Knowles (NYSE:KN) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Knowles (NYSE:KN) released its quarterly earnings data on Thursday. The communications equipment provider reported $0.33 EPS for the quarter, beating the consensus estimate of $0.31 by $0.02, FiscalAI reports. The business had revenue of $166.80 million for the quarter, compared to the consensus estimate of $156.97 million. Knowles had a net margin of 10.63% and a return on equity of 11.55%. The business’s revenue for the quarter was up 14.3% on a year-over-year basis. During the same period in the prior year, the firm earned $0.24 EPS. Knowles updated its Q3 2026 guidance to 0.340-0.380 EPS.

Here are the key takeaways from Knowles’ conference call:

• Knowles reported a strong Q2 with revenue of $167 million (+14% YoY) and EPS of $0.33 (+38% YoY), both above the high end of guidance.
• Precision Devices was the main growth driver, with revenue up 25% year over year and a 1.4 book-to-bill for the seventh straight quarter above 1.0, signaling continued demand strength.
• Management raised full-year 2026 expectations to 10%–12% revenue growth and 20%–24% adjusted EBITDA growth, well above the targets set at last year’s Investor Day.
• The company highlighted growing momentum in defense, industrial, and MedTech, including a $15 million+ radar order and stronger pricing/capacity requests from customers over the next 24–36 months.
• Knowles expects some near-term moderation in MedTech & Specialty Audio as first-half inventory build runs off, but said the segment remains healthy and could benefit from next-generation design wins over time.

Knowles Stock Down 3.3%

KN opened at $37.52 on Friday. The company has a market cap of $3.21 billion, a PE ratio of 48.72 and a beta of 1.59. Knowles has a twelve month low of $19.28 and a twelve month high of $42.93. The company has a 50-day moving average price of $38.00 and a 200 day moving average price of $30.95. The company has a quick ratio of 1.77, a current ratio of 3.27 and a debt-to-equity ratio of 0.17.

Trending Headlines about Knowles

Here are the key news stories impacting Knowles this week:

• Positive Sentiment: Knowles beat Q2 earnings and revenue estimates, showing stronger-than-expected demand across its specialty electronic components business. Knowles (KN) Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: The company raised the outlook for Q3 2026, with EPS guidance of $0.34-$0.38 and revenue guidance of $167.0 million-$177.0 million, both above consensus estimates. Knowles Reports Q2 2026 Financial Results and Provides Outlook for Q3 2026
• Positive Sentiment: Commentary around a “bullish” Q2 and optimistic near-term revenue guidance reinforced the view that operating momentum is improving. Knowles (NYSE:KN) Reports Bullish Q2 CY2026, Provides Optimistic Revenue Guidance for Next Quarter
• Neutral Sentiment: The earnings call transcript and snapshot articles mainly repeat the same results and guidance, adding little new information beyond the headline beat. Knowles Corporation (KN) Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Several unrelated entertainment articles about Matthew Knowles and Destiny’s Child are not connected to Knowles Corporation’s fundamentals. Mathew Knowles Says Unreleased Destiny’s Child Remixes Are Coming

Insiders Place Their Bets

In other news, COO Daniel J. Giesecke sold 20,201 shares of the stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $37.32, for a total value of $753,901.32. Following the completion of the sale, the chief operating officer directly owned 175,855 shares in the company, valued at $6,562,908.60. This represents a 10.30% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jeffrey Niew sold 142,857 shares of the company’s stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $33.25, for a total transaction of $4,749,995.25. Following the sale, the chief executive officer directly owned 883,719 shares of the company’s stock, valued at approximately $29,383,656.75. This represents a 13.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 173,058 shares of company stock valued at $5,809,156 in the last 90 days. 2.24% of the stock is owned by insiders.

Hedge Funds Weigh In On Knowles

Institutional investors and hedge funds have recently bought and sold shares of the company. Ameriprise Financial Inc. raised its holdings in Knowles by 365.4% in the third quarter. Ameriprise Financial Inc. now owns 1,394,341 shares of the communications equipment provider’s stock valued at $32,502,000 after acquiring an additional 1,094,715 shares in the last quarter. Franklin Resources Inc. lifted its position in shares of Knowles by 10.5% during the 3rd quarter. Franklin Resources Inc. now owns 5,108,184 shares of the communications equipment provider’s stock worth $119,072,000 after purchasing an additional 484,500 shares during the last quarter. Raymond James Financial Inc. raised its stake in Knowles by 52.8% in the third quarter. Raymond James Financial Inc. now owns 1,360,918 shares of the communications equipment provider’s stock valued at $31,723,000 after buying an additional 470,100 shares in the last quarter. Tudor Investment Corp ET AL acquired a new position in shares of Knowles during the 4th quarter worth about $6,555,000. Finally, Jane Street Group LLC increased its holdings in shares of Knowles by 162.6% in the 4th quarter. Jane Street Group LLC now owns 376,590 shares of the communications equipment provider’s stock valued at $8,070,000 after acquiring an additional 233,178 shares during the last quarter. 96.35% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

KN has been the topic of several recent research reports. Craig Hallum reaffirmed a “buy” rating and issued a $38.00 price target on shares of Knowles in a report on Friday, April 24th. Weiss Ratings reiterated a “hold (c)” rating on shares of Knowles in a research report on Friday, May 22nd. Robert W. Baird set a $44.00 price objective on Knowles in a research report on Friday. Susquehanna raised their price target on shares of Knowles from $33.00 to $40.00 and gave the company a “neutral” rating in a research report on Friday. Finally, Zacks Research lowered shares of Knowles from a “strong-buy” rating to a “hold” rating in a research note on Friday, June 26th. Two 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, the stock currently has an average rating of “Hold” and an average price target of $40.67.

About Knowles

Knowles Corporation (NYSE: KN) is a leading developer and manufacturer of advanced micro-acoustic, audio processing and precision device solutions. The company’s product portfolio includes microelectromechanical systems (MEMS) microphones, balanced armature receivers, acoustic filters, and custom audio processing integrated circuits. These solutions are designed to enable clear speech, enhanced voice capture and intelligent audio performance in a variety of end markets.

Founded in 1946, Knowles has evolved from its roots in vacuum tube components to become a pure-play audio technology provider following its spin-off from Dover Corporation in 2014.