National Instruments stock (US63361B1026): test and measurement specialist after acquisition by Emerson

Test and measurement company National Instruments is now part of Emerson, but its products and software remain widely used across industries. What this means for the stock’s structure and the underlying business model.

National Instruments, long known under the ticker NATI on Nasdaq, has been operating as part of Emerson since 2023 after an $8.2 billion acquisition deal closed, according to Emerson press information as of 10/11/2023. While the former standalone stock has been integrated, the National Instruments brand and product portfolio continue to serve customers in test and measurement markets worldwide.

As of: 19.05.2026

By the editorial team – specialized in equity coverage.

At a glance

• Name: National Instruments (now part of Emerson)
• Sector/industry: Test and measurement, industrial technology
• Headquarters/country: Austin, Texas, United States
• Core markets: Electronics, automotive, aerospace, defense, semiconductor test
• Key revenue drivers: Modular test systems, measurement hardware, automation software
• Home exchange/listing venue: Previously Nasdaq (ticker NATI); now integrated into Emerson (NYSE: EMR)
• Trading currency: US dollar

National Instruments: core business model

National Instruments built its business around modular test and measurement systems that allow engineers to create flexible, software-defined test setups. The company’s platform historically combined hardware modules with its LabVIEW development environment so that users could automate measurements, analyze data and control instruments within a unified workflow.

The approach targeted industries where testing is complex and often customized, such as semiconductor validation, automotive electronics and aerospace systems. Instead of relying exclusively on fixed-function instruments, customers could assemble chassis, modules and software components to match their specific test requirements, which in turn created switching costs and long-term customer relationships.

Under Emerson ownership, National Instruments continues to focus on this platform concept. Emerson has emphasized the role of NI’s test and measurement capabilities in expanding its automation portfolio for factory and process industries, according to Emerson press information as of 04/12/2023. For investors following industrial technology companies, NI is therefore now part of a broader automation story that includes process controls, valves and software.

Main revenue and product drivers for National Instruments

National Instruments has historically generated revenue from a mix of hardware, software licenses and related services. On the hardware side, the company offers modular instruments such as PXI-based measurement cards, data acquisition devices and signal generators that slot into chassis and connect to PCs or controllers. This hardware is typically sold into R&D labs and production test environments where performance and configurability are essential.

Software has been the second key driver. Products like LabVIEW and TestStand enable test sequence development, data processing and test management. In recent years, NI placed more emphasis on subscription-style software, system-level solutions and data analytics, aiming to smooth revenue patterns and deepen integration with customer workflows. This software layer is central for recurring revenue potential, especially in highly regulated sectors such as aerospace and defense.

Services and integration projects add another component. Many customers require engineering support for system design, deployment and maintenance, particularly when test systems must comply with strict quality and safety standards. Over time, this service element has helped NI build closer ties with clients and capture follow-on business as testing needs evolve with each new product generation.

Geographically, the business has significant exposure to the US market but also to Europe and Asia, given the global nature of electronics and semiconductor supply chains. Growth areas have included 5G and advanced communications, electric vehicle powertrain testing and increasingly complex semiconductor devices where validation and characterization demand high-channel-count, high-throughput test setups.

Conclusion

National Instruments today operates under the Emerson umbrella, but its test and measurement portfolio still serves electronics, automotive and aerospace customers worldwide. For US-focused investors, the relevant listed exposure is Emerson rather than the former NATI ticker, which means NI’s performance is now embedded into a larger industrial automation group. The integration aims to blend NI’s modular, software-centric test systems with Emerson’s process and factory automation capabilities, potentially broadening end-market reach. As with any acquisition, long-term success will depend on how well product roadmaps, sales channels and customer support are aligned inside the combined organization.

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.