Strong first-quarter performance driven by robust demand, with improved outlook for the remainder of fiscal 2026.
Nordson Corporation reported a strong start to its fiscal 2026, delivering record first-quarter sales, improved profitability, and increased full-year guidance. The company’s results for the quarter ended January 31, 2026, highlight continued momentum across key segments, particularly in semiconductor-related markets, and reflect the benefits of its proprietary technology portfolio and strategic initiatives.
Record First-Quarter Sales and Earnings Growth
For the first quarter of fiscal 2026, Nordson generated sales of $669 million, marking a record performance for the period. This compares to $615 million in sales during the same quarter last year. The increase was driven primarily by a 7% organic sales gain, along with a favorable currency translation impact of 4%. These gains were slightly offset by the effect of the medical contract manufacturing divestiture completed in the fourth quarter of fiscal 2025.
The company also reported significant improvements in profitability. Net income for the quarter reached $133 million, or $2.38 per diluted share, compared to $95 million, or $1.65 per diluted share, in the prior-year first quarter. Earnings in the current period were positively influenced by a non-cash gain related to a minority technology investment recognized during the quarter.
After excluding this non-cash gain and acquisition-related amortization, Nordson reported adjusted earnings per diluted share of $2.37. This represents a 15% increase from the prior year’s adjusted earnings per diluted share of $2.06, and sets a new record for first-quarter adjusted earnings.
Strong EBITDA Performance
The company also posted record first-quarter EBITDA of $203 million, equivalent to 30% of total sales. This represents an 8% increase from the prior year’s EBITDA of $188 million, which accounted for 31% of sales.
The combination of strong revenue growth and disciplined cost management contributed to the company’s solid margin performance. The results underscore Nordson’s ability to generate consistent cash flow while investing in growth areas such as advanced manufacturing and semiconductor technologies.
Leadership Commentary on Performance
Commenting on the results, President and Chief Executive Officer Sundaram Nagarajan emphasized the company’s strategic positioning and the strength of its business model.
He noted that Nordson’s proprietary technology portfolio, customer-centric approach, and Ascend strategy have positioned the company to capitalize on improving conditions in key end markets. In particular, the semiconductor sector has shown signs of renewed growth, which has benefited the company’s Advanced Technology Solutions segment.
According to the CEO, the company achieved organic growth across all segments during the quarter, while also delivering strong margins and cash flow. He stated that the performance in the first quarter has set a solid foundation for the remainder of fiscal 2026.
Segment-by-Segment Performance
Industrial Precision Solutions
Sales in the Industrial Precision Solutions segment reached $327 million, representing a 9% increase compared to the prior year. This growth included a 3% organic increase and a favorable currency translation impact of 6%.
The organic growth was driven by balanced performance across most product lines, with particularly strong demand in Asia-Pacific markets. The segment benefited from improved activity in manufacturing and industrial automation.
Despite the increase in sales, EBITDA for the segment was slightly lower than the prior year. Industrial Precision Solutions reported EBITDA of $110 million, or 34% of sales, compared to $113 million in the first quarter of fiscal 2025. The slight decline was primarily due to mix and currency effects.
Medical and Fluid Solutions
The Medical and Fluid Solutions segment reported sales of $193 million, which were flat compared to the prior-year quarter. The results included a 3% organic sales increase and a favorable currency impact of 1%, offset by a 4% decline associated with the divestiture of the medical contract manufacturing business.
Organic growth in this segment was driven by increased demand for engineered fluid solution product lines, which serve a variety of end markets including medical devices and industrial applications.
Profitability in the segment improved during the quarter. EBITDA rose to $70 million, or 36% of sales, up 9% from $64 million in the prior-year first quarter. The increase reflects improved product mix, operational efficiency, and ongoing demand for higher-margin engineered solutions.
Advanced Technology Solutions
The Advanced Technology Solutions (ATS) segment delivered the strongest growth among Nordson’s business units. Sales reached $149 million, representing a 23% increase compared to the prior-year first quarter.
The growth included a 21% organic increase and a 2% favorable currency impact. Organic growth was driven by continued expansion in electronics dispense systems, along with a recovery in demand for x-ray inspection systems.
The segment also posted significant improvements in profitability. EBITDA rose to $33 million, or 22% of sales, representing a 43% increase compared to $23 million in the prior-year quarter. The strong performance reflects both higher volumes and improved operating leverage.
Backlog and Order Momentum
Nordson entered the second quarter of fiscal 2026 with a strengthened backlog, which increased approximately 4% compared to the prior year. Order entry during the first quarter was broad-based across the company’s segments, with particularly strong momentum in the Advanced Technology Solutions business.
This improvement in backlog and order flow provides greater visibility into upcoming quarters and supports the company’s confidence in its outlook for the remainder of the fiscal year.
Second-Quarter Outlook
Based on current order trends and market conditions, Nordson expects second-quarter fiscal 2026 sales to be in the range of $710 million to $740 million. The company forecasts adjusted earnings per diluted share for the quarter to be between $2.70 and $2.90.
The projected increase in both revenue and earnings reflects continued demand across the company’s key markets, particularly in semiconductor and electronics applications.
Raised Full-Year Guidance
Encouraged by the strong first-quarter performance and improving order trends, Nordson has raised its full-year fiscal 2026 guidance.
The company now expects full-year sales to be in the range of $2.86 billion to $2.98 billion. Adjusted earnings per diluted share are projected to fall between $11.00 and $11.60 for the year.
This updated guidance reflects a combination of strong organic growth, favorable currency conditions, and improving end-market demand.
Strategic Positioning and Market Trends
Nordson’s performance in the first quarter reflects broader trends in its key markets. The company’s technology portfolio is heavily aligned with high-growth areas such as semiconductor manufacturing, advanced electronics, and precision fluid management.
The semiconductor industry, in particular, appears to be entering a recovery phase after a period of softness. Increased capital investment and rising demand for advanced chips have created favorable conditions for equipment suppliers like Nordson.
At the same time, the company’s diversified portfolio across industrial, medical, and technology markets provides resilience against cyclical fluctuations. This balanced exposure allows Nordson to capture growth opportunities while maintaining stable margins.
Focus on Customer-Centric Strategy
A central element of Nordson’s growth strategy is its customer-focused business model. The company works closely with customers to develop proprietary technologies that address highly specialized manufacturing challenges.
This approach not only strengthens customer relationships but also creates barriers to entry for competitors. Many of Nordson’s solutions are deeply integrated into customer production processes, making them difficult to replace.
The company’s Ascend strategy, which emphasizes innovation, operational excellence, and disciplined capital allocation, continues to guide its long-term growth plans.
Outlook for Fiscal 2026
Looking ahead, Nordson management expressed confidence in the company’s ability to deliver strong results throughout fiscal 2026. The combination of improving end-market demand, a growing backlog, and continued execution of strategic initiatives provides a solid foundation for the year.
CEO Sundaram Nagarajan noted that several of the company’s key markets have begun to inflect, signaling potential for sustained growth. He emphasized that the company’s teams have delivered a strong start to the fiscal year and that the improved backlog and order trends support the increased annual guidance.
The company remains focused on serving customers, investing in technology, and returning value to shareholders through consistent earnings growth and cash flow generation.
Summary
Nordson’s fiscal first quarter of 2026 demonstrated strong operational execution and favorable market conditions. Record sales, improved profitability, and increased full-year guidance underscore the company’s positive momentum.
With robust performance across all segments—particularly the Advanced Technology Solutions unit—and strengthening order trends, Nordson appears well positioned for continued growth throughout the remainder of the fiscal year.
