Knowles Corporation reported first‑quarter 2026 revenue of $153.1 million, up 15.8% from the $132.2 million earned in Q1 2025, and non‑GAAP diluted earnings per share of $0.27, beating the consensus estimate of $0.22–$0.24 by $0.03–$0.05 per share. The earnings beat was driven by robust demand in the company’s Precision Devices and MedTech Specialty Audio segments, which together accounted for the majority of the revenue growth.
The Precision Devices segment posted a 19.2% adjusted EBIT margin, while the MedTech Specialty Audio segment reported a 38.7% margin. Both segments saw margin expansion, a result of increased factory capacity utilization, a favorable product mix, and operational efficiencies that the company highlighted during its earnings call. The company’s overall gross margin rose to 45.5% from 40.3% in the prior year, reflecting the same mix and scale benefits.
Compared with the prior quarter, Q1 2026 EPS rose from $0.18 in Q1 2025 to $0.27, a 50% year‑over‑year increase, while Q4 2025 EPS was $0.36. The EPS beat can be attributed to strict cost controls that preserved margins even as revenue grew, and to the company’s ability to shift into higher‑margin products within its core segments. The strong margin performance also helped offset the impact of any one‑time charges that were not material to the quarter’s earnings.
Management guided for second‑quarter 2026 revenue of $152 million to $162 million, with a midpoint of $157 million that exceeds analyst expectations. Non‑GAAP EPS guidance for the quarter is $0.28 to $0.32, again above consensus estimates. The guidance signals confidence in continued demand momentum and the company’s ability to maintain operational leverage as it scales production capacity.
"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," said President and CEO Jeffrey Niew. "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." John Anderson added, "Q1 gross margins were 53.5%, up 480 basis points from the year‑ago period, driven by both increased factory capacity utilization and favorable mix for MedTech and Specialty Audio." Investors welcomed the earnings beat and margin expansion, reflecting confidence in the company’s execution and its strategic focus on high‑growth end markets.
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