Kornit Digital (NASDAQ:KRNT) Releases Earnings Results, Beats Expectations By $0.05 EPS

Kornit Digital (NASDAQ:KRNT) posted its quarterly earnings results on Wednesday. The industrial products company reported $0.04 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.01) by $0.05, FiscalAI reports. The firm had revenue of $55.32 million for the quarter, compared to the consensus estimate of $52.80 million. Kornit Digital had a negative return on equity of 0.99% and a negative net margin of 9.42%.The company’s revenue for the quarter was up 11.1% compared to the same quarter last year. During the same period in the previous year, the business earned $0.03 earnings per share.

Here are the key takeaways from Kornit Digital’s conference call:

• Q2 exceeded guidance: Revenue rose 11.2% year over year to $55.3 million, while adjusted EBITDA was positive at $0.3 million and operating cash flow reached $8.5 million, marking the 11th consecutive positive quarter.
• Recurring revenue momentum strengthened: Annual recurring revenue increased 79% year over year to $33.8 million, driven by 112% growth in the all-inclusive click model; management said roughly 80% of revenue is now recurring or highly recurring.
• Digital adoption among traditional screen printers is accelerating: About 60% of systems sold in Q2 and the first half went to screen printers, supporting Kornit’s expansion into the larger bulk-apparel market and the broader shift from analog to digital production.
• Management raised its outlook for the year: Kornit expects third-quarter revenue of $55 million to $60 million and adjusted EBITDA margins of breakeven to 3%, while projecting second-half revenue approximately 15% above the first half and high-single-digit growth for full-year 2026.
• Profitability still has room to improve: Non-GAAP gross margin was 47.4%, helped by an approximately $830,000 net tariff benefit including a $2 million refund, while operating expenses rose year over year due partly to the Konnections conference and $1.9 million of foreign-exchange headwinds.

Kornit Digital Stock Up 1.2%

NASDAQ:KRNT opened at $17.85 on Friday. The company has a market capitalization of $767.01 million, a PE ratio of -37.19 and a beta of 1.72. Kornit Digital has a 52-week low of $11.93 and a 52-week high of $19.78. The stock has a fifty day simple moving average of $15.93 and a 200-day simple moving average of $15.44.

Analysts Set New Price Targets

Several equities research analysts have commented on the stock. Morgan Stanley boosted their target price on shares of Kornit Digital from $18.00 to $19.00 and gave the stock an “equal weight” rating in a research report on Thursday. Weiss Ratings downgraded shares of Kornit Digital from a “sell (d-)” rating to a “sell (e+)” rating in a report on Wednesday. Needham & Company LLC upped their target price on shares of Kornit Digital from $22.00 to $23.00 and gave the stock a “buy” rating in a research report on Wednesday. Finally, Zacks Research cut shares of Kornit Digital from a “hold” rating to a “strong sell” rating in a report on Thursday, July 30th. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $21.50.

More Kornit Digital News

Here are the key news stories impacting Kornit Digital this week:

• Positive Sentiment: Second-quarter revenue reached $55.3 million, above the high end of company guidance and the $52.8 million analyst estimate. Adjusted EPS was $0.04, exceeding consensus estimates ranging from a $0.02 loss to $0.03 in earnings, and revenue increased 11.1% year over year. Kornit Digital Reports Second Quarter 2026 Results
• Positive Sentiment: Management reported strong operating indicators: annual recurring revenue rose 79% year over year to $33.8 million, AIC revenue increased 112%, trailing-12-month impressions grew 15%, and the company generated positive operating cash flow for the eleventh consecutive quarter. Kornit Digital Earnings Call Signals Recurring-Led Upswing
• Positive Sentiment: Screen-market penetration remained strong, representing approximately 60% of systems sold during the quarter and first half of 2026. The results suggest growing adoption of Kornit’s on-demand digital textile and fashion-production solutions. Kornit Digital 2026 Q2 Results Presentation
• Positive Sentiment: Needham raised its price target to $23 from $22 and maintained a Buy rating, reinforcing the view that improving recurring revenue and operating performance could support additional upside.
• Neutral Sentiment: Kornit guided for third-quarter revenue of $55 million to $60 million, with the midpoint modestly above the $55.3 million consensus estimate, although the range indicates a continued need for execution as the transformation progresses.
• Negative Sentiment: Despite the quarterly beat, Kornit continues to report a negative net margin and negative return on equity, while analysts still expect a full-year loss. These factors could limit the stock’s upside if growth or profitability improvements slow.

Hedge Funds Weigh In On Kornit Digital

Several hedge funds have recently added to or reduced their stakes in the business. Stifel Financial Corp grew its holdings in Kornit Digital by 24.5% during the 4th quarter. Stifel Financial Corp now owns 13,038 shares of the industrial products company’s stock valued at $187,000 after buying an additional 2,568 shares during the last quarter. Van ECK Associates Corp raised its holdings in shares of Kornit Digital by 6.9% in the fourth quarter. Van ECK Associates Corp now owns 12,742 shares of the industrial products company’s stock worth $183,000 after acquiring an additional 820 shares during the last quarter. State of Wyoming purchased a new stake in shares of Kornit Digital in the fourth quarter valued at $212,000. Susquehanna International Group LLP acquired a new stake in shares of Kornit Digital during the third quarter valued at $169,000. Finally, Boothbay Fund Management LLC increased its position in Kornit Digital by 47.7% during the 3rd quarter. Boothbay Fund Management LLC now owns 19,120 shares of the industrial products company’s stock worth $258,000 after purchasing an additional 6,178 shares in the last quarter. 92.76% of the stock is currently owned by hedge funds and other institutional investors.

About Kornit Digital

Kornit Digital Ltd. (NASDAQ: KRNT) is a global technology company specializing in digital textile printing solutions. Headquartered in Rosh Ha’Ayin, Israel, Kornit develops and manufactures an integrated ecosystem of industrial inkjet printers, proprietary NeoPigment inks and pretreatment systems. Its product portfolio addresses a range of applications including direct-to-garment, direct-to-fabric, digital embellishment and hybrid manufacturing, enabling businesses to produce custom apparel, sportswear, fashion and home textiles on demand.

The company’s flagship offerings include the Avalanche and Atlas series for high-volume production, as well as the Storm and Helix lines designed for mid-to-large scale operations.