Jefferies has raised its price target for Nordson Corp. to $300 from $275 but left its recommendation unchanged at Hold. The move follows Nordson's first-quarter fiscal 2026 results, which displayed top-line growth, margin strength and an upward revision to the company's full-year outlook.
Quarterly results
Nordson recorded sales of $669 million for the fiscal first quarter, a 9% increase compared with the prior year and a 7% gain on an organic basis. Adjusted earnings per share rose 15%, a performance the company attributed to operating leverage and disciplined cost management.
The company reported a gross profit margin of 55%, a figure highlighted by InvestingPro analysis as evidence of pricing power. Total EBITDA margin remained approximately 30%, holding steady despite mix-related pressures stemming from faster growth in Asia and a systems-heavy mix within the Advanced Technology Systems - ATS - segment.
Segment performance and backlog
Order backlog increased by roughly 4% year over year, with gains led by the ATS business and continued demand in semiconductors. ATS itself delivered organic growth in excess of 20%, driven by strength in dispensing products and what the company described as early signs of recovery in x-ray inspection. The Industrial Precision Systems - IPS - segment returned to organic growth as strength in packaging, product assembly and precision agriculture offset more subdued demand in automotive and polymer processing.
Guidance and valuation
Management lifted its full-year guidance for sales to a range of $2.86 billion to $2.98 billion, up from a prior range of $2.83 billion to $2.95 billion. Adjusted EPS guidance increased to $11.00 to $11.60 from the previous $10.80 to $11.50 range.
At recent prices near $290, the shares were trading at a price-to-earnings multiple of about 31.4. InvestingPro analysis cited in the report indicates that, at that multiple, the stock appears overvalued relative to its calculated Fair Value.
Earnings detail and market reaction
Nordson reported first-quarter EPS of $2.37, in line with analyst expectations, and revenue that exceeded forecasts by $16.18 million. The company and analysts characterized the quarter as meeting earnings estimates while topping revenue projections, reflecting a steady operational performance.
Research access and model-driven screening
Investors are pointed to a full Pro Research Report on NDSN, which includes 15 additional ProTips and expanded financial metrics available through InvestingPro. Separately, ProPicks AI is noted to evaluate NDSN alongside thousands of companies each month using more than 100 financial metrics to identify current risk-reward opportunities.
Takeaway
Nordson's Q1 results show durable margin performance and enough revenue momentum to support a modest upgrade to guidance and a higher analyst price target. Nevertheless, steadiness in EBITDA margins amid mix shifts, and a P/E that third-party analysis deems rich, are factors that appear to justify a cautious Hold stance from Jefferies.