It has been about a month since the last earnings report for Nordson (NDSN Quick QuoteNDSN - Free Report) . Shares have lost about 6.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Nordson due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Nordson Q3 Earnings Beat Estimates on Broad Organic Growth

Nordson reported third-quarter fiscal 2026 adjusted earnings of $3.25 per share, up 19.0% year over year and 5.2% above the Zacks Consensus Estimate of $3.09. Revenues of $817.67 million increased 10.3% and beat the consensus estimate of $779 million by 5.0%.

Broad organic growth across all three segments powered the quarter, with Advanced Technology Solutions leading the expansion. Order momentum also remained strong, with backlog up 35% from the prior-year level.

Organic Sales Gain Momentum

Organic sales increased 11.7% year over year. The net impact of acquisitions and divestitures reduced growth by 1.2%, while currency translation was a 0.2% headwind. The company reported record third-quarter sales in each of its three business segments.

Asia Pacific revenues rose 22.2% to $293.76 million, marking the strongest regional increase. Americas sales increased 5.4% to $331.47 million, while Europe revenues advanced 3.1% to $192.43 million. The regional mix showed that growth extended beyond a single market.

Nordson's Segments Post Record Sales

Industrial Precision Solutions revenues rose 4.7% to $367.25 million. Organic sales increased 3.3%, driven by strength in packaging, industrial coatings, polymer processing and nonwovens product lines. Acquisitions added 0.9%, while currency contributed 0.5%. Segment EBITDA was $129.90 million, with margin at 35%. 

Medical and Fluid Solutions revenues increased 5.0% to $230.54 million, despite a 5.6% divestiture drag. Organic sales climbed 10.6% on growth in engineered fluid solutions and medical product lines. Advanced Technology Solutions revenues surged 28.4% to $219.88 million, supported by 30.9% organic growth in electronics dispense and test and inspection applications. 

Advanced Technology Solutions also delivered record EBITDA of $65.70 million, up 58.1%, with margin improving to 30% from 24%. Medical and Fluid Solutions EBITDA rose to a record $88.29 million, while its margin remained at 38%.

Margin Profile Strengthens

Cost of sales increased 8.6% year over year to $363.94 million. Gross profit rose 11.6% to $453.73 million, while gross margin expanded 70 basis points to 55.5%. Selling and administrative expenses increased 11.7% to $230.64 million.

Operating profit jumped 18.8% to $223.09 million. Adjusted operating profit was $225.94 million, up 12.6%. EBITDA increased 10.1% to $262.48 million, while the EBITDA margin held at 32%. 

Net income rose to $152.85 million from $125.78 million. GAAP earnings were $2.73 per share, up from $2.22 a year earlier. Net interest expense declined to $20.36 million from $25.70 million.

Nordson's Cash Flow Supports Deleveraging

For the first nine months of fiscal 2026, cash from operating activities increased 10.5% to $570.47 million. Free cash flow rose 13.5% to $530.16 million. Third-quarter free cash flow was $236.75 million, representing a 144% conversion rate.

Nordson exited the quarter with cash and cash equivalents of $113.43 million, compared with $108.44 million at the end of fiscal 2025. Long-term debt declined to $1.53 billion from $1.68 billion, while short-term debt and current maturities fell to $202 million from $315 million.

Capital Returns Remain Active

During the first nine months, it paid $137.38 million in dividends, up 3.3% year over year. Treasury-share purchases totaled $158.79 million, down 27.2% from the prior-year period. Capital spending totaled $40.31 million, compared with $49.00 million a year ago.

The company repaid a net $258.03 million of debt during the period. Management also highlighted $1.1 billion of near-term capacity for strategic acquisitions, while net debt leverage improved to 1.7 times trailing 12-month EBITDA from 2.1 times at the end of fiscal 2025.

Nordson Raises Fiscal 2026 Guidance

Nordson now expects fiscal 2026 sales of $3,035-$3,075 million, up from the prior $2,930-$3,010 million range. Adjusted earnings are projected at $11.80-$12.00 per share, compared with the previous $11.30-$11.80 range. 

The revised outlook calls for sales growth of 9-10% and adjusted earnings growth of 15-17%. Management expects the strong sales pace from the first nine months to continue into the fourth quarter, supported by order-entry momentum and strength in key end markets. Foreign currency is expected to have a neutral impact on fourth-quarter sales if rates remain at current levels.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

VGM Scores

At this time, Nordson has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of F on the value side, putting it in the fifth quintile for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Nordson has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Nordson belongs to the Zacks Manufacturing - General Industrial industry. Another stock from the same industry, DNOW (DNOW Quick QuoteDNOW - Free Report) , has gained 2.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

DNOW reported revenues of $1.31 billion in the last reported quarter, representing a year-over-year change of +108.1%. EPS of $0.12 for the same period compares with $0.27 a year ago.

For the current quarter, DNOW is expected to post earnings of $0.15 per share, indicating a change of -42.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

DNOW has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.