Knowles (NYSE:KN) Announces Earnings Results

Key Points

• Knowles beat expectations in Q1 with EPS $0.27 (vs. ~$0.24 est.) and $153.1M revenue (+15.8% YoY), and issued Q2 guidance of $0.280–0.320 EPS and $152–$162M revenue.
• Precision Devices showed strong momentum—$85M PD revenue and a book‑to‑bill of 1.19—and a $75M+ energy order is on track to ramp by end of Q2, expected to add >$25M near‑term revenue and ~200–250 bps of PD gross‑margin improvement in H2.
• Balance‑sheet and risk profile: the company exited Q1 with $41M cash, net leverage ~0.6x and >$310M liquidity while repurchasing $7.5M of stock, but third‑party reports flag GAAP/cash‑flow weakness and material insider selling, posing short‑term downside risks.

Knowles (NYSE:KN - Get Free Report) released its quarterly earnings data on Thursday. The communications equipment provider reported $0.27 earnings per share for the quarter, beating analysts' consensus estimates of $0.24 by $0.03, Briefing.com reports. The business had revenue of $153.10 million during the quarter, compared to analyst estimates of $147.40 million. Knowles had a net margin of 7.45% and a return on equity of 9.76%. Knowles's revenue was up 15.8% compared to the same quarter last year. During the same period last year, the business earned $0.18 EPS. Knowles updated its Q2 2026 guidance to 0.280-0.320 EPS.

Here are the key takeaways from Knowles' conference call:

• Q1 results beat guidance — revenue of $153 million (+16% YoY) and EPS of $0.27 (+50% YoY), with cash used in operations of $1 million, all within company guidance.
• Precision Devices momentum — PD revenue was $85 million (+17% YoY), book-to-bill was 1.19 (sixth consecutive quarter >1), and management expects PD revenue growth above the high end of its 6%–8% organic target with margin expansion into H2 2026.
• Specialty-film energy order ramp — the $75M+ energy order is on track to be fully ramped by end of Q2, will contribute meaningful near-term revenue (management cited >$25M) and is expected to drive ~200–250 bps of PD gross-margin improvement in H2 despite near-term higher factory costs.
• MedTech & Specialty Audio grew 14% in Q1 driven by hearing-health product ramps, but the company expects full-year MSA growth to remain in the historical 2%–4% range with MSA gross margins roughly flat at ~51%.
• Conservative guidance and solid liquidity — Q2 guidance is $152M–$162M revenue and EPS $0.28–$0.32, projected Q2 operating cash of $20M–$30M, company exited Q1 with $41M cash, net leverage of 0.6x, >$310M of liquidity, and repurchased $7.5M of stock in Q1.

Knowles Price Performance

Shares of NYSE:KN opened at $31.23 on Friday. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.58 and a current ratio of 2.75. The firm has a market cap of $2.67 billion, a price-to-earnings ratio of 61.24 and a beta of 1.49. The business has a 50-day simple moving average of $26.91 and a two-hundred day simple moving average of $24.52. Knowles has a fifty-two week low of $14.89 and a fifty-two week high of $31.95.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on KN. Zacks Research upgraded shares of Knowles from a "strong sell" rating to a "hold" rating in a report on Friday, April 10th. Weiss Ratings restated a "hold (c)" rating on shares of Knowles in a report on Monday, December 29th. Finally, Craig Hallum reaffirmed a "buy" rating and issued a $30.00 price objective on shares of Knowles in a research report on Friday, February 6th. Two investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $27.67.

Insider Activity

In other news, SVP Raymond D. Cabrera sold 10,000 shares of Knowles stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $26.75, for a total value of $267,500.00. Following the completion of the sale, the senior vice president directly owned 102,019 shares in the company, valued at $2,729,008.25. The trade was a 8.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, COO Daniel J. Giesecke sold 15,885 shares of the firm's stock in a transaction that occurred on Monday, February 9th. The stock was sold at an average price of $27.22, for a total transaction of $432,389.70. Following the completion of the sale, the chief operating officer owned 164,963 shares in the company, valued at $4,490,292.86. This represents a 8.78% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 198,742 shares of company stock worth $5,312,280. 2.24% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Knowles

Hedge funds and other institutional investors have recently modified their holdings of the company. McMillan Office Inc. bought a new stake in shares of Knowles in the fourth quarter worth $39,000. Osaic Holdings Inc. lifted its holdings in Knowles by 94.5% in the second quarter. Osaic Holdings Inc. now owns 1,842 shares of the communications equipment provider's stock valued at $31,000 after acquiring an additional 895 shares during the period. Kestra Advisory Services LLC bought a new position in Knowles in the fourth quarter valued at about $54,000. Northwestern Mutual Wealth Management Co. purchased a new position in Knowles in the fourth quarter worth about $89,000. Finally, State of Wyoming boosted its position in Knowles by 63.8% in the fourth quarter. State of Wyoming now owns 7,388 shares of the communications equipment provider's stock worth $158,000 after purchasing an additional 2,878 shares during the last quarter. 96.35% of the stock is owned by institutional investors.

Trending Headlines about Knowles

Here are the key news stories impacting Knowles this week:

• Positive Sentiment: Company release: Knowles reported Q1 2026 results and reiterated/outlined Q2 outlook, saying revenues and non‑GAAP diluted EPS were at or above the high end of prior guidance — management framed the quarter as a strong start to 2026. Knowles Reports Q1 2026 Financial Results and Provides Outlook for Q2 2026
• Positive Sentiment: Earnings beat (non‑GAAP/Zacks): Zacks reports Knowles beat EPS and revenue estimates (EPS $0.27 vs. Zacks est. $0.23) and revenue above prior year — this supports upside to multiple and validates demand trends. Knowles (KN) Beats Q1 Earnings and Revenue Estimates
• Neutral Sentiment: Guidance: Knowles issued Q2 EPS guidance of $0.280–0.320 and revenue guidance of $152–$162M (consensus ~$153.5M). Guidance roughly tracks analyst expectations on revenue and is inline-to-slightly constructive on EPS depending on where within the range the company lands.
• Neutral Sentiment: Conference materials and transcript available — investors can review the call recording and slide deck for product mix, margin drivers, and customer commentary that will determine whether upside is repeatable. View Press Release / Slide Deck
• Negative Sentiment: GAAP and cash concerns: Third‑party data (Quiver) shows a GAAP EPS miss (diluted EPS $0.11 vs. est ~$0.2446), a sharp drop in net income and cash balances vs. year‑ago, negative operating cash flow in the quarter, and significant insider selling — these factors increase short‑term risk if cash metrics or GAAP profitability remain weak. Knowles Corporation (KN) Releases Q1 2026 Earnings: Revenue Beat but EPS Miss

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.