Knowles Delivers Strong Q3 Results, Sets Stage for Future Growth
Knowles, a leading provider of advanced micro-electromechanical systems (MEMS) and capacitors, has reported strong financial results for its third quarter 2026, exceeding expectations and solidifying the company's position as a major player in various markets.
Revenue reached $184 million, up 20% year-over-year, with earnings per share (EPS) at $0.38, both figures being at the high end of Knowles' guided range. Cash generated from operations was also $45 million, meeting the company's projected targets. The impressive performance across all business segments demonstrates the effectiveness of Knowles' strategy and execution.
The med tech and specialty audio segment showed significant growth, with revenue reaching $67 million, up 4% year-over-year. This increase is attributed to customers launching new products earlier in the year that incorporate AI features, driving demand ahead of schedule. Despite this shift, Knowles still expects the hearing health market to grow at historical rates in 2026.
The precision devices segment had a breakout quarter, with revenue soaring to $117 million, up 33% year-over-year. This growth was fueled by strong demand across major product lines and end markets, including med tech, defense, industrial, and electrification. The company's close collaboration with customers has resulted in a robust pipeline of design wins, further solidifying its competitive position.
Orders remained robust in the precision devices segment, with a book-to-bill ratio of 1.5, exceeding expectations. This level of demand was observed across key end markets and distribution partners, reinforcing Knowles' confidence in continued growth. The company has reported orders totaling nearly $180 million for Q3, significantly higher than those seen in Q2.
Knowles highlighted specific areas of strength within the precision devices segment, including med tech, defense, industrial, and electrification markets. In med tech, its pulse power film capacitors continue to secure wins in defibrillator and radiotherapy applications, while ceramic capacitors are gaining traction in next-generation medical imaging and implantables.
In the defense market, demand remains robust across all product categories, with RF filters, film, and ceramic capacitors in high demand for munitions and communications applications. In industrial markets, Knowles' ceramic capacitors and capacitor assemblies are growing in use for plasma generators and semiconductor equipment.
With strong orders, a healthy backlog, and continued design wins, Knowles is investing in capacity additions across most of its precision devices product lines to meet the growing demand. This strategic move positions the company well for future growth and expansion into new markets."
