MillerKnoll Stock Plummets 21% After Earnings Miss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 26 2026
0mins
Source: Fool
- Earnings Miss: MillerKnoll reported Q3 2026 earnings of $0.43 per share, falling short of the $0.45 forecast, with sales of $926.6 million also missing the $942 million target, resulting in a 21% stock drop in early trading.
- Sales Growth: Despite missing sales expectations, MillerKnoll achieved a 6% year-over-year sales increase, demonstrating resilience in the market, while gross margins improved by 20 basis points and operating costs were reduced by 26%, indicating significant progress in cost management.
- Profit Transition: The company shifted from year-ago operating and net losses to operating and net profits this quarter, although the reported $0.43 profit was based on non-GAAP measures, with actual GAAP earnings at only $0.34, highlighting concerns over profit quality.
- Future Outlook: MillerKnoll forecasts next quarter sales between $955 million and $995 million, translating to only about a 1% increase, while non-GAAP earnings are expected to reach $0.52 per share, significantly below the $0.59 anticipated by Wall Street analysts, leaving investors disappointed about future prospects.
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Analyst Views on MLKN
About MLKN
MillerKnoll, Inc. is engaged in the research, design, manufacture, selling and distribution of interior furnishings for use in various environments and provides related services that support organizations and individuals all over the world. Its North America Contract segment includes the operations associated with the design, sourcing, manufacture, and sale of furniture products directly or indirectly through an independent dealership network for office, healthcare, and educational environments throughout the United States and Canada. Its International Contract segment includes the operations associated with the design, sourcing, manufacture, and sale of furniture products directly or indirectly through an independent dealership network in Europe, the Middle East, Africa, Asia-Pacific, and Latin America. Its Global Retail segment includes global operations associated with the sale of modern design furnishings and accessories to third-party retailers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- MillerKnoll's Growth Issues: With a GAAP operating margin of 9.6%, MillerKnoll (MLKN) has only achieved 1.4% annual revenue growth over the last two years, significantly lagging behind peers, and its earnings per share have fallen by 7.9% annually over the past five years due to shareholder dilution, limiting its ability to invest or increase buybacks with a weak free cash flow margin of 2.4%.
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- Investment Caution Summary: While these companies are currently profitable, their growth potential and financial health raise significant concerns, prompting investors to carefully consider avoiding inclusion in their portfolios.
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MillerKnoll to Release FY 2026 Financial Results
- Earnings Release Schedule: MillerKnoll plans to release its fourth quarter and full year fiscal 2026 financial results on June 24, 2026, after market close, highlighting the company's growth potential in the industrial and consumer sectors.
- Investor Conference: Following the release, the company will hold a conference call and webcast at 5:00 p.m. Eastern Time to discuss financial and operational results, aiming to enhance transparency and investor confidence.
- Access Channels: Investors can access the press release and supporting materials on the company's investor relations website, ensuring timely information retrieval and effective communication to boost investor engagement.
- Company Background: MillerKnoll is a global collective of design brands built on the foundation of Herman Miller and Knoll, generating $3.7 billion in net sales for fiscal year 2025, showcasing its strong capabilities in design and innovation.
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- MillerKnoll Performance Decline: MillerKnoll, Inc. (MLKN) has had its current year earnings estimate revised down by 7.1%, indicating challenges in the interior furnishings market that could affect its market share and shareholder returns.
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- Surging Oil Prices: WTI crude oil prices surged over 4% due to reports of potential military action against Iran by the Pentagon, which heightened inflation expectations and increased pressure on the stock market.
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MillerKnoll Under Investigation for Securities Compliance
- Earnings Miss: MillerKnoll's Q3 fiscal 2026 results revealed adjusted EPS and revenue below consensus estimates, leading to a decline in investor confidence and a subsequent drop in stock price.
- Legal Investigation Launched: Holzer & Holzer, LLC is investigating whether MillerKnoll complied with federal securities laws, indicating potential legal liabilities that could further impact the company's market reputation and shareholder trust.
- Investor Loss Alert: Following the stock price drop, Holzer & Holzer is urging affected investors to reach out to discuss their legal rights, which may trigger additional shareholder lawsuits and increase the company's legal risks.
- Law Firm Background: Since its founding in 2000, Holzer & Holzer has focused on providing legal support to shareholders, recovering hundreds of millions for defrauded investors, showcasing its expertise and influence in the securities litigation field.
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- Strong Labor Market Data: Initial jobless claims in the US rose by 5,000 to 210,000, aligning with expectations, while continuing claims fell by 32,000 to a 1.75-year low of 1.819 million, suggesting a robust labor market that could influence a hawkish stance from the Fed.
- OECD Raises Inflation Forecast: The OECD increased its G-20 inflation forecast for 2026 from 2.8% to 4.0%, reflecting the potential economic impact of the Iran conflict, which may heighten investor concerns about future economic growth.
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- Greenbrier Concerns: Greenbrier (GBX) has a GAAP operating margin of 8.7%, yet declining unit sales over the past two years suggest it may need to invest in improvements to regain growth, while its low gross margin of 14.1% indicates fierce competition and high production costs, raising doubts about the long-term viability of its business model.
- MillerKnoll's Growth Issues: With a GAAP operating margin of 9.6%, MillerKnoll (MLKN) has only achieved 1.4% annual revenue growth over the last two years, significantly lagging behind peers, and its earnings per share have fallen by 7.9% annually over the past five years due to shareholder dilution, limiting its ability to invest or increase buybacks with a weak free cash flow margin of 2.4%.
- Encore Capital Group Risks: Encore Capital Group (ECPG) boasts a high GAAP operating margin of 36.8%, but its sales growth has been a modest 2.6% annually over the last five years, trailing the financial sector average, and its earnings per share have only grown by 3.7%, compounded by a high net-debt-to-EBITDA ratio of 5x that could necessitate unfavorable capital raising if market conditions worsen.
- Investment Caution Summary: While these companies are currently profitable, their growth potential and financial health raise significant concerns, prompting investors to carefully consider avoiding inclusion in their portfolios.
See More
MillerKnoll to Release FY 2026 Financial Results
- Earnings Release Schedule: MillerKnoll plans to release its fourth quarter and full year fiscal 2026 financial results on June 24, 2026, after market close, highlighting the company's growth potential in the industrial and consumer sectors.
- Investor Conference: Following the release, the company will hold a conference call and webcast at 5:00 p.m. Eastern Time to discuss financial and operational results, aiming to enhance transparency and investor confidence.
- Access Channels: Investors can access the press release and supporting materials on the company's investor relations website, ensuring timely information retrieval and effective communication to boost investor engagement.
- Company Background: MillerKnoll is a global collective of design brands built on the foundation of Herman Miller and Knoll, generating $3.7 billion in net sales for fiscal year 2025, showcasing its strong capabilities in design and innovation.
See More
Zacks Adds Three Stocks to Strong Sell List
- Alamo Group Earnings Downgrade: Alamo Group Inc. (ALG) has seen its current year earnings estimate revised downward by 7.9% over the last 60 days, indicating pressure in the agricultural equipment market that could negatively impact its stock performance.
- Centrus Energy Profit Warning: Centrus Energy Corp. (LEU) has lowered its current year earnings estimate by 5.6% in the past 60 days, reflecting uncertainty in the nuclear fuel market that may lead to decreased investor confidence.
- MillerKnoll Performance Decline: MillerKnoll, Inc. (MLKN) has had its current year earnings estimate revised down by 7.1%, indicating challenges in the interior furnishings market that could affect its market share and shareholder returns.
- Quantum Computing Outlook: While quantum computing is seen as the next technological revolution, it is already advancing rapidly, with major tech companies like Microsoft, Google, and Amazon actively integrating this technology to maintain competitive advantages.
See More
US Stocks Plunge Amid Soaring Oil Prices
- Market Weakness: The S&P 500 index fell by 1.74%, the Dow Jones Industrial Average dropped by 1.01%, and the Nasdaq 100 hit a 6.5-month low, reflecting investor concerns about future economic prospects amid rising oil prices.
- Surging Oil Prices: WTI crude oil prices surged over 4% due to reports of potential military action against Iran by the Pentagon, which heightened inflation expectations and increased pressure on the stock market.
- Strong Labor Market Data: Initial jobless claims rose by 5,000 to 210,000, in line with expectations, while continuing claims fell by 32,000 to a 1.75-year low of 1.819 million, indicating labor market strength that could influence Federal Reserve policy.
- International Economic Impact: The OECD raised its G-20 inflation forecast for 2026 to 4.0%, reflecting the potential global economic impact of the Iran war, with increasing market concerns about escalating tensions in the Middle East that could disrupt global supply chains.
See More
MillerKnoll Under Investigation for Securities Compliance
- Earnings Miss: MillerKnoll's Q3 fiscal 2026 results revealed adjusted EPS and revenue below consensus estimates, leading to a decline in investor confidence and a subsequent drop in stock price.
- Legal Investigation Launched: Holzer & Holzer, LLC is investigating whether MillerKnoll complied with federal securities laws, indicating potential legal liabilities that could further impact the company's market reputation and shareholder trust.
- Investor Loss Alert: Following the stock price drop, Holzer & Holzer is urging affected investors to reach out to discuss their legal rights, which may trigger additional shareholder lawsuits and increase the company's legal risks.
- Law Firm Background: Since its founding in 2000, Holzer & Holzer has focused on providing legal support to shareholders, recovering hundreds of millions for defrauded investors, showcasing its expertise and influence in the securities litigation field.
See More
US Stocks Under Pressure Amid Soaring Oil Prices
- Oil Price Surge Pressures Markets: Amid escalating uncertainty regarding Iran, WTI crude oil prices rose over 3%, contributing to a 0.64% drop in the S&P 500, a 0.16% decline in the Dow Jones, and a 1.05% fall in the Nasdaq 100, indicating market sensitivity to geopolitical risks.
- Strong Labor Market Data: Initial jobless claims in the US rose by 5,000 to 210,000, aligning with expectations, while continuing claims fell by 32,000 to a 1.75-year low of 1.819 million, suggesting a robust labor market that could influence a hawkish stance from the Fed.
- OECD Raises Inflation Forecast: The OECD increased its G-20 inflation forecast for 2026 from 2.8% to 4.0%, reflecting the potential economic impact of the Iran conflict, which may heighten investor concerns about future economic growth.
- Chip Makers Under Pressure: A new compression technique proposed by Google researchers, which could reduce memory requirements for AI workloads, has led to declines of over 5% in several chip manufacturers' stocks, further exacerbating overall market weakness.
See More
