Knowles (KN) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 20.3% YoY to $184.0M; non-GAAP diluted EPS was $0.38 and operating cash flow was $44.6M.

• FY 2026 revenue is projected at $689M, up 16%; strong bookings and design wins support expectations for 2027 growth above prior targets.

Financial highlights

• Q3 GAAP net earnings were $21.2M versus $18.0M; adjusted EBITDA was $48.3M versus $39.5M.

• Q3 GAAP gross margin was 44.2% versus 45.7%; non-GAAP gross margin was 45.3% versus 46.2%.

• Q3 operating cash flow was $44.6M, up 53.3% YoY; adjusted free cash flow was $42.6M versus $23.3M.

• 9M revenue rose 16.9% to $503.9M; continuing-operations earnings were $50.9M versus $25.4M.

• 9M adjusted free cash flow was $62.4M versus $81.2M, with working capital, lower customer prepayments and higher capex weighing on cash generation.

Outlook and guidance

• Q4 revenue guidance is $180M–$190M; operating cash flow guidance is $60M–$70M, with capex expected at $8M.

• Q4 diluted EPS guidance is $0.31–$0.35 GAAP and $0.39–$0.43 non-GAAP; adjusted EBIT margin guidance is 23%–25%.

• FY 2026 revenue growth is projected at 16% and adjusted EBITDA growth at 24%; both exceed the high end of Investor Day targets.

• 2027 organic growth is expected to exceed prior targets; PD is expected to grow strongly YoY in H1 but remain sequentially flat near-term, while MSA is expected to grow 2%–4%.