Knowles Corporation (KN)
NYSEInformation TechnologyHardware, Equipment & PartsSnapshot 2026-09-04
$35.49+2.10%
Close 2026-09-04 · 1-day change
NYSEInformation TechnologyHardware, Equipment & PartsSnapshot 2026-09-04
Warn: Primary pillar under pressure — Revenue grows at least 7.8% next year: Q2 FY26 +14.0% vs 7.8% target.
Knowles grew revenue 16% last quarter to $153 million. Management aims to grow revenue further. Free cash flow is expected between $20 million and $30 million next quarter. The company has beaten earnings estimates recently.
Profit margins and operating income fell last quarter. Revenue growth could slow below 8%. The recent sharp stock selloff shows investor worries.
The price is about 43% above our fair value near $24. Analysts expect about 8% revenue growth. We see growth risks and margin pressure not fully priced in.
Breaks if: Free cash flow falls below $20 million next quarter
Breaks if: Operating income falls below $15 million next year
Breaks if: YoY revenue growth falls below 7.8% next year
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on revenue growth and margin expansion. The current thesis state is intact, supported by recent earnings beats and management's commitment to growth.
The market currently prices KN at a premium compared to its peers, indicating that investors have high expectations for its performance. There is a small expectations gap, suggesting that while the stock is considered expensive, it is justified by its recent financial performance.
Management is on track to achieve its revenue growth and margin expansion goals, with recent results showing positive trends. The near-term risk of missing expectations is low, but there is a history of significant misses that investors should keep in mind.
The long-term outlook for KN hinges on management's ability to maintain growth momentum and expand margins. Additionally, external factors such as potential Fed rate cuts and performance from sector leaders will play a crucial role in shaping the stock's trajectory.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports the thesis. Rising margins from a portfolio shift also reinforce management's goal to expand gross profit margins. There are no new threats impacting the outlook.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Continue executing strategy to drive organic revenue growth across Medtech, Defense, Industrial, and Electrification end markets.
Overall, KN's fundamentals are strong, but investors should remain attentive to external market conditions and management's guidance. Not investment advice.