National Instruments stock (US63361B1026): what the Emerson takeover means for investors

Emerson has completed its acquisition of National Instruments, taking the Austin-based test-and-measurement specialist off the public markets. What this change of ownership means for the former NASDAQ stock and its business model.

Emerson has closed its acquisition of National Instruments, the Austin-based test and measurement specialist that previously traded on Nasdaq under the ticker NATI, according to a company announcement published on 10/11/2023 on Emerson’s websiteEmerson as of 10/11/2023. With the deal completion, National Instruments has become a wholly owned Emerson business, and the former NATI stock has been delisted from public trading.

As of: 21.05.2026

By the editorial team – specialized in equity coverage.

At a glance

• Name: National Instruments
• Sector/industry: Electronic test and measurement, engineering software
• Headquarters/country: Austin, Texas, United States
• Core markets: Automated test systems for electronics, aerospace, automotive and industrial customers
• Key revenue drivers: Hardware and software platforms for automated testing and data acquisition
• Home exchange/listing venue: Formerly Nasdaq (ticker: NATI)
• Trading currency: Previously USD when listed

National Instruments: core business model

National Instruments develops modular hardware and software platforms that allow engineers and scientists to design, automate and analyze test and measurement systems. The company became well known for its LabVIEW graphical programming environment, which lets users build complex test and control applications via visual block diagrams rather than traditional code. This approach has been popular in laboratories and production environments that require flexible setups.

Alongside LabVIEW, National Instruments offers PXI and CompactDAQ hardware platforms, which serve as modular building blocks for automated test systems. Customers can configure chassis, controllers, and I/O modules to match their needs, from high-speed data acquisition to RF testing. Over time, this platform strategy helped National Instruments move from selling stand-alone instruments toward selling integrated systems that can scale with customer requirements.

The company’s revenue historically came from a mix of hardware, software subscriptions, and related services. While the hardware sale often represents a substantial initial ticket, software licenses and maintenance contracts provide recurring revenue sources that extend the customer relationship. In many industries, National Instruments equipment becomes deeply embedded in validation and production workflows, which can create switching costs once a customer standardizes on its ecosystem.

National Instruments has focused strongly on R&D spending to maintain the capabilities of its tools, especially as electronic systems become more complex and adoption of high-frequency wireless, autonomous driving functions and advanced power electronics grows. Engineering customers typically demand high performance and long product lifecycles, so continuous updates and backward compatibility are important competitive factors for the business.

Main revenue and product drivers for National Instruments

Many of National Instruments’ largest customers come from semiconductor, aerospace and defense, automotive and industrial equipment markets. These sectors require sophisticated test setups to validate chips, radar systems, communications modules, batteries and powertrains. Test complexity has risen as systems integrate more sensors, processing power and connectivity, which can increase demand for flexible, software-centric test solutions.

Semiconductor manufacturing has been a key demand driver, as chipmakers and equipment suppliers need to validate integrated circuits across a wide range of conditions. Automated test systems based on PXI and related platforms can reduce test time and improve throughput, which is crucial when volumes and design complexity are high. This makes National Instruments’ offerings strategically relevant to the broader electronics supply chain, including several companies listed on US exchanges.

In automotive, the shift toward electric vehicles and advanced driver-assistance systems has created new testing challenges. Engineers must validate large battery packs, inverters, charging systems and sensor suites, which often requires high-channel-count data acquisition and real-time simulation. National Instruments hardware and software are used to build test benches for such components, providing another growth avenue linked to long-term electrification trends.

Software remains an important layer on top of the hardware. Subscriptions for LabVIEW and other development tools, as well as test management software such as TestStand, contribute recurring revenue and help customers orchestrate complex test sequences. Integrated software environments can also make it easier to reuse test code across projects, a factor that encourages customers to expand their installed base over time.

Industry trends and competitive position

The global electronic test and measurement market benefits from long-term trends such as 5G, industrial automation and electrification of transport. These developments require ever more precise and flexible validation, placing companies like National Instruments in the middle of critical R&D and production workflows. Industry reports have highlighted sustained demand for modular, software-defined test systems in recent yearsKeysight as of 03/15/2023.

Competition in this space is intense, with large players such as Keysight Technologies and Rohde & Schwarz offering broad portfolios of instruments and integrated solutions. National Instruments historically differentiated itself through its software-centric approach and modular architecture, which can appeal to customers who value flexibility over fixed-function instruments. The ability to integrate third-party hardware and customize systems via software has been another important aspect of its positioning.

The acquisition by Emerson fits into a larger trend of industrial companies seeking to expand their automation and software capabilities. Emerson has stated that it views intelligent devices and control systems as core growth pillars and that National Instruments will enhance its automation portfolio, particularly for test and measurement solutions aimed at high-growth end marketsEmerson as of 04/12/2023. This integration could influence competitive dynamics, as National Instruments now benefits from Emerson’s broader industrial footprint and relationships.

Why National Instruments matters for US investors

Although National Instruments shares are no longer listed after the Emerson takeover, the business remains relevant for US investors who follow the industrial technology and semiconductor ecosystems. Emerson itself trades on the New York Stock Exchange under the ticker EMR and has highlighted National Instruments as a significant addition to its portfolio, linking it to growth themes such as electrification, grid modernization and advanced manufacturing.

For investors in US-listed semiconductor, aerospace, automotive and industrial companies, National Instruments’ product roadmap and integration into Emerson can indirectly shape capital spending patterns. When chipmakers or car manufacturers ramp up investment in test infrastructure, suppliers like National Instruments can experience increased order flow, which in turn may influence Emerson’s results and sector sentiment. This connection is particularly relevant for investors who analyze supply-chain exposure.

In addition, the acquisition illustrates how larger industrial firms continue to consolidate specialized technology providers rather than build all capabilities in-house. Observing how Emerson manages the integration, preserves National Instruments’ engineering culture and leverages cross-selling opportunities can offer insights into broader M&A strategies within the US industrial and automation space.

Risks and open questions

For the National Instruments business inside Emerson, one key question is how the integration will balance cost synergies with the need to keep R&D resources focused on innovation. Test and measurement customers often value continuity in product roadmaps and long-term support, so changes in priorities could affect customer perceptions. Also, the pace at which Emerson can align sales channels and product portfolios may influence near-term performance.

From a market perspective, demand for test equipment is linked to capital expenditure cycles in semiconductor, telecom and automotive industries, which can be volatile. Periods of reduced chip investment or delayed 5G deployments can soften demand for high-end test solutions. In addition, increased competition and pricing pressure from established rivals or new entrants, especially in Asia, could challenge margins over time.

Another open topic is how quickly new high-growth applications such as advanced driver-assistance systems, power electronics for renewable energy and next-generation wireless standards will translate into sustained order growth. These markets often require long qualification periods, meaning revenue can lag behind initial hype. Monitoring Emerson’s segment reporting and commentary around the acquired test and measurement activities may help investors gauge momentum.

Conclusion

National Instruments has transitioned from a stand-alone Nasdaq-listed company into a key building block of Emerson’s automation and test portfolio. Its software-defined, modular approach to test and measurement remains strategically positioned in markets such as semiconductors, aerospace, automotive and industrial equipment, where complexity and quality requirements are rising. For US investors, the story now continues primarily through Emerson’s shares and reporting, which will reflect how successfully the acquired business is integrated and leveraged. While the delisting of NATI ends direct equity access to National Instruments, its technologies and customer relationships continue to influence broader industrial and electronics value chains.

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