KN
Knowles Corp (KN) Q2 2026 Earnings Call Highlights: Strong Revenue Growth and Robust Precision ...
Article Summary
BUY- Knowles Corp. (NYSE: KN) reported strong Q2 2026 revenue growth of 14% year-over-year with $167 million in revenue, exceeding the high end of guidance, driven by strong Precision Devices growth of 25% year over year across defense, industrial, and medical markets.
- Knowles maintained a healthy backlog and strong order activity with a book-to-bill ratio above 1.4, marking the seventh quarter in a row with a ratio greater than 1.5.
- Margins expanded across Precision Devices, Medtech and Specialty Audio, and Cash from Operations, with gross margins expanding 250 basis points to 40.1% and gross margins of 53.1%.
- Cash generation from operations reached $28 million above the midpoint of guidance and the company maintained strong liquidity with $131 million in borrowings under its revolving credit facility.
- KN raised its Q3 revenue and EPS guidance, reflecting confidence in continued demand in Precision Devices and strong cash generation.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 12.8% | 25% | 50.0 ptsMeets Minimum (12.8%) - Passes screener |
| EPS Growth Next 5Y ? | 0.0% | 25% | 10.0 ptsVery Weak (0.0%) - Minimal expectations |
| Target Price Upside ? | 0.5% | 20% | 20.0 ptsMinimal Upside (0.5%) - Target: $39.00 vs Current: $38.81 |
| Gross Margin % ? | 42.2% | 15% | 60.0 ptsSolid (42.2%) - Decent margins |
| Drawdown from 52-Wk High ? | -9.6% | 15% | 20.0 ptsBarely a Dip (-9.6%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About KN
- Knowles Corporation offers capacitors, radio frequency (RF) and microwave filters, balanced armature speakers, and medtech microphones in Asia, the United States, Europe, rest of Americas, and internationally.
- It operates in two segments, Precision Devices (PD) and Medtech & Specialty Audio (MSA).
- The PD segment focuses on the custom design and delivery of high performance capacitor products and RF solutions primarily serving the defense, industrial, medtech, and electrification/energy markets.
- The MSA segment designs and manufactures balanced armature speakers and microphones for the hearing health; and specialty audio applications that serve the medtech and industrial markets.
- The company manufactures and sells film, electrolytic, and mica capacitors that are used in medtech, defense, and industrial electrification applications.
- It serves the defense, medtech, electric vehicle, industrial, and communications markets through original equipment manufacturers, their contract manufacturers, suppliers, sales representatives, and distributors.
- Knowles Corporation was founded in 1946 and is headquartered in Itasca, Illinois.