Knowles Corporation (KN) - Stock Analysis
Last updated: Jan 13, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Knowles Corporation demonstrated a strong Q2 2025 earnings beat on July 24 with 8% YoY revenue growth and 20% EPS growth, followed by a 27% stock rally. Management's positive Q3 guidance, robust cash flow, new product launches in high-demand sectors, and strong technical momentum above moving averages signal favorable near-term return potential.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Margin recovery ⢠Positive FCF ⢠High valuation KN shows a clear operational reboundâstronger margins, positive quarterly EBITDA and free cash flow with moderate leverageâyet remains exposed to prior-year losses, a large accumulated deficit/intangibles and rich valuation multiples.
Price Behavior
Key Price Behavior Insights: ⢠Range-bound action ⢠Support holding ⢠Failed breakouts Support Level: $21.40 Resistance Level: $23.50â$23.60 KN is consolidating last month between a firm support near $21.40 and resistance around $23.50â$23.60, showing moderate volatility with a slight upward bias but no decisive breakout.
Sentiment & News
Key News Insights: ⢠Margin recovery ⢠Precision Devices ⢠Investor caution Knowles is showing margin recovery and broad-based growth led by Precision Devices and sustained MedTech profitability, but mixed institutional selling and a "Hold" consensus temper optimism ahead of the Feb 5, 2026 earnings.
AI Summary
Knowles has moved from a turnaround gamble to a conditional growth/margin story where the investment case now hinges primarily on a successful specialtyâfilm utilization and yield ramp plus sustained Precision Devices volume gains. Monitor specialtyâfilm yields/utilization and workingâcapital conversion through Q4/FY2025 results (midâ2026 ramp timeline); any slippage should be treated as a clear catalyst for multiple contraction and downside.
Description
Knowles Corporation manufactures acoustic components (microphones, balanced-armature speakers and related audio processors) and precision electronic parts, including high-performance capacitors and RF products, serving consumer electronics, medical, defense, automotive and industrial markets. The business is organized into Audio and Precision Devices segments that supply components for applications such as hearing health, true wireless earbuds, medical implants, satellite communications and radar, and sells primarily to OEMs, contract manufacturers and distributors. Founded in 1946 and headquartered in Itasca, Illinois, the company operates across Asia, North America, Europe and other international markets.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Sep 29 | Oct 6 | KN | Knowles Corporation | Knowles Corporation demonstrated a strong Q2 2025 earnings beat on July 24 with 8% YoY revenue growth and 20% EPS growth, followed by a 27% stock rally. Management's positive Q3 guidance, robust cash flow, new product launches in high-demand sectors, and strong technical momentum above moving averages signal favorable near-term return potential. | Closed | +4.9% |