Knowles Raises 2026 Revenue Outlook After Third-Quarter Beat

The Tip Desk · October 27, 2026 · 2 min read

The specialty electronic-components maker now estimates 2026 revenue of $689 million, up 16% from 2025, after third-quarter sales of $184.0 million exceeded the high end of its July range.

Knowles Corporation (KN) reported third-quarter revenue of $184.0 million, up 20% from a year earlier, a faster pace than the 14% year-over-year increase in the second quarter. The specialty electronic-components maker said the result exceeded the high end of the $167 million to $177 million range it issued in July.

President and CEO Jeffrey Niew said third-quarter revenue exceeded the high end of guidance, while non-GAAP diluted earnings per share and cash from operations were at the high end of the guided ranges. He said the company delivered growth across Medtech, Defense, Industrial, and Electrification.

Precision Devices book-to-bill remained above one for the eighth consecutive quarter, after seven consecutive quarters above one in the second quarter. Niew said the company expects to continue exceeding the revenue and adjusted EBITDA growth targets presented at its May 2025 Investor Day as it looks toward 2027, citing bookings, new design wins, and secular market trends.

GAAP diluted earnings from continuing operations were $0.24 a share. Non-GAAP diluted earnings from continuing operations were $0.38 a share, at the high end of the $0.34 to $0.38 range issued in July. GAAP gross margin was 44.2% of revenue, down from 44.7% in the second quarter and 45.7% a year earlier. Non-GAAP gross margin was 45.3%. Results included $0.01 a share of restructuring charges and $0.01 a share of production transfer costs; production transfer costs were $1.1 million.

Adjusted EBITDA was $48.3 million, or 26.3% of revenue. Net cash provided by operating activities was $44.6 million, compared with $28.2 million in the second quarter. Adjusted free cash flow was $42.6 million, or 23.2% of revenue.

The company now estimates full-year 2026 revenue of $689 million, up 16% versus 2025. In July its 2026 outlook called for 10-12% revenue growth and more than 20% adjusted EBITDA growth. At the midpoint of the fourth-quarter guided range, Niew said full-year 2026 revenue is expected to grow 16%.

For the quarter ending December 31, 2026, Knowles guides revenue from continuing operations of $180 million to $190 million, non-GAAP diluted earnings of $0.39 to $0.43 a share, and net cash provided by operating activities of $60 million to $70 million. GAAP results for that quarter are expected to include approximately $0.06 a share of stock-based compensation, $0.04 a share of intangibles amortization, $0.02 a share for tax-rate differences, and $0.02 a share of other adjustments, partially offset by $0.06 a share of Syntiant dividend income.