Knowles (NYSE:KN) Announces Earnings Results, Beats Expectations By $0.01 EPS

Knowles (NYSE:KN) posted its quarterly earnings data on Thursday. The communications equipment provider reported $0.36 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.35 by $0.01, FiscalAI reports. Knowles had a net margin of 7.27% and a return on equity of 8.98%. The firm had revenue of $162.20 million for the quarter, compared to the consensus estimate of $156.23 million. During the same period in the previous year, the firm earned $0.27 EPS. The business’s revenue for the quarter was up 13.8% compared to the same quarter last year. Knowles updated its Q1 2026 guidance to 0.220-0.260 EPS.

Here are the key takeaways from Knowles’ conference call:

• Knowles reported strong results: Q4 revenue of $162M (+14% YoY), FY revenue of $593M (+7% YoY), Q4 cash from operations of $47M and full-year cash from operations of $114M, all above guidance.
• Precision Devices and MedTech momentum: Precision Devices revenue was $90M in Q4 (+23% YoY) with wins across defense, MedTech, industrial, EV and energy, and the company says book-to-bill >1 with a robust design-win pipeline.
• Large energy/specialty film ramp underway: a Greenville capacity expansion is being installed and the company expects the energy/pulse-power ramp to be at full volume by end of Q2 and forecasts $50–$65M revenue from the specialty film category in 2026.
• Operational and near-term margin headwinds: the specialty film line incurred higher scrap and production inefficiencies that partially offset margin gains, SG&A rose (incentive comp), and the company exited the quarter with $54M cash and $114M borrowings under its revolver.

Knowles Price Performance

Shares of KN traded up $2.20 during mid-day trading on Friday, reaching $26.94. 527,709 shares of the stock traded hands, compared to its average volume of 679,330. The company has a market cap of $2.29 billion, a price-to-earnings ratio of 56.11 and a beta of 1.52. Knowles has a 1 year low of $12.19 and a 1 year high of $27.36. The firm has a fifty day moving average price of $23.22 and a 200 day moving average price of $22.37. The company has a current ratio of 1.90, a quick ratio of 1.19 and a debt-to-equity ratio of 0.14.

Knowles News Summary

Here are the key news stories impacting Knowles this week:

• Positive Sentiment: Q4 results beat expectations — EPS of $0.36 topped consensus ~$0.35 and revenue of $162.2M beat estimates (~$156M); revenue was up ~13.8% year‑over‑year, signaling demand resilience. Knowles Reports Q4 & Full Year 2025 Financial Results and Provides Outlook for Q1 2026
• Positive Sentiment: Management highlighted accelerating MEMS microphone demand and a specialty‑film production ramp that should support revenue growth and product mix improvement. Knowles earnings on deck as MEMS microphone demand accelerates
• Positive Sentiment: Q1 2026 guidance is constructive — EPS guidance of $0.220–$0.260 (consensus ~ $0.220) and revenue guidance of $143M–$153M imply management expects continued top‑line growth, including an explicit ~12% revenue growth target for Q1. Knowles outlines 12% revenue growth target for Q1 2026 amid strong demand and specialty film ramp
• Neutral Sentiment: Guidance largely in line with street expectations — EPS midpoint matches consensus and revenue range overlaps estimates, so the update is more of a confirmation than a large upside surprise. Knowles (NYSE:KN) reports bullish Q4 CY2025
• Negative Sentiment: Valuation and margin context could limit enthusiasm — KN trades at a relatively high P/E (~55) with modest net margins (~7.3%), so upside depends on sustained margin expansion and delivery on the specialty‑film ramp. Knowles earnings, margin and financial details

Insider Buying and Selling

In other Knowles news, CEO Jeffrey Niew sold 50,000 shares of the company’s stock in a transaction dated Thursday, January 15th. The stock was sold at an average price of $24.75, for a total value of $1,237,500.00. Following the transaction, the chief executive officer directly owned 839,370 shares in the company, valued at $20,774,407.50. This represents a 5.62% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders sold 125,000 shares of company stock worth $3,062,500 in the last three months. 2.54% of the stock is owned by insiders.

Institutional Investors Weigh In On Knowles

Several hedge funds have recently bought and sold shares of the stock. Royal Bank of Canada increased its holdings in shares of Knowles by 27.0% in the 1st quarter. Royal Bank of Canada now owns 70,073 shares of the communications equipment provider’s stock worth $1,064,000 after buying an additional 14,900 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Knowles by 4.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 51,722 shares of the communications equipment provider’s stock valued at $786,000 after purchasing an additional 2,245 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in Knowles by 7.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 238,557 shares of the communications equipment provider’s stock worth $3,626,000 after purchasing an additional 15,827 shares during the last quarter. Jane Street Group LLC purchased a new position in shares of Knowles in the 1st quarter worth about $3,335,000. Finally, Norges Bank purchased a new position in shares of Knowles during the 2nd quarter valued at about $1,255,000. 96.35% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the company. Weiss Ratings restated a “hold (c)” rating on shares of Knowles in a research note on Monday, December 29th. Zacks Research upgraded shares of Knowles to a “hold” rating in a research note on Friday, December 19th. Robert W. Baird set a $30.00 target price on Knowles in a research report on Friday, October 24th. Susquehanna increased their price target on Knowles from $18.00 to $23.00 and gave the stock a “neutral” rating in a research note on Wednesday, October 22nd. Finally, Craig Hallum reiterated a “buy” rating on shares of Knowles in a research report on Friday. Two equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $27.00.

Knowles Company Profile

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.