Federal Signal (NYSE:FSS) Releases FY 2026 Earnings Guidance

Federal Signal (NYSE:FSS) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 4.500-4.800 for the period, compared to the consensus estimate of 4.610. The company issued revenue guidance of $2.6 billion-$2.7 billion, compared to the consensus revenue estimate of $2.5 billion.

Federal Signal Trading Up 2.3%

Shares of NYSE FSS traded up $2.75 during mid-day trading on Wednesday, hitting $119.74. The stock had a trading volume of 229,840 shares, compared to its average volume of 366,748. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.25 and a current ratio of 2.61. Federal Signal has a 1 year low of $66.47 and a 1 year high of $132.89. The business has a 50 day moving average price of $114.19 and a two-hundred day moving average price of $117.33. The firm has a market cap of $7.28 billion, a P/E ratio of 31.26, a price-to-earnings-growth ratio of 1.80 and a beta of 1.35.

Federal Signal (NYSE:FSS) last issued its quarterly earnings data on Wednesday, February 25th. The conglomerate reported $1.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.08 by $0.08. Federal Signal had a net margin of 11.47% and a return on equity of 19.50%. During the same quarter in the prior year, the company posted $0.87 EPS. The company’s revenue was up 26.5% compared to the same quarter last year. Federal Signal has set its FY 2026 guidance at 4.500-4.800 EPS. On average, equities analysts anticipate that Federal Signal will post 3.34 EPS for the current fiscal year.

Analyst Ratings Changes

Separately, Weiss Ratings reissued a “buy (b-)” rating on shares of Federal Signal in a research report on Monday, December 29th. Two investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $123.00.

Key Stories Impacting Federal Signal

Here are the key news stories impacting Federal Signal this week:

• Positive Sentiment: Strong Q4 results — Federal Signal reported $1.16 EPS (vs. $1.08 consensus), +26–27% revenue growth year-over-year, a 19% increase in operating income, record quarterly orders and strong cash generation — the core beat-and-quality print is the main driver for the stock rally. Federal Signal Completes Record Year with Fourth Quarter Results including 27% Net Sales Growth, 19% Operating Income Increase, Record Quarterly Orders, and Strong Cash Generation; Issues 2026 Outlook
• Positive Sentiment: Upgraded revenue outlook — management set FY2026 revenue guidance of $2.6–2.7B, above consensus, and EPS guidance of $4.50–4.80 (overlapping the $4.61 consensus). The stronger top-line outlook helps justify the stock move higher. A Look At Federal Signal (FSS) Valuation After Fresh 2026 Revenue Guidance
• Neutral Sentiment: Analyst/valuation notes — coverage pieces are re-running valuation checks after the guidance; some models are being adjusted but views vary on how much multiple expansion is justified given the stock’s current P/E. A Look At Federal Signal (FSS) Valuation After Fresh 2026 Revenue Guidance
• Neutral Sentiment: Conference materials available — management’s slide deck and call are posted for deeper detail on margins, order backlog and cash flow assumptions; investors will watch quarterly bridge and segment-level guidance for confirmation. Q4 earnings materials
• Negative Sentiment: Acquisition/integration risk — coverage notes flag that future growth may rely partly on acquisitions (discussion in the press); integration or execution missteps could weigh on margins and the multiple if expected synergies don’t materialize. Federal Signal earnings up next: Can acquisition fuel growth?

Institutional Trading of Federal Signal

Several large investors have recently modified their holdings of the company. EverSource Wealth Advisors LLC raised its stake in Federal Signal by 140.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 243 shares of the conglomerate’s stock worth $26,000 after acquiring an additional 142 shares during the period. Caitong International Asset Management Co. Ltd boosted its position in shares of Federal Signal by 3,100.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 256 shares of the conglomerate’s stock worth $30,000 after purchasing an additional 248 shares during the period. UMB Bank n.a. increased its stake in shares of Federal Signal by 50.5% in the fourth quarter. UMB Bank n.a. now owns 331 shares of the conglomerate’s stock worth $36,000 after purchasing an additional 111 shares in the last quarter. Meeder Asset Management Inc. purchased a new stake in shares of Federal Signal in the fourth quarter worth $38,000. Finally, Danske Bank A S bought a new stake in shares of Federal Signal during the 3rd quarter valued at $48,000. Institutional investors own 92.73% of the company’s stock.

Federal Signal Company Profile

Federal Signal Corporation (NYSE: FSS), headquartered in Oak Brook, Illinois, is a diversified industrial company that designs, manufactures and markets a broad range of products and services for municipal, commercial and industrial customers worldwide. Founded in 1901 in Chicago, the company has grown through a combination of organic investment and strategic acquisitions to become a leading provider of environmental management and safety and security solutions.

Federal Signal operates through two primary business segments.