Kornit Digital (NASDAQ:KRNT) Releases Earnings Results, Beats Estimates By $0.01 EPS

Kornit Digital (NASDAQ:KRNT) posted its quarterly earnings results on Wednesday. The industrial products company reported $0.04 earnings per share for the quarter, beating the consensus estimate of $0.03 by $0.01, FiscalAI reports. The firm had revenue of $55.32 million for the quarter, compared to analyst estimates of $52.80 million. Kornit Digital had a negative return on equity of 1.15% and a negative net margin of 7.93%.Kornit Digital’s quarterly revenue was up 11.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.03 earnings per share.

Here are the key takeaways from Kornit Digital’s conference call:

• Q2 exceeded guidance: Revenue rose 11.2% year over year to $55.3 million, while adjusted EBITDA was positive at $0.3 million and operating cash flow reached $8.5 million, marking the 11th consecutive positive quarter.
• Recurring revenue momentum strengthened: Annual recurring revenue increased 79% year over year to $33.8 million, driven by 112% growth in the all-inclusive click model; management said roughly 80% of revenue is now recurring or highly recurring.
• Digital adoption among traditional screen printers is accelerating: About 60% of systems sold in Q2 and the first half went to screen printers, supporting Kornit’s expansion into the larger bulk-apparel market and the broader shift from analog to digital production.
• Management raised its outlook for the year: Kornit expects third-quarter revenue of $55 million to $60 million and adjusted EBITDA margins of breakeven to 3%, while projecting second-half revenue approximately 15% above the first half and high-single-digit growth for full-year 2026.
• Profitability still has room to improve: Non-GAAP gross margin was 47.4%, helped by an approximately $830,000 net tariff benefit including a $2 million refund, while operating expenses rose year over year due partly to the Konnections conference and $1.9 million of foreign-exchange headwinds.

Kornit Digital Trading Up 0.3%

Shares of NASDAQ:KRNT opened at $17.64 on Thursday. Kornit Digital has a 1 year low of $11.93 and a 1 year high of $19.78. The business has a fifty day simple moving average of $15.89 and a 200 day simple moving average of $15.41. The firm has a market cap of $757.99 million, a price-to-earnings ratio of -45.23 and a beta of 1.72.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Morgan Stanley raised its stake in shares of Kornit Digital by 26.5% during the 4th quarter. Morgan Stanley now owns 3,998,548 shares of the industrial products company’s stock worth $57,499,000 after purchasing an additional 838,814 shares in the last quarter. Artisan Partners Limited Partnership lifted its holdings in shares of Kornit Digital by 32.6% during the 4th quarter. Artisan Partners Limited Partnership now owns 2,647,804 shares of the industrial products company’s stock valued at $38,075,000 after buying an additional 650,283 shares during the last quarter. ArrowMark Colorado Holdings LLC grew its stake in shares of Kornit Digital by 128.1% in the 4th quarter. ArrowMark Colorado Holdings LLC now owns 447,000 shares of the industrial products company’s stock valued at $6,428,000 after buying an additional 251,000 shares in the last quarter. Senvest Management LLC grew its stake in shares of Kornit Digital by 4.1% in the 4th quarter. Senvest Management LLC now owns 4,141,355 shares of the industrial products company’s stock valued at $59,553,000 after buying an additional 162,100 shares in the last quarter. Finally, Man Group plc increased its holdings in Kornit Digital by 106.6% in the fourth quarter. Man Group plc now owns 286,695 shares of the industrial products company’s stock worth $4,123,000 after buying an additional 147,901 shares during the last quarter. Hedge funds and other institutional investors own 92.76% of the company’s stock.

Key Kornit Digital News

Here are the key news stories impacting Kornit Digital this week:

• Positive Sentiment: Quarterly earnings and revenue beat estimates. Kornit reported adjusted EPS of $0.04, compared with the consensus estimate of a $0.01 loss, while revenue reached $55.3 million versus expectations of $52.8 million. Revenue increased 11.1% year over year, and EPS improved from $0.03 in the prior-year quarter. Kornit Digital Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Growth metrics pointed to improving recurring and usage-based revenue. Annual recurring revenue rose 79% year over year to $33.8 million, AIC revenue increased 112%, and trailing-12-month impressions grew 15%. Kornit also reported positive operating cash flow for the 11th consecutive quarter and said screen-market systems represented approximately 60% of second-quarter and first-half sales. Kornit Digital Reports Second Quarter 2026 Results
• Positive Sentiment: Analyst confidence increased. Needham raised its price target from $22 to $23 and maintained a Buy rating, implying substantial upside from the recent trading level. Needham Raises Kornit Digital Price Target
• Neutral Sentiment: Third-quarter revenue guidance was set at $55 million to $60 million. The midpoint is above the $55.3 million analyst consensus, but the company did not provide a specific EPS outlook. Kornit Digital Earnings Report and Conference Call
• Negative Sentiment: Profitability remains incomplete. Kornit still posted a negative net margin and negative return on equity, while analysts expect a full-year loss. Sustaining the recent revenue growth and converting it into consistent GAAP profitability will remain key risks for KRNT.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on KRNT shares. Zacks Research cut Kornit Digital from a “hold” rating to a “strong sell” rating in a research note on Thursday, July 30th. Needham & Company LLC increased their price target on shares of Kornit Digital from $22.00 to $23.00 and gave the stock a “buy” rating in a research report on Wednesday. Finally, Morgan Stanley raised their price target on shares of Kornit Digital from $17.00 to $18.00 and gave the stock an “equal weight” rating in a report on Tuesday, June 23rd. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $21.25.

Kornit Digital Company Profile

Kornit Digital Ltd. (NASDAQ: KRNT) is a global technology company specializing in digital textile printing solutions. Headquartered in Rosh Ha’Ayin, Israel, Kornit develops and manufactures an integrated ecosystem of industrial inkjet printers, proprietary NeoPigment inks and pretreatment systems. Its product portfolio addresses a range of applications including direct-to-garment, direct-to-fabric, digital embellishment and hybrid manufacturing, enabling businesses to produce custom apparel, sportswear, fashion and home textiles on demand.

The company’s flagship offerings include the Avalanche and Atlas series for high-volume production, as well as the Storm and Helix lines designed for mid-to-large scale operations.