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

Federal Signal (NYSE:FSS) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided EPS guidance of 4.800-5.050 for the period, compared to the consensus EPS estimate of 4.700. The company issued revenue guidance of -, compared to the consensus revenue estimate of $2.6 billion.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on FSS. KeyCorp reaffirmed an “overweight” rating and issued a $140.00 price target on shares of Federal Signal in a report on Thursday. Wall Street Zen lowered shares of Federal Signal from a “buy” rating to a “hold” rating in a report on Saturday, February 28th. Finally, CJS Securities raised shares of Federal Signal from a “market perform” rating to a “market outperform” rating and set a $140.00 target price for the company in a research note on Thursday, February 26th. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $134.25.

Federal Signal Stock Up 1.5%

Shares of NYSE:FSS opened at $123.27 on Friday. The company has a debt-to-equity ratio of 0.38, a current ratio of 2.84 and a quick ratio of 1.35. The stock has a market cap of $7.51 billion, a price-to-earnings ratio of 28.02, a P/E/G ratio of 1.84 and a beta of 1.33. The company has a 50 day moving average of $112.42 and a 200-day moving average of $113.58. Federal Signal has a one year low of $80.79 and a one year high of $132.89.

Federal Signal (NYSE:FSS) last posted its quarterly earnings results on Wednesday, April 29th. The conglomerate reported $1.18 earnings per share for the quarter, beating analysts’ consensus estimates of $0.89 by $0.29. The company had revenue of $625.60 million for the quarter, compared to the consensus estimate of $579.87 million. Federal Signal had a return on equity of 21.18% and a net margin of 11.56%.The firm’s quarterly revenue was up 35.0% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.76 EPS. Federal Signal has set its FY 2026 guidance at 4.800-5.050 EPS. On average, sell-side analysts forecast that Federal Signal will post 4.71 earnings per share for the current year.

Federal Signal Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Friday, May 15th will be given a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Friday, May 15th. Federal Signal’s dividend payout ratio (DPR) is currently 13.64%.

Federal Signal News Roundup

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

• Positive Sentiment: Q1 results materially beat expectations — $1.18 EPS vs. $0.89 consensus and $625.6M revenue vs. ~$579.9M — and management raised FY2026 guidance to $4.80–$5.05 and lifted Safety & Security Group (SSG) EBITDA margin targets, supporting higher earnings visibility. Federal Signal Reports First Quarter Results
• Positive Sentiment: Sidoti updated its model upward across several periods — raising FY2026 to $4.90 (from $4.65) and FY2027 to $5.32 (from $5.24) and nudging multiple quarterly estimates — which signals analysts are baking in stronger organic growth and margin improvement.
• Neutral Sentiment: Earnings call transcript and supporting materials are available for details on backlog, margin drivers and capital allocation (useful for modeling but no new news). FSS Q1 2026 Earnings Call Transcript
• Negative Sentiment: One small downgrade: Sidoti trimmed its Q2 2027 EPS view to $1.39 from $1.42 — a modest pullback that may temper near?term quarter?by?quarter expectations but is minor relative to the broader upgrades.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC increased its holdings in shares of Federal Signal by 140.6% in the second quarter. EverSource Wealth Advisors LLC now owns 243 shares of the conglomerate’s stock worth $26,000 after acquiring an additional 142 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its holdings in shares of Federal Signal by 3,100.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 256 shares of the conglomerate’s stock valued at $30,000 after purchasing an additional 248 shares in the last quarter. UMB Bank n.a. grew its position in shares of Federal Signal by 50.5% in the 4th quarter. UMB Bank n.a. now owns 331 shares of the conglomerate’s stock valued at $36,000 after purchasing an additional 111 shares during the period. Meeder Asset Management Inc. acquired a new position in shares of Federal Signal in the 4th quarter valued at approximately $38,000. Finally, Danske Bank A S bought a new stake in Federal Signal during the 3rd quarter worth approximately $48,000. 92.73% of the stock is currently owned by institutional investors.

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.