The EPS miss is significant, but the revenue beat and strong Precision Devices growth may provide some support. Watch for Q4 2026 results to see if the margin compression in MedTech & Specialty Audio is temporary or structural, and whether the company can sustain its above-target organic growth trajectory into 2027.
Price Chart
Executive Summary
Knowles Corp reported Q3 2026 revenue of $184.0M, up 20.3% YoY and above the high end of guidance, but GAAP diluted EPS of $0.24 missed consensus estimates of $0.41 by 41.5%. Non-GAAP diluted EPS of $0.38 also missed the $0.41 consensus. The company guided Q4 2026 revenue of $180-190M and non-GAAP EPS of $0.39-0.43, implying full-year 2026 revenue growth of ~16% YoY. The Precision Devices segment continued strong momentum with revenue up 32.7% YoY and book-to-bill above 1 for the eighth consecutive quarter, while MedTech & Specialty Audio revenue grew only 3.6% YoY with adjusted EBITDA margin contracting 210bps.
Key Financial Metrics
Key Facts
- Q3 2026 revenue of $184.0M, up 20.3% YoY, above the high end of guidance ($152-162M)
- GAAP diluted EPS of $0.24 vs consensus $0.41 (41.5% miss)
- Non-GAAP diluted EPS of $0.38 vs consensus $0.41 (7.3% miss)
- Q4 2026 guidance: revenue $180-190M, non-GAAP EPS $0.39-0.43
- Precision Devices segment revenue $117.0M, up 32.7% YoY; adjusted EBITDA margin 27.5% vs 25.7% YoY
- MedTech & Specialty Audio revenue $67.0M, up 3.6% YoY; adjusted EBITDA margin 41.6% vs 43.7% YoY (-210bps)
- Net cash from operations $44.6M in Q3, up from $29.1M YoY
- Full-year 2026 revenue estimated at $689M, up 16% vs 2025
- Net debt leverage ratio 0.4x as of September 30, 2026
Financial Impact
EPS miss of ~41.5% vs consensus on GAAP basis and 7.3% miss on non-GAAP basis; revenue beat of ~0.9% vs consensus
Risk Factors
- MedTech & Specialty Audio margin compression (-210bps YoY) could signal competitive pressure or product mix shift
- GAAP EPS miss of 41.5% vs consensus may trigger negative sentiment despite revenue beat
- Inventory increased $25.7M YTD to $150.3M, potentially signaling demand uncertainty
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001587523-26-000033 |
| Exhibit: exhibit992q32026.htm | 0001587523-26-000033 |
| Document: kn-20261022.htm | 0001587523-26-000033 |
| Document: 0001587523-26-000033-index-headers.html | 0001587523-26-000033 |
| Document: 0001587523-26-000033-index.html | 0001587523-26-000033 |
| Document: 0001587523-26-000033.txt | 0001587523-26-000033 |
| 8-K Data (Synthetic) | 0001587523-26-000033 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | Institutional Cluster | $33.33 | awaiting T+20 | — | $34.10 (+2.31%) |
Oct 22, 2026 5d ago | 8-K | $32.17 | awaiting T+20 | — | $34.10 (−6.00%) |
Aug 19, 2026 9w ago | Insider Cluster | $34.79 $35.43 | ▲ +1.84% | ▲ +3.79% | $34.10 (−1.98%) |
Aug 18, 2026 10w ago | Insider Cluster | $36.06 $35.09 | ▲ +2.69% | ▲ +0.94% | $34.10 (+5.44%) |
Aug 17, 2026 10w ago | 144 | $38.99 $34.78 | ▼ −10.80% | ▼ −8.82% | $34.10 (−12.54%) |
Aug 14, 2026 10w ago | Insider Cluster | $38.99 $34.78 | ▲ +10.80% | ▲ +8.82% | $34.10 (+12.54%) |
Aug 12, 2026 10w ago | Press Release | $39.02 $35.41 | ▼ −9.25% | ▼ −7.35% | $34.10 (−12.61%) |
May 5, 2026 25w ago | 144 | $33.96 $38.69 | ▲ +13.93% | ▲ +11.15% | $34.10 (+0.41%) |
May 5, 2026 25w ago | 144 | $33.96 $38.69 | ▲ +13.93% | ▲ +11.15% | $34.10 (+0.41%) |
May 1, 2026 25w ago | 144 | $31.93 $37.81 | ▲ +18.42% | ▲ +12.77% | $34.10 (+6.80%) |
US Market Status
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