Knowit (OM:KNOW) Stock Rallies As Q3 Earnings Clash With Trailing Losses

Knowit stock closed at SEK120 on Friday after a strong run over the past month, yet the real story sits in the fresh Q3 2026 print. The consultancy delivered roughly SEK1,219.4m in revenue and Basic EPS of SEK1.28, a clean rebound quarter for a business that is still loss making on a trailing 12 month view. Short term traders are reacting to the recent price strength. Long term holders are more likely to focus on the tension between that ongoing loss profile and a valuation that screens cheaply on P/S and relative to a discounted cash flow estimate.

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Q3 2026 Earnings Summary

• Revenue (Q3 2026 vs Q3 2025): SEK1,219.4m vs. SEK1,221.9m (broadly flat year on year)
• Net Income (Excl. Extra Items, Q3 2026 vs Q3 2025): SEK35.0m vs. SEK19.6m (clear improvement in quarterly profit)
• Basic EPS (Q3 2026 vs Q3 2025): SEK1.28 vs. SEK0.72 (earnings per share more than 1.5x higher)
• Trailing 12-Month Net Income (Excl. Extra Items, Q3 2026 vs Q3 2025): loss of SEK274.8m vs. profit of SEK97.4m (shift to loss making on a rolling 12 month basis)

Prefer clean charts instead of another wall of earnings tables and footnotes? Get a full visual snapshot of Knowit, with the focus on its valuation picture, inside our company report for Knowit.

Knowit bull case: AI, Products and public sector tested

The upbeat story says Knowit can lean on AI work, Products and public sector clients to lift earnings quality despite a weak backdrop.

"Expansion of Knowit’s AI-driven offerings across consulting and internal delivery, including reshaped UX work in Experience and AI enabled data and defense projects, creates scope for higher value contracts and improved net margins as more work is delivered with the same or lower cost base."

Q3 shows some of this playing out. Adjusted EBITDA margin improved to 6.7%, with Products at a strong 16.2% and Experience margins edging up. Defence related demand in Connectivity and Products is described as healthy. Yet group revenues are broadly flat and trailing earnings are still loss making, so the AI and defence uplift is not yet broad based.

Knowit bear case: weak consulting and price pressure

The bear story focuses on legacy consulting drag and pricing pressure eroding the benefit from higher margin offerings.

"Prolonged weak profitability in parts of the consulting portfolio, such as the Insight business area where cautious customer behavior and slow decision making have held margins low, could offset gains from higher utilization and weigh on group earnings and return on invested capital."

Insight’s recovery in Q3 to a 2.1% adjusted EBITDA margin from a prior loss supports only a partial rebuttal. The unit still runs well below group profitability and assignments remain short, which limits visibility. Group revenue is flat and headcount fell 7%, which signals that restructuring and utilization gains are doing much of the work so far rather than broad consulting momentum.

The price and this Narrative do not agree. → Uncover what this Narrative says Knowit is actually worth.

Hunt Quiet Mispricings Before Consensus

Knowit reminds you that strong quarterly headlines can sit alongside a mixed longer term earnings picture. The real opportunity is spotting quieter mispricings before consensus fully recognizes a stock’s potential.

• Company 1 - 31% below our estimate - builds recurring infrastructure service contracts that secure multi year work from utilities, miners and public agencies.
• Company 2 - 20% below our estimate - ramps biologics and complex injectable pipelines that lean on owned APIs and expanded contract manufacturing capacity.
• Company 3 - 27% below our estimate - rolls out small format food stores and e-commerce that target higher margin from each unit of new retail space.

That is three of the list. See the full list of 192 companies trading below our fair value estimates →

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