an average price target of $61.50.

Hedge Funds Weigh In On Donnelley Financial Solutions

A number of institutional investors and hedge funds have recently modified their holdings of DFIN. Loomis Sayles & Co. L P raised its stake in shares of Donnelley Financial Solutions by 27.0% in the second quarter. Loomis Sayles & Co. L P now owns 180,427 shares of the company’s stock worth $11,123,000 after buying an additional 38,413 shares during the period. Westwood Holdings Group Inc. purchased a new position in shares of Donnelley Financial Solutions in the second quarter worth $37,603,000. Frontier Capital Management Co. LLC boosted its holdings in shares of Donnelley Financial Solutions by 5.7% during the 2nd quarter. Frontier Capital Management Co. LLC now owns 554,828 shares of the company’s stock valued at $34,205,000 after purchasing an additional 29,849 shares during the last quarter. First Citizens Bank & Trust Co. bought a new position in Donnelley Financial Solutions during the second quarter valued at approximately $537,000. Finally, Isthmus Partners LLC boosted its position in shares of Donnelley Financial Solutions by 65.2% during the 2nd quarter. Isthmus Partners LLC now owns 54,987 shares of the company’s stock valued at $3,390,000 after acquiring an additional 21,700 shares during the last quarter. 93.84% of the stock is currently owned by hedge funds and other institutional investors.

Donnelley Financial Solutions Stock Up 11.9%

The firm has a market cap of $1.16 billion, a P/E ratio of 41.71 and a beta of 0.92. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.13 and a quick ratio of 1.13. The company’s 50-day simple moving average is $48.37 and its 200 day simple moving average is $50.32.

About Donnelley Financial Solutions

Donnelley Financial Solutions (NYSE:DFIN) offers risk and compliance software and managed services designed to help corporations, financial institutions and legal firms meet regulatory and reporting requirements worldwide. Headquartered in Chicago, the company delivers a cloud-based platform for regulatory filings, content automation, virtual data rooms and board communications. Its solutions are tailored to support public companies with SEC, FCA and other global filing obligations, as well as banks, asset managers and credit unions seeking to streamline compliance workflows.

Among DFIN’s flagship products is ActiveDisclosure, a SaaS application that automates the creation, review and filing of disclosure documents.