HNI (NYSE:HNI) Releases Quarterly Earnings Results, Beats Estimates By $0.23 EPS

HNI (NYSE:HNI) issued its earnings results on Thursday. The business services provider reported $1.27 EPS for the quarter, topping analysts’ consensus estimates of $1.04 by $0.23, FiscalAI reports. HNI had a net margin of 0.04% and a return on equity of 13.17%. The company had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.48 billion. During the same period in the previous year, the firm earned $1.11 earnings per share. HNI’s quarterly revenue was up 120.7% compared to the same quarter last year. HNI updated its FY 2026 guidance to 4.150-4.330 EPS and its Q3 2026 guidance to 1.160-1.190 EPS.

Here are the key takeaways from HNI’s conference call:

• Second-quarter non-GAAP EPS rose 14% year over year to $1.27, supported by Steelcase profit contribution, price-cost benefits including tariffs, productivity gains, and cost controls.
• Workplace demand indicators improved, with organic orders up 5%, backlog up 5%, and recent order growth accelerating; HNI expects legacy Workplace revenue to grow at a high-single-digit rate in the third quarter and mid-to-high single digits in the second half.
• Management raised confidence in the Steelcase integration, saying identified synergies now exceed the original $120 million target and that the acquisition should be modestly accretive in 2026.
• HNI projects 20%–25% non-GAAP EPS growth in 2026 and another year of double-digit EPS growth in 2027, driven primarily by Steelcase synergies and legacy network optimization rather than volume growth.
• Residential Building Products remains pressured by housing weakness, particularly new construction; second-half volume is expected to decline by low-single digits, with pricing only expected to keep revenue roughly flat.

HNI Trading Up 4.4%

Shares of HNI stock traded up $1.89 during mid-day trading on Thursday, hitting $44.67. 562,540 shares of the stock were exchanged, compared to its average volume of 706,908. The company has a 50-day simple moving average of $36.56 and a 200 day simple moving average of $39.30. The company has a current ratio of 1.39, a quick ratio of 0.86 and a debt-to-equity ratio of 0.81. The stock has a market capitalization of $3.18 billion, a price-to-earnings ratio of 109.27, a price-to-earnings-growth ratio of 0.55 and a beta of 0.90. HNI has a twelve month low of $28.93 and a twelve month high of $52.79.

HNI Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Friday, May 29th were given a dividend of $0.35 per share. The ex-dividend date was Friday, May 29th. This represents a $1.40 dividend on an annualized basis and a yield of 3.1%. This is a boost from HNI’s previous quarterly dividend of $0.34. HNI’s dividend payout ratio (DPR) is 341.46%.

Analyst Ratings Changes

A number of research analysts have commented on the stock. Benchmark reaffirmed a “buy” rating on shares of HNI in a research report on Wednesday, July 15th. Wells Fargo & Company set a $65.00 price objective on shares of HNI in a research report on Wednesday, July 15th. Finally, Weiss Ratings raised HNI from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, July 24th. One equities research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $65.00.

Hedge Funds Weigh In On HNI

Institutional investors and hedge funds have recently bought and sold shares of the stock. Triumph Capital Management purchased a new position in HNI in the third quarter valued at approximately $28,000. AQR Capital Management LLC increased its position in shares of HNI by 6.3% in the first quarter. AQR Capital Management LLC now owns 13,527 shares of the business services provider’s stock worth $600,000 after acquiring an additional 802 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of HNI by 4.8% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 28,239 shares of the business services provider’s stock worth $1,252,000 after acquiring an additional 1,290 shares in the last quarter. Royal Bank of Canada raised its stake in shares of HNI by 20.5% in the 1st quarter. Royal Bank of Canada now owns 8,642 shares of the business services provider’s stock valued at $383,000 after acquiring an additional 1,472 shares during the period. Finally, Entropy Technologies LP raised its stake in shares of HNI by 10.5% in the 4th quarter. Entropy Technologies LP now owns 15,935 shares of the business services provider’s stock valued at $670,000 after acquiring an additional 1,508 shares during the period. Institutional investors and hedge funds own 75.26% of the company’s stock.

HNI News Roundup

Here are the key news stories impacting HNI this week:

• Positive Sentiment: HNI reported second-quarter adjusted earnings of $1.27 per share, surpassing the $1.04 analyst consensus and rising from $1.11 a year earlier. The earnings beat is the primary catalyst for the stock’s strength. HNI Surpasses Q2 Earnings Estimates
• Positive Sentiment: Management raised or reaffirmed fiscal 2026 EPS guidance at $4.15-$4.33, above the $4.02 consensus estimate. This suggests confidence in the company’s full-year earnings outlook. HNI Corporation Reports Second Quarter 2026 Results
• Neutral Sentiment: Quarterly revenue rose 120.7% year over year to $1.47 billion, reflecting substantial growth, but it was slightly below analysts’ $1.48 billion expectation. HNI Earnings Results
• Negative Sentiment: Third-quarter EPS guidance of $1.16-$1.19 trails the $1.31 consensus estimate, signaling potentially weaker near-term earnings than analysts had anticipated. HNI Corporation Second Quarter Results

HNI Company Profile

HNI Corporation, founded in 1944 as the Heating & Novelty Company and headquartered in Muscatine, Iowa, is a leading manufacturer of office furniture and hearth products. Over its history, the company has evolved from producing gas heaters into two primary business segments: Office Furniture and Hearth & Home. HNI’s Office Furniture division operates under well-known brands such as The HON Company, Allsteel, Gunlocke and Kimball, offering a comprehensive portfolio of workstations, seating, tables, storage solutions and acoustic products tailored for corporate, education, healthcare and government markets.

In its Hearth & Home segment, HNI designs, manufactures and distributes fireplaces, stoves, fireplace inserts, logs and related accessories.