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

23 Oct 2026, 08:26 by Amy Steele · The Cerbat Gem

Knowles (NYSE:KN – Get Free Report) posted its quarterly earnings data on Thursday. The communications equipment provider reported $0.38 EPS for the quarter, beating analysts’ consensus estimates of $0.36 by $0.02, FiscalAI reports. The business had revenue of $184.00 million during the quarter, compared to analysts’ expectations of $172.10 million. Knowles had a return on equity of 11.45% and a net margin of 10.63%. The business’s revenue was up 20.3% compared to the same quarter last year. During the same period in the previous year, the business earned $0.33 earnings per share.

Here are the key takeaways from Knowles’ conference call:

Q3 results exceeded guidance, with revenue up 20% year over year to $184 million, EPS of $0.38, and operating cash flow of $45 million. Management now expects 2026 revenue growth of 16% and adjusted EBITDA growth of 24%.
Precision Devices revenue rose 33% to $117 million, supported by broad demand across medical, defense, industrial, and electrification markets. The segment posted a 1.5 book-to-bill ratio, nearly $180 million of Q3 orders, and a robust backlog.
Knowles plans to add capacity across most Precision Devices product lines, with initial capacity expected online in late Q1 and full availability in the second half of 2027. The company also sees a path to expanding adjusted EBITDA margins from above 25% in 2026 to approximately 30% within two to three years.
Management expects several newer growth platforms—including Micro Solutions Group, pulse-power capacitors, attenuators, inductors, and follow-on energy applications—to expand its addressable market beyond the core business. Micro Solutions revenue is projected to exceed $5 million in 2027 and $10 million in 2028.
Capacity constraints are expected to limit sequential growth in Precision Devices during early 2027, while the end of a low-margin stamping program creates a 2%–3% headwind for MSA revenue, particularly in the first half. Management expects total revenue to be only slightly down sequentially in the March quarter despite strong year-over-year growth.

Knowles Stock Down 4.5%

KN stock opened at $33.33 on Friday. The company has a current ratio of 3.20, a quick ratio of 1.75 and a debt-to-equity ratio of 0.16. The firm has a 50-day moving average of $35.85 and a two-hundred day moving average of $35.90. Knowles has a 12 month low of $20.57 and a 12 month high of $42.93. The company has a market cap of $2.85 billion, a price-to-earnings ratio of 34.24 and a beta of 1.59.

Trending Headlines about Knowles

Here are the key news stories impacting Knowles this week:

Positive Sentiment: Knowles reported third-quarter revenue of $184 million, up approximately 20% year over year and ahead of the roughly $172 million analyst estimate. Adjusted earnings of $0.38 per share also exceeded consensus by $0.02, while profitability and operating cash flow improved. Knowles Beats Q3 Earnings and Revenue Estimates
Positive Sentiment: Management reportedly provided optimistic revenue guidance for the next quarter, supporting the view that demand and momentum remain healthy. Knowles Beats Expectations and Provides Guidance
Neutral Sentiment: The earnings-call coverage emphasized the strong quarterly results and the company’s outlook, but investors may be waiting for additional detail on the durability of growth and demand across Knowles’ end markets. Knowles Q3 2026 Earnings Call Transcript
Negative Sentiment: Susquehanna lowered its price target from $40 to $35 and maintained a neutral rating. The reduced target limits perceived upside and may be weighing on the stock, particularly with shares trading at a relatively elevated earnings multiple. Knowles Stock Price Target Cut by Susquehanna
Negative Sentiment: Recent trading data showed Knowles insiders made multiple sales and no purchases over the past six months. While insider transactions do not necessarily reflect operating performance, the pattern can reinforce investor caution after a strong run in the shares. Knowles Q3 Earnings and Insider Trading Activity

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the stock. Zacks Research cut shares of Knowles from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, September 22nd. Wall Street Zen cut shares of Knowles from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 1st. Weiss Ratings upgraded shares of Knowles from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, October 8th. Susquehanna decreased their price objective on shares of Knowles from $40.00 to $35.00 and set a “neutral” rating on the stock in a report on Wednesday. Finally, Robert W. Baird set a $50.00 target price on shares of Knowles in a research report on Friday. Three investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $41.00.

Read Our Latest Stock Analysis on Knowles

Insider Activity at Knowles

In other Knowles news, SVP Raymond D. Cabrera sold 6,178 shares of the company’s stock in a transaction on Monday, July 27th. The stock was sold at an average price of $36.28, for a total value of $224,137.84. Following the completion of the sale, the senior vice president directly owned 127,945 shares in the company, valued at $4,641,844.60. This represents a 4.61% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Cheryl L. Shavers sold 6,618 shares of the firm’s stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $39.27, for a total transaction of $259,888.86. Following the sale, the director owned 35,723 shares of the company’s stock, valued at approximately $1,402,842.21. The trade was a 15.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 2.24% of the company’s stock.

Knowles Company Profile

(Get Free Report)

Knowles Corporation (NYSE: KN) is a global manufacturer of advanced electronic components and solutions for audio, communications, medical, industrial and other specialized applications. The company develops products that support sound capture, audio processing, signal management and high-performance connectivity in a range of electronic devices and systems.