MillerKnoll Inc (NASDAQ:MLKN) stock rose 6.67% (As on December 18, 11:28:28 AM UTC-4, Source: Google Finance) after the company reported second-quarter fiscal 2026 adjusted earnings that exceeded analyst estimates, while providing an upbeat outlook for the third quarter that drove shares higher. Despite the revenue decline, the company reported order growth of 5.5% and up 4.5% organically year-over-year to $972.5 million, with increases across all business segments. Gross margin improved by 20 basis points to 39.0%, while adjusted operating margin decreased to 5.9% from 7.1% in the prior year. The Global Retail segment was a bright spot, with sales increasing 4.7% to $275.8 million and orders rising 6.0%. Q2 new retail store openings were at a DWR in Salt Lake City, UT, and three Herman Miller stores in Nashville, TN, El Segundo, CA, and Walnut Creek, CA During the Black Friday promotional period, orders surged 12%. However, both North America Contract and International Contract segments experienced sales declines of 3.1% and 6.3% respectively, though both segments showed positive order growth. The company maintained strong liquidity of $548.3 million as of November 29, 2025, and reported cash flow from operations of $64.6 million, up from $55.3 million in the same quarter last year.

MLKN in the second quarter of FY26 has reported the adjusted earnings per share of 43 cents, beating the analysts’ estimates for the adjusted earnings per share of 41 cents. The company had reported the adjusted revenue decline of 1.6 percent to $955.2 million in the second quarter of FY26, missing the analysts’ estimates for revenue of $962.47 million. On an organic basis, sales declined 2.5% YoY.

The company forecasts third-quarter revenue between $923 million and $963 million, above the consensus of $909.6 million, and adjusted earnings of $0.42 to $0.48 per share, higher than the $0.41 consensus estimate. The estimated impacts to incremental operating expense in Q3 includes $5 million to $6 million in costs associated with new store investments expected in the second half of fiscal 2026, including two to three new store openings in Q3 and higher year-over-year variable selling and incentive expense. Based on tariffs in place as of the date of this release, the company expects incremental tariff costs in Q3 to be offset by previously announced pricing actions. The company’s guidance takes into consideration the typical seasonal softness in the Contract businesses as the calendar year comes to a close and by the timing of the Chinese New Year holiday