| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 50 | 786.8x | 17.8x | Around median | |
Growth | 82 | 70.1% | 7.1% | Top tier | |
Quality | 60 | 2.8% | 4.5% | Around median | |
Safety | 35 | 5.4x | 2.6x | Bottom tier | |
Capital Return | 24 | 2.92% | 2.12% | Bottom tier | |
Momentum | 63 | 11.8% | 2.9% | Around median | |
Sentiment | 23 | 2 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
HNI Corporation operates through two main segments: Workplace Furnishings and Residential Building Products. The Workplace Furnishings segment benefits from HNI's legacy business and Steelcase, serving projects ranging from small and medium-sized customers to larger contracts, while the Residential Building Products segment relies on the new construction and repair and replacement channels; the company therefore combines demand for office fit-outs with housing-related spending.
In Q2 fiscal 2026, HNI reported revenue of $1.5 billion and gross profit of $647.2 million, equivalent to a gross margin of approximately 43.1%. Net income was $51.1 million, and GAAP diluted earnings per share were $0.70, while adjusted diluted earnings per share were $1.27, up 14% year over year. Total sales increased 121% due to the addition of Steelcase, while organic sales increased only slightly.
The performance mix in Q2 fiscal 2026 varied between the two segments: revenue from the legacy Workplace Furnishings business increased slightly on an organic basis, while Residential Building Products revenue declined 1.6% due to weakness in new construction despite strong growth in repair and replacement. Nevertheless, the operating margin in Residential Building Products expanded 470 basis points to 20.4%, and Steelcase earnings, improved price-cost dynamics, productivity, and expense control contributed to a doubling of operating profit year over year.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus rates HNI shares a "Buy," with a consensus target of $65; the highest and lowest targets both equal $65, so there is no estimate range that can be used to measure differences in opinion. This target is approximately 23% above the high end of the 52-week range of $52.79, while the full range extends from $28.93 to $52.79; however, the risks of weak new construction and execution of the Steelcase integration remain essential when assessing the significance of the optimistic target.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
HNI's revenue in Q2 fiscal 2026 was approximately $1.5 billion, with gross profit of $647.2 million and net income of $51.1 million. Diluted earnings per share were $0.70 on a GAAP basis and $1.27 on an adjusted basis, up 14% year over year. The earnings improvement came from the addition of Steelcase, improved price-cost dynamics, productivity, and expense control, although organic sales growth remained slight.
Steelcase added significant scale to HNI, helping increase total sales by 121% in Q2 fiscal 2026. The company expects integration savings to reach at least $120 million at full maturity, with a project pipeline exceeding that figure. It also expects Steelcase to be modestly accretive to earnings in fiscal 2026 and additional savings to begin improving margins during Q3 and Q4 fiscal 2026.
Organic orders in Workplace Furnishings increased 5% year over year in Q2 fiscal 2026, while the backlog also increased 5%. During the five-week period following quarter-end, order growth exceeded the quarterly average, with stronger acceleration in the contract business. Based on orders, backlog, and the probability-weighted project funnel, HNI expects high-single-digit sales growth in the legacy business during Q3 fiscal 2026.
Segment revenue declined 1.6% year over year in Q2 fiscal 2026 because growth in repair and replacement did not fully offset weakness in new construction. Despite the revenue decline, operating margin expanded 470 basis points to 20.4%. Management expects volumes to decline at a low-single-digit rate in the second half of fiscal 2026, with pricing offsetting this effect and keeping revenue approximately stable.
HNI expects adjusted earnings per share in fiscal 2026 to grow between 20% and 25% compared with $3.46 in fiscal 2025. For Q3 fiscal 2026, the company targets year-over-year adjusted earnings per share growth in the mid-to-high-twenties range. It also expects double-digit growth in fiscal 2027, driven primarily by Steelcase synergies and legacy business network optimization, with cumulative savings exceeding $70 million in 2027.
HNI used free cash flow to reduce net debt by approximately $100 million during Q2 fiscal 2026. Leverage at quarter-end declined to 2.4 times, compared with 2.5 times in the previous quarter. Management expects leverage to return to pre-Steelcase acquisition levels within 18 to 24 months of the transaction's closing in December 2025, with the downward trend continuing throughout fiscal 2026.
