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 4.500-4.800 for the period, compared to the consensus EPS 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.

Analysts Set New Price Targets

Several analysts have commented on the company. Weiss Ratings reiterated a “buy (b-)” rating on shares of Federal Signal in a research note on Monday, December 29th. CJS Securities raised Federal Signal from a “market perform” rating to a “market outperform” rating and set a $140.00 price target on the stock in a report on Thursday. Three equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, Federal Signal presently has a consensus rating of “Moderate Buy” and a consensus target price of $126.75.

Federal Signal Stock Performance

Shares of NYSE FSS traded up $1.95 during midday trading on Thursday, hitting $121.37. 156,327 shares of the company’s stock traded hands, compared to its average volume of 381,910. The firm has a fifty day moving average of $114.40 and a 200 day moving average of $117.35. Federal Signal has a 1 year low of $66.47 and a 1 year high of $132.89. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.25 and a current ratio of 2.61. The stock has a market capitalization of $7.38 billion, a price-to-earnings ratio of 31.77, a price-to-earnings-growth ratio of 1.82 and a beta of 1.35.

Federal Signal (NYSE:FSS) last announced its earnings results on Wednesday, February 25th. The conglomerate reported $1.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.08 by $0.08. Federal Signal had a net margin of 11.47% and a return on equity of 19.50%. The company had revenue of $597.10 million during the quarter, compared to analyst estimates of $551.36 million. During the same period in the previous year, the business posted $0.87 earnings per share. The firm’s quarterly 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, analysts forecast that Federal Signal will post 3.34 earnings per share for the current year.

Trending Headlines about Federal Signal

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

• Positive Sentiment: Q4 beat — Federal Signal reported $1.16 EPS vs. $1.08 expected and revenue of $597.1M, up ~26–27% year‑over‑year, signaling accelerating demand and margin improvement. Federal Signal (FSS) Surpasses Q4 Earnings and Revenue Estimates
• Positive Sentiment: Raised outlook and strong annual results — management issued FY2026 EPS guidance of $4.50–4.80 and revenue guidance of $2.6–2.7B, alongside PR highlighting record orders, cash generation and a 19% operating income increase. That revenue range sits above consensus and supports growth expectations. Federal Signal Completes Record Year (PR Newswire)
• Positive Sentiment: Analyst upgrade — CJS Securities moved FSS from “market perform” to “market outperform” and set a $140 price target (~14% above recent levels), giving the stock additional upward momentum. Benzinga
• Positive Sentiment: Market coverage and reaction — multiple outlets highlight that strong Q4 results and guidance drove the stock move and renewed valuation conversations. Federal Signal Delivers Strong Q4 (Yahoo)
• Neutral Sentiment: Earnings call transcript available for details on segment performance and management commentary (useful for parsing sustainability of margins and orders). Earnings Call Transcript
• Neutral Sentiment: Company slide deck and press release provide supporting detail on results and cash flow; review for guidance assumptions and segment outlook. Press Release / Slide Deck
• Neutral Sentiment: Analysts and commentators are re‑examining valuation after the updated guidance — useful for investors deciding if recent gains are warranted versus current P/E (~32). Valuation Article
• Neutral Sentiment: Acquisition watch — coverage notes potential for recent or future M&A to support growth, but impact depends on execution and integration. Can Acquisition Fuel Growth?

Institutional Trading of Federal Signal

A number of hedge funds and other institutional investors have recently bought and sold shares of FSS. Royal Bank of Canada lifted its position in shares of Federal Signal by 3.5% during the 1st quarter. Royal Bank of Canada now owns 93,618 shares of the conglomerate’s stock valued at $6,886,000 after buying an additional 3,153 shares in the last quarter. AQR Capital Management LLC raised its stake in Federal Signal by 10.9% during the 1st quarter. AQR Capital Management LLC now owns 35,702 shares of the conglomerate’s stock worth $2,626,000 after acquiring an additional 3,520 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Federal Signal by 4.7% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,822 shares of the conglomerate’s stock valued at $2,635,000 after purchasing an additional 1,594 shares in the last quarter. NewEdge Advisors LLC lifted its holdings in Federal Signal by 15.9% during the first quarter. NewEdge Advisors LLC now owns 1,838 shares of the conglomerate’s stock valued at $135,000 after purchasing an additional 252 shares in the last quarter. Finally, Empowered Funds LLC bought a new position in shares of Federal Signal in the first quarter worth approximately $1,119,000. Hedge funds and other 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.