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The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Nordson (NDSN - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Industrial Products sector should help us answer this question.

Nordson is a member of our Industrial Products group, which includes 182 different companies and currently sits at #10 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Nordson is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for NDSN's full-year earnings has moved 2% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, NDSN has returned 17.7% so far this year. In comparison, Industrial Products companies have returned an average of 15.6%. This shows that Nordson is outperforming its peers so far this year.

RBC Bearings (RBC - Free Report) is another Industrial Products stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 33.1%.

Over the past three months, RBC Bearings' consensus EPS estimate for the current year has increased 5.1%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Nordson belongs to the Manufacturing - General Industrial industry, which includes 42 individual stocks and currently sits at #170 in the Zacks Industry Rank. This group has gained an average of 12.4% so far this year, so NDSN is performing better in this area. RBC Bearings is also part of the same industry.

Going forward, investors interested in Industrial Products stocks should continue to pay close attention to Nordson and RBC Bearings as they could maintain their solid performance.

Key Takeaways Allegion Q1 EPS of $1.80 missed estimates and fell 3.2% despite 9.7% revenue growth.ALLE Americas revenues rose 6.9% on non-residential and electronics strength.Margins declined as costs and expenses rose, though 2026 revenue guidance was raised. Allegion plc’s (ALLE - Free Report) first-quarter 2026 adjusted earnings of $1.80 per share missed the Zacks Consensus Estimate of $1.88. The bottom line decreased 3.2% year over year.

ALLE’s Revenue DetailsAllegion’s revenues were $1.03 billion, which increased 9.7% year over year. Organic revenues increased 2.6%, driven by price realization. Revenues beat the Zacks Consensus Estimate of $1.02 billion. While acquired assets boosted revenues by 4.8%, foreign currency had a positive impact of 2.3%.

ALLE reports revenues under two segments. A brief discussion of quarterly results is provided below:

Revenues from Allegion Americas increased 6.9% year over year to $809.9 million. The figure accounted for 78.4% of the quarter’s revenues. Our estimate for segmental revenues was $807.1 million. Organic revenues increased 4.5%, driven by solid momentum in the non-residential and electronics businesses.

Operating income for the segment was $215.1 million, up 1.8% year over year. Our estimate was $209.7 million.

Revenues from Allegion International were $223.7 million, up 21.5% year over year. The metric accounted for 21.6% of the quarter’s revenues. Organic revenues decreased 5.3%. Segmental operating income was $8.3 million, down 29.1% year over year.

Allegion’s Margin ProfileIn the quarter, Allegion’s cost of revenues increased 11.5% year over year to $579.1 million. Gross profit was $454.5 million, up 7.5% year over year, while the gross margin declined 90 basis points (bps) to 44%.

Selling and administrative expenses increased 14.6% year over year to $259.2 million. Adjusted EBITDA was $236.8 million, reflecting a year-over-year increase of 3.9%. The margin was 22.9%, down 130 basis points on a year-over-year basis.

Adjusted operating income increased 2.6% year over year to $218.9 million. The adjusted margin was 21.2%, down 150 basis points year over year. Interest expenses were $24.2 million, down 2% year over year. The effective tax rate (on an adjusted basis) was 20.1%, up from 16.1% in the year-ago quarter.

ALLE’s Balance Sheet and Cash FlowWhile exiting first-quarter 2026, Allegion had cash and cash equivalents of $308.9 million compared with $356.2 million at the end of 2025. Long-term debt was $2.03 billion, higher than $1.98 billion at 2025-end.

In the first three months of 2026, ALLE generated net cash of $101.3 million from operating activities, reflecting a decrease of 3.1% year over year. Capital expenditure was $21 million, in line with the year-ago period. For the first three months of 2026, the available cash flow was $80.3 million.

Allegion repurchased shares for $40.6 million. Dividends paid out totaled $47.4 million, reflecting an increase of 8.7% year over year.

Allegion’s 2026 OutlookThe company has raised its 2026 revenue guidance. Allegion expects revenues to increase in the range of 6-8% year over year, higher than 5-7% projected earlier.  ALLE continues to expect organic revenues to grow in the range of 2-4%.

Adjusted earnings are still projected to be in the range of $8.70-$8.90 per share. The company estimates available cash flow to be 85-95% of adjusted net income. Adjusted effective tax rate is projected to be approximately 18-19%.

ALLE’s Zacks RankThe company currently carries a Zacks Rank #3 (Hold).

DXP Enterprises (DXPE - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

DXP Enterprises’ earnings surpassed the consensus estimate by 52.8% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for DXPE’s 2026 earnings has increased by 17.2%.

Nordson Corporation (NDSN - Free Report) currently carries a Zacks Rank #2 (Buy). Nordson’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 2.5%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 0.5%.

RBC Bearings (RBC - Free Report) presently carries a Zacks Rank of 2. RBC Bearings’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 5.3%. In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ fiscal 2026 earnings has inched down 0.3%.

Investors interested in Industrial Products stocks should always be looking to find the best-performing companies in the group. Nordson (NDSN - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Nordson is a member of our Industrial Products group, which includes 181 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Nordson is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for NDSN's full-year earnings has moved 2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that NDSN has returned about 17.9% since the start of the calendar year. Meanwhile, the Industrial Products sector has returned an average of 16% on a year-to-date basis. This shows that Nordson is outperforming its peers so far this year.

One other Industrial Products stock that has outperformed the sector so far this year is Ranpak Holdings Corp (PACK - Free Report) . The stock is up 20.3% year-to-date.

Over the past three months, Ranpak Holdings Corp's consensus EPS estimate for the current year has increased 26.5%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Nordson belongs to the Manufacturing - General Industrial industry, a group that includes 41 individual stocks and currently sits at #89 in the Zacks Industry Rank. On average, stocks in this group have gained 6.7% this year, meaning that NDSN is performing better in terms of year-to-date returns.

In contrast, Ranpak Holdings Corp falls under the Containers - Paper and Packaging industry. Currently, this industry has 10 stocks and is ranked #195. Since the beginning of the year, the industry has moved -1.8%.

Investors interested in the Industrial Products sector may want to keep a close eye on Nordson and Ranpak Holdings Corp as they attempt to continue their solid performance.

Wall Street analysts expect Nordson (NDSN - Free Report) to post quarterly earnings of $2.82 per share in its upcoming report, which indicates a year-over-year increase of 16.5%. Revenues are expected to be $731 million, up 7% from the year-ago quarter.

Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

Bearing this in mind, let's now explore the average estimates of specific Nordson metrics that are commonly monitored and projected by Wall Street analysts.

It is projected by analysts that the 'Net Sales- Industrial Precision Solutions' will reach $337.18 million. The estimate points to a change of +5.8% from the year-ago quarter.

The collective assessment of analysts points to an estimated 'Net Sales- Advanced Technology Solutions' of $190.40 million. The estimate indicates a year-over-year change of +18.1%.

Based on the collective assessment of analysts, 'Net Sales- Medical and Fluid Solutions' should arrive at $213.44 million. The estimate points to a change of +5.2% from the year-ago quarter.

View all Key Company Metrics for Nordson here>>>

Over the past month, shares of Nordson have returned +1.3% versus the Zacks S&P 500 composite's +7.7% change. Currently, NDSN carries a Zacks Rank #2 (Buy), suggesting that it may outperform. the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

WESTLAKE, Ohio--(BUSINESS WIRE)--Nordson Corporation (Nasdaq: NDSN) today reported results for the fiscal second quarter ended April 30, 2026. Sales were a second quarter record of $741 million compared to the prior year’s second quarter sales of $683 million. The second quarter 2026 sales included an organic sales increase of 7% driven by growth in all segments, as well as a favorable currency translation impact of 3%. This sales result was slightly offset by the previously announced divestiture and the contribution of a small acquisition that was completed during the quarter.

Net income was $117 million, or $2.09 of earnings per diluted share, compared to prior year’s second quarter net income of $112 million, or $1.97 of earnings per diluted share. Second quarter 2026 earnings included a one-time, non-cash settlement charge to annuitize about 30% of the U.S. pension obligation and a non-cash loss on minority investments recognized during the quarter. Excluding these items and acquisition-related amortization and costs, second quarter adjusted earnings per diluted share were a record $2.86, an 18% increase from the prior year adjusted earnings per diluted share of $2.42.

EBITDA was also a second quarter record of $235 million, or 32% of sales, an increase of 8% compared to prior year EBITDA of $217 million, or 32% of sales.

Commenting on the Company’s fiscal 2026 second quarter results, Nordson President and Chief Executive Officer Sundaram Nagarajan said, “Our solid execution of the Ascend Strategy resulted in second quarter records for sales, adjusted earnings and EBITDA. Our free cash flow conversion also continues to be a strength, enabling a healthy mix of shareholder returns and reinvestment in growth. Thank you to our teams for delivering another strong quarter.”

On March 16, 2026, the Company acquired CapstanAG Systems, a precision agriculture company in North America that is a complementary bolt-on to our existing footprint. This small, but strategic, acquisition provides the Company with an established and synergistic platform to grow its precision agriculture portfolio with mid-tier OEMs in North America.

Second Quarter Segment Results

Record second quarter Industrial Precision Solutions sales of $350 million increased 10% from the prior year, inclusive of an organic sales increase of 5%, favorable currency translation of 4%, and an acquisition contribution of 1%. The organic sales increase was driven by improving industrial coating and polymer processing systems demand, ongoing growth in precision agriculture end markets and stable demand in broader consumer and industrial end markets. EBITDA in the quarter was $124 million, or 35% of sales, up 9% from the prior year second quarter EBITDA of $114 million.

Medical and Fluid Solutions sales of $213 million, also a second quarter record, increased 5% compared to the prior year second quarter. This increase was inclusive of an organic sales increase of 8% and a favorable currency impact of 1%. Sales growth was partially offset by 4% related to the previously divested medical contract manufacturing business. The organic sales increase was driven by growth in engineered fluid solutions and medical product lines. EBITDA in the quarter was $79 million, or 37% of sales, up 3% from the prior year second quarter EBITDA of $77 million.

Record quarterly Advanced Technology Solutions sales of $178 million increased 10% compared to the prior year second quarter, inclusive of an organic sales increase of 8% and favorable currency translation of 2%. The organic sales increase was driven by ongoing growth in electronics dispense systems. EBITDA in the quarter was $48 million, or 27% of sales, up 22% from the prior year second quarter EBITDA of $40 million.

Outlook

The Company enters the third quarter with increased backlog, up 18% over the prior year. Order entry momentum was broad-based in the quarter across all segments. These trends position the Company to deliver third quarter fiscal 2026 sales in the range of $760 to $790 million. Third quarter adjusted earnings are forecasted to be in the range of $2.95 to $3.15 per diluted share.

Based on the continuing momentum of our end markets as evidenced by our backlog and order entry, the Company is increasing its full year guidance. Sales are now expected to be in the range of $2,930 to $3,010 million and adjusted earnings to be in the range of $11.30 to $11.80 per diluted share.

Reflecting on the full year outlook, Mr. Nagarajan said, “We delivered a strong first half of fiscal 2026, highlighted by record performance and ongoing momentum across our end markets. Supported by robust order entry and backlog, we expect this momentum to continue and are increasing our full year sales and earnings guidance. Our NBS Next growth framework, close-to-the-customer business model, and differentiated precision technologies position us well to compound profitable growth.”

Nordson management will provide additional commentary on these results and outlook during its previously announced webcast on Thursday, May 21, 2026, at 8:30 a.m. eastern time, which can be accessed at https://investors.nordson.com. Information about Nordson’s investor relations and shareholder services is available from Lara Mahoney, vice president, investor relations and corporate communications at (440) 204-9985 or [email protected].

Certain statements contained in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by terminology such as “may,” “will,” “should,” “could,” “expects,” “anticipates,” “believes,” “projects,” “forecasts,” “outlook,” “guidance,” “continue,” “target,” or the negative of these terms or comparable terminology. These statements reflect management’s current expectations and involve a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, U.S. and international economic and political conditions; financial and market conditions; currency exchange rates and devaluations; possible acquisitions and the Company’s ability to successfully integrate acquisitions; the Company’s ability to successfully divest or dispose of businesses that are deemed not to fit with its strategic plan; the effects of changes in U.S. trade policy and trade agreements, including changes in tariffs by the U.S. or other nations; the effects of changes in tax law; and the possible effects of events beyond our control, such as political unrest, including the conflicts in Europe and the Middle East, acts of terror, natural disasters and pandemics and the other factors discussed in Item 1A (Risk Factors) in the Company’s most recently filed Annual Report on Form 10-K and in its Forms 10-Q filed with the Securities and Exchange Commission, which should be reviewed carefully. The Company undertakes no obligation to update or revise any forward-looking statement in this press release.

Nordson Corporation is an innovative precision technology company that leverages a scalable growth framework through an entrepreneurial, division-led organization to deliver top tier growth with leading margins and returns. The Company’s direct sales model and applications expertise serve global customers through a wide variety of critical applications. Its diverse end market exposure includes consumer non-durable, medical, electronics and industrial end markets. Founded in 1954 and headquartered in Westlake, Ohio, the Company has operations and support offices in over 35 countries. Visit Nordson on the web at www.nordson.com, linkedin/Nordson, or www.facebook.com/nordson.

NORDSON CORPORATION

SEGMENT INFORMATION (Unaudited)

(Dollars in thousands)

  Three Months Ended

Six Months Ended

April 30, 2026

April 30, 2025

April 30, 2026

April 30, 2025

SALES

Industrial Precision Solutions

$

350,466

$

318,847

$

677,327

$

619,295

Medical and Fluid Solutions

212,850

202,809

406,033

396,418

Advanced Technology Solutions

177,531

161,282

326,948

282,645

Total sales

$

740,847

$

682,938

$

1,410,308

$

1,298,358

EBITDA

Industrial Precision Solutions

$

123,578

35%

$

113,548

36%

$

233,889

35%

$

226,324

37%

Medical and Fluid Solutions

79,193

37%

76,538

38%

149,399

37%

140,870

36%

Advanced Technology Solutions

48,327

27%

39,516

25%

80,927

25%

62,287

22%

Corporate expenses

(15,911

)

(12,448

)

(26,038

)

(24,224

)

Total EBITDA (non-GAAP) (1)

$

235,187

32%

$

217,154

32%

$

438,177

31%

$

405,257

31%

(1) Total company EBITDA is a non-GAAP measure. Refer to the reconciliation of non-GAAP measures – net income to EBITDA.

NORDSON CORPORATION

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Dollars in thousands except for per-share amounts)

  Three Months Ended

Six Months Ended

April 30, 2026

April 30, 2025

April 30, 2026

April 30, 2025

Sales

$

740,847

$

682,938

$

1,410,308

$

1,298,358

Cost of sales

336,770

309,034

640,109

588,558

Gross profit

404,077

373,904

770,199

709,800

Gross margin %

54.5

%

54.7

%

54.6

%

54.7

%

Selling and administrative expenses

206,874

205,154

406,591

400,103

Operating profit

197,203

168,750

363,608

309,697

Interest expense - net

(21,580

)

(26,019

)

(44,321

)

(51,637

)

Pension settlement charge

(24,049

)

—

(24,049

)

—

Other income (expense) - net

(10,400

)

(3,961

)

10,437

(2,435

)

Income before income taxes

141,174

138,770

305,675

255,625

Income taxes

23,858

26,366

54,977

48,569

Net income

$

117,316

$

112,404

$

250,698

$

207,056

Weighted-average common shares outstanding:

Basic

55,798

56,785

55,793

56,960

Diluted

56,100

57,038

56,113

57,265

Earnings per share:

Basic earnings

$

2.10

$

1.98

$

4.49

$

3.64

Diluted earnings

$

2.09

$

1.97

$

4.47

$

3.62

NORDSON CORPORATION

CONSOLIDATED BALANCE SHEETS (Unaudited)

(Dollars in thousands)

  April 30, 2026

October 31, 2025

Cash and cash equivalents

$

102,017

$

108,442

Receivables - net

606,689

587,843

Inventories - net

467,757

444,814

Other current assets

100,893

101,752

Total current assets

1,277,356

1,242,851

Property, plant and equipment - net

521,390

516,914

Goodwill

3,332,927

3,304,685

Other assets

832,745

853,231

$

5,964,418

$

5,917,681

Notes payable and debt due within one year

$

50,000

$

315,000

Accounts payable and accrued liabilities

441,875

443,260

Total current liabilities

491,875

758,260

Long-term debt

1,836,356

1,681,254

Other liabilities

433,952

434,596

Total shareholders' equity

3,202,235

3,043,571

$

5,964,418

$

5,917,681

NORDSON CORPORATION

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

(Dollars in thousands)

  Six Months Ended

April 30, 2026

April 30, 2025

Cash flows from operating activities:

Net income

$

250,698

$

207,056

Depreciation and amortization

72,900

74,608

Pension settlement charge

24,049

—

Other non-cash items

(4,813

)

7,021

Changes in operating assets and liabilities and other

(21,733

)

(10,393

)

Net cash provided by operating activities

321,101

278,292

Cash flows from investing activities:

Additions to property, plant and equipment

(27,693

)

(37,439

)

Acquisition of business, net of cash acquired

(11,643

)

—

Other - net

(688

)

10,339

Net cash used in investing activities

(40,024

)

(27,100

)

Cash flows from financing activities:

Repayment of long-term debt

(107,105

)

(5,800

)

Repayment of finance lease obligations

(3,753

)

(2,627

)

Dividends paid

(91,642

)

(88,937

)

Issuance of common shares

43,008

2,803

Purchase of treasury shares

(129,303

)

(146,252

)

Net cash used in financing activities

(288,795

)

(240,813

)

Effect of exchange rate change on cash:

1,293

3,826

Net change in cash and cash equivalents

(6,425

)

14,205

Cash and cash equivalents:

Beginning of period

108,442

115,952

End of period

$

102,017

$

130,157

NORDSON CORPORATION

SALES BY GEOGRAPHIC SEGMENT (Unaudited)

(Dollars in thousands)

  Three Months Ended

Sales Variance

April 30, 2026

April 30, 2025

Organic

Acquisitions /
Divestitures

Currency

Total

SALES BY SEGMENT

Industrial Precision Solutions

$

350,466

$

318,847

5.0

%

0.8

%

4.1

%

9.9

%

Medical and Fluid Solutions

212,850

202,809

7.8

%

(3.9

)%

1.1

%

5.0

%

Advanced Technology Solutions

177,531

161,282

8.5

%

—

%

1.6

%

10.1

%

Total sales

$

740,847

$

682,938

6.6

%

(0.8

)%

2.7

%

8.5

%

SALES BY GEOGRAPHIC REGION

Americas

$

308,253

$

292,463

5.9

%

(1.7

)%

1.2

%

5.4

%

Europe

194,459

172,496

6.4

%

(0.3

)%

6.6

%

12.7

%

Asia Pacific

238,135

217,979

7.8

%

(0.1

)%

1.5

%

9.2

%

Total sales

$

740,847

$

682,938

6.6

%

(0.8

)%

2.7

%

8.5

%

Six Months Ended

Sales Variance

April 30, 2026

April 30, 2025

Organic

Acquisitions / Divestitures

Currency

Total

SALES BY SEGMENT

Industrial Precision Solutions

$

677,327

$

619,295

4.1

%

0.4

%

4.9

%

9.4

%

Medical and Fluid Solutions

406,033

396,418

5.3

%

(4.2

)%

1.3

%

2.4

%

Advanced Technology Solutions

326,948

282,645

13.8

%

—

%

1.9

%

15.7

%

Total sales

$

1,410,308

$

1,298,358

6.6

%

(1.1

)%

3.1

%

8.6

%

SALES BY GEOGRAPHIC REGION

Americas

$

570,183

$

560,300

2.9

%

(2.2

)%

1.1

%

1.8

%

Europe

376,920

340,259

3.0

%

(0.2

)%

8.0

%

10.8

%

Asia Pacific

463,205

397,799

14.8

%

(0.1

)%

1.7

%

16.4

%

Total sales

$

1,410,308

$

1,298,358

6.6

%

(1.1

)%

3.1

%

8.6

%

NORDSON CORPORATION

RECONCILIATION OF NON-GAAP MEASURES - NET INCOME TO EBITDA (Unaudited)

(Dollars in thousands)

  Three Months Ended

Six Months Ended

April 30, 2026

April 30, 2025

April 30, 2026

April 30, 2025

Net income

$

117,316

$

112,404

$

250,698

$

207,056

Income taxes

23,858

26,366

54,977

48,569

Interest expense - net

21,580

26,019

44,321

51,637

Pension settlement charge

24,049

—

24,049

—

Other expense (income) - net

10,400

3,961

(10,437

)

2,435

Inventory step-up amortization (1)

1,135

—

1,135

3,135

Severance and other (1)

—

10,313

—

16,274

Acquisition-related costs (1)

534

513

534

1,543

Adjusted operating profit

198,872

179,576

365,277

330,649

Depreciation and amortization

36,315

37,578

72,900

74,608

EBITDA (non-GAAP) (2)

$

235,187

$

217,154

$

438,177

$

405,257

NORDSON CORPORATION

RECONCILIATION OF NON-GAAP MEASURES - ADJUSTED NET INCOME AND EARNINGS PER SHARE (Unaudited)

(Dollars in thousands)

  Three Months Ended

Six Months Ended

April 30, 2026

April 30, 2025

April 30, 2026

April 30, 2025

GAAP AS REPORTED

Net income

$

117,316

$

112,404

$

250,698

$

207,056

Diluted earnings per share

$

2.09

$

1.97

$

4.47

$

3.62

Shares outstanding - diluted

56,100

57,038

56,113

57,265

ADJUSTMENTS

Inventory step-up amortization (1)

$

1,135

$

—

$

1,135

$

3,135

Acquisition costs (1)

534

513

534

1,543

Severance and other (1)

—

10,313

—

16,274

Acquisition amortization of intangibles

19,406

19,696

38,975

39,007

Entity liquidation

—

988

—

988

Non-cash loss (gain) on minority investments (2)

9,827

—

(12,411

)

—

Pension settlement charge

24,049

—

24,049

—

Total adjustments

$

54,951

$

31,510

$

52,282

$

60,947

Adjustments net of tax

$

43,342

$

25,523

$

42,711

$

49,367

EPS effect of adjustments

$

0.77

$

0.45

$

0.76

$

0.86

NON-GAAP

Adjusted net income (3)

$

160,658

$

137,927

$

293,409

$

256,423

Adjusted earnings per share (4)

$

2.86

$

2.42

$

5.23

$

4.48

NORDSON CORPORATION

RECONCILIATION OF NON-GAAP MEASURES - OPERATING CASH FLOW TO FREE CASH FLOW (Unaudited)

(Dollars in thousands)

  Year to Date

April 30, 2026

January 31, 2026

Net cash provided by operating activities

$

321,101

$

140,428

Additions to property, plant and equipment

(27,693

)

(17,513

)

Free cash flow (1)

$

293,408

$

122,915

Free cash flow - quarter to date (1)

$

170,493

Net income

$

250,698

$

133,382

Non-cash loss (gain) on minority investments and pension charge - after-tax

9,383

(16,679

)

Net income excluding non-cash loss (gain) on minority investments and pension loss (2)

$

260,081

$

116,703

Free cash flow conversion (3)

113

%

105

%

Net income excluding non-cash loss (gain) on minority investments and pension charge - quarter to date (2)

$

143,378

Free cash flow conversion - quarter to date (2)

119

%

Year to Date

April 30, 2025

January 31, 2025

Net cash provided by operating activities

$

278,292

$

159,122

Additions to property, plant and equipment

(37,439

)

(21,399

)

Free cash flow (1)

$

240,853

$

137,723

Free cash flow - quarter to date (1)

$

103,130

Net income

$

207,056

$

94,652

Free cash flow conversion (3)

116

%

146

%

Net income - quarter to date (2)

$

112,404

Free cash flow conversion - quarter to date (2)

92

%

Management uses certain non-GAAP measures, such as adjusted net income, adjusted EPS, EBITDA, free cash flow, and free cash flow conversion, internally to make strategic decisions, forecast future results, and evaluate the Company's current performance. Given management's use of these non-GAAP measures, the Company believes these measures are important to investors in understanding the Company's current and future operating results as seen through the eyes of management. In addition, management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in the Company's core business across different time periods. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures to other companies' non-GAAP financial measures, even if they have similar names. Amounts may not add due to rounding.

Nordson (NDSN - Free Report) came out with quarterly earnings of $2.86 per share, beating the Zacks Consensus Estimate of $2.82 per share. This compares to earnings of $2.42 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +1.54%. A quarter ago, it was expected that this maker of adhesives and industrial coatings would post earnings of $2.36 per share when it actually produced earnings of $2.37, delivering a surprise of +0.42%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Nordson, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $740.85 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 1.35%. This compares to year-ago revenues of $682.94 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Nordson shares have added about 13% since the beginning of the year versus the S&P 500's gain of 7.4%.

What's Next for Nordson?While Nordson has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Nordson was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.01 on $760.33 million in revenues for the coming quarter and $11.47 on $2.93 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - General Industrial is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, ATS (ATS - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 28.

This automation services provider is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of +14.3%. The consensus EPS estimate for the quarter has been revised 10% lower over the last 30 days to the current level.

ATS's revenues are expected to be $546.61 million, up 36.7% from the year-ago quarter.

3 Automation-Focused Stocks Flying Under the RadarNordson NASDAQ: NDSN reported record fiscal second-quarter sales and earnings, with management citing broad-based organic growth across all three business segments, stronger order activity and an 18% organic increase in backlog from the prior year.

President and Chief Executive Officer Sundaram Nagarajan said the company delivered record sales of $741 million in the quarter, up 8% from the prior year, including 7% organic growth. He said order entry accelerated during the final two months of the quarter and that all three segments contributed to the company’s organic growth performance.

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3 Industrials Stocks Standing Out for Growth and Analyst Optimism“I’m very pleased to report a strong second quarter where all 3 segments contributed to our organic growth performance, surpassing the midpoint expectations of last quarter’s sales and earnings guidance,” Nagarajan said.

Adjusted earnings per share were $2.86, up 18% from $2.42 a year earlier and $0.06 above the midpoint of Nordson’s quarterly guidance. EBITDA was $235 million, a second-quarter record, and represented 32% of sales. Free cash flow totaled $170 million, with conversion of more than 100% of net income.

Segment Results Show Broad Growth These Quality Dividend Kings Grow their Dividends the FastestExecutive Vice President and Chief Financial Officer Daniel Hopgood said second-quarter sales rose to $741 million from $683 million a year earlier. Currency translation added 3 percentage points to growth, while results were modestly offset by the prior divestiture of the medical contract manufacturing business and partially helped by the acquisition of Capstan AG during the quarter.

Industrial Precision Solutions generated second-quarter record sales of $350 million, up 10% from the prior year. Organic sales increased 5%, supported by improving demand in industrial coating and polymer processing systems, continued growth in precision agriculture and stable demand in broader consumer and industrial markets. Segment EBITDA rose 9% to $124 million, or 35% of sales.

Medical and Fluid Solutions sales were also a second-quarter record at $213 million, up 5% year over year. Organic sales increased 8%, helped by both engineered fluid solutions and medical product lines. Hopgood said the medical product lines showed solid growth after a slower start to the year. EBITDA in the segment was $79 million, or 37% of sales, up from $77 million a year earlier.

Advanced Technology Solutions posted all-time quarterly record sales of $178 million, up 10% from the prior year, including 8% organic growth. Hopgood said the increase was most notable in electronics dispense product lines and reflected ongoing strength in semiconductor demand. Segment EBITDA rose 22% to a record $48 million, while EBITDA margin improved to 27% from 25% a year earlier.

Margins, Cash Flow and Balance Sheet Adjusted operating profit increased 11% year over year to $199 million, equal to 27% of sales. Hopgood said the increase was driven by SG&A leverage on organic sales growth. Incremental EBITDA contribution was about 31%, which he described as on the lower end of Nordson’s typical mid- to upper-30% conversion range but improved from the first quarter and in line with expectations.

Net interest expense declined by $4 million year over year to $22 million, due to lower debt levels and a stable-to-declining rate environment. GAAP net income was $117 million, or $2.09 per share. Hopgood said GAAP results included a $24 million pre-tax charge tied to a pension settlement and $10 million of non-cash mark-to-market charges on minority investments.

Hopgood said Nordson annuitized approximately $113 million, or just under one-third, of its remaining U.S. pension obligation during the quarter, with no cash outlay required. He said the transaction improved the funded status of the remaining pension obligation and favorably affects ongoing pension costs.

At quarter-end, Nordson had $102 million in cash and net debt of approximately $1.8 billion. Its leverage ratio improved to 1.9 times, which Hopgood said was below the low end of the company’s long-term target range. During the quarter, Nordson invested $10 million in capital projects, paid $46 million in dividends, repurchased $43 million in shares and reduced net debt by $93 million.

Capstan Acquisition Expands Precision Agriculture Portfolio Nagarajan said Nordson acquired Capstan AG, a Topeka, Kansas-based precision agriculture technology company, during the quarter. He described Capstan as a North American leader in pulse width modulation systems, which provide nozzle-by-nozzle controls for row crop, orchard, planter and aerial sprayer applications.

The deal was valued at 9 times adjusted EBITDA. Nagarajan said the acquisition gives Nordson’s precision agriculture business another growth platform in North America, particularly with mid-tier OEM customers. Nordson is consolidating its existing North American precision agriculture facilities into Capstan’s Topeka footprint.

In response to an analyst question, Hopgood said Capstan is approximately a $13 million annual revenue business and that a $5 million to $6 million revenue contribution in the second half would be a reasonable modeling estimate.

Guidance Raised on Backlog and Order Momentum Nagarajan said Nordson entered the third quarter with strong order entry and backlog up 18% from the prior year, with all segments contributing. He said foreign exchange, which benefited first-half growth, is expected to be essentially neutral in the second half at current exchange rates.

For the fiscal third quarter, Nordson expects sales of $760 million to $790 million and adjusted earnings of $2.95 to $3.15 per diluted share.

The company also raised its full-year outlook. Nordson now expects fiscal 2026 sales of $2.93 billion to $3.01 billion and adjusted earnings of $11.30 to $11.80 per diluted share. Management said the guidance reflects strong demand momentum while accounting for a range of potential macroeconomic outcomes.

“We have a high level of confidence in the midpoint of our range, and it would take a meaningful slowdown in order activity driven by macro conditions to move us towards the low end,” Nagarajan said. He added that sustained demand trends, particularly in electronics end markets, could position the company to reach the upper end of guidance.

Management Highlights Semiconductors, Medical and Industrial Trends During the question-and-answer session, Hopgood said the Medical and Fluid Solutions segment is returning toward normalized growth, with medical product lines tracking toward the company’s 6% to 8% target. He said a near-term margin headwind in selected interventional medical product lines was tied to a regulatorily required material change that created operational inefficiencies, but management expects to work through the issue.

Nagarajan said medical order entry and backlog growth support confidence that the segment is returning to normalized growth.

On semiconductors, Nagarajan said Advanced Technology Solutions is benefiting from earlier actions to diversify beyond dispense products into test and inspection, broaden its customer base and reposition its operating footprint. He said the company is in the early stages of the semiconductor demand cycle and is participating in technologies related to AI infrastructure, including panel-level packaging and optical fiber applications.

Hopgood declined to provide segment-level backlog figures but said ATS showed particular strength within the company’s 18% backlog increase, suggesting a double-digit increase for the segment and potentially performance in line with or better than the companywide backlog growth.

In Industrial Precision Solutions, management said demand is improving in coatings and plastics, while packaging, product assembly and precision agriculture remain positive. Hopgood said Nordson is operating in an inflationary environment, including tariffs, and is using selective pricing and cost actions to manage pressure. He said the focus for the year is maintaining margins while growing revenue rather than expanding margins in the face of inflation.

Nagarajan closed the call by saying Nordson remains positioned as a diversified precision technology company, supported by its customer-focused model, recurring revenue, proprietary technologies and balance sheet strength.

About Nordson NASDAQ: NDSNNordson Corporation designs, manufactures and markets precision dispensing equipment and systems that apply adhesives, coatings, sealants and polymers in a broad range of industrial and medical applications. The company's portfolio spans fluid systems, curing and surface preparation technologies, vacuum and thermal management products, and advanced test and inspection solutions. Nordson's offerings serve critical manufacturing processes by delivering exacting dispensing accuracy and process control to ensure consistent product performance and high production throughput.

Nordson operates through multiple segments that cater to diverse markets including electronics, packaging, medical, energy, automotive and general industrial sectors.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Key Takeaways NDSN beat Q2 estimates as adjusted earnings rose 18% and revenues increased 8% year over year.Nordson raised fiscal 2026 sales and earnings guidance after broad organic sales growth.NDSN saw sales growth across regions and segments, with operating margin up 190 bps. Nordson Corporation’s (NDSN - Free Report) second-quarter fiscal 2026 (ended April 30, 2026) adjusted earnings of $2.86 per share surpassed the Zacks Consensus Estimate of $2.82. The bottom line increased 18% year over year.

Quarterly Results of NDSNNordson’s revenues were $741 million, up 8% from the year-ago fiscal quarter’s number, driven by a 7% organic sales increase across all segments and a favorable currency translation impact of 3%. Revenues surpassed the consensus estimate of $725 million.

While organic sales increased 7% year over year, the net impact from divested sales and the CapstanAG acquisition was unfavorable by 1%. Foreign currency translation had a favorable impact of 3%.

On a regional basis, revenues from the Asia Pacific region were $238.1 million, up 9.2% year over year. Revenues generated from Europe increased 12.7% to $194.5 million, while the metric in the Americas increased 5.4% to $308.3 million.

Nordson reports revenues under three segments. The segments are Industrial Precision Solutions, Medical and Fluid Solutions and Advanced Technology Solutions. A brief snapshot of the segmental sales is provided below:

Revenues from Industrial Precision Solutions amounted to $350.5 million, up 9.9% from the year-ago fiscal quarter’s level. Organic sales increased 5.0% from the year-ago fiscal quarter’s level, while acquisitions/divestitures contributed 0.8% and foreign currency translation had a positive impact of 4.1%.

Revenues from Medical and Fluid Solutions amounted to $212.9 million, up 5.0% from the year-ago fiscal quarter’s level. Organic sales increased 7.8% from the year-ago fiscal quarter’s level. Acquisitions/divestitures decreased sales by 3.9% while foreign currency translation had a positive impact of 1.1%.

Advanced Technology Solutions’ sales were $177.5 million, up 10.1% from the year-ago fiscal quarter’s figure. Organic sales increased 8.5% from the year-ago fiscal quarter’s level, while foreign currency translation had a positive impact of 1.6%.

Nordson’s Margin ProfileNordson’s cost of sales increased 9.0% from the year-ago fiscal quarter’s level to $336.8 million. Gross profit was $404.1 million, up 8.1% from the year-ago fiscal quarter’s level. The gross margin decreased 20 basis points (bps) to 54.5%.

Selling and administrative expenses increased 0.8% year over year to $206.9 million. EBITDA was $235.2 million (up 8% year over year), the margin being 32%. Operating profit was $197.2 million, up 16.9% year over year. Operating margin of 26.6% was up 190 bps from the year-ago quarter.

Net interest expenses totaled $21.6 million, reflecting a 17.1% decrease from the year-ago fiscal quarter’s level.

Nordson’s Balance Sheet & Cash FlowAt the time of exiting the second quarter of fiscal 2026, Nordson’s cash and cash equivalents were $102.0 million compared with $108.4 million recorded at the end of fiscal 2025. Long-term debt was $1.84 billion compared with $1.68 billion recorded at the end of fiscal 2025.

In the first six months of fiscal 2026, NDSN generated net cash of $321.1 million from operating activities, up 15.4% from the last fiscal year period’s tally. Capital invested in purchasing property, plant and equipment totaled $27.7 million, down 26% from the year-ago fiscal period.

NDSN’s Dividends/Share BuybackIn the first three months of fiscal 2026, Nordson paid out dividends of $45.8 million, up 2.7% from $44.6 million in the previous fiscal year period.

Treasury purchase shares amounted to $86 million, up from $43.1 million in the year-ago period.

In the first six months of fiscal 2026, Nordson paid out dividends of $91.6 million, up 3.0% from $88.9 million in the previous fiscal year period.

Treasury purchase shares amounted to $129.3 million, down 11.6% from $146.3 million in the year-ago period.

NDSN’s OutlookFor fiscal 2026 (ending October 2026), NDSN has increased its guidance. The company now projects sales to be in the range of $2.93-$3.01 billion compared with $2.86-$2.98 billion expected earlier. Nordson expects adjusted earnings of $11.30-$11.80 per share compared with $11.00-$11.60 anticipated before.

For third-quarter fiscal 2026 (ending July 2026), it expects to generate sales in the band of $760-$790 million, with adjusted earnings of $2.95-$3.15 per share.

NDSN Zacks RankThe company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other CompaniesGraco Inc. (GGG - Free Report) posted quarterly earnings of 66 cents per share in the first quarter of 2026, missing the Zacks Consensus Estimate of 75 cents per share. This compares with earnings of 70 cents per share a year ago.

Graco posted revenues of $540.1 million for the quarter, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $528.3 million.

Stanley Black & Decker, Inc. (SWK - Free Report) reported first-quarter 2026 adjusted earnings of 80 cents per share, which beat the Zacks Consensus Estimate of 61 cents. The bottom line increased 6.7% year over year.

Stanley Black’s net sales of $3.85 billion beat the consensus estimate of $3.74 billion. The top line increased 2.7% from the year-ago quarter.

Ingersoll Rand Inc. (IR - Free Report) reported first-quarter 2026 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents. The bottom line increased 7% year over year.

Total revenues of $1.85 billion beat the consensus estimate of $1.83 billion. The top line increased 7.6% year over year.

On May 21, 2026, Nordson Corp NDSN shares rose 3.8% today, bringing the current price to $286.77. The stock has experienced a significant price movement, trading within a 52-week range of $191.99 to $305.28.

GF Value™ verdict: Current price is $286.77, which is 11.4% overvalued compared to the GF Value™ of $257.50.GF Score™ of 93/100 indicates a strong overall performance.Most notable signal: Insider activity shows that insiders sold $22.6M in shares over the last 3 months, with no buying reported. Is NDSN Overvalued or Undervalued? The current price of Nordson Corp NDSN at $286.77 is above the GF Value™ estimate of $257.50, indicating that the stock is overvalued by approximately 11.4%. This situation suggests a potential risk for investors considering an entry point at this valuation. The GF Valuation label categorizes the stock as "Modestly Overvalued," which further emphasizes the caution needed when evaluating the investment.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The current overvaluation may present a risk for investors, as a correction could occur if market conditions shift or if the company fails to meet growth expectations. However, for those already holding the stock, the strong price momentum observed in recent months may provide some reassurance, albeit with the caveat of potential volatility ahead.

How Does NDSN's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 31.0x 28.0x Forward P/E 25.1x N/A The current P/E (TTM) of 31.0x is 10% above Nordson Corp's 5-year median P/E of 28.0x. Additionally, the forward P/E of 25.1x indicates that future earnings are expected to be somewhat more favorable. This P/E analysis supports the GF Value™ verdict of overvaluation, as the stock is trading above its historical valuation levels, suggesting that current prices may not be justified by the company's earnings potential.

What Does NDSN's GF Score™ Tell Us? Metric Rating GF Score™ 93 Financial Strength 6/10 Profitability 9/10 Growth 9/10 Valuation 7/10 Momentum 10/10 The GF Score™ of 93/100 indicates that Nordson Corp possesses a strong overall profile, especially in terms of Profitability (9/10) and Growth (9/10). The highest score is in Momentum (10/10), reflecting the recent strong price performance. However, the Financial Strength score of 6/10 is relatively weaker, suggesting some areas for improvement. Overall, while the company shows robust profitability and growth potential, the mixed signals in financial strength and valuation warrant careful consideration.

What Are Insiders Doing with NDSN Stock? In recent months, insider activity has been notable, with insiders selling a total of $22.6 million in shares and no reported buying. This pattern of selling may indicate a lack of confidence from insiders regarding the current share price or future performance prospects. Such actions can serve as a cautionary signal for potential investors, highlighting the importance of monitoring insider activity as part of a comprehensive investment analysis.

What This Means for Investors Based on the analysis above, Nordson Corp NDSN is currently considered overvalued with a GF Value™ estimate indicating a significant premium to its intrinsic value. The combination of high valuation metrics and recent insider selling patterns suggests that potential investors may need to exercise caution when considering an entry point at this time.

For the complete analysis, visit the Nordson Corp NDSN stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is NDSN's GF Score™?

Nordson Corp's GF Score™ is 93/100, indicating a strong overall performance that suggests potential for higher long-term returns.

Is NDSN overvalued or undervalued?

Nordson Corp is currently overvalued, with a GF Value™ estimate indicating a premium of 11.4% over its intrinsic value.

What is NDSN's P/E ratio?

Nordson Corp's P/E (TTM) is 31.0x, which is 10% above its historical median of 28.0x, indicating that the stock is trading at a premium compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Takeaways DOW shares rose 39.1% in the past six months, outperforming the industry.Dow is focused on growth in attractive end markets and is gaining from cost and productivity initiatives.DOW ended Q1 with about $14 billion in liquidity and returned $1.5 billion via dividends in 2025. Dow Inc.’s (DOW - Free Report) shares have popped 39.1% over the past six months, outperforming the Zacks Chemicals Diversified industry’s rise of 22.9%. It has been benefiting from its cost and productivity initiatives, growth actions in attractive markets and advantaged feedstock positions amid a challenging macroeconomic backdrop.

We are positive about DOW’s prospects and believe that the time is right for you to add the stock to the portfolio, as it looks promising and is poised to carry the momentum ahead.

Image Source: Zacks Investment Research

Let's see what makes DOW stock an attractive investment option at the moment.

Positive Analyst Sentiment for DOW StockEarnings estimates for DOW have been going up over the past 60 days. The Zacks Consensus Estimate for 2026 has increased by 693.8%. The consensus estimate for second-quarter 2026 has also been revised 844.4% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.

DOW’s Strong Growth ProspectsThe Zacks Consensus Estimate for DOW’s 2026 earnings is pegged at $2.54, suggesting a 370.2% increase from the previous year’s tally. Earnings are projected to increase by 302.4% in second-quarter 2026.

DOW’s Valuation Looks AttractiveDOW’s shares are currently trading at a level that is lower than the industry average, suggesting that the stock still has upside potential. Going by the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) multiple, which is often used to value chemical stocks, DOW is currently trading at a trailing 12-month EV/EBITDA multiple of 12.38, cheaper compared with the industry average of 14.48. DOW also has a Value Score of B.

Image Source: Zacks Investment Research

Strategic Growth & Self-help Actions Aid DowDOW benefits from its differentiated portfolio and feedstock advantage in the Americas. It remains focused on investing in attractive areas. Its broad portfolio, significant low-cost feedstock positions, global footprint and market reach place it in an advantageous position against competitors. While Dow faces headwinds from heightened macroeconomic and geopolitical uncertainties, it remains focused on growth actions in attractive end markets and executing high-return incremental growth projects in cost-advantaged regions.

Dow is taking action to cut costs by $1 billion to drive margins. It expects to achieve the majority of the cost savings through reductions in direct and labor costs. Dow realized more than $400 million of benefits from these actions in 2025, with the remaining benefits expected by 2026.

DOW has launched the “Transform to Outperform” initiative to improve productivity, reduce complexity, streamline its end-to-end processes and enable improved returns. The plan targets at least $2 billion near-term operating EBITDA improvement, with two-thirds of the benefits expected to be realized from productivity improvements. The company expects EBITDA benefits of roughly $500 million from this program in 2026. It expects to deliver roughly $1.1 billion in benefits from self-help actions this year.

Dow, on its first-quarter call, stated that it is already witnessing strong positive momentum from its recently implemented pricing actions across all businesses and regions, along with supportive improvements in operating rates. The company added that it is leveraging its purpose-built asset base, established supply chain networks and strong operational reliability to continue prioritizing customers while navigating challenges related to the Middle East conflict.

DOW’s Solid Financial Health Supports Capital AllocationDOW has a strong balance sheet and generates substantial cash flows, which enable it to finance its growth investments in higher-value businesses and regions, and drive shareholder value. It ended the first quarter with solid liquidity of around $14 billion, including cash and cash equivalents of roughly $4.1 billion. It generated solid cash flow from operating activities of roughly $1.1 billion in the first quarter.

DOW returned $1.5 billion to shareholders through dividends in 2025. Dow has a policy of returning roughly 45% of its operating net income through dividends. It paid $252 million in dividends in the first quarter. It has no substantial long-term debt maturities until 2029.

DOW’s Zacks Rank & Key PicksDOW currently sports a Zacks Rank #1 (Strong Buy).

Other top-ranked stocks in the Basic Materials space are Nucor Corporation (NUE - Free Report) , L.B. Foster Company (FSTR - Free Report) and Albemarle Corporation (ALB - Free Report) , each carrying a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Nucor’s current-year earnings stands at $14.84 per share, implying an 92.5% year-over-year increase. NUE’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with an average surprise of 8.1%.

The consensus estimate for L.B. Foster’s current-year earnings is pegged at $1.74 per share, implying a 152.2% year-over-year increase. The Zacks Consensus Estimate for FSTR’s current-year earnings has been revised 12.3% higher over the past 60 days.

The Zacks Consensus Estimate for Albemarle’s current-year earnings is pegged at $12.39 per share, indicating a 1,668.4% year-over-year increase. ALB’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average surprise of 54.1%.

Dow Inc. (DOW) Presents at 16th Annual Wells Fargo Industrials & Materials Conference Transcript

Technology stocks dragged Wall Street lower on Tuesday as a rebound in semiconductor shares lost momentum, while investors weighed renewed geopolitical uncertainty in the Middle East and prepared for key inflation data and the highly anticipated SpaceX initial public offering.

The S&P 500 fell 0.26% to 7,386.65, while the Nasdaq Composite dropped 0.97% to 25,678.82.

The Dow Jones Industrial Average outperformed, rising 86.10 points, or 0.17%, to 50,872.11.

The session marked a reversal from Monday's technology-led rebound as investors resumed selling semiconductor stocks following last week's sharp decline.

Semiconductor shares were among the weakest performers during Tuesday's session.

The iShares Semiconductor ETF fell more than 3% after rebounding 6% on Monday.

The fund had already suffered a 10% decline on Friday, its worst daily performance in six years, amid concerns that the artificial intelligence-driven rally in chip stocks had become overheated.

Micron Technology dropped nearly 5%, giving back part of Monday's 10% gain.

The stock had lost roughly 20% over two sessions last week, including a 13% plunge on Friday.

Broadcom also declined more than 2% as its recent rebound faded.

The chipmaker had come under pressure after investors reacted negatively to management's decision to maintain, rather than raise, its long-term artificial intelligence revenue outlook despite strong quarterly results.

The Philadelphia Semiconductor Index fell as much as 8.6% during the session after initially rising 3% earlier in the day.

Technology stocks broadly remained under pressure.

The S&P 500 technology sector fell nearly 4% before recovering some losses later in the session.

Middle East tensions and oil prices remain in focusMarkets initially found support from falling energy prices.

West Texas Intermediate crude futures fell about 3% to below $90 per barrel after US Energy Secretary Chris Wright said shipping traffic through the Strait of Hormuz was increasing significantly.

Oil prices also eased after President Donald Trump said a deal between the United States and Iran could be reached within "two or three days" and that the Strait of Hormuz could reopen immediately.

However, sentiment deteriorated after Trump later said Iran had shot down a US Apache helicopter patrolling the Strait of Hormuz and pledged a response.

The development raised fresh concerns about the prospects for a lasting ceasefire in the region and contributed to a rise in market volatility.

The Cboe Volatility Index climbed to its highest level since April 7 during the session.

While lower oil prices weighed on energy stocks, other sectors benefited. Materials, consumer discretionary, and real estate shares outperformed, with real estate receiving support from stronger-than-expected existing home sales data.

Market participants are also preparing for several major events later this week.

Consumer price index data for May is scheduled for release on Wednesday and could provide insight into whether rising energy costs linked to the conflict in the Middle East are affecting inflation.

Investors are also closely watching SpaceX's expected market debut on Friday.

The company is seeking to raise $75 billion at a valuation of $1.75 trillion, which would make it the largest IPO in history.

Some strategists believe the offering is contributing to recent weakness in semiconductor shares as investors lock in profits and potentially reposition portfolios ahead of the listing.

Adding to enthusiasm around artificial intelligence investments, OpenAI disclosed on Monday that it had confidentially filed for an initial public offering.

Despite the recent pullback, the semiconductor index remains up more than 70% for the year, underscoring the powerful influence that artificial intelligence-related investments continue to have on market performance.

Key Takeaways Dow signed an agreement with Xylem to develop and operate advanced water systems in Alberta.Xylem will design, engineer and run one seamless supply, treatment and reuse solution, due Aug 2028.System will treat raw water and turn processed water into a reusable supply, reducing freshwater demand. Dow Inc. (DOW - Free Report) has entered into a landmark agreement with Xylem to develop and operate advanced water systems at the Fort Saskatchewan, Alberta, Canada, manufacturing complex. The initiative further expands the collaboration of these companies, supporting the advancement of the Path2Zero initiative of DOW.

Under the agreement, Xylem will design, engineer, and operate the water systems by providing high-quality water supply, treatment and reuse capabilities across the site. Expected to be operational by August 2028, the project will be a major milestone as the companies strengthen a long-standing partnership while supporting efficient water management by introducing one seamless solution for supply, treatment and reuse.

A key component of the system is its ability to treat raw water for industrial use and convert processed water into high-quality reusable water. This integrated approach is expected to significantly reduce freshwater demand, improve operational efficiency, and strengthen long-term system operation. The project underscores Dow’s commitment to sustainability while supporting growth through innovative solutions that reduce environmental impact and enhance operational performance.

DOW has gained 8.3% over the past year compared with the industry’s 2.3% growth.

Image Source: Zacks Investment Research

DOW’s Zacks Rank & Other Key PicksDOW currently carries a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the Basic Materials space are CF Industries Holdings, Inc. (CF - Free Report) ,Albemarle Corporation (ALB - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .

While ALB sports a Zacks Rank #1 at present, CF and ASM carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CF’s 2026 earnings is pegged at $17.16 per share, indicating a rise of 83.14% year over year. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 11.42%. CF’s shares have soared 14% over the past year.

The Zacks Consensus Estimate for ALB’s 2026 earnings is pinned at $12.39 per share, indicating a 1,668.35% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average surprise of 74.5%. ALB’s shares have jumped 134.0038% over the past year.

The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 39 cents per share, indicating a 34.48% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 125%.

US stocks opened higher on Thursday as investors returned to beaten-down technology shares following a sharp selloff, though gains were tempered by rising geopolitical tensions in the Middle East and higher oil prices.

The Dow Jones Industrial Average added 246 points. The S&P 500 rose 0.29%, while the Nasdaq Composite gained 0.28%.

The rebound came after Wednesday’s steep decline, when major Wall Street indexes fell more than 1% amid another selloff in semiconductor stocks.

The S&P 500 has now fallen about 4% since reaching a record closing high in early June, while technology stocks have entered correction territory after declining 10% from their recent peak.

Semiconductor shares led Thursday’s gains. Nvidia, Intel and Micron Technology advanced between 0.62% and 8%, while the iShares Semiconductor ETF climbed about 3%.

Intel received an additional boost after Bank of America upgraded the company to Buy from Underperform.

The brokerage cited growing demand for central processing units and opportunities tied to the rise of agentic artificial intelligence.

The sector's recovery follows a difficult week for chip stocks.

The semiconductor ETF had already suffered a 10% decline on Friday, prompting some investors to question whether the powerful rally fueled by artificial intelligence demand had run its course.

Market participants are also looking ahead to the highly anticipated market debut of SpaceX on Friday.

The company is expected to be valued at roughly $1.75 trillion to $1.8 trillion, making it the largest public debut on record.

Some traders believe recent weakness in semiconductor shares may partly reflect investors raising cash to participate in the offering.

Despite the rebound in equities, geopolitical concerns continued to weigh on sentiment.

West Texas Intermediate crude futures rose nearly 1% to around $90 per barrel after President Donald Trump signaled potential military action against Iran.

Trump said the United States will hit Iran "very hard tonight" and later stated on Truth Social: “At some point in the not too distant future, we will be taking Kharg Island, and other oil infrastructure points, and assume total control of their Oil and Gas Markets.”

The comments followed additional US military action in the region. US Central Command said it launched more "self-defense strikes" against Iran late Wednesday at Trump's direction.

The escalation caused stock futures to trim some of their earlier gains as investors assessed the potential economic consequences of higher energy prices.

Economic data and sector rotation remain in focusInvestors also digested fresh economic data showing producer prices increased more than expected in May.

The producer price index rose 1.1%, above economists' expectations of 0.7%, while core inflation, excluding food and energy, came in at 0.4%.

Separately, new claims for unemployment benefits increased modestly last week.

The Federal Reserve is widely expected to leave interest rates unchanged at its June 17 policy meeting, although markets continue to price in at least one quarter-point rate increase before year-end.

Outside the semiconductor sector, Oracle shares fell 12% after the company unveiled plans to raise an additional $20 billion in equity and debt financing to support artificial intelligence infrastructure investments.

Meanwhile, corporate travel platform Navan surged 11% after raising its full-year revenue and operating income forecasts, citing strong business travel demand and continued growth among enterprise customers.

4:15pm: SpaceX launches into public markets Wall Street wrapped up the week on a positive note Friday, with investors cheering the blockbuster stock market debut of SpaceX.

The Dow Jones Industrial Average climbed 354 points, or 0.7%, to close at 51,202, while the S&P 500 gained 37 points, or 0.5%, to finish at 7,431. The Nasdaq Composite added 79 points, or 0.3%, ending the session at 25,889.

The day's biggest story was SpaceX, which surged 19% in its first day of trading after one of the most anticipated IPOs in market history. The stock closed near $161, well above its offering price, giving the company a market valuation of roughly $2.1 trillion and underscoring strong investor appetite for high-growth technology and space-related businesses.

The strong debut helped lift broader market sentiment and offset lingering concerns about volatility in the technology sector. By the closing bell, all three major indexes had posted gains, capping off a solid week for equities as investors embraced risk and welcomed a landmark addition to the public markets.

2:15pm: SpaceX keeps gaining SpaceX stock peaked around $175 a share just hours into trading but lost a little bit of ground during the afternoon, now sitting just below $170.

It still is the largest IPO ever, though.

1:05pm: Adobe beat overshadowed by CFO departure Adobe Inc (NASDAQ:ADBE) shares fell 6.7% on Friday after the software company cut its organic annual recurring revenue growth guidance, announced a surprise CFO departure, and signaled a shift toward freemium AI products that analysts say leaves key monetization questions unanswered.

The company reported fiscal second-quarter revenue of $6.62 billion, up 12.7% year-over-year and ahead of its guidance range, with non-GAAP earnings per share of $5.96 also beating forecasts.

But the results were overshadowed by a reduction in organic ARR growth guidance and the abrupt departure of CFO Dan Durn, who is leaving to become CFO of Marvell Technology.

"While the push for customer acquisition is likely the right strategy, it adds to the list of transition items and leaves AI monetization unanswered," Jefferies wrote, noting valuation is depressed but that it sees no near-term catalyst.

12:10pm: SpaceX opens at $150 SpaceX’s closely watched public debut is off to a flying start.

The stock, trading under $SPCX, opened at $150 after pricing its IPO at $135 — already signaling strong demand right out of the gate. Before the open, CNBC reported indications of a $175 launch price, underscoring just how heated expectations had become heading into the listing.

Since trading began, momentum has stayed firm. The shares have climbed to about $159.18, up roughly 18% in the first stretch of trading as investors pile into what is shaping up to be one of the most closely followed IPOs in years.

It’s a volatile but upbeat start, with early price action suggesting the market is still trying to find equilibrium after a heavily anticipated debut.

12:00pm: Risks to mega-IPOs: Holmes Three of the world’s most valuable private companies—SpaceX, Anthropic and OpenAI—are preparing to enter public markets in what could become one of the largest IPO waves in history.

“I’ve witnessed a lot of IPO cycles over my decadeslong career, and there are some risks,” U.S. Global Investors CEO Frank Holmes wrote earlier this week.

“(C)onsider that the companies bringing these IPOs to market, and the investment banks underwriting them, have every incentive to price them at the upper bound of what investors will pay. The runway for publicly-funded growth has to justify the valuation already baked in the price.

“For SpaceX specifically, that means believing not just in Starlink’s subscriber trajectory—which is genuinely impressive—but also in technologies that don’t exist yet, such as orbital data centers and Mars colonization. I look forward to seeing Elon Musk execute on two these fronts, but for now, the timeline is up in the air.”

Read more of what Holmes has to say about these trillion-dollar IPOs here.

11:00am: SpaceX indicative price auction  The indicative opening price of SpaceX is falling, but still well above the $135 issue price.

Trading may begin around 12:30pm ET, some are saying, or maybe earlier, as the auction to decide the opening price continues. 

Shares were recently indicated to open at around $162.5 each.

First indications were for a price of $174, then $171, then $170, then $168.75 before a bigger drop.

Don't forget, index and tracker funds for Nasdaq, Russell and FTSE indices have a 15-day deadline to buy shares.   

An extra nugget within the SpaceX story is that Elon Musk, who owns about 42% of SpaceX, now looks like he is going to become the first dollar trillionaire.

10am: Whipsaw open after new Trump post on 'dishonest' Iran US stocks opened higher but solid gains were immediately wiped out after confusion emerged about the purported Iran peace deal. 

The Nasdaq has whipsawed down 0.5%, the S&P is down 0.2% and the Dow Jones is up 0.1%, having opened up around 0.6% higher in initial trades.

President Donald Trump posted on social media just minutes after the opening bell: "The terms that Iran leaked out to the Fake News have NOTHING to do with the terms that were agreed to, in writing."

He says Tehran's statement is "dishonourable" and "bears no relation to the truth" and that "they better get their act together, and FAST".

Oil prices have also spiked back to where they were at midnight, with Brent back up to $89 a barrel.

In other news, SpaceX shares have been indicated to open at $171 in their Nasdaq debut, up from the $135 IPO price. An auction will take place before investors can trade the shares on the open market.  

8am: US stock futures rise  Wall Street is heading for a firmer open on Friday, with futures ticking higher as investors weigh President Donald Trump’s sudden shift on Iran and turn attention to a blockbuster market debut.

Dow futures are up 0.6%, while those for the S&P 500 and the Nasdaq futures are up 0.5%, extending Thursday’s strong gains. That rally came after Trump said planned US military strikes on Iran were cancelled and suggested a peace deal could be close, with the Nasdaq jumping 2.5%, the Dow up 1.9% and the S&P 500 gaining 1.8% as risk appetite returned.

Today, though, geopolitics looks set to fade into the background. All eyes are on the long-awaited IPO of SpaceX (NASDAQ:SPCX), which is expected to dominate trading.

Interactive Investor’s Richard Hunter said markets had already been buoyed by easing Middle East tensions, but added: “For the US there is only one show in town today.”

He pointed to an unusual listing process, including a fixed $135 share price, unusually broad retail access and a heavily marketed offering. The IPO is set to raise around $75 billion, valuing the company at roughly $1.75 trillion.

There is also likely to be structural demand from index funds. The Nasdaq has adjusted its rules to allow fast-track inclusion, meaning tracker funds will be forced buyers once the stock enters the benchmark. Hunter said that will create “significant additional buying pressure” as investors assess how large a weighting SpaceX will carry from day one.

Meanwhile, other global markets have joined in on the rally on hopes that a peace deal between the US and Iran could be sealed this weekend. 

In London, the FTSE 100 is off its early highs but is still 1.2% firmer. In Frankfurt, the DAX has gained 1.7%, while the Paris CAC 40 is up 1.9%.  

In Asia, Tokyo's Nikkei 225 rose 2.8%, Hong Kong's gained 1.9%, and Shanghai's SSE Composite added 1.1%. Seoul's Kospi jumped 4.6% as foreign investors tucked into South Korean shares, including  Samsung Electronics (KRX:005930) and SK Hynix, after a 35-day absence. Sydney's ASX 200 closed 2% higher. 

US stocks opened higher on Friday as investors welcomed signs of a potential peace agreement between the United States and Iran.

Meanwhile, attention turned to the highly anticipated market debut of Elon Musk’s SpaceX, which is expected to become the largest public listing in Wall Street history.

The Dow Jones Industrial Average gained 257 points, or 0.51%, while the S&P 500 rose 0.12%.

The Nasdaq Composite on the other hand fell by 0.11%.

The gains followed reports that a draft memorandum of understanding between the US and Iran could pave the way for the reopening of the Strait of Hormuz and the lifting of US oil sanctions on Iran.

According to Iranian state media, the proposed agreement includes commitments from both sides, although Tehran indicated that a final decision has yet to be made.

A separate report from Bloomberg said a peace deal could be signed in Switzerland as early as Sunday.

The prospect of easing tensions in the Middle East helped boost investor confidence after weeks of market volatility driven by concerns over energy supplies and geopolitical risks.

The improving outlook for the Middle East lifted equity markets around the world.

Japan’s Nikkei 225 surged 2.8%, South Korea’s Kospi jumped 4.6%, and India’s Nifty 50 gained 1.3%. China’s Shanghai Composite advanced more than 1%, while Europe’s Stoxx 600 climbed 1.7%.

The positive mood followed Thursday’s strong rally on Wall Street, when major indexes gained after President Donald Trump said planned military strikes against Iran had been canceled and suggested a diplomatic agreement was nearing completion.

Oil prices also retreated after Trump's remarks.

Earlier concerns about a disruption to energy supplies had pushed crude prices sharply higher, contributing to inflation concerns and uncertainty about the Federal Reserve’s interest-rate outlook.

Following the decline in oil prices, traders pushed back expectations for the next Federal Reserve rate hike to December from October, according to CME Group's FedWatch tool.

Investor attention is also firmly focused on SpaceX, which is expected to begin trading on the Nasdaq under the ticker symbol SPCX.

The company has priced its shares at $135 each, implying a valuation of approximately $1.77 trillion.

SpaceX plans to sell 555.6 million shares, raising a record $75 billion in what would be the largest initial public offering ever completed in the United States.

Reuters reported that the offering was nearly four times oversubscribed despite only about 3% to 4% of the company’s shares being available for public trading.

Despite enthusiasm surrounding the IPO, some market participants have expressed concerns about the impact such a large offering could have on broader markets.

Some analysts believe recent weakness in technology stocks and last week's sharp decline in bitcoin may partly reflect investors raising cash ahead of the SpaceX debut.

Wells Fargo Investment Institute cautioned that large IPOs can create temporary market disruptions.

“History indicates that large IPO issuance occurs during periods of strong equity market sentiment, but the added equity supply can cause some indigestion. Household equity exposure already sits close to an all-time high, which suggests they may sell existing holdings to fund these new positions,” wrote global equity strategist Douglas Beath.

He added: “We remain favorable on the AI theme and the Information Technology sector but would not chase this run up.”

While investors assess the implications of the record-breaking IPO, markets appear to be ending the week on a stronger footing as hopes for a diplomatic breakthrough in the Middle East offset concerns about inflation, energy prices, and equity valuations.

Wall Street had one job Friday: watch Space Exploration Technologies (NASDAQ: SPCX) take off.

The Dow Jones Industrial Average (^DJI +0.70%) rose 0.4% by noon ET, while the S&P 500 (^GSPC +0.50%) added 0.1%. The Nasdaq Composite (^IXIC +0.31%) index dipped 0.1%, weighed down by some familiar names making room for the new kid on the block.

The indexes bounced around in the morning but never strayed far from flat. The real action was elsewhere. And even a new $2 trillion player rising 23% (as of this writing at 12:19 p.m. ET -- probably some other figure by the time you read this) wasn't able to lift a Nasdaq index dominated by titans in the $4 trillion club.

^IXIC data by YCharts

All eyes on SpaceX Friday's Wall Street feels a lot like rocket-launch days at Cape Canaveral. Everything stood still, awaiting the majestic launch of a massive spaceship. None of the top indexes moved more than 1.2% in the morning, and they all trended back toward breakeven around noon.

SpaceX, for its part, delivered the drama. The official launch price was $135 per share, but trading opened at $168. That's a 22% jump, maxing out at a $2.2 trillion market cap. Elon Musk's combined space exploration and AI business is worth more than Walmart (WMT +0.44%) and Berkshire Hathaway (BRKA +0.76%) (BRKB +0.71%) combined, roughly matching the gross domestic products of Canada or Brazil.

It's the largest public offering ever, and Friday's pop suggests investors wanted in even at that lofty price. And the SpaceX IPO shuffled how deep-pocketed investors allocate their funds today. Mega-caps Amazon (AMZN 1.24%) and Microsoft (MSFT +0.11%) are down modestly on above-average trading volume, slicing $55 billion and $21 billion off their market caps, respectively. I can't prove this thesis, but I expect a significant portion of these tech titan investments simply moved over to SpaceX.

SpaceX's successful debut bodes well for OpenAI and Anthropic, both of which are expected to go public later this year. If investors will pay $2 trillion for rockets and Starlink, they'll probably show up for chatbots and AI security systems, too.

Today's Change

(

19.17

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Current Price

$

160.88

Iran deal: maybe, maybe not It took me this long to get into today's geopolitics, because the SpaceX launch seems to have dampened everything else. Again, none of the major indexes is making a big move, and their top components neither soared nor crashed, either.

But there's still plenty of news to share from the Persian Gulf. Oil prices have bounced around today, with the United States Oil Fund (USO 2.64%) currently down 2.1%. Some sources say that the Iranian conflict should end soon, though the Trump administration condemns Iran's recent drone strikes. Conflicting media reports make it difficult to guess what the final peace agreement will look like, or when it will be signed. But investors see hope in the ongoing talks, so oil prices are trending down.

Image source: Getty Images.

Friday was SpaceX day and the normally headline-minting market indexes were more of an afterthought. The rotation out of Microsoft and Amazon is worth watching. If SpaceX's gain is just recycled Magnificent Seven money, the net effect on portfolios is a wash. If it's fresh capital entering the market, that's a different story.

SpaceX just proved that investors will show up for a $1.77 trillion debut and bid it even higher. OpenAI and Anthropic are taking notes.

Anders Bylund has positions in Amazon and Walmart. The Motley Fool has positions in and recommends Amazon, Berkshire Hathaway, Microsoft, and Walmart. The Motley Fool has a disclosure policy.

, /PRNewswire/ -- Monday, June 1, is the official start of the six-month Atlantic hurricane season. Florida Power & Light Company (FPL) prepares year-round by building a stronger, more storm-resilient electric grid to serve customers. And our crews are ready to respond if a storm should hit. We plan for this and urge our customers to make their emergency plans for the season as well.

What can you do to prepare for hurricane season? Here are some tips to consider, whether you are a longtime Floridian or new to the state:

Make an emergency plan and share it with your family. If you have a generator, read the instruction manual to get a complete understanding of how to operate it safely during a potential outage. Be sure to keep yourself and your tools at least 10 feet away from power lines and never trim vegetation near power lines yourself. Have a qualified line-clearing professional trim trees near your home. Check radios, flashlights and stock up on batteries to be prepared for potential power outages. Consider whether you will shelter in place at your home or evacuate, as well as where you would go and whether you need a separate plan for pets. Have a plan ready – including evacuation or backup generation – for any family members who rely on medically necessary devices that require electricity. Make safety a part of your plan: Stay far away from and do not touch any downed power lines or flooded and debris-laden areas that may be hiding downed power lines. Call 911 and 1-800-4-OUTAGE (1-800-468-8243) if you see downed power lines or damaged electrical equipment. Bookmark FPL.com, download the FPL Mobile App and save 1-800-4-OUTAGE (1-800-468-8243) to your cell phone to report and check the status of your restoration. How does FPL prepare for hurricane season? FPL strengthens the electric grid with undergrounding and hardening and enhances it with innovative designs and technologies. And our entire company participates in a week-long annual storm drill. Preparing the electric grid to be more storm-resilient includes:

Hardening the electric system with resilient designs – such as steel, concrete and reinforced wooden power poles. Approximately 97% of all transmission structures serving FPL customers throughout Florida are either steel or concrete. The transmission system is critical to delivering reliable electricity from FPL's power plants to communities throughout the state. Undergrounding power lines in neighborhoods strategically with the Storm Secure Underground Program, which targets areas based on reliability and power outage data to improve resiliency systemwide, while also improving efficiency during storm restoration. To date, about 2,000 miles of neighborhood power lines have been converted underground through FPL's Storm Secure Underground Program. Installing smart grid technology that helps customers avoid some outages altogether and enables FPL to restore power faster following hurricanes and severe weather. During the three landfalling hurricanes in 2024 – Debby, Helene and Milton – smart grid devices helped avoid approximately 824,000 customer outages. Maintaining trees and other vegetation around thousands of miles of FPL's power lines. FPL leverages "smart trimming technology," including Light Detection and Ranging (LiDAR) imagery, to help company arborists efficiently manage vegetation around electrical equipment, reducing a leading cause of outages during hurricanes and severe weather. FPL's storm-hardening investments help customers get their power back faster following hurricanes and severe weather, but no electric grid is 100% stormproof. That's why it's important to have your emergency plan in place before a storm, including how you will respond to potential power outages. A word from Scott Bores, FPL president and CEO: "Despite forecasts predicting a below-average hurricane season this year, we know all it takes is one landfalling hurricane to severely impact the lives of our customers — and we cannot afford to be complacent. At FPL, we stand ready to weather these storms and serve our customers, and we urge all Floridians to share this commitment by taking the time now to make their emergency plans."

Where can customers go for more hurricane preparedness information? For tips and advice on developing emergency plans, visit FPL.com/Storm. This site includes checklists, suggestions and resources for Floridians preparing their homes and/or businesses for hurricane season.

Please visit FPL Newsroom's Digital Library for video and images of FPL storm response, technology and more.

About Florida Power & Light Company
Florida Power & Light Company is America's largest electric utility, delivering reliable power to more than 6 million customer accounts — serving approximately 12 million people across Florida. By leveraging a diverse energy mix, including nuclear, natural gas, solar and battery storage, FPL operates one of the most fuel- and cost-efficient power generation fleets in the U.S. and has earned the ReliabilityOne® National Reliability Award for eight of the last 11 years. FPL is a subsidiary of Juno Beach, Florida-based NextEra Energy, Inc. (NYSE: NEE), which is one of the largest electric power and energy infrastructure companies in North America and is a leading provider of electricity to American homes and businesses. NextEra Energy is also the parent company of NextEra Energy Resources, LLC, which, together with its affiliated entities, is advancing America's energy future with one of the largest and most diverse portfolios of power generation and infrastructure solutions. For more information about NextEra Energy companies, visit these websites:

www.NextEraEnergy.com www.FPL.com www.NextEraEnergyResources.com  SOURCE Florida Power & Light Company

Key Takeaways NEE has gained 5.3% YTD, beating the electric power utility industry's 4% rise.NEE plans nearly $94.2B of 2025-2030 investment, including $57.38B for FPL upgrades.NEE targets 76.6-107.6 GW of new renewables in 2026-2032 and has a backlog above 33 GW. Shares of NextEra Energy (NEE - Free Report) have gained 5.3% in the year to date period compared with the Zacks Utility - Electric Power industry’s rally of 3.9%. The company has also outperformed the Zacks Utilities sector’s return of 3.9%.

NextEra Energy’s share price has advanced on the strength of solid operational execution and a consistently growing customer base, which continues to support rising demand for its services. Additionally, easing interest rates are expected to lower financing costs, enhancing the outlook for this capital-intensive utility.

Price Performance (YTD Period)
Image Source: Zacks Investment Research

Another utility, The Southern Company (SO - Free Report) , has a well-chalked-out capital investment plan to support clean power generation and grid modernization to support load growth. In the year-to-date period, Southern Company gained 3.8%, underperforming its industry.

Should NextEra Energy be added to your portfolio purely on the back of price strength? Let’s delve deeper and find out the factors that can help investors decide whether it is a good entry point to add NEE stock to their portfolio.

What’s Driving NextEra Energy’s Consistent Stock Performance?NextEra Energy continues to invest aggressively to strengthen and expand its operations. The company expects to deploy nearly $94.2 billion between 2025 and 2030 to support infrastructure growth and enhance long-term value creation. Of this amount, approximately $57.38 billion is earmarked for Florida Power & Light (“FPL”) to fund new generation resources, transmission and distribution enhancements, and grid modernization initiatives, while about $36 billion will be invested in NextEra Energy Resources to further expand its clean-energy portfolio.

NextEra Energy Resources remains focused on building its renewable energy platform through sustained investments in clean-energy assets. The company projects the addition of approximately 76.6-107.6 GW of renewable generation capacity between 2026 and 2032 and currently has a renewable development backlog exceeding 33 GW. Leveraging operational excellence, economies of scale and strategically positioned projects, NextEra Energy continues to benefit from one of the lowest cost structures in the utility sector, supporting strong profitability and competitive positioning.

A robust Florida economy is creating favorable growth opportunities for NextEra Energy by driving rising electricity demand. The company is well-equipped to capitalize on this trend through ongoing investments in infrastructure expansion and grid modernization. Additionally, FPL maintains residential electricity rates that remain well below the national average, strengthening its ability to attract new customers and retain existing ones while supporting sustained growth.

NextEra Energy benefits from one of the lowest-cost operating models in the utility sector, backed by strong operational performance, renewable energy scale advantages and strategically located assets. These factors support healthy profit margins and strengthen the company's competitive standing.

Nearly 89% of NextEra Energy’s customers are residential, while commercial and industrial users account for the balance. The company’s scale, technological expertise and operational efficiency enable it to generate consistently strong returns. Additionally, NextEra Energy’s broad service territory and expanding renewable energy portfolio enhance its market position and provide a durable competitive advantage.

NextEra Energy’s Earnings Estimates Moving UpThe Zacks Consensus Estimate for NEE’s 2026 and 2027 earnings per share indicates an increase of 0.25% and 0.23%, respectively, in the past 60 days.

Image Source: Zacks Investment Research

Another utility, Duke Energy Corporation (DUK - Free Report) , is also making smart capital investments to expand its clean energy generation assets. DUK’s 2026 and 2027 earnings per share remained unchanged in the past 60 days.

NEE Stock Returns Better Than Its IndustryReturn on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.

NextEra Energy’s trailing 12-month ROE is 12.25%, ahead of the industry average of 11.09%.

Image Source: Zacks Investment Research

Duke Energy’s ROE is currently pegged at 9.73%, which is lower than its industry returns.

NextEra Energy’s Shares Trading at a PremiumThe company is currently valued at a premium compared with its industry on a forward 12-month P/E basis. NextEra Energy is currently trading at 20.34X compared with the industry average of 15.29X.

Image Source: Zacks Investment Research

The Southern Company is currently trading at 16.16X, also a premium to its industry.

NextEra Energy Increases Shareholders ValueNextEra Energy has authorization in place to repurchase as many as 180 million shares over an unspecified duration. The company also aims to increase its dividend by nearly 10% annually through at least 2026, followed by approximately 6% yearly growth from the end of 2026 through 2028, pending board approval.

NEE’s current quarterly dividend is 62.32 cents per share, while the dividend yield of 2.95% remains higher than 1.43% of the S&P 500 composite.

Wrapping UpNextEra Energy continues to deliver stable performance, supported by increasing demand for clean energy across its service areas. To meet this growing demand, the company is consistently expanding its renewable energy portfolio. Additionally, Florida’s strong economic growth is creating favorable conditions for further customer and load expansion.

Given the positive trend in earnings estimate revisions and solid return on equity, investors may consider maintaining their positions in this Zacks Rank #3 (Hold) utility stock. However, with NEE currently trading at a premium valuation, prospective investors may be better served waiting for a more attractive entry point before initiating or adding to positions.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

NextEra Energy (NEE - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this parent company of Florida Power & Light Co. have returned -10.3%, compared to the Zacks S&P 500 composite's no change. During this period, the Zacks Utility - Electric Power industry, which NextEra falls in, has lost 1.6%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

NextEra is expected to post earnings of $1.13 per share for the current quarter, representing a year-over-year change of +7.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.1%.

The consensus earnings estimate of $4.01 for the current fiscal year indicates a year-over-year change of +8.1%. This estimate has changed +0.1% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $4.37 indicates a change of +8.9% from what NextEra is expected to report a year ago. Over the past month, the estimate has changed +0.1%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, NextEra is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of NextEra, the consensus sales estimate of $7.97 billion for the current quarter points to a year-over-year change of +19%. The $31.87 billion and $34.71 billion estimates for the current and next fiscal years indicate changes of +16.3% and +8.9%, respectively.

Last Reported Results and Surprise HistoryNextEra reported revenues of $6.7 billion in the last reported quarter, representing a year-over-year change of +7.3%. EPS of $1.09 for the same period compares with $0.99 a year ago.

Compared to the Zacks Consensus Estimate of $7.21 billion, the reported revenues represent a surprise of -7.01%. The EPS surprise was +11.22%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

NextEra is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about NextEra. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

NextEra Energy Transmission's newest transmission line in New Mexico is projected to reduce residential electric bills by approximately $13 a month

, /PRNewswire/ -- NextEra Energy Transmission, LLC, a subsidiary of NextEra Energy, Inc. (NYSE: NEE) and New Mexico Renewable Energy Transmission Authority today announced the energization of a 137-mile, 345-kilovolt transmission line in New Mexico that will strengthen grid reliability and help power homes, businesses and industries across the region.

Why it matters: Delivered ahead of schedule, the Crossroads-Hobbs-Roadrunner Transmission Line connects substations across Roosevelt and Lea counties to meet rising electricity demand, increase access to low-cost energy and support local economic growth. The line is projected to reduce the typical residential electric bill in the area by about $13 per month.

Track record of success: It is the third consecutive transmission project NextEra Energy Transmission has completed on time and on budget for the Southwest Power Pool grid. This is the second of three transmission projects the New Mexico Renewable Energy Transmission Authority has facilitated for New Mexico's electric grid since 2021.

A word from Matt Valle, president of NextEra Energy Transmission: "At a time when America needs more electricity, needs it affordably, and needs it now, this project shows what's possible when transmission developers, strong collaboration, community engagement and disciplined execution come together. This is speed-to-power at its finest and the kind of infrastructure that will power communities well into the future."

A word from New Mexico Governor Michelle Lujan Grisham: "The Crossroads project demonstrates New Mexico's leadership in building the infrastructure that drives economic development and affordability for everyday New Mexicans. Together, we are building energy, transmission and jobs that will power our workforce and economy, reliably and affordably, for generations to come."

A word from New Mexico State Land Commissioner Stephanie Garcia Richard: "The Crossroads project is a great example of the power of collaboration. Working with NextEra and nonprofit partners, we are conserving a 40 square-mile habitat for the lesser prairie chicken while delivering much-needed electricity to keep the lights on in southern New Mexico. These efforts will ensure we are meeting the dual mandate of the land office pairing protections for the species with historic renewable revenue for New Mexico's school kids. This is a win-win for everybody and will only add to the unprecedented $15 billion the State Land Office has earned for public education during my time in office."

A word from Lynn Mostoller, Executive Director of the New Mexico Renewable Energy Transmission Authority: "RETA was founded to spur economic development in New Mexico by unlocking the renewable energy potential of New Mexico through transmission. There is no better example than the Crossroads project. We are proud to have co-developed this project and commend NextEra Energy Transmission Southwest for the remarkable accomplishment of building Crossroads from concept to completion in five years."

Collaboration delivers conservation results: The collaborative work of this project also resulted in approximately 40 square miles set aside for lesser prairie chicken habitat preservation in New Mexico.

About NextEra Energy Transmission
NextEra Energy Transmission, LLC, one of North America's leading competitive transmission companies. NextEra Energy Transmission has more than 3,200 miles of transmission lines in development and operation in 19 states and Canada and a strong track record of delivering complex projects that benefit communities, NextEra Energy Transmission is a subsidiary of NextEra Energy, Inc. (NYSE: NEE), the largest electric power and energy infrastructure company in North America and a leading provider of electricity to American homes and businesses. For more information about NextEra Energy Transmission, please visit https://www.nexteraenergytransmission.com/.

About RETA
RETA's role is to encourage and facilitate the development of new transmission and storage infrastructure needed to enable critical development of New Mexico's extensive renewable energy resources. RETA is committed to working with developers, utilities, state/local officials, tribes, military installations and the public to achieve a brighter future with renewable energy. For more information, visit https://nmreta.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/critical-new-power-line-boosts-new-mexicos-grid-reliability-economic-growth-and-access-to-affordable-energy-302797140.html

SOURCE NextEra Energy Transmission; New Mexico Renewable Energy Transmission Authority

As the market indexes hover near all-time highs, investors appear optimistic, as stocks tied to areas such as artificial intelligence (AI) continue moving higher.

Nonetheless, such moves may worry long-term investors. The Shiller price-to-earnings (P/E) ratio, which averages earnings over a 10-year period adjusted for inflation, is now at around 42. The only other time it reached that level was during the dot-com boom, and as many long-term investors know, that gave way to a dot-com bust.

That history has me concerned. Although I'm not giving up on the stock market, I'm making three moves that I think will protect me should the worst happen.

Image source: Getty Images.

1. Let winners keep winning Leaving my highfliers alone may seem counterintuitive. I own AMD (AMD +4.91%), whose P/E ratio is over 140 at recent prices, and Shopify (SHOP 1.99%), whose P/E ratio is pushing 100 even amid concerns that AI threatens the business models of many software companies.

However, I still believe in the long-term theses of these underlying businesses. With regard to AMD, the company's growth prospects appear to support investors' enthusiasm, as its revenue growth rate closely approximates the 35% annual target over the next three years. In Shopify's case, it has built a nearly comprehensive e-commerce ecosystem. Thus, it will probably take more than an AI application to disrupt that business.

Moreover, history shows that holding to such beliefs over the long term. Perhaps one of the better examples is Amazon (AMZN 1.24%). Although it's up by almost 279,000% since its 1997 IPO, it lost more than 90% of its value during the dot-com bust before its comeback, bringing massive returns that more than make up for any failed investments.

Although enduring those sell-offs can be difficult emotionally, history shows that it pays to keep the faith in a solid investment thesis.

2. Stay liquid Second, I'm keeping significant liquidity on hand. That includes cash and iShares Gold Trust (IAU +0.08%), a gold-tracking stock that I hold as an inflation hedge and can convert to cash quickly.

Here I'm following the example of Berkshire Hathaway (BRKA +0.76%) (BRKB +0.71%). As Warren Buffett was getting ready to retire as CEO, he built a record liquidity position now topping $397 billion, more than the company's current $329 billion in reported holdings.

Buffett spoke of the virtues of buying in down markets. In such times, holding a massive liquidity position may mean that Berkshire, now run by Greg Abel, is gearing up for such an opportunity.

Assuming a downturn occurs, investors will be able to buy bear market stocks at a significant discount. Ultimately, we have no way of knowing when the next bear market will arrive or how severe it will be. That doesn't mean one will find Amazon selling at a 90% discount again, but a sell-off should make more of the market's top businesses trade at attractive prices.

More importantly, investors should remember that every previous bear market eventually ended. That positions long-term investors to benefit because the bear market occurred, and investors should probably position themselves to reap such rewards.

3. Seek bargains, always Despite the high valuations, investors can find stocks to buy in this market. Many stocks don't move with the economy, so they can make great investments at the height of a bull market and could rise even as the overall market plunges.

For example, there's my contrarian take on Clorox (CLX 1.51%). I see it as a high-yield dividend stock with a cash return of around 5.6%, far above the 1.1% average for the S&P 500. It also has a history of annual payout increases, and its P/E ratio of 14 is less than half of the average 32 P/E ratio.

Today's Change

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96.82

Admittedly, no individual stock is risk-free, and Clorox -- whose revenue has grown at an annualized rate around 2% over the past decade -- is not for everyone. Nonetheless, it serves as a reminder that investors should always be on the lookout for a buying opportunity.

Investing in today's market environment The market is near record levels, and that leaves some investors wondering what to do. While history shows that bear markets happen eventually, we don't know how long the current bull market will continue.

However, an impending bear market is not a reason to give up on the stock market. As long as investors let winners win, hold some available cash, and always looks for opportunities, they can be in a position to win in the long term, no matter what happens next in the market.

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- The Clorox Company (NYSE: CLX) today announced that Chair and Chief Executive Officer Linda Rendle and Chief Financial Officer Luc Bellet will participate in a fireside chat at the dbAccess Global Consumer Conference on Wednesday, June 3, in Paris.

A live webcast of the presentation will begin at 12:00 p.m. CEST (6:00 a.m. ET and 3:00 a.m. PT) and can be accessed on the company's website. A replay of the webcast will be available following the event.

About The Clorox Company
The Clorox Company (NYSE: CLX) champions people to be well and thrive every single day. Headquartered in Oakland, California since 1913, Clorox integrates sustainability into how it does business. Driven by consumer-centric innovation, the company is committed to delivering clearly superior experiences through its trusted brands including Brita®, Burt's Bees®, Clorox®, Fresh Step®, Glad®, Hidden Valley®, Kingsford®, Liquid-Plumr®, Pine-Sol® and Purell® as well as international brands such as Chux®, Clorinda® and Poett®. Visit thecloroxcompany.com to learn more.   

CLX-F

SOURCE The Clorox Company

Also from this source

NEW YORK, May 19, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of The Clorox Company (“Clorox” or the “Company”) (NYSE: CLX).  Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Clorox and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On April 30, 2026, Clorox reported its third quarter fiscal 2026 financial results and updated its full-year outlook.  Among other things, the Company disclosed that gross margin decreased 140 basis points to 43.2%, compared to 44.6% in the prior-year period.  In addition, Clorox lowered its full-year fiscal 2026 gross margin outlook, stating that gross margin was now expected to decline 250 to 300 basis points, compared to the Company’s prior expectation at the low end of a 50 to 100 basis point decline range.  During the Company’s earnings call, Clorox further disclosed that gross margin came in below expectations due to higher-than-expected supply chain costs and delayed cost savings as the Company prioritized ERP stabilization. 

On this news, Clorox’s stock price fell $9.33 per share, or 9.67%, to close at $87.11 per share on May 1, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of The Clorox Company ("Clorox" or the "Company") (NYSE: CLX). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Clorox and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On April 30, 2026, Clorox reported its third quarter fiscal 2026 financial results and updated its full-year outlook. Among other things, the Company disclosed that gross margin decreased 140 basis points to 43.2%, compared to 44.6% in the prior-year period. In addition, Clorox lowered its full-year fiscal 2026 gross margin outlook, stating that gross margin was now expected to decline 250 to 300 basis points, compared to the Company's prior expectation at the low end of a 50 to 100 basis point decline range. During the Company's earnings call, Clorox further disclosed that gross margin came in below expectations due to higher-than-expected supply chain costs and delayed cost savings as the Company prioritized ERP stabilization. 

On this news, Clorox's stock price fell $9.33 per share, or 9.67%, to close at $87.11 per share on May 1, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP