Kimball Electronics Q1 Earnings and Revenues Surpass Expectations

Kimball Electronics, Inc. KE reported first-quarter fiscal 2026 non-GAAP earnings of 49 cents per share, which beat the Zacks Consensus Estimate by 104.2%. The company reported earnings of 22 cents per share a year ago.

KE’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 23.7%.
Kimball Electronics posted revenues of $365.6 million for the first quarter of fiscal 2026, surpassing the Zacks Consensus Estimate by 6.28%. The company reported revenues of $374.26 million in the year-ago quarter.

Kimball Electronics’ Top Line in Detail

Kimball Electronics generated $101.6 million in revenues from the medical vertical (28% of total revenues), marking a 13% year-over-year increase. The segment’s strength was driven by robust demand across sleep therapy and respiratory care, image-guided therapy, in-vitro diagnostics, drug delivery, AED, and patient monitoring applications.

Kimball Electronics, Inc. Price, Consensus and EPS Surprise

Kimball Electronics, Inc. price-consensus-eps-surprise-chart | Kimball Electronics, Inc. Quote

Kimball Electronics’ automotive vertical contributed $164.4 million (45% of total revenues), down 10% year over year. The decline was due to normalization of demand following post-pandemic replenishment and ongoing program transitions among OEM customers.

Kimball Electronics’ revenues from the industrial vertical, excluding the divested Automation, Test, and Measurement business, were $99.6 million (27% of total revenues), down 1% year over year. The business remained relatively stable, supported by steady demand across climate and automation controls, IoT, factory automation, off-highway equipment, and commercial transportation.

Kimball Electronics’ gross profit for the quarter rose to $28.8 million, translating to a 7.9% gross margin, up 160 basis points from the year-ago period.

Kimball Electronics’ adjusted operating income reached $17.5 million, up 39.9% year over year. Adjusted operating margin came in at 4.8%, expanding 140 basis points from the year-ago period’s 3.4%.

Adjusted Net income came in at $12.25 million, up 121.6% year over year.

Balance Sheet and Cash Flow

Kimball Electronics ended the quarter with cash and equivalents of $75.7 million, down from $88.8 million in June 2025. Debt was $138 million, the lowest level in over three years, reflecting continued deleveraging. The company generated $8.1 million in cash from operations.

Guidance and Outlook

Kimball Electronics reiterated its fiscal 2026 guidance, expecting its top line between $1.35 billion and $1.45 billion. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $1.4 billion, indicating a year-over-year decline of 5.72%.

The company expects its adjusted operating margin to be in the range of 4.0% to 4.25% for fiscal 2026. It expects its capital expenditures to be in the range of $50-$60 million.

Zacks Rank & Stocks to Consider

Currently, KE carries a Zacks Rank #3 (Hold).

Reddit Inc. RDDT, Credo Technology Group CRDO and Amphenol APH are some better-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Impinj, Credo Technology Group and Amphenol sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Reddit Inc.’s full-year 2025 earnings is pegged at $2.01 per share, revised upward by 6.9% over the past seven days and suggests a year-over-year increase of 160.4%. Reddit shares have soared 14.9% year to date.

The Zacks Consensus Estimate for Credo Technology Group’s fiscal 2026 earnings has been revised upward by a cent over the past 30 days to $2.04 per share, calling for an increase of 191.4% year over year. Credo Technology Group shares have rallied 144.3% year to date.

The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has been revised upward to $3.22 per share from $3.03 per share over the past 30 days, implying 70.4% year-over-year growth. Amphenol shares have risen 96.8% year to date.

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This article originally published on Zacks Investment Research (zacks.com).

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