Earnings Recap — Q3 FY2026
CY Q3 2026 · Reported August 19, 2026 · Beat 5 of last 6 quarters
Nordson Corporation reported Q3 FY2026 revenue of $818M, a beat of 4.9% against consensus, and EPS of $3.25, a beat of 5.2%.
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Nordson's record Advanced Technology Solutions results, with 31% organic growth and backlog up 35%, underscore the accelerating semiconductor and electronics demand tied to AI infrastructure. The company's commentary that North American chip manufacturing infrastructure investments have yet to flow into orders suggests further upside as AI-driven fab buildouts materialize.
Nordson delivered record third-quarter results with sales of $818 million, up 10% year-over-year, driven by 12% organic growth across all three segments. Adjusted EPS of $3.25 was a record, up 19%, and EBITDA of $262 million was also a record at 32% of sales. The Advanced Technology Solutions segment posted record sales of $220 million, up 31% organically, with record EBITDA margins of 30%, while Medical and Fluid Solutions grew 11% organically and Industrial Precision Solutions grew 3% organically. Backlog increased 35% year-over-year, and free cash flow conversion was 144% of net income.
Management raised full-year fiscal 2026 guidance, now expecting sales of $3.035B to $3.075B and adjusted EPS of $11.80 to $12.00, reflecting sustained order strength and positioning at the high end of their growth algorithm. They highlighted broad-based backlog growth, with particular acceleration in Advanced Technology Solutions and Medical. They noted that ATS is at the peak of the cycle and on the upside, with elevated growth rates. The company maintains its long-term margin targets of 35-40% incrementals and expects an adjusted tax rate near 18%. Management continues to prioritize growth while holding margins, and remains active in M&A with a disciplined approach.
“We achieved record sales of $818 million. This is a 10% increase over the prior year, which is inclusive of 12% overall organic growth.”
on Record sales and organic growth
“Backlog growth was broad-based with all segments contributing, but particular strength coming from our Advanced Technology and Medical segments.”
on Backlog strength
“We are at the peak of the cycle, and we're starting to really have legs to this cycle even more than we were. So we're on the upside of the cycle, and hence, you see some very elevated growth rates.”
on ATS cycle strength
Could you put the backlog growth in context? Any elongation in lead times? What visibility does it give into next year?
Dan Hopgood noted backlog growth is broad-based with no departure from normal order patterns; backlog turns over in about 6 months, with 80% shipping within that period. Naga added that lead times have generally reduced and on-time delivery has improved to 80-95% across most businesses.
Can you unpack the $0.35 raise between the businesses? How differentiated is ATS versus the other segments?
Dan Hopgood said IPS was as expected, while ATS and medical drove the upside, with order momentum accelerating in both. Naga added that ATS growth is elevated at the peak of the cycle, while IPS is growing at its long-term goal of 3% and MFS at 11% versus a 6-7% target.
On MFS, can you parse the 11% organic between EFD, medical components, and interventional? And what is implied for Q4?
Dan Hopgood said growth was broad-based, with EFD benefiting from electronics demand and medical components seeing broad-based growth across interventional, specialty, and fluid components. He noted they are walking back to normal mid-single-digit plus growth in medical components, with some areas already there.