NDSN · Q1 2026 Earnings

Bullish

Nordson Corporation

Reported February 18, 2026

30-second summary

30-second take: Nordson opened FY2026 with Q1 revenue of $669M (+8.8% YoY, at the top of the prior $630–670M guide) and non-GAAP EPS of $2.37, with Advanced Technology Solutions +23.1% on semiconductor demand carrying the print while Medical and Fluid Solutions ran roughly flat on a winter-storm production hit. Management raised FY2026 revenue guidance to $2.86–2.98B (midpoint +$30M, ~+1.0%) and FY2026 EPS to $11.00–11.60 (midpoint +$0.15, ~+1.3%), with the EPS low end raised more aggressively than the high — a tightening that signals genuine confidence rather than a token bump. Backlog +4% YoY and 105% FCF conversion give the raise real underpinning; EBITDA margin of 30.3% was ~-100bps YoY vs 31% in Q1 FY2025, which management called in line with prior year. The soft Q4 framing of "headwinds behind us" finally has Q1 numbers to validate it.

Headline numbers

EPS

Q1 FY2026

$2.37

Revenue

Q1 FY2026

$0.67B

+8.8% YoY

Gross margin

Q1 FY2026

54.7%

Free cash flow

Q1 FY2026

$0.12B

Operating margin

Q1 FY2026

24.8%

Key financials

Q1 FY2026

Metric	Q1 FY2026	YoY	Q4 FY2025	QoQ
Revenue	$0.67B	+8.8%	$0.75B	-11.0%
EPS	$2.37	—	$3.03	-21.8%
Gross margin	54.7%	—	56.3%	-160bps
Operating margin	24.8%	—	28.5%	-370bps
Free cash flow	$0.12B	—	—	—

Guidance

Company raised full-year FY2026 revenue and EPS guidance following a solid Q1 beat at the high end of range, citing strengthened backlog, broad-based order momentum, and particular strength in Advanced Technology Solutions.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q1 FY2026	$630–$670 million	$669 million	+$0–1M above high end of prior guide; in-line with top of range	Beat
Adjusted EPS	Q1 FY2026	$2.25–$2.45	$2.37	within prior guide range (midpoint $2.35); slightly above low end	Beat

New guidance

Metric	Period	Guide	YoY
Revenue	Q2 FY2026	$710–$740 million	+4.4% to +8.8% YoY
Adjusted EPS	Q2 FY2026	$2.70–$2.90	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Revenue	FY2026	$2,830–$2,950 million	$2,860–$2,980 million	+$30M at low end, +$30M at high end; midpoint raised from $2,890M to $2,920M (+$30M or +1.0%)	Raised
Adjusted EPS	FY2026	$10.80–$11.50	$11.00–$11.60	+$0.20 at low end, +$0.10 at high end; midpoint raised from $11.15 to $11.30 (+$0.15 or +1.3%)	Raised

Segment KPIs

Q1 FY2026

Segment	Q1 FY2026	YoY
Industrial Precision Solutions	$0.327B	+8.8%
Medical and Fluid Solutions	$0.193B	-0.2%
Advanced Technology Solutions	$0.149B	+23.1%
IPS EBITDA Margin	34%	—
MFS EBITDA Margin	36%	—
ATS EBITDA Margin	22%	—

Other KPIs

Q1 FY2026

Segment	Q1 FY2026	YoY
Americas	$0.262B	-2.2%
Europe	$0.182B	+8.8%
Asia Pacific	$0.225B	+25.2%
EBITDA	$203.0 million	—
EBITDA Margin	30.3%	—
Backlog Growth YoY	4%	—
Organic Sales Growth	6.5%	—
Free Cash Flow Conversion	105%	—

Management tone

Narrative arc: Q2 ATS reacceleration + IPS restructuring → Q3 multi-segment trough call → Q4 "headwinds behind us" optimism → Q1 numbers validate the optimism with broad-based growth.

Three quarters ago IPS was being restructured for >$15M of 2026 savings while management waited for demand. Two quarters ago management called the trough. Last quarter they declared "headwinds behind us" with IPS still printing -1.5% organic. This quarter IPS prints +3.2% organic (+8.8% reported), the verbal escalation finally has organic numbers behind it, and management's framing has tightened from "we believe we've troughed" to "we have growing confidence in our full year based on strengthening backlog and order entry." The hedge verbs ("believe", "expect") that defined the prior two quarters have been replaced with conviction language anchored on backlog +4% and broad-based order momentum.

ATS framing completed the round trip from "lumpy caveats" back to confirmed cycle. Last quarter management preemptively warned about Q4 comp risk and emphasized inherent lumpiness; this quarter the line is "order momentum was broad-based in the quarter with particular strength in our ATS segment." The +23.1% YoY print is partially a base effect off the soft Q1 FY2025 (management openly attributed some of it to favorable comps in Q4 commentary), but the Halloran Q&A confirmed dispense businesses are running hottest on AI chip manufacturing demand and x-ray is inflecting after being down all of FY2025. That inflection is structural, not a comp artifact.

Medical destocking, declared "fully behind us" in Q4, hit a temporary speedbump this quarter — but management's response was notable for what it didn't say. They quantified the weather impact precisely (~1%, 2-3 days), confirmed mid-single-digit medical growth for the full year, and did not back off the post-CDMO ~100bps margin accretion thesis. The MFS EBITDA margin of 36% sits in the "upper 30s" range management called sustainable in Q4, validating the Q4 modeling guidance. The Hammond exchange explicitly confirmed Q1 medical incrementals were "well north of 50%" excluding the CDMO comp effect — that is the underlying margin story management wants investors to read through the noisy headline.

The full-year guide raise itself is the cleanest tone shift. Last quarter's FY2026 guide of $2.83–2.95B / $10.80–11.50 was widely read as conservative given the "headwinds behind us" framing. Raising both ranges on a single quarter of evidence — particularly with the EPS low end up $0.20 — is unusual for Nordson's typically cautious posture. The tone extraction flagged this explicitly: "notably more confident and specific than typical for Nordson's cautious management style." The Buscaglia Q&A exchange reinforced the discipline: management framed margin as "a byproduct of growth/innovation/quality execution, not primary driver," declining to chase the higher Q4 MFS margin number as a baseline.

The one place hedging persists is the second half. Management repeated they are "balanced and vigilant for more meaningful recovery in select end markets" and noted they "still believe it is prudent to plan for" a potential broader pullback. The +4.6% FY midpoint despite Q1's +8.8% leaves room either way — implicit Q2-Q4 growth at the midpoint is ~+3.7%, materially below Q1. That is either conservative guidance or genuine caution about H2; the FY range raise says the former, the implied back-half pace says management is not yet ready to bet on the latter.

Recurring themes management leaned on this quarter:

Semiconductor momentum driving ATS segment growth (21% organic, 50% of segment revenue)Medical market normalization and stabilization across end marketsStrong cash conversion (105%) enabling strategic capital deploymentBroad-based organic growth (7% total, with segment variance)Margin resilience (30% EBITDA) despite geographic mix headwindsBacklog growth and order momentum positioning for continued strength

Risks management surfaced:

Potential broader pullback in end market demand in second halfGeographic and product mix headwinds pressuring incremental marginsTemporary winter storm impact on medical supply chain (estimated 1% sales impact)Medical segment slower start than expected (though attributed to transient factors)Foreign exchange rate volatility affecting comparisons

Q&A highlights

Jeff Hammond · KeyBank

Unpacking margin dynamics around systems, geographic mix, and whether mix will improve or stay the same over the next three quarters. Also asked about medical X-ray slow start, weather impact, and underlying incrementals.

Management confirmed no fundamental change in 40% normal incremental expectation and no change in gross margin profile—just a mix issue in Q1. Medical weather impact was ~1% (2-3 days of production), primarily in interventional products and fluid components on East Coast. Strong incrementals north of 50% excluding CDMO divestiture. Medical expected to return to mid-single-digit growth; supply chains stabilized; order entry momentum good.

40% normal incremental expectation remains unchangedMedical incrementals well north of 50% in Q1 (excluding CDMO impact)~1% weather impact (2-3 days of production) in medical segmentMedical 3% Q1 growth, normalized to ~4% without weather

Mike Halloran · Baird

Detailed breakdown of ATS segment moving pieces (dispense, x-ray, T&I), order trajectory and confidence areas. Also asked for similar detail on IPS segment dynamics.

ATS showing strong overall momentum; dispense businesses strongest due to AI chip manufacturing demand; x-ray inflecting positively after being down last year; AMI/acoustic emission business on track after strong prior years. IPS returned to 3% growth, expects to maintain that; growth primarily in Asia Pacific; precision ag doing well; polymer/automotive stabilized but not yet inflecting. Aftermarket demand stable.

ATS dispense businesses strongest due to AI computing demandX-ray business inflecting after being down last yearIPS organic growth 3% in Q1, expected to continue through yearIPS growth primarily in Asia Pacific, not Europe/North America

Christopher Glynn · Oppenheimer

Asked about early signs of electronics recovery in ATS, whether momentum is consistent with adjacent companies, and emerging technologies like optical modules. Also questioned FX impact on ATS margins.

Management seeing stable demand at low growth levels in general electronics, not true inflection yet. Early signs: semiconductor/high-end semi demand trickling into lower-level electronics with capacity investment announcements. Optical modules for emerging tech is area of interest with early orders. FX contributed ~6% to IPS sales growth but only 25-30% incremental drop-through on FX movements vs. organic growth.

General electronics showing stable demand at low growth ratesHigh-end semiconductor investments trickling into lower electronicsOptical modules emerging technology area with early order activityIPS FX impact: ~6% positive contribution to sales

Robert Jamison · Vertical Research Partners

Follow-up on FX incrementals across segments and what end markets/areas would drive guidance upside, particularly auto capex and medical acceleration.

FX incremental drop-through roughly 25-30% range applies generally across segments with minor variation. Upside to guidance would come from: (1) further inflection in general industrial and auto demand, (2) ATS lumpiness—not factoring in 20% growth rates but potential upside if strength continues. Medical seen as stable mid-single-digit, not expecting further inflection. Management balanced and prudent in guidance.

FX incremental drop-through 25-30% range across segmentsFX impact will lessen through year as rates improveATS upside potential from continued demand strength (70% systems, lumpy)Auto capex revised higher 5% growth in 2026 could drive upside

Andrew Buscalia · BNP Paribas

ATS segment: how testing/inspection cycles work, x-ray as precursor for business lift. MFS: tough margin comps in back half—why expect expansion, what would lift demand/margins?

X-ray business has automotive and semi exposure; semi side doing well, auto flattish. As auto recovers, x-ray will continue performing well. MFS margins sustainable at ~37% range; Q4 was high point not ongoing run rate. CDMO divestiture one-time adjustment impacting year-over-year comps through Q3. Management focused on above-market growth at reasonable incrementals—margins are byproduct of growth/innovation/quality execution, not primary driver.

X-ray business mix: semi strong, auto flattishMFS margins sustainable at ~37%Q4 margins were high point, not baselineCDMO divestiture one-time impact on year-over-year through Q3

Answers to last quarter's watch list

Whether Q1 ATS growth materializes given the "Q1 strong" framing and base-effect caveats — ATS printed +23.1% YoY (organic +20.7%), materially above any reasonable read of "strong." Management partially attributed it to favorable comps off Q1 FY2025, but the Halloran exchange confirmed dispense businesses are running hot on AI chip demand and x-ray is inflecting structurally. The underlying demand signal is real, not purely comp-driven.

Resolved positively

IPS Q1 organic growth — third consecutive quarter at or below zero would force a walk-back — IPS printed +3.2% organic (+8.8% reported with FX tailwind), per the Halloran exchange. This is the cleanest validation yet of the "trough behind us" thesis after Q3's +0.5% and Q4's -1.5% organic. The framing held; the numbers caught up.

Resolved positively

Medical segment EBITDA margin post-CDMO close — upper 30s range, ~100bps divestiture accretion — MFS EBITDA margin printed 36%, comfortably within the "upper 30s" range management called sustainable. The Hammond Q&A confirmed underlying medical incrementals "well north of 50%" excluding CDMO comp effects. The ~100bps accretion claim was not re-quantified explicitly but management did not back off it.

Resolved positively

FY26 revenue guide updates — failure to raise would signal H2 caution — Management raised both FY revenue (+$30M midpoint) and EPS (+$0.15 midpoint, with low end up $0.20). The shape of the raise — low end raised more aggressively — signals improved downside visibility. That said, implied H2 organic growth at the midpoint is ~+3.7%, well below Q1's +8.8%, so some H2 caution does remain embedded. Status: Resolved positively, with H2 caveat

Backlog quality — sequential decline combined with YoY+5% moving toward zero would invalidate the "stronger entering FY26" thesis — Backlog +4% YoY (down 1 point from Q4's +5% YoY), with order momentum described as "broad-based" and "increased." Sequential dynamics were not disclosed in the press release. The YoY trajectory has not deteriorated meaningfully; management used the backlog as the explicit anchor for the FY guide raise.

Continue monitoring

Buyback pace at the ~$250 actionable level — The press release cash flow statement shows $86M in treasury share repurchases in Q1; prepared remarks cited $82M on the open market. With Q1 representing roughly one-third of the ~$250M actionable framing, the capital allocation cadence appears on track.

Resolved positively

What to watch into next quarter

Q2 ATS organic growth versus the implied +4–9% YoY revenue guide — ATS just printed +20.7% organic and management explicitly excluded "20%+ growth rates" from the guide, so Q2 ATS materially above the segment's implied average would signal genuine upside to the FY range rather than a cycle peak

IPS organic growth holding at +3% — management committed to this run-rate continuing through the year in the Halloran exchange; a slip below +2% would suggest Q1 had a transitory tailwind that doesn't repeat

MFS organic growth normalization without the weather distortion — Q2 needs to print mid-single-digit organic to validate management's full-year medical growth thesis; anything below +3% would force a re-read of whether the destocking-resolution claim was premature

EBITDA margin trajectory — Q1's 30.3% was essentially flat YoY but down QoQ; investors need to see margin walk back toward the 32% range as FX drag eases (management said FX impact lessens through the year) and ATS mix matures

Backlog YoY trajectory — a print at +4% or better in Q2 with order momentum continuing "broad-based" would validate the FY raise; another step down to +2% or below would compress the H2 cushion that the guide implicitly assumes

Whether management raises the FY range a second time on the Q2 print — back-to-back raises would confirm the H2 caution embedded in the current midpoint is conservative; a Q2 beat followed by no FY change would indicate management sees real H2 risk

Q2 buyback pace and M&A activity — Q1 deployed $86M to repurchases; sustained pace plus any M&A announcement would clarify the capital deployment mix flagged last quarter

Sources

Nordson Corporation Q1 FY2026 press release — https://www.sec.gov/Archives/edgar/data/72331/000007233126000011/ndsn-q120268kxex991.htm
Nordson Corporation Q1 FY2026 earnings call Q&A commentary

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