Nordson (NDSN) Valuation Check After Earnings Beat And Raised 2026 Guidance

Nordson (NDSN) just posted first quarter earnings with sales of US$669.46 million and net income of US$133.38 million, and management raised both full year 2026 and second quarter sales guidance.

See our latest analysis for Nordson.

At a share price of US$292.62, Nordson has delivered a 23.13% 90 day share price return and a 41.72% 1 year total shareholder return. This suggests momentum has been building around the recent earnings beat, raised 2026 guidance and a series of upbeat analyst revisions.

If this earnings update has you looking beyond a single name, it could be a good moment to broaden your search with our 19 top founder-led companies and see what else fits your watchlist.

With the shares up more than 40% over the past year and trading only about 7% below the average analyst price target, the key question now is whether Nordson is still mispriced or if the market is already incorporating expectations of future growth.

Most Popular Narrative: 1% Undervalued

Nordson's most followed valuation narrative pegs fair value at $295.40, just above the last close at $292.62, which keeps expectations finely balanced.

Demand for advanced technology solutions is accelerating, especially in semiconductor packaging and electronics assembly, as customers ramp capacity for AI, cloud, and advanced consumer devices. Nordson's exposure to the back end of these markets and its ongoing new product launches are expected to drive sustained revenue growth and market share gains.

Read the complete narrative.

If you want to see what is really sitting behind that fair value, look at how the narrative ties together expected revenue growth, margin expansion and future earnings multiples. The valuation hinges on a specific earnings path and an above market P/E that analysts still see as reasonable. It is worth examining which assumptions would need to hold for that story to work over the next few years.

Result: Fair Value of $295.40 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there is still real risk that weaker demand in plastics and automotive systems, or rising R&D and SG&A costs, could squeeze margins and unsettle that valuation story.

Find out about the key risks to this Nordson narrative.

Another Angle: Earnings Multiple Paints a Richer Picture

While the popular narrative frames Nordson as about 1% undervalued at $295.40, the current P/E of 31.2x tells a different story. It sits above the US Machinery industry at 29.6x, peers at 29.2x, and even the 25.4x fair ratio our model suggests the market could drift toward over time. That gap points to valuation risk if sentiment cools or earnings delivery slips, so the question is whether you see this as a quality premium or a price that leaves little room for error.

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

With sentiment in the article fairly balanced between opportunity and risk, it makes sense to move quickly and review the full picture for yourself. You can weigh both sides of the story by looking at our 2 key rewards and 1 important warning sign and deciding how that fits your own thesis.

Looking for more investment ideas?

If Nordson is already on your radar, do not stop there. Use this momentum to scout other opportunities that could sharpen and diversify your portfolio.

• Target potential value opportunities by checking our 53 high quality undervalued stocks that screen for companies priced below what their fundamentals might justify.
• Strengthen your income stream by reviewing our 15 dividend fortresses built around companies offering higher yields with a focus on stability.
• Protect your downside by browsing our 80 resilient stocks with low risk scores centered on businesses with more resilient risk profiles.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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