KNOWLES (KN) Earnings Date & Reports
Knowles Corp is engaged in the manufacturing of micro-acoustic microphones and balanced armature speakers, audio solutions, high-performance capacitors, and radio frequency filtering products... Show more
KN is expected to report earnings to rise 9.26% to 29 cents per share on August 05
Knowles Corporation (KN) Q1 2026 Earnings Recap: Revenue Surges 16% on Robust Demand
Key Takeaways
- Revenue reached $153.1 million, up 16% year-over-year from $132.2 million, exceeding the high end of guidance and consensus estimates of $147.4 million.
- Non-GAAP diluted EPS (earnings per share excluding certain non-recurring items) hit $0.27, up 50% from $0.18 a year ago, beating expectations of $0.24.
- GAAP gross margin expanded to 43.8% from 40.3%, with non-GAAP gross margin at 45.5%.
- Q2 2026 guidance calls for revenue of $152–$162 million and non-GAAP EPS of $0.28–$0.32.
- Full-year 2026 outlook raised to exceed the high end of prior 4%–6% organic growth target, driven by strong backlog.
- Growth fueled by medtech, defense, industrial, and electrification end markets.
Earnings Context and Why It Matters
Knowles Corporation, a leader in micro-acoustic, audio, and precision devices, reported Q1 2026 results on April 23 after market close, highlighting sustained momentum in high-growth sectors. The company has shifted focus post-divestiture of its Consumer MEMS Microphones business, emphasizing higher-margin areas like Precision Devices. This earnings release is pivotal as it validates execution amid supply chain stabilization and rising demand for advanced components in medical, defense, and electrification applications. Investors watch closely for signs of margin durability and design win conversions, especially as Knowles targets long-term organic growth above industry averages.
For the first quarter ended March 31, 2026, Knowles delivered revenue of $153.1 million, surpassing its guidance range and analyst consensus of $147.4 million. This marked a 16% increase from $132.2 million in Q1 2025, driven by strength across key end markets including medtech and defense.
Non-GAAP diluted EPS rose to $0.27 from $0.18 year-over-year, exceeding expectations of $0.24 and the top of company guidance. GAAP diluted EPS from continuing operations was $0.13, compared to breakeven last year. Gross margins improved significantly, with GAAP at 43.8% (up 350 basis points) and non-GAAP at 45.5% (up 390 basis points), reflecting better factory utilization and pricing. Operating income climbed to $15.9 million from $4.0 million.
Guidance for Q2 includes revenue of $152–$162 million and non-GAAP EPS of $0.28–$0.32. Management also affirmed full-year 2026 growth will surpass the high end of its prior 4%–6% organic target, supported by a robust order backlog.
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Market Reaction and Investor Sentiment
Shares of Knowles rose about 2.4% to $30.50 in after-hours trading following the April 23 release, reflecting approval of the earnings beat and upbeat guidance. By April 26, the stock traded around $30, off recent highs near $31 amid broader market dynamics. Sentiment appears positive, buoyed by margin gains and raised full-year outlook, though investors parsed mixed cash flow notes from the call.
Forward Outlook and Key Factors to Monitor
Investors should focus on Q2 execution against the $152–$162 million revenue guide and $0.28–$0.32 non-GAAP EPS range, which implies continued mid-teens growth at the midpoint. Progress in converting design wins, particularly in Precision Devices for energy storage and medtech, will be critical.
Full-year dynamics hinge on sustained demand in defense and industrial end markets, alongside supply chain stability. Margin trends remain a highlight, with potential for further expansion from capacity utilization and favorable mix. Operating cash flow guidance of $20–$30 million for Q2 underscores working capital management.
Upcoming catalysts include design win ramps and potential M&A (mergers and acquisitions) activity to bolster the portfolio. Broader electrification trends and defense spending could provide tailwinds, but monitor input cost inflation and customer inventory levels.
Disclaimer
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General Information
a manufacturer of communication infrastructure components
Industry ElectronicComponents