Company Reports Q1 Revenue of $153.1M, Exceeding Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 23 2026
0mins
Reports Q1 revenue $153.1M, consensus $147.4M. "We started 2026 delivering strong first quarter revenues and non-GAAP diluted EPS which was at or above the high-end of our guided ranges," commented Jeffrey Niew, CEO. "We are executing on our strategy, continuing to leverage our unique technologies, creating custom products through our customer application intimacy, and then scaling into production with our world-class operational capabilities. Our end markets of Medtech, Defense, Industrial and Electrification are also benefiting from strong secular growth trends. With this powerful combination, our revenue grew 16% on a year-over-year basis in the first quarter, exceeding our five-year annual organic growth target. Our revenue growth was complemented by substantial gross margin expansion resulting in significant year-over-year EPS growth. We have numerous new design wins ramping across multiple end markets and a very healthy backlog of existing orders, positioning us well to continue to deliver year over year organic revenue and adjusted EBITDA growth in 2026 above the high-end of our annual growth targets as presented in our May 2025 investor day."
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Analyst Views on KN
Wall Street analysts forecast KN stock price to fall
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 41.480
Low
23.00
Averages
27.00
High
30.00
Current: 41.480
Low
23.00
Averages
27.00
High
30.00
About KN
Knowles Corporation is a manufacturer of specialty electronic components. The Company is engaged in manufacturing high-performance capacitors, radio frequency (RF) and microwave filters, advanced medtech microphones, balanced armature speakers, and miniaturization products. The Company’s segments include Precision Devices (PD) and MedTech & Specialty Audio (MSA). Its PD segment is specialized in the design and delivery of high-performance capacitor products and RF solutions primarily serving the defense, medtech, electrification, and industrial markets. Its MSA segment designs and manufactures balanced armature speakers and microphones used in applications that serve the hearing health and premium audio markets. The Company sells its products directly to original equipment manufacturers (OEMs) and to their contract manufacturers and suppliers and through distributors worldwide.
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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- Position Value Increase: By quarter-end, the value of Knowles' position rose to $4.87 million, reflecting positive impacts from market price changes and trading activity, suggesting investor optimism regarding its business outlook.
- Strong Performance: Knowles reported a 16% year-over-year revenue increase to $153.1 million in the latest quarter, while non-GAAP diluted EPS surged 50% to $0.27, demonstrating robust demand across industrial, medtech, and defense markets.
- Outstanding Market Performance: Knowles' stock price surged 110% over the past year, significantly outperforming the S&P 500's 25% increase, highlighting its competitive edge and investment appeal in rapidly growing markets.
See More
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- Small-Cap Investment Opportunity: John Rogers of Ariel Investments highlighted Covista as a for-profit education company focused on training doctors and nurses, addressing the global shortage in these professions, which is expected to drive future growth for the company.
- Market Volatility Insight: Rogers noted that the current AI craze is causing significant short-term volatility in the market, suggesting that the overall market is overvalued and value investors are facing challenges, reminiscent of the conditions leading up to the internet bubble burst.
- Financial Services Outlook: He pointed to Lazard and Carlyle Group as financial stocks worth watching in the current macroeconomic backdrop, despite their respective declines of 16% and 29% this year, indicating that there are still investment opportunities in undervalued stocks, particularly with Lazard's strong management team.
- Strong Performance of Small-Caps: Rogers also mentioned that other Chicago-based small-cap stocks like Littelfuse and Knowles have surged approximately 89% and 90% this year, respectively, highlighting the robust performance of small-cap stocks in the current market environment, which is attracting investor interest.
See More
Knowles Corporation Benefits from Voice Technology Adoption
- Growing Market Demand: As consumers increasingly interact with technology through natural voice commands, Knowles Corporation is witnessing a significant rise in demand for its audio capture and processing solutions across smartphones, wireless earbuds, and IoT devices, which is expected to drive revenue growth.
- Enhanced Technological Edge: The acquisition of Audience has expanded Knowles' digital signal processing and algorithm capabilities, enabling the company to offer more sophisticated audio processing solutions, thereby strengthening its competitive position and enhancing customer relationships.
- Edge Computing Opportunities: With the rise of edge computing, Knowles' portfolio of edge processors and audio technologies allows customers to develop smarter devices that meet the demand for faster response times and lower power consumption, further expanding the market potential of IoT ecosystems.
- Diversified Product Portfolio: Knowles' Precision Devices business includes high-performance capacitors and RF filtering products serving long-term demand markets such as aerospace and medical, reducing dependence on consumer electronics and enhancing the company's market resilience.
See More
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- Market Sentiment Rebound: The Dow Jones Industrial Average surged over 300 points, briefly exceeding 50,700, indicating improved market sentiment that propelled stocks like Knowles upward, reflecting increased investor confidence in economic recovery.
- Rising Demand for Business Services: As Treasury yields decline, CFOs are more inclined to greenlight consulting, staffing, and outsourcing contracts, which is expected to accelerate contract awards and drive revenue growth for related firms, enhancing market activity.
- Knowles Stock Performance: Knowles shares rose 2.6%, marking a 67% increase year-to-date and reaching a new 52-week high, despite challenges with negative cash flow, indicating market optimism about its future performance and long-term value recognition by investors.
- Investor Sentiment Fluctuation: Although Knowles reported a 15.8% revenue increase and a 50% rise in earnings per share in Q1, concerns over negative cash flow led to market volatility, highlighting investor sensitivity to the company's financial health.
See More
Business Services Sector Faces Challenges Amid AI Disruption
- Sector Growth Slowdown: The business services sector has posted a 9.6% gain over the past six months, nearly mirroring the S&P 500, yet it faces fierce competition from AI-driven startups, casting uncertainty on future growth prospects.
- Knowles Company Risks: With a market cap of $3.13 billion, Knowles has seen a 5.2% annual decline in sales over the past five years, indicating significant challenges in key markets, while its earnings per share have only grown by 5.2% annually, lagging behind sector averages.
- DXC Technology Dilemma: DXC, valued at $1.34 billion, has experienced a lack of organic revenue growth over the past two years, with sales expected to decline again in the next 12 months, reflecting management's struggles in capital allocation, currently trading at $8.31 per share with a forward P/E of 3.4x.
- Insight Enterprises' Dim Outlook: Insight, with a market cap of $2.64 billion, has flat sales over the past five years and an estimated sales growth of only 1.7% for the next 12 months, while its earnings per share have grown just 2.1% annually, trading at $88.75 per share with a forward P/E of 7.5x.
See More
Anchor Capital Establishes New Position in Knowles
- New Position Disclosure: Anchor Capital Management disclosed a new position in Knowles by acquiring 189,817 shares in Q1 2026, with an estimated transaction value of $4.80 million, indicating confidence in the company's growth prospects.
- Value Appreciation: By quarter-end, the position's value increased to $4.87 million, reflecting positive impacts from market price changes and trading activity, suggesting strong investor sentiment towards Knowles.
- Strong Performance: Knowles reported a 16% year-over-year revenue increase to $153.1 million in the latest quarter, with non-GAAP diluted EPS rising 50% to $0.27, driven by robust demand in industrial, medtech, and defense sectors.
- Optimistic Market Outlook: Despite Knowles' stock price surging 110% over the past year, Anchor Capital's investment suggests that the market may still underestimate the company's potential in fast-growing sectors like defense and electrification.
See More
Anchor Capital Acquires New Position in Knowles
- New Investment Disclosure: Anchor Capital disclosed a new position in Knowles (NYSE:KN) by acquiring 189,817 shares in Q1 2026, with an estimated transaction value of $4.80 million, indicating confidence in the company's future growth potential.
- Position Value Increase: By quarter-end, the value of Knowles' position rose to $4.87 million, reflecting positive impacts from market price changes and trading activity, suggesting investor optimism regarding its business outlook.
- Strong Performance: Knowles reported a 16% year-over-year revenue increase to $153.1 million in the latest quarter, while non-GAAP diluted EPS surged 50% to $0.27, demonstrating robust demand across industrial, medtech, and defense markets.
- Outstanding Market Performance: Knowles' stock price surged 110% over the past year, significantly outperforming the S&P 500's 25% increase, highlighting its competitive edge and investment appeal in rapidly growing markets.
See More
