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

Donnelley Financial Solutions (NYSE:DFIN)’s share price gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. 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 traded.

The company reported $0.70 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.40 by $0.30. Donnelley Financial Solutions had a return on equity of 23.88% and a net margin of 4.22%.The company had revenue of $172.50 million for the quarter, compared to analysts’ expectations of $155.27 million. During the same quarter in the prior year, the business posted $0.40 EPS. The business’s 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 results beat revenue and adjusted-profit expectations; net sales rose ~10.4% year-over-year and adjusted EBITDA/margins and free cash flow improved materially — a core reason investors are bullish. DFIN Reports Fourth-Quarter and Full-Year 2025 Results
• Positive Sentiment: Management flagged stronger adjusted non‑GAAP net earnings and ~16% year-over-year free cash flow growth, supporting valuation upside and buyback/capital allocation optionality. DFIN Results (cash flow & adjusted metrics)
• Positive Sentiment: Company expects ~80% of 2026 revenue to be recurring as software and AI investments accelerate—this increases revenue predictability and supports higher multiples for the stock. DFIN expects 80% of 2026 revenue to be recurring
• Positive Sentiment: DA Davidson reaffirmed a “buy” rating and set a $66 price target (material upside to the current level), which likely amplified buying interest. DA Davidson buy rating / $66 PT
• Neutral Sentiment: Q1 revenue guidance was updated to $200M–$210M versus consensus ~$207.2M — the midpoint is close to estimates but slightly below some expectations, so guidance is mixed rather than a clear positive or negative. Q4 results & guidance presentation
• Neutral Sentiment: Several news write-ups explain the share move (earnings + analyst call) and initially described shares as little changed before the later upside — useful context on how the market digested the print. MSN coverage
• Negative Sentiment: Some earnings-call transcripts and coverage reported a much lower EPS figure (claims of a miss), creating confusion over GAAP vs. adjusted EPS; this inconsistency can spur short-term volatility until investors reconcile the numbers. Verify GAAP vs. non‑GAAP figures in the company release and slide deck. Earnings call transcript (conflicting EPS)

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the stock. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Donnelley Financial Solutions in a report on Monday, December 29th. DA Davidson reissued a “buy” rating and set a $66.00 price target on shares of Donnelley Financial Solutions in a research report on Wednesday. Zacks Research cut Donnelley Financial Solutions from a “strong-buy” rating to a “hold” rating in a research report on Friday, December 19th. Wall Street Zen raised Donnelley Financial Solutions from a “buy” rating to a “strong-buy” rating in a report on Saturday, February 7th. Finally, CJS Securities raised Donnelley Financial Solutions to a “strong-buy” rating in a report on Thursday, December 11th. One 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 stock. Based on data from MarketBeat.com, Donnelley Financial Solutions presently has an average rating of “Moderate Buy” and a consensus target price of $61.50.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in DFIN. First Citizens Bank & Trust Co. boosted its position in shares of Donnelley Financial Solutions by 2.8% in the fourth quarter. First Citizens Bank & Trust Co. now owns 8,120 shares of the company’s stock valued at $379,000 after acquiring an additional 220 shares during the period. State of Tennessee Department of Treasury raised its stake in Donnelley Financial Solutions by 99.8% in the 4th quarter. State of Tennessee Department of Treasury now owns 12,340 shares of the company’s stock worth $639,000 after purchasing an additional 6,165 shares in the last quarter. Fuller & Thaler Asset Management Inc. boosted its holdings in Donnelley Financial Solutions by 24.5% in the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 290,414 shares of the company’s stock valued at $13,559,000 after purchasing an additional 57,066 shares during the period. XTX Topco Ltd grew its position in shares of Donnelley Financial Solutions by 143.2% during the 4th quarter. XTX Topco Ltd now owns 32,186 shares of the company’s stock worth $1,503,000 after purchasing an additional 18,950 shares in the last quarter. Finally, Voloridge Investment Management LLC bought a new position in shares of Donnelley Financial Solutions during the fourth quarter worth approximately $277,000. Institutional investors own 93.84% of the company’s stock.

Donnelley Financial Solutions Trading Up 13.1%

The company has a debt-to-equity ratio of 0.44, a current ratio of 1.06 and a quick ratio of 1.13. The company has a market capitalization of $1.32 billion, a price-to-earnings ratio of 46.31 and a beta of 0.92. The business’s 50-day moving average price is $48.45 and its two-hundred day moving average price 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.