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Kimball Electronics Q2 Earnings Match Estimates, Revenues Decline Y/Y
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Key Takeaways
KE posted Q2 FY26 EPS of 28 cents, matching estimates, while revenues fell year over year to $341.3M.
Medical segment grew 15% Y/Y to $96.3M, offset by double-digit declines in automotive and industrial units.
Gross margin rose 160 bps to 8.2% and FY26 sales guidance was raised to $1.40B-$1.46B.
Kimball Electronics (KE - Free Report) came out with second-quarter fiscal 2026 earnings of 28 cents per share, in line with the Zacks Consensus Estimates. This compares with earnings of 29 cents per share a year ago.
KE posted revenues of $341.28 million for the quarter ended December 2025, which missed the Zacks Consensus Estimate by 0.36%. The company had reported revenues of $357.4 million in the year-ago quarter.
Kimball Electronics beat the Zacks Consensus Estimates in three of the last four quarters, matching the same on one occasion, with an average surprise of 44.5%.
Kimball Electronics’ Q2 Fiscal 2026 Details
The medical vertical, which includes sleep therapy and respiratory care, image-guided therapy, in vitro diagnostics, drug delivery, AED, and patient monitoring systems, contributed to 28% of KE’s second-quarter fiscal 2026 top line. The vertical increased 15% year over year to $96.3 million, driven by continued strength across core medical programs.
Kimball Electronics, Inc. Price, Consensus and EPS Surprise
The automotive vertical, which accounts for electronic power steering, body controls, advanced driver-assistance systems and electronic braking systems, declined 13% year over year to $162.3 million in the second quarter of fiscal 2026. The Automotive vertical contributed to 48% of the top line.
Kimball Electronics’ industrial segment, which includes climate controls, automation controls, public safety, IoT and factory automation, efficient energy, off-highway equipment, and commercial transportation systems, declined 5% year over year to $82.7 million. This vertical contributed 24% of the total revenues in the second quarter of fiscal 2026.
Kimball Electronics reported a gross profit of $27.8 million, which increased 19% year over year. The company’s gross margin increased 160 basis points (bps) to 8.2% in the second quarter of fiscal 2026.
The company reported non-GAAP operating income of $15.31 million, up 14.8% year over year. KE’s non-GAAP operating margin increased 80 bps to 4.5% in the second quarter of fiscal 2026. Non-GAAP net income for the quarter was $6.93 million.
Kimball Electronics’ Balance Sheet & Cash Flow
As of Dec. 31, 2025, Kimball Electronics had cash, cash equivalents and restricted cash of $77.85 million, up from $75.7 million as of Sept. 30, 2025.
The company generated $6.9 million in cash from operations during the quarter, marking the eighth consecutive quarter of positive operating cash flow. Kimball Electronics posted total debt of $154.2 million.
Kimball Electronics Updates Guidance for 2026
For fiscal 2026, Kimball Electronics now expects net sales to be in the range of $1.40 billion to $1.46 billion, up from the prior outlook of $1.35 billion to $1.45 billion. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $1.41 billion, indicating a year-over-year decline of 5.4%.
Adjusted operating income is projected to be 4.2% to 4.5% of net sales compared with the earlier estimate of 4.0% to 4.25%. Guidance for capital expenditures remains unchanged at $50-$60 million.
The Zacks Consensus Estimate for KE’s fiscal 2026 earnings is pegged at $1.36, indicating year-over-year growth of 21.43%.
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Kimball Electronics Q2 Earnings Match Estimates, Revenues Decline Y/Y
Key Takeaways
Kimball Electronics (KE - Free Report) came out with second-quarter fiscal 2026 earnings of 28 cents per share, in line with the Zacks Consensus Estimates. This compares with earnings of 29 cents per share a year ago.
KE posted revenues of $341.28 million for the quarter ended December 2025, which missed the Zacks Consensus Estimate by 0.36%. The company had reported revenues of $357.4 million in the year-ago quarter.
Kimball Electronics beat the Zacks Consensus Estimates in three of the last four quarters, matching the same on one occasion, with an average surprise of 44.5%.
Kimball Electronics’ Q2 Fiscal 2026 Details
The medical vertical, which includes sleep therapy and respiratory care, image-guided therapy, in vitro diagnostics, drug delivery, AED, and patient monitoring systems, contributed to 28% of KE’s second-quarter fiscal 2026 top line. The vertical increased 15% year over year to $96.3 million, driven by continued strength across core medical programs.
Kimball Electronics, Inc. Price, Consensus and EPS Surprise
Kimball Electronics, Inc. price-consensus-eps-surprise-chart | Kimball Electronics, Inc. Quote
The automotive vertical, which accounts for electronic power steering, body controls, advanced driver-assistance systems and electronic braking systems, declined 13% year over year to $162.3 million in the second quarter of fiscal 2026. The Automotive vertical contributed to 48% of the top line.
Kimball Electronics’ industrial segment, which includes climate controls, automation controls, public safety, IoT and factory automation, efficient energy, off-highway equipment, and commercial transportation systems, declined 5% year over year to $82.7 million. This vertical contributed 24% of the total revenues in the second quarter of fiscal 2026.
Kimball Electronics reported a gross profit of $27.8 million, which increased 19% year over year. The company’s gross margin increased 160 basis points (bps) to 8.2% in the second quarter of fiscal 2026.
The company reported non-GAAP operating income of $15.31 million, up 14.8% year over year. KE’s non-GAAP operating margin increased 80 bps to 4.5% in the second quarter of fiscal 2026. Non-GAAP net income for the quarter was $6.93 million.
Kimball Electronics’ Balance Sheet & Cash Flow
As of Dec. 31, 2025, Kimball Electronics had cash, cash equivalents and restricted cash of $77.85 million, up from $75.7 million as of Sept. 30, 2025.
The company generated $6.9 million in cash from operations during the quarter, marking the eighth consecutive quarter of positive operating cash flow. Kimball Electronics posted total debt of $154.2 million.
Kimball Electronics Updates Guidance for 2026
For fiscal 2026, Kimball Electronics now expects net sales to be in the range of $1.40 billion to $1.46 billion, up from the prior outlook of $1.35 billion to $1.45 billion. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $1.41 billion, indicating a year-over-year decline of 5.4%.
Adjusted operating income is projected to be 4.2% to 4.5% of net sales compared with the earlier estimate of 4.0% to 4.25%. Guidance for capital expenditures remains unchanged at $50-$60 million.
The Zacks Consensus Estimate for KE’s fiscal 2026 earnings is pegged at $1.36, indicating year-over-year growth of 21.43%.
KE’s Zacks Rank & Stocks to Consider
Currently, KE carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Amkor Technology (AMKR - Free Report) , Arista Networks (ADI - Free Report) and Advanced Energy (AEIS - Free Report) . While Amkor Technology sports a Zacks Rank #1 (Strong Buy), Arista Networks and Advanced Energy carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Arista Networks have jumped 27.6% in the trailing six-month period. Arista Networks is set to report fourth-quarter 2025 results on Feb. 12.
Shares of Advanced Energy have rallied 85.4% in the trailing six-month period. Advanced Energy is slated to report third-quarter 2025 results on Feb. 10.
Amkor Technology shares have surged 103.2% in the trailing six-month period. Amkor Technology is set to report fourth-quarter 2025 results on Feb. 9.