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Nordson Raises Fiscal 2026 Outlook on Strong Demand Following Third-Quarter Beat

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Nordson Raises Fiscal 2026 Outlook on Strong Demand Following Third-Quarter Beat

Nordson (NDSN) shares advanced early Thursday after the precision technology company lifted its full-year outlook amid rising demand in key end markets, while the firm reported better-than-expected fiscal third-quarter results.

Adjusted earnings are now anticipated to come in between $11.80 and $12 per share for fiscal 2026, the company said late Wednesday, up from its previous projections of $11.30 to $11.80. Revenue is pegged at $3.04 billion to $3.08 billion, compared with the prior guidance of $2.93 billion to $3.01 billion.

The current consensus on FactSet is for non-GAAP EPS of $11.64 and sales of $2.99 billion for the fiscal year. The company's stock jumped 7% in the most recent premarket activity.

Nordson said it has entered the current three-month period with strong demand momentum and backlog up 35% year over year.

"Based on backlog and order entry momentum, we expect the strong sales of the first nine months to continue through the fourth quarter," Chief Executive Sundaram Nagarajan said in a statement. "We are delivering above-market organic growth through accelerating demand in key end markets."

For the quarter ended July, the firm's adjusted EPS climbed to $3.25 from $2.73 last year, topping the Street's view for $3.09. Sales improved 10% to $817.7 million, ahead of the average analyst estimate on FactSet of $779.5 million.

"The strong momentum of the first half continued through the third quarter, delivering results above the high-end of our most recent earnings guidance," according to Nagarajan.

Revenue in the industrial precision solutions segment increased 4.7% to $367.2 million, including a 3% gain in organic sales amid strength in the packaging, industrial coatings, polymer processing and nonwovens product lines, the company said. The medical and fluid solutions business saw sales increase 5% to $230.5 million, while advanced technology solutions jumped 28% to $219.9 million.

Revenue rose across all geographies the firm operates in, led by growth of 22% in the Asia-Pacific region.

Last month, rivals Dover (DOV) and Graco (GGG) each reported second-quarter adjusted earnings above market estimates, while both companies' revenue fell short of expectations. Industrial equipment maker IDEX (IEX) recorded better-than-expected second-quarter results.

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Nordson Raises Fiscal 2026 Outlook on Strong Demand Following Third-Quarter Beat | FINWIRES