| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 23 | 47.9x | 17.8x | Bottom tier | |
Growth | 58 | 12.8% | 7.1% | Around median | |
Quality | 58 | 8.1% | 4.5% | Around median | |
Safety | 84 | 0.8x | 2.6x | Top tier | |
Capital Return | 85 | — | 2.12% | Top tier | |
Momentum | 88 | 79.9% | 2.9% | Top tier | |
Sentiment | 23 | 3 | 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.
Knowles Corporation sells high-value electronic components tailored to customer applications and generates revenue through two main segments. The Precision Devices segment supplies capacitors and RF microwave filters for medical technology, defense, industrial, electrification, and energy applications, including MRI machines, defibrillators, radar, military communications, robotics, HVAC equipment, and semiconductor equipment. The Medtech & Specialty Audio segment provides MEMS microphones, balanced armature speakers, and solutions for hearing health devices, selling directly to equipment manufacturers and through distributors such as TTI and Arrow Electronics.
In fiscal Q2 2026, revenue reached $167 million, up 14% year over year and above the high end of the company's guidance, while adjusted earnings per share rose to $0.33, representing 38% growth. Precision Devices generated $98 million in revenue, or about 59% of total revenue, with 25% growth and a 40.1% gross margin; Medtech & Specialty Audio generated $69 million in revenue, or about 41%, with 2% growth and a 53.1% gross margin. The two segments' margins improved by 140 and 250 basis points, respectively, driven by higher capacity utilization and factory productivity gains.
Operating activities generated $28 million in cash in fiscal Q2 2026, compared with capital expenditures of $7 million, and Knowles ended the period with $50 million in cash, $131 million in borrowings, and a net leverage ratio of 0.5 times. The latest trailing 2026 EDGAR data show revenue of $614.1 million, gross profit of $270.1 million, and net income of $53.7 million, compared with revenue of $593.2 million and net income of $44.2 million in fiscal 2025.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $40.67, within a range of $38 to $44, compared with a consensus Buy rating. The average is below the 52-week range's all-time high of $42.93, while the highest target slightly exceeds that high; the breadth of the 52-week range from $20.57 to $42.93 reflects the valuation's sensitivity to Precision Devices' ability to convert strong orders into growth and higher margins while containing the slowdown in Medtech & Specialty Audio.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Knowles' revenue reached approximately $167 million, up 14% year over year, and adjusted earnings per share rose 38% to $0.33. The largest driver was Precision Devices, which grew 25% to $98 million due to demand in medical technology, defense, industrial, and electrification. The segment's orders reached approximately $140 million, with a book-to-bill ratio of 1.4 for the seventh consecutive quarter.
Management estimated the RF filter business at approximately $80 million, about 90% of which comes from defense applications, in addition to approximately $40–50 million in defense capacitors. In July 2026, Knowles received an order worth more than $15 million for a radar application that will ship over 36 months beginning in 2027. The company's products are used in applications including radar, jamming, land and maritime communications, munitions, and detonation devices.
Management expects fiscal 2026 revenue growth of 10%–12% and adjusted EBITDA growth of 20%–24% compared with fiscal 2025 levels. For fiscal Q3 2026, it expects revenue of between $167 million and $177 million and earnings per share of between $0.34 and $0.38. It also expects an adjusted EBIT margin of between 22% and 24% and operating cash flow of between $35 million and $45 million.
Medtech & Specialty Audio's gross margin reached 53.1% in fiscal Q2 2026, up 250 basis points, while the Precision Devices margin reached approximately 40.1%, up 140 basis points. Management expects the Precision Devices margin to reach the low 40% range in the second half of fiscal 2026 due to pricing, mix, and capacity utilization. Over a two- to three-year horizon, management sees a path for the EBITDA margin to approach 30%, compared with its expectation that it will exceed 25% in fiscal 2026.
Medtech & Specialty Audio grew only 2% in fiscal Q2 2026, and management expects Q4 headwinds due to inventory building during the first half. The company also needs to expand capacity with capital expenditures of approximately 5% of revenue, while lead times may reach 20 weeks. Part of the expected defense growth also depends on orders and programs whose impact will not begin until 2027 or late 2027 and 2028.
Knowles ended fiscal Q2 2026 with $50 million in cash and $131 million in borrowings, with net leverage at 0.5 times. Liquidity exceeded $315 million when combining cash and unused capacity under the credit facility. During the same quarter, the company repurchased 416 thousand shares for $15 million, while operating cash flow was $28 million and capital expenditures were $7 million.
