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Viavi Solutions Inc. VIAV wrapped up fiscal 2026 on a strong note, backed by robust demand across the artificial intelligence (AI) data-center ecosystem, aerospace and defense markets and contributions from the acquired Spirent businesses. The company also witnessed substantial margin expansion, highlighting improving operating leverage.Fiscal fourth-quarter revenues surged 52.5% year over year to $443.1 million and surpassed the Zacks Consensus Estimate of $433 million. Adjusted earnings jumped 161.5% year over year to 34 cents per share, beating the consensus estimate of 30 cents by 13.3%. VIAV surpassed the consensus mark for earnings and revenues in each of the past four quarters.Management expects the momentum to extend into fiscal 2027. Let us delve a little deeper into the factors that make VIAV an attractive investment proposition following its solid fiscal fourth-quarter performance. Viavi's expanding exposure to AI and hyperscale data centers is emerging as one of its most important growth drivers. Network and Service Enablement (NSE) revenues soared 69.2% year over year to $353.9 million in the fiscal fourth quarter, supported by demand for lab, production and field-testing products, aerospace and defense solutions and the acquired Spirent portfolio.The data-center ecosystem now accounts for roughly half of NSE revenues, reflecting the rapid transformation of VIAV's revenue mix away from its historical dependence on telecom service-provider spending. Management expects robust data-center growth to continue over the next several quarters.The company has also expanded its AI-networking portfolio through products such as the Ultra Ethernet Transport validation platform and the CyberFlood CF1000 400G security and application-performance testing platform. These solutions enable Viavi to benefit as hyperscalers, cloud operators and networking vendors deploy increasingly complex, high-bandwidth AI infrastructure. The acquisition of selected Spirent Communications businesses has significantly expanded Viavi's addressable market and technological capabilities. It has strengthened the company's position in high-speed Ethernet testing, network security, channel emulation and enterprise network validation while creating cross-selling opportunities across its existing customer base.Spirent's contribution should increase in the near term. Management expects the acquired business to grow roughly 10% sequentially in the September quarter, while December is typically its strongest quarter because of favorable seasonality.The combination of Viavi's optical and network-testing capabilities with Spirent's Ethernet, cybersecurity and network-validation assets provides a broader platform for addressing the increasingly sophisticated testing requirements associated with AI clusters, cloud networks and next-generation communications infrastructure. Viavi's diversification beyond traditional telecom customers is another positive. The aerospace and defense business delivered another quarter of strong year-over-year growth, driven particularly by healthy demand for positioning, navigation and timing (PNT) products.Management expects PNT to remain a multi-year growth driver for its aerospace and defense operations. This market provides VIAV with exposure to government and defense modernization spending and reduces dependence on more cyclical carrier capital expenditures. The combination of AI data centers and aerospace and defense has materially changed the company's growth profile, providing greater diversification and improving revenue visibility. Viavi has surged 244.1% in the past year compared with the industry’s growth of 189.1%. It has outperformed peers like Knowles Corporation KN and Airgain, Inc. AIRG. While Airgain has gained 25.3%, Knowles soared 59% over this period. One-Year VIAV Stock Price Performance Image Source: Zacks Investment Research Management's first-quarter fiscal 2027 outlook reinforces the bullish growth narrative. VIAV expects revenues between $450 million and $460 million, above the $443.1 million recorded in the fiscal fourth quarter. Non-GAAP earnings are projected between 40 cents and 42 cents per share, representing another healthy sequential increase from 34 cents in the June quarter.Management has also become more optimistic about Viavi's longer-term revenue trajectory. Given the current pace of growth, the company believes it could reach quarterly revenues of more than $500 million sometime during calendar 2027, earlier than its previous expectation of achieving that level near the end of fiscal 2028. Viavi entered fiscal 2027 with considerable momentum. Strong AI data-center spending and the expanding Spirent portfolio should support continued growth in the NSE segment. At the same time, healthy aerospace and defense demand provides another secular growth avenue.The upbeat first-quarter outlook adds further visibility to the growth story. Investors seeking exposure to the rapidly expanding AI networking and high-speed optical testing ecosystem may consider betting on VIAV for further upside. Viavi currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Viavi Solutions Inc. (VIAV) : Free Stock Analysis Report Knowles Corporation (KN) : Free Stock Analysis Report Airgain, Inc. (AIRG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the electronic components & manufacturing stocks, including Knowles (NYSE:KN) and its peers. The sector could see higher demand as the prevalence of advanced electronics increases in industries such as automotive, healthcare, aerospace, and computing. The high-performance components and contract manufacturing expertise required for autonomous vehicles and cloud computing datacenters, for instance, will benefit companies in the space. However, headwinds include geopolitical risks, particularly U.S.-China trade tensions that could disrupt component sourcing and production as the Trump administration takes an increasingly antagonizing stance on foreign relations. Additionally, stringent environmental regulations on e-waste and emissions could force the industry to pivot in potentially costly ways. The 10 electronic components & manufacturing stocks we track reported an exceptional Q2. As a group, revenues beat analysts’ consensus estimates by 4% while next quarter’s revenue guidance was 6% above. Thankfully, share prices of the companies have been resilient as they are up 6.1% on average since the latest earnings results. With roots dating back to 1946 and a focus on components that must perform flawlessly in critical situations, Knowles (NYSE:KN) designs and manufactures specialized electronic components like high-performance capacitors, microphones, and speakers for medical technology, defense, and industrial applications. Knowles reported revenues of $166.8 million, up 14.3% year on year. This print exceeded analysts’ expectations by 6.3%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ EPS guidance for next quarter estimates and revenue guidance for next quarter exceeding analysts’ expectations. “We delivered second quarter revenues exceeding the high end of our guided range. Non-GAAP diluted EPS was above the high end of our guided range and cash from operations was within the guided range,” commented Jeffrey Niew, President and CEO of Knowles. Knowles pulled off the biggest analyst estimate beat among its peers. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 2.6% since reporting and currently trades at $37.81. Is now the time to buy Knowles? Access our full analysis of the earnings results here, it’s free. With over 90 years of connecting the world's technologies, Amphenol (NYSE:APH) designs and manufactures connectors, cables, sensors, and interconnect systems that enable electrical and electronic connections across virtually every industry. Amphenol reported revenues of $8.76 billion, up 55% year on year, outperforming analysts’ expectations by 5.6%. The business had an incredible quarter with a solid beat of analysts’ EPS guidance for next quarter estimates and revenue guidance for next quarter exceeding analysts’ expectations. Amphenol pulled off the fastest revenue growth in the group. The market seems happy with the results as the stock is up 15.5% since reporting. It currently trades at $166.18. Is now the time to buy Amphenol? Access our full analysis of the earnings results here, it’s free. With roots dating back to 1832, making it one of America's oldest continuously operating companies, Rogers (NYSE:ROG) designs and manufactures specialized engineered materials and components used in electric vehicles, telecommunications, renewable energy, and other high-performance applications. Rogers reported revenues of $216.8 million, up 6.9% year on year, exceeding analysts’ expectations by 0.8%. Still, it was a mixed quarter as it posted a significant miss of analysts’ EPS estimates. Rogers delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 15.6% since the results and currently trades at $137.78. Read our full analysis of Rogers’s results here. With roots dating back to 1896 and a global manufacturing footprint, CTS (NYSE:CTS) designs and manufactures sensors, connectivity components, and actuators for aerospace, defense, industrial, medical, and transportation markets. CTS reported revenues of $144.8 million, up 7% year on year. This number beat analysts’ expectations by 0.9%. Overall, it was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates. CTS had the weakest full-year guidance update among its peers. The stock is up 4.7% since reporting and currently trades at $63.26. Read our full, actionable report on CTS here, it’s free. With over 20,000 team members across 26 global facilities, Plexus (NASDAQ:PLXS) designs, manufactures, and services complex electronic products for companies in aerospace/defense, healthcare, and industrial sectors. Plexus reported revenues of $1.30 billion, up 28.1% year on year. This result surpassed analysts’ expectations by 5.8%. It was a stunning quarter as it also produced a solid beat of analysts’ EPS guidance for next quarter estimates and revenue guidance for next quarter exceeding analysts’ expectations. The stock is up 9.9% since reporting and currently trades at $264.20. Read our full, actionable report on Plexus here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Knowles delivered a strong Q2, with revenue growth driven by broad-based demand across its Precision Devices and Medtech & Specialty Audio segments. Management highlighted that all core end markets—medtech, defense, industrial, and electrification—posted gains, citing robust design wins and a healthy backlog. CEO Jeffrey Niew called out the company’s ability to secure multiyear defense orders and ramp up production for industrial and energy applications. The continued outperformance in Precision Devices was supported by both original equipment manufacturer (OEM) and distribution channel partners, while Medtech saw steady growth despite some inventory-related headwinds. Factory productivity gains and improved product mix contributed to margin expansion, and management emphasized that bookings were particularly strong, setting the stage for continued momentum. Is now the time to buy KN? Find out in our full research report (it’s free). Revenue: $166.8 million vs analyst estimates of $157 million (14.3% year-on-year growth, 6.3% beat) Adjusted EPS: $0.33 vs analyst estimates of $0.31 (8.2% beat) Adjusted EBITDA: $41.8 million vs analyst estimates of $38 million (25.1% margin, 10% beat) Revenue Guidance for Q3 CY2026 is $172 million at the midpoint, above analyst estimates of $163.5 million Adjusted EPS guidance for Q3 CY2026 is $0.36 at the midpoint, above analyst estimates of $0.34 Operating Margin: 15.2%, up from 12.3% in the same quarter last year Market Capitalization: $2.95 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Christopher Rolland (Susquehanna): Asked about the sequential growth outlook and moving parts in the Medtech & Specialty Audio segment. CEO Jeffrey Niew explained that Q4 will see slower growth in Medtech & Specialty Audio due to earlier inventory build, while Precision Devices should maintain momentum. Christopher Rolland (Susquehanna): Inquired about pricing dynamics and the impact of broader market tightness in passive components. Niew responded that Knowles’ products are less commoditized, allowing for stronger annual price increases this year amid robust demand. Bob Labick (CJS Securities): Sought clarity on drivers behind Precision Devices’ growth outside energy and the sustainability of recent order trends. Niew said growth was broad-based across markets and products, highlighting strong bookings and design wins. Bob Labick (CJS Securities): Asked about the M&A environment and Knowles’ appetite for acquisitions given strong organic growth. Niew said the company remains selective with M&A, focusing on opportunities that enhance core platforms, while Anderson noted ongoing share repurchases and debt reduction. Anthony Stoss (Craig-Hallum): Requested details on defense segment composition, especially the split between RF filters and capacitors. Niew clarified that filters are the larger contributor, with most filter revenue tied to defense, and described visibility into multiyear growth from new program awards. In the coming quarters, the StockStory team will watch (1) the pace of large defense-related order intake and how quickly those translate into shipments; (2) evidence of sustained margin gains from improved pricing and product mix, particularly in Precision Devices; and (3) progress on capacity expansion and design wins in new industrial and energy applications. Continued execution on capital allocation and updates on potential acquisitions will also be key areas of focus. Knowles currently trades at $35.80, down from $38.81 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by broad-based organic growth across core markets, with Precision Devices (PD) revenue increasing 25% year-over-year due to strong demand in medtech, defense, and industrial sectors. The company is successfully transitioning into an industrial tech entity, leveraging high-value custom-engineered solutions for blue-chip customers in high-growth markets. Defense market growth is outpacing 2025 expectations, fueled by global conflicts and a specific surge in electronic warfare spending where Knowles serves as a sole-source supplier for key programs. Industrial demand remains robust across factory robotics and HVAC sectors, with the company seeing strong design wins through both direct OEM channels and distribution partners. The Medtech & Specialty Audio (MSA) segment achieved 53.1% gross margins, a 250 basis point improvement driven by factory productivity gains despite more modest 2% revenue growth. Management attributes the overall success to a period of 'accelerated organic growth,' with the book-to-bill ratio in the Precision Devices segment reached 1.4, indicating sustained demand beyond initial projections. Full-year 2026 revenue growth guidance has been raised to 10% to 12%, significantly exceeding the original Investor Day target of 4% to 6%. Management expects Precision Devices gross margins to reach the low 40% range in the second half of 2026, supported by favorable pricing actions and increased factory utilization. Capital spending is projected at 5% of revenue to expand capacity in the PD segment to meet strong multiyear order visibility, particularly in defense and energy applications. The company anticipates a path to 30% EBITDA margins over the next 2 to 3 years through a combination of gross margin expansion and operating leverage. Defense growth is expected to accelerate further in the midterm (late 2027-2028) as allies increase spending and the U.S. begins replenishment of munitions and electronic warfare stocks. The previously announced energy order is now fully ramped, contributing over $5 million in Q2 with production yields performing better than originally planned. A $15 million-plus multiyear order for a radar application was secured in July, with shipments scheduled to span 36 months starting in 2027. Management is maintaining a selective M&A strategy, prioritizing '1 plus 1 equals 3' opportunities that complement existing growth platforms like the Micro Solutions Group. Inventory building in the MSA segment during the first half of the year is expected to result in a sequential growth headwind for that specific segment in Q4. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that pricing actions taken today often take 20 weeks to hit the P&L due to lead times, suggesting margin benefits will carry into 2027. Unlike commoditized passive components, Knowles' sole-source positions allow for annual price increases that do not typically fluctuate downward with market cycles. The defense business is weighted more toward RF filters (approximately $80 million) than capacitors (approximately $40 million to $50 million). Visibility is extending to 24-36 months as customers seek to secure capacity for anticipated volume increases of 2x to 4x in key missile and electronic warfare programs. While organic growth is the current priority, the company remains active in M&A with three full-time internal staff evaluating deals. In the absence of immediate M&A, the company will prioritize share repurchases and paying down its $131 million in revolving credit debt.

This article first appeared on GuruFocus. Revenue: $167 million, up 14% year over year. EPS: $0.33, up 38% year over year. Cash from Operations: $28 million. Medtech and Specialty Audio Revenue: $69 million, up 2% year over year. Precision Devices Revenue: $98 million, up 25% year over year. Gross Margin (Medtech and Specialty Audio): 53.1%, up 250 basis points. Gross Margin (Precision Devices): 40.1%, up 140 basis points. R&D Expense: $9 million. SG&A Expenses: $31 million, up $3 million from prior year. Interest Expense: $2 million, down $1 million from prior year. Cash Balance: $50 million. Borrowings: $131 million under revolving credit facility. Net Leverage Ratio: 0.5 times. Q3 Revenue Guidance: $167 million to $177 million. Q3 EPS Guidance: $0.34 to $0.38 per share. Q3 Cash from Operations Guidance: $35 million to $45 million. Warning! GuruFocus has detected 3 Warning Sign with KN. Is KN fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Knowles Corp (NYSE:KN) reported a 14% year-over-year increase in revenue for Q2, reaching $167 million, which exceeded the high end of their guidance range. Earnings per share (EPS) rose by 38% year-over-year to $0.33, surpassing the high end of the guidance range. The Precision Devices segment saw a significant 25% year-over-year revenue growth, driven by increased demand across medtech, defense, industrial, and electrification markets. The company reported strong cash generation from operations, totaling $28 million, which was above the midpoint of their guidance range. Knowles Corp (NYSE:KN) has a healthy backlog and strong order activity, with a book-to-bill ratio of 1.4, marking the seventh consecutive quarter with a ratio greater than 1. The Medtech and Specialty Audio segment only grew by 2% year-over-year, which is relatively modest compared to other segments. There is a potential headwind in the Medtech and Specialty Audio segment for Q4 due to inventory building in the first half of the year. The company faces risks and uncertainties that could cause actual results to differ materially from current expectations, as highlighted in their forward-looking statements. Interest expense for the quarter was $2 million, although it was down from the previous year, it still represents a cost burden. The company has $131 million of borrowings outstanding under their revolving credit facility, which could impact financial flexibility. Q: Congrats on the quarter. For the fourth quarter, growth seems a bit lower than expected. Can you discuss the moving parts for Q4 and any insights on Q3? A: Jeffrey Niew, CEO: We expect sequential growth from Q3 to Q4. The MSA segment had strong growth in Q1, leading to a headwind in Q4, but the PD segment will continue to grow. The 10% to 12% growth for the year is comfortable, with MSA expected to grow 2% to 4% annually. Q: Regarding the passives market, is there any spillover into your market, and how is the pricing dynamic? A: Jeffrey Niew, CEO: Demand is stronger in the second half, especially in industrial, medtech, and defense. We raise prices annually in the PD segment, and the pricing environment is stronger this year, allowing for more pronounced price increases. Q: Can you discuss the drivers of the strong growth in the PD segment and the cadence for energy and remaining PD business? A: Jeffrey Niew, CEO: The PD segment saw broad-based growth across markets. We received nearly $140 million in orders in Q2, up from Q1. The growth is sustainable and not driven by transient orders. Bookings remain strong, indicating continued growth. Q: With strong organic growth, is M&A taking a back seat, or are there opportunities in the market? A: Jeffrey Niew, CEO: We are selective with M&A, looking for additive opportunities. We have strong organic growth platforms and are generating significant cash. If the right deal arises, we will pursue it. John Anderson, CFO: Absent M&A, we will continue share buybacks and debt reduction. Q: Can you provide more color on the military defense side, especially regarding filters versus capacitors? A: Jeffrey Niew, CEO: Filters are a larger portion of defense revenue. We see significant growth potential in defense, with increased visibility and multiyear orders. Factors driving growth include potential increases in defense budgets, replenishment of stocks, and increased spending by U.S. allies. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Knowles Corporation? Here are five stocks we like better. Knowles beat Q2 guidance with revenue of $167 million, up 14% year over year, and non-GAAP EPS of $0.33, up 38%. Management said demand was broad-based, with strength in both Precision Devices and MedTech & Specialty Audio. Precision Devices was the main growth driver, posting $98 million in revenue, up 25%, and a book-to-bill ratio of 1.4 for the seventh straight quarter above 1. The company highlighted strong defense, industrial, MedTech and electrification demand, including a more than $15 million radar order expected to ship over 36 months. Guidance was raised above prior targets, with full-year 2026 revenue now expected to grow 10% to 12% and adjusted EBITDA 20% to 24%. Knowles also pointed to improving margins, strong cash flow, and increased defense demand visibility as reasons for optimism. These 3 Stocks Just Got Upgraded—and Could Keep Climbing Knowles (NYSE:KN) reported second-quarter 2026 results above its guidance range, with management pointing to broad-based demand across its Precision Devices business and steady performance in MedTech & Specialty Audio. President and CEO Jeffrey Niew said the company delivered “another quarter of strong, broad-based organic growth” and is seeing momentum in newer growth platforms that could support expansion in 2027 and beyond. The company reported second-quarter revenue of $167 million, up 14% from the prior year, and non-GAAP earnings per share of $0.33, up 38% year over year. Cash generated from operations was $28 million. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Why Goldman Sachs Suddenly Boosted These 3 Trucking Stocks All financial references on the call were presented on a non-GAAP continuing operations basis, except for cash from operations, according to Sarah Cook, vice president of investor relations. Knowles’ Precision Devices segment posted revenue of $98 million, up 25% from the year-earlier period. Niew said all of the segment’s end markets — MedTech, defense, industrial and electrification — grew year over year. → 3 Photonics Companies Making Quantum Tech Possible Update! What Is Congress Trading So Far In 2025? In MedTech, growth was supported by sales across applications including defibrillators and MRI machines. In defense, Niew said RF microwave products continued to support growth across communications applications. He also noted that more defense customers are seeking multi-year orders to secure capacity. As one example, Niew said the company received an order of more than $15 million in early July for a radar application, expected to ship over 36 months starting in 2027. He said Knowles intends to continue identifying large multi-year orders as they are received. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off The company also reported significant growth in industrial sales, with demand from both distribution partners and original equipment manufacturers. Niew cited strong sales tied to a new product introduction in the HVAC repair market. In electrification, Knowles delivered more than $5 million against a previously announced energy order and said it was fully ramped heading into the third quarter, with yields better than planned. Precision Devices posted a book-to-bill ratio of 1.4, marking the seventh consecutive quarter above 1. Niew said orders in the segment were nearly $140 million in the quarter, above first-quarter bookings. The MedTech & Specialty Audio segment generated second-quarter revenue of $69 million, up 2% year over year and slightly better than expected. Niew said Knowles continues to expect the hearing health market to grow at historical rates in 2026. He said the company remains positioned to win next-generation designs for MEMS microphones and balanced armature speakers, and he expects Knowles to increase content per device in future hearing health products. Niew also cited the Micro Solutions Group as a platform that could expand the company’s reach and support growth above historical segment rates in the future. During the question-and-answer portion of the call, Niew said the MedTech & Specialty Audio segment had a strong first quarter and that inventory building in the first half of the year is expected to create a headwind in the fourth quarter. He said the segment is still expected to grow in the 2% to 4% range for the full year, adding that recent hearing aid industry data could suggest the end market is closer to the high end of that range, though he said it was too early to draw firm conclusions. Chief Financial Officer John Anderson said gross margins in MedTech & Specialty Audio were 53.1%, up 250 basis points from the prior-year quarter, driven by factory productivity gains. Precision Devices gross margins were 40.1%, up 140 basis points from the second quarter of 2025, largely due to higher production volume and increased factory capacity utilization. Anderson said Knowles delivered more than 200 basis points of year-over-year gross margin improvement in Precision Devices during the first half of 2026 and expects further improvement in the second half of the year from higher pricing, favorable mix and increased factory capacity utilization. Companywide, research and development expense was $9 million, up slightly from the year-earlier period due to higher project spending in both segments. Selling, general and administrative expenses were $31 million, up $3 million, primarily due to higher sales commissions, annual merit increases and expenses tied to new product initiatives. Interest expense was $2 million, down $1 million from the prior year because of lower average debt balances. Knowles repurchased 416,000 shares during the quarter at a total cost of $15 million. The company ended the quarter with $50 million in cash and $131 million of borrowings outstanding under its revolving credit facility. Anderson said Knowles had a net leverage ratio of 0.5 times trailing 12-month adjusted EBITDA and liquidity of more than $315 million, measured as cash plus unused revolver capacity. For the third quarter of 2026, Knowles expects revenue of $167 million to $177 million, representing year-over-year growth of 12.5% at the midpoint. The company projected adjusted EBIT margin of 22% to 24%, interest expense of $2 million and an effective tax rate of 15% to 19%. Third-quarter EPS is expected to range from $0.34 to $0.38, up 9% year over year at the midpoint, based on 87 million fully diluted weighted average shares outstanding. Knowles expects cash from operations of $35 million to $45 million and capital spending of $10 million in the quarter. For the full year, management now expects revenue growth of 10% to 12% and adjusted EBITDA growth of 20% to 24% over 2025 levels. Anderson said both metrics are well above the high end of the target ranges provided at the company’s May 2025 Investor Day. The company expects full-year capital spending to be about 5% of revenue as it invests in capacity for Precision Devices. Niew said Knowles’ end-market outlook has improved since its Investor Day, particularly in defense and industrial. He said defense demand is growing faster than management anticipated in May 2025, supported by global conflicts and increased spending on electronic warfare. He cited RF filters and capacitors used in communications, radar detection and jamming, munitions and other harsh applications. In response to a question from Anthony Stoss of Craig-Hallum, Niew said Knowles has increased visibility in defense, with more customers seeking capacity commitments for the next 24 to 36 months. Anderson said the filter business is roughly $80 million, with about 90% tied to defense, while Niew and Anderson estimated defense-related capacitor revenue at roughly $40 million to $50 million. Niew also said potential drivers of future defense growth include a larger U.S. defense budget, replenishment of missile and munition stocks and increased defense spending by U.S. allies. He said quote activity, design activity and orders are “super high,” with a possibility of acceleration in the market about a year from now. On mergers and acquisitions, Niew said Knowles is not taking a back seat but is being selective, looking for deals that would be additive to the company’s existing platforms. Anderson said that absent M&A, the company will continue its capital allocation program, including share repurchases and debt reduction. Knowles Corporation (NYSE: KN) is a leading developer and manufacturer of advanced micro-acoustic, audio processing and precision device solutions. The company's product portfolio includes microelectromechanical systems (MEMS) microphones, balanced armature receivers, acoustic filters, and custom audio processing integrated circuits. These solutions are designed to enable clear speech, enhanced voice capture and intelligent audio performance in a variety of end markets. Founded in 1946, Knowles has evolved from its roots in vacuum tube components to become a pure-play audio technology provider following its spin-off from Dover Corporation in 2014. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Knowles Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Electronic components manufacturer Knowles (NYSE:KN) announced better-than-expected revenue in Q2 CY2026, with sales up 14.3% year on year to $166.8 million. On top of that, next quarter’s revenue guidance ($172 million at the midpoint) was surprisingly good and 5.2% above what analysts were expecting. Its non-GAAP profit of $0.33 per share was 8.2% above analysts’ consensus estimates. Is now the time to buy Knowles? Find out in our full research report. Revenue: $166.8 million vs analyst estimates of $157 million (14.3% year-on-year growth, 6.3% beat) Adjusted EPS: $0.33 vs analyst estimates of $0.31 (8.2% beat) Adjusted EBITDA: $41.8 million vs analyst estimates of $38 million (25.1% margin, 10.0% beat) Revenue Guidance for Q3 CY2026 is $172 million at the midpoint, above analyst estimates of $163.5 million Adjusted EPS guidance for Q3 CY2026 is $0.36 at the midpoint, above analyst estimates of $0.34 Operating Margin: 14.8%, up from 12.3% in the same quarter last year Free Cash Flow Margin: 13.7%, down from 27.1% in the same quarter last year Market Capitalization: $3.13 billion “We delivered second quarter revenues exceeding the high end of our guided range. Non-GAAP diluted EPS was above the high end of our guided range and cash from operations was within the guided range,” commented Jeffrey Niew, President and CEO of Knowles. With roots dating back to 1946 and a focus on components that must perform flawlessly in critical situations, Knowles (NYSE:KN) designs and manufactures specialized electronic components like high-performance capacitors, microphones, and speakers for medical technology, defense, and industrial applications. Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. With $635 million in revenue over the past 12 months, Knowles is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels. As you can see below, Knowles’s demand was weak over the last five years. Its sales fell by 5.7% annually, a rough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Knowles’s annualized revenue growth of 3.6% over the last two years is above its five-year trend, which is encouraging. This quarter, Knowles reported year-on-year revenue growth of 14.3%, and its $166.8 million of revenue exceeded Wall Street’s estimates by 6.3%. Company management is currently guiding for a 12.5% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 5.2% over the next 12 months, an improvement versus the last two years. This projection is above the sector average and indicates its newer products and services will spur better top-line performance. ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all. Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE. Adjusted operating margin is a key measure of profitability. Think of it as net income (the bottom line) excluding the impact of non-recurring expenses, taxes, and interest on debt - metrics less connected to business fundamentals. Knowles’s adjusted operating margin has risen over the last 12 months and averaged 16.1% over the last five years. On top of that, its profitability was top-notch for a business services business, showing it’s a well-run company with an efficient cost structure. Looking at the trend in its profitability, Knowles’s adjusted operating margin might have fluctuated slightly but has generally stayed the same over the last five years, highlighting the consistency of its expense base. This quarter, Knowles generated an adjusted operating margin profit margin of 18.5%, up 1.9 percentage points year on year. This increase was a welcome development and shows it was more efficient. Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions. Knowles’s flat EPS over the last five years was weak but better than its 5.7% annualized revenue declines. This tells us management adapted its cost structure. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Knowles, its two-year annual EPS growth of 11.9% was higher than its five-year trend. Accelerating earnings growth is almost always an encouraging data point. In Q2, Knowles reported adjusted EPS of $0.33, up from $0.24 in the same quarter last year. This print beat analysts’ estimates by 8.2%. Over the next 12 months, Wall Street expects Knowles’s full-year EPS to grow 12% from $1.29 to $1.44. We were impressed by how significantly Knowles blew past analysts’ EPS guidance for next quarter expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a solid print. The stock remained flat at $39.03 immediately after reporting. Indeed, Knowles had a rock-solid quarterly earnings result, but is this stock a good investment here? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.

(Bloomberg) -- Intel Corp. is expected to report strong second-quarter earnings after the market close Thursday, but even blowout results likely won’t be enough to reverse the stock’s July slide. Most Read from Bloomberg Retina Chip Designed to Restore Sight to Go on Sale in Europe Hegseth Turns to UNC, Virginia Tech After Dropping Ivy League Apple Plans Overhaul of MacBooks, iMac in Push to Meet AI Demand Trump’s 100% Generic Drug Duty Threatens US Low-Cost Supply Apple to Launch ‘Upgrade’ Device Leasing Program With Klarna to Spur Sales The shares are down 27% this month, putting them among the 10 worst performers in the S&P 500 Index, after soaring 278% in the first half for the third-best performance in the broad equities benchmark. The move comes as investors are suddenly selling this year’s winners and souring on chipmakers in particular. The Philadelphia Stock Exchange Semiconductor Index, or SOX, has lost 13% this month and briefly sank into a bear market last week before recovering somewhat. “How investors feel about the semiconductor space is going to call what Intel does here more than what Intel tells you,” said Matt Bryson of Wedbush Securities. “The stock move has been more of a sentiment shift necessarily than being supported by kind of real shifts in earnings power.” Wall Street expects Intel to post a 12% increase in second-quarter revenue to $14.4 billion and earnings of 12 cents per share, reversing a loss of 67 cents a year ago. Gross margins are projected to be about 39%, up from nearly 30% in the same quarter last year. “It’s not that Intel hasn’t gotten better,” Bryson said. “Just it hasn’t gotten better at the same rate that the stock has gotten better.” Intel shares have gained 178% in 2026, putting them on pace for their best year ever in data going back to 1983. That’s the second-strongest showing in the SOX, which has risen 75% this year and is heading for its best annual performance since 2003. The stock took off in early April and kept running, eventually eclipsing its dot-com era high, as the company joined Elon Musk’s Terafab project, issued a blockbuster forecast and President Donald Trump touted a deal with Apple Inc. to design and produce chips in the US. But enthusiasm for semiconductors is starting to fizzle as investors grow concerned about how long the heavy spending on artificial intelligence can last. And that pessimism is now looming over Intel’s results. During its earnings call on Wednesday, Alphabet Inc., one of the biggest AI spenders, raised its outlook for capital expenditures this year to between $195 billion and $205 billion from its previous expectation of $180 billion to $190 billion. Last week’s disappointing market reaction to a strong print from Taiwan Semiconductor Manufacturing Co., the main chipmaker for Nvidia Corp., demonstrates the challenges facing Intel’s stock heading into this report. TSMC increased its revenue and spending outlooks for the year, reflecting confidence in demand for chips and data centers in 2027 and beyond. And yet the company’s American depositary receipts fell. Of course, Intel’s report is likely to offer encouraging signs for investors. There’s strong demand from data center operators for central processing unit chips, known as CPUs, which Intel makes, to the point where there are concerns about whether supply can keep up. Wall Street is also hoping Intel will name more clients for its foundry business, with analysts closely watching its capital expenditures for clues that it has secured new customers. In addition, positive updates on a deal with Apple or the Terafab commitment could give the shares a boost, according to Kim Forrest, founder and chief investment officer of Bokeh Capital Partners. “If those announcements still feel like they’re going forward in the timeline originally outlined, I think the stock reacts well in the shorter term,” she said. The shares got a lift Tuesday when the company confirmed that it will cut jobs in its data center group as part of its effort to reduce costs. But even with healthy earnings and shares well off a record high, Intel may not have much more room to rise because it’s gotten too expensive. The stock is priced at about 74 times earnings over the next 12 months, an extreme premium to its 10-year average of 22. That’s the third highest multiple in the semiconductor index, blowing away rivals like Nvidia, which is priced at less than 20 times forward earnings, and Broadcom Inc. at 23 times. The SOX trades at 23 times projected earnings, and the S&P 500 is at 20 times. “This is a stock where the market is getting ahead of itself, at least on the valuation side,” said Thomas George, portfolio manager at Grizzle Investment Management, which owns Intel shares. “The added hurdle for Intel is its own demanding valuation.” Tech Chart of the Day Top Tech Stories Alphabet raised its capital spending forecast to as much as $205 billion this year, reigniting concerns about a lack of fiscal discipline in the race to dominate artificial intelligence. Tesla Inc.’s profit tumbled despite a strong quarter for its automotive business, pressuring Elon Musk’s plan to refocus the electric vehicle maker on artificial intelligence and robots. Uber Technologies Inc. said it has cut 10% of jobs within its customer service operations as part of a broader effort to simplify its ranks and “embrace artificial intelligence.” Micron Technology Inc. recently gave Tesla Inc. a “significant allocation” of memory chips, according to Elon Musk, helping meet the automaker’s demand for an increasingly precious commodity. International Business Machines Corp. cut its full-year sales outlook, including for its closely watched software unit, after reporting a dip in demand for its mainframe business. Earnings Due Earnings Postmarket: --With assistance from Neil Campling, Subrat Patnaik and David Watkins. Most Read from Bloomberg Businessweek The Bitcoin Slump Is Crushing Companies That Stockpiled Tokens How China’s ‘Temu Range Rover’ Became Britain’s Top-Selling Car Van Leeuwen’s Path From a Single Ice Cream Truck to a Dessert Giant Credit Card Holders Are Using ‘Friendly Fraud’ to Get Back at Retailers For Software Engineers, the AI Reckoning Is Already Here ©2026 Bloomberg L.P.

Knowles (KN) came out with quarterly earnings of $0.33 per share, beating the Zacks Consensus Estimate of $0.3 per share. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +10.00%. A quarter ago, it was expected that this maker acoustic components such as microphones would post earnings of $0.23 per share when it actually produced earnings of $0.27, delivering a surprise of +17.39%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Knowles, which belongs to the Zacks Communication - Components industry, posted revenues of $166.8 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.99%. This compares to year-ago revenues of $145.9 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Knowles shares have added about 70.8% since the beginning of the year versus the S&P 500's gain of 9.6%. While Knowles has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Knowles was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.34 on $164.2 million in revenues for the coming quarter and $1.30 on $642.5 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Communication - Components is currently in the top 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Corning (GLW), is yet to report results for the quarter ended June 2026. The results are expected to be released on July 28. This specialty glass maker is expected to post quarterly earnings of $0.76 per share in its upcoming report, which represents a year-over-year change of +26.7%. The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level. Corning's revenues are expected to be $4.6 billion, up 13.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Knowles Corporation (KN) : Free Stock Analysis Report Corning Incorporated (GLW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Q2 Revenues Increased 14% on a Year over Year Basis to $167 million Q2 Diluted EPS from Continuing Operations increased $0.12 on a Year over Year Basis to $0.21 Q2 Non-GAAP Diluted EPS from Continuing Operations Increased 38% on a Year over Year Basis to $0.33 Q2 Net Cash from Operations was $28 million ITASCA, Ill., July 23, 2026--(BUSINESS WIRE)--Knowles Corporation (NYSE: KN), a leading manufacturer of specialty electronic components, including high performance capacitors, radio frequency ("RF") filters, advanced medtech microphones, and balanced armature speakers, today announced results for the quarter ended June 30, 2026. "We delivered second quarter revenues exceeding the high end of our guided range. Non-GAAP diluted EPS was above the high end of our guided range and cash from operations was within the guided range," commented Jeffrey Niew, President and CEO of Knowles. Mr. Niew continued, "I am very pleased with the Company's performance in the first half of 2026. Within the Precision Devices segment, we saw year over year revenue growth across all our end markets: Medtech, Defense, Industrial, and Electrification, as we execute our strategy of leveraging our unique technologies, creating custom products through our customer application intimacy, and then scaling into production with our world-class operational capabilities. Our total company revenue grew 14% on a year over year basis in the second quarter and this was our seventh consecutive quarter where the book to bill was greater than one." "With our bookings increasing every quarter over the past twelve months, numerous new design wins ramping across multiple end markets, and a very healthy backlog of existing orders, we now expect 2026 revenues will grow at a rate of 10-12% with adjusted EBITDA growth of more than 20%," stated Mr. Niew. Continuing, Mr. Niew said, "Looking ahead to 2027, given the magnitude of our bookings coupled with strong long-term secular growth trends in the markets we participate in, I expect we will exceed the organic growth targets we presented at our May 2025 Investor Day. I am excited about the growth opportunities that lie ahead and am confident in our ability to continue to drive long-term value for our shareholders." Financial Highlights The following table highlights the Company’s financial performance on both a GAAP and supplemental non-GAAP basis for continuing operations* with the exception of Net cash provided by operating activities (in millions, except per share data): Third Quarter 2026 Outlook The forward looking guidance for the quarter ending September 30, 2026 on a continuing operations basis, with the exception of Net cash provided by operating activities, is as follows: Q3 2026 GAAP results from continuing operations are expected to include approximately $0.06 per share in stock-based compensation expense, $0.04 per share in intangibles amortization expense, and $0.02 per share for differences related to the GAAP effective tax rate. These items are excluded from non-GAAP results. Non-GAAP Financial Measures In addition to the GAAP results included in this press release, Knowles has presented supplemental non-GAAP gross profit, earnings before interest and income taxes, adjusted earnings before interest and income taxes, earnings before interest, income taxes, depreciation, and amortization, adjusted earnings before interest, income taxes, depreciation, and amortization, non-GAAP diluted earnings per share, free cash flow, as well as other metrics on a non-GAAP basis that exclude certain amounts that are included in the most directly comparable GAAP measure to facilitate evaluation of Knowles’ operating performance. Non-GAAP results are not presented in accordance with GAAP. Non-GAAP information should be considered a supplement to, and not a substitute for, financial statements prepared in accordance with GAAP. In addition, the non-GAAP financial measures included in this press release do not have standard meanings and may vary from similarly titled non-GAAP financial measures used by other companies. Knowles believes that non-GAAP measures are useful as supplements to its GAAP results of operations to evaluate certain aspects of its operations and financial performance, and its management team primarily focuses on non-GAAP items in evaluating Knowles’ performance for business planning purposes. Knowles also believes that these measures assist it with comparing its performance between various reporting periods on a consistent basis, as these measures remove from operating results the impact of items that, in Knowles’ opinion, do not reflect its core operating performance including, for example, stock-based compensation, certain intangibles amortization expense, impairment charges, restructuring, production transfer costs, and other charges which management considers to be outside our core operating results. Knowles believes that its presentation of these non-GAAP financial measures is useful because it provides investors and securities analysts with the same information that Knowles uses internally for purposes of assessing its core operating performance. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, see the reconciliation table accompanying this release. Webcast and Conference Call Information Investors can listen to a live or replay webcast of the Company’s quarterly financial conference call at http://investor.knowles.com. The live webcast will begin today at 3:30 p.m. Central time. The webcast replay will be available after 7:00 p.m. Central time today accessible via the Knowles website at http://investor.knowles.com for a limited time. About Knowles Knowles is a leading manufacturer of specialty electronic components. We design parts that perform unique, critical functions for innovative technologies. Through extreme reliability, custom engineering, and scalable manufacturing, we enable businesses to succeed in the most demanding applications across medtech, defense, and industrial markets. Our high-performance capacitors, RF microwave filters, advanced medtech microphones, balanced armature speakers, and miniaturization products enable and enhance the performance of technologies with the power to change, improve, and save lives. Founded in 1946 and headquartered in Itasca, Illinois, Knowles has grown into a global organization with employees spanning 11 countries. For more information, please visit knowles.com. Forward-Looking Statements This news release contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, such as statements about our future plans, objectives, expectations, financial performance, and continued business operations. The words "believe," "expect," "anticipate," "project," "estimate," "budget," "continue," "could," "intend," "may," "plan," "potential," "predict," "seek," "should," "will," "would," "objective," "forecast," "goal," "guidance," "outlook," "effort," "target," and similar expressions, among others, generally identify forward-looking statements, which speak only as of the date the statements were made. The statements in this presentation are based on currently available information and the current expectations, forecasts, and assumptions of Knowles’ management concerning risks and uncertainties that could cause actual outcomes or results to differ materially from those outcomes or results that are projected, anticipated, or implied in these statements. Other risks and uncertainties include, but are not limited to: fluctuations in our stock's market price; fluctuations in operating results and cash flows; our ability to prevent or identify quality issues in our products or to promptly remedy any such issues that are identified; risks associated with increasing our inventories in advance of anticipated orders by customers; escalating international trade tensions, new or increased tariffs and trade wars among countries; the impact of changes to laws and regulations that affect the Company’s ability to offer products or services to customers in different regions; our ability to achieve reductions in our operating expenses; the ability to qualify our products and facilities with customers; our ability to obtain, enforce, defend or monetize our intellectual property rights; disruption caused by a cybersecurity incident, including a cyber-attack, cyber breach, theft, or other unauthorized access (the risk of which could be exacerbated by geopolitical tensions); increases in the costs of critical raw materials and components; availability of raw materials and components; managing new product ramps and introductions for our customers; our dependence on a limited number of large customers; our ability to maintain and expand our existing relationships with leading OEMs in order to maintain and increase our revenue; increasing competition and new entrants in the market for our products; our ability to develop new or enhanced products or technologies in a timely manner that achieve market acceptance; global economic instability, including due to inflation, rising interest rates, or the impacts of geopolitical uncertainties (including the impact of the conflict with Iran); financial risks, including risks relating to currency fluctuations, credit risks and fluctuations in the market value of the Company; a sustained decline in our stock price and market capitalization may result in the impairment of certain intangible or long-lived assets; market risk associated with fluctuations in commodity prices, particularly for various precious metals used in our manufacturing operation, changes in tax laws, changes in tax rates and exposure to additional tax liabilities; and other risks, relevant factors, and uncertainties identified in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, subsequent Reports on Forms 10-Q and 8-K and our other filings we make with the U.S. Securities and Exchange Commission. Knowles disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260723880871/en/ Contacts Financial Contact: Sarah CookKnowles Investor RelationsEmail: [email protected]