Nordson reported record FY2026 Q3 results and raised full-year guidance, driven by exceptional growth in the Advanced Technology Solutions segment and a strong rebound in medical. Management expressed high confidence in sustained demand, citing a 35% year-over-year backlog increase and a broadening electronics upcycle. Record Q3 sales of $818M (up 10%), with 12% organic growth across all segments.
Nordson reported record FY2026 Q3 results and raised full-year guidance, driven by exceptional growth in the Advanced Technology Solutions segment and a strong rebound in medical. Management expressed high confidence in sustained demand, citing a 35% year-over-year backlog increase and a broadening electronics upcycle. Record Q3 sales of $818M (up 10%), with 12% organic growth across all segments.
Order entry momentum accelerated, driving backlog up 35% year-over-year, broad-based across all segments with particular strength in advanced technology and medical. Management noted sustained order strength and acceleration in medical and ATS segments, providing confidence…
Guidance · revenue to $3.55B
Order entry momentum accelerated, driving backlog up 35% year-over-year, broad-based across all segments with particular strength in advanced technology and medical. Management noted sustained order strength and acceleration in medical and ATS segments, providing confidence…
Backlog up 35% YoY, with particular strength in ATS and Medical segments.
Order entry momentum accelerated, driving backlog up 35% year-over-year, broad-based across all segments with particular strength in advanced technology and medical. Management noted sustained order strength and acceleration in medical and ATS segments, providing confidence into Q4 and next year.
Management mentioned capital projects investments of $40 million year-to-date to support current and future organic growth opportunities, indicating continued investment in capacity and infrastructure.
Management highlighted record financial results, raised full-year guidance, and expressed strong confidence in continued growth driven by broad-based demand and execution of the Ascend strategy.
“Clearly, ATS was significantly higher than our long term. And we are at the peak of the cycle and we're starting to, you know, really have legs to the cycle even more than where.”
“If you think about investments, chip manufacturing, infrastructure investments in North America specifically, none of that has happened yet. or at least not in the context of orders for Nordsten yet. That is to come.”
“We are managing through all of these different pressure points, but continuing to stay focused on what is the best value creation opportunity for Norton, which is really profitable growth.”
“relative to EFD, one of the drivers is what I'll call electronics-based demand growth. and we're seeing nice growth and ongoing demand in our order outlook for that space.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $11.80–$12.00 | $11.90 | RAISED |
| Revenue | FY2026 | $3.35B–$3.75B | $3.55B | RAISED |
| Issued | Metric | Target | Guide | Actual | Outcome |
|---|---|---|---|---|---|
| FY2026 Q2 | EPS | FY2026 Q3 | $2.95–$3.15 | $3.25 | Met / beat |
| FY2026 Q2 | Revenue | FY2026 Q3 | $0.76B–$0.79B | $0.8177B | Met / beat |
| FY2026 Q1 | EPS | FY2026 Q2 | $2.70–$2.90 | $2.86 | Met / beat |
| FY2026 Q1 | Revenue | FY2026 Q2 | $0.71B–$0.74B | $0.7408B | Met / beat |
The advanced technology segment saw exceptional 31% organic growth, with management explicitly stating this is the 'peak of the cycle' and they are 'starting to really have legs to the cycle,' implying sustained strength in semiconductor and electronics equipment demand. — Confirms a broadening and durable upcycle in semiconductor capital equipment, specifically in the advanced packaging segment, which is positive for key suppliers like ASML and AMAT.
Hey, good morning, everyone. So maybe just to stay on, you know, whether it's backlog or orders or the guide. I mean, it seems like that the stark beat in the quarter is ATS. So I'm just trying to understand, you know, maybe you can unpack the 35 cent raise between the businesses. I mean, it doesn't seem like maybe the other two segments are moving that much. which goes back to like your comment that you know you're seeing broad-based growth. I'm just trying to understand like this backlog and the order growth like how differentiated the ATS is versus you know the other two segments.
Right. You know, Jeff, if you would sort of compare against long term targets for these growth rates of these businesses is to put it in context. Clearly, ATS was significantly higher than our long term. And we are at the peak of the cycle and we're starting to, you know, really have legs to the cycle even more than where. So we're on the upside of the cycle. And hence, you see some very elevated growth rates. But IPS, for example, it's 50 percent of the company. We're at our long term goal of growing three percent in the quarter. And for the first nine months, again, growing over three percent. OK, that number is not Big when compared to the 37% in ATS, but 3% for this business is pretty darn good. And if you think about MFS, that's even a better story where our long-term expectations are, you know, six, seven kind of percentage growth rates. And in the quarter, they were 11%. and clearly there is some benefit from the EFD business that has some electronic exposure but even if you take that out I would say medical businesses are trending towards where our long-term targets are and we're you know really you know feel good about where we're headed into next quarter and the following year.
The recent strong demand is heavily concentrated in Asia, while investments related to North American chip manufacturing infrastructure have not yet translated into orders for Nordson. This suggests a significant future demand catalyst for the company's ATS segment.
Thank you for that caller. And then maybe, Naga, if you could just speak back to the ATS business, how you're thinking about cycle durability, how long this cycle extends, any early views you have on fiscal 27 growth in that business, just given you're obviously going to have some tougher compares versus this year, but really want to understand kind of how this cycle maybe feels versus prior. Yeah.
Clearly, based on what we see both in our businesses, where we are at in terms of pipeline activity with customers, order entry, backlog buildup, and revenue growth. Delivery, right? So if you think all four of those things together, and if you think about in terms of our dispense business, our test inspection business, our exposure and EFT to electronics, all of them indicating that we still have room in this cycle. as we are headed to delivering what is looking like a very strong, probably an all-time record. As you know, in the quarter, we delivered an all-time record for this segment. We feel really good about where we are at and where we are going. To address your question, which is, I'm glad you asked this. Look, this quarter, we delivered 30% organic growth in this segment, which is fantastic results. but as we head into next year though our expectation is we're going to build off of this peak and we're going to build at a rate that is more in line with our longer term you know mid single digit number but that is going to be of a all-time peak is sort of what you want to think about and and everything we see in the business and what we follow for our customers This demand looks pretty strong going into 27. And, you know, I'll give you one point of clarification in terms of, you know, just one proof point, I should say, for that comment. If you think about investments, chip manufacturing, infrastructure investments in North America specifically, none of that has happened yet. or at least not in the context of orders for Nordsten yet. That is to come. And so a lot of this demand that we are fulfilling today is a significant portion of it is in Asia. As North American ship infrastructure gets built out, I think that's an opportunity for Nordsten and we are yet to see that. Appreciate the callers.