Nordson Corp. Beats Revenue Forecasts and Raises Guidance, Shares Dip Slightly
Precision technology company NORDSON CORP (NASDAQ:NDSN) kicked off its fiscal 2026 with a strong first quarter, surpassing analyst revenue expectations and subsequently raising its full-year outlook. The market's initial reaction in after-hours trading was muted, with shares showing a slight decline.
Earnings and Revenue Versus Estimates
Nordson's performance for the quarter ended January 31, 2026, presented a mixed picture against Wall Street forecasts. The company's top-line strength was the clear highlight, while profitability metrics came in largely as anticipated.
- Revenue: The company reported sales of $669.5 million, a record for a first quarter and an 8.8% increase over the prior year. This figure exceeded the analyst consensus estimate of approximately $666.5 million. Growth was driven by a 7% organic increase and a 4% favorable impact from currency translation.
- Earnings Per Share: On a non-GAAP basis, which excludes a non-cash gain and acquisition-related amortization, adjusted earnings per diluted share were $2.37. This represents a solid 15% increase from the $2.06 reported in the prior year but was essentially in line with analyst estimates of $2.42.
Market Reaction and Outlook Comparison
Following the earnings release, Nordson's stock experienced a slight decrease in after-market trading. This minor pullback suggests the market may have been anticipating the robust results, or is weighing the in-line earnings against the strong sales beat and raised guidance.
The company provided an optimistic outlook that aligns with or exceeds current analyst expectations:
- Q2 2026 Guidance: Nordson forecasts second-quarter sales between $710 million and $740 million, with a midpoint of $725 million. This outlook is approximately 1.8% above the analyst sales consensus of $712 million for the period. Adjusted EPS is projected between $2.70 and $2.90.
- Raised Full-Year 2026 Guidance: Based on the strong start, management increased its full-year sales guidance to a range of $2.86 billion to $2.98 billion. The midpoint of this new range, $2.92 billion, sits comfortably above the pre-report analyst consensus of $2.90 billion. Full-year adjusted EPS guidance was raised to a range of $11.00 to $11.60.
Key Takeaways from the Quarterly Report
Beyond the headline numbers, the earnings release highlighted several important operational strengths:
- Segment Performance: Growth was broad-based, with the Advanced Technology Solutions (ATS) segment standing out. ATS sales grew 23% year-over-year, driven by strong demand in electronics dispense systems and a recovery in x-ray systems. The Industrial Precision Solutions segment also saw a 9% sales increase.
- Strong Profitability Metrics: The company maintained robust margins, with a gross margin of 54.7% and EBITDA margin of 30%. It also generated $140.4 million in cash from operations.
- Confident Commentary: CEO Sundaram Nagarajan stated, "Our proprietary technology portfolio... have positioned us well to win in our inflecting end markets, particularly in the semiconductor space." He cited growing confidence for the full year based on a strengthening backlog and order entry momentum.
For a detailed look at Nordson's upcoming earnings dates and a comprehensive view of analyst estimates, you can review the information available here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation to buy or sell any security, or an endorsement of any investment strategy. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
