Nordson (NDSN) Posts Record $818M Q3 Revenue, Raises Full-Year Guidance Above $3B

Nordson Corporation (NASDAQ: NDSN) posted record quarterly sales of $818 million for the fiscal third quarter ended July 31, 2026, a 10.3% year-over-year increase, while adjusted EPS of $3.25 beat the $3.17 Wall Street consensus by 2.5%. The company also raised its full-year guidance for both revenue and earnings, projecting annual sales above $3 billion for the first time.

Q3 Fiscal 2026 Results

• Revenue: $817.7 million, up 10.3% year-over-year from $741.5 million, driven by 11.7% organic growth across all three segments
• GAAP EPS: $2.73 per diluted share, up 22.97% from $2.22 in the prior-year quarter
• Adjusted EPS: $3.25 per diluted share, up 19.0% from $2.73, beating the $3.17 consensus estimate
• GAAP operating income: $223.1 million, up 18.8% year-over-year, with GAAP operating margin expanding 2.0 percentage points to 27.3%
• EBITDA: $262.5 million, or 32% of sales, an all-time quarterly record, up 10% from $238.5 million in the prior year
• Free cash flow: $236.8 million for the quarter, with nine-month free cash flow of $530.2 million on capital expenditures of $40.3 million

What Drove the Results

Adjusted EPS of $3.25 beat the $3.17 consensus by $0.08, while revenue of $817.7 million came in ahead of the prior year on broad-based organic growth. GAAP net income of $152.8 million included a non-cash loss on a minority investment of $14.9 million, which accounts for the majority of the $29.4 million after-tax gap between GAAP net income and adjusted net income of $182.2 million.

The Advanced Technology Solutions segment was the standout performer, with sales of $219.9 million up 28.4% year-over-year, including 30.9% organic growth led by electronics dispense and test and inspection product lines. Segment EBITDA reached a record $65.7 million, or 30% of sales, up 58% from $41.5 million in the prior-year quarter. Industrial Precision Solutions delivered record sales of $367.2 million, up 4.7% year-over-year with 3.3% organic growth in packaging, industrial coatings, and polymer processing. Medical and Fluid Solutions reached an all-time quarterly revenue record of $230.5 million, with organic sales up 10.6% excluding the prior-year divestiture of its contract manufacturing business.

Operating leverage was evident across the business: GAAP operating margin expanded 2.0 percentage points to 27.3%, while gross margin widened from 54.8% in the prior-year quarter to 55.5% in Q3 fiscal 2026.

Why It Matters

Nordson raised its full-year fiscal 2026 guidance, now targeting revenue of $3,035 million to $3,075 million and adjusted EPS of $11.80 to $12.00. The company enters Q4 with backlog up 35% compared to the prior year, providing visibility into fourth-quarter demand. President and CEO Sundaram Nagarajan noted that the results came in above the high end of the company's most recent earnings guidance range, with record sales achieved in all three segments simultaneously.

Free cash flow conversion for the quarter was 144% relative to net income excluding non-cash items, reflecting efficient working capital management. Year-to-date operating cash flow reached $570.5 million against capital expenditures of $40.3 million, leaving substantial capacity for debt repayment, dividends, and share repurchases. During the nine months ended July 31, 2026, Nordson repaid $258.0 million of debt net, paid $137.4 million in dividends, and repurchased $158.8 million of common shares.

Wall Street View

Analyst sentiment on Nordson skews constructive heading into the print, with the most recent consensus as of August 1, 2026 showing 10 Buy or Strong Buy ratings against 5 Hold ratings and no Sell recommendations. The company's fiscal Q3 adjusted EPS of $3.25 exceeded the consensus estimate of $3.17, and the raised full-year guidance range of $11.80 to $12.00 in adjusted EPS sets a new bar for analyst target revisions.

Investor Takeaway

The combination of record revenue in all three segments, a 35% backlog increase entering Q4, and an upward revision to full-year guidance above $3 billion in annual sales marks a meaningful inflection for Nordson's growth trajectory. Shares gained 1.88% on Wednesday, August 19, 2026, while the S&P 500 advanced 0.21%. With free cash flow conversion running at 144% for the quarter and net debt continuing to decline, the company's balance sheet flexibility is expanding at the same time its end-market demand accelerates, particularly in electronics-related precision technology.