Office furniture manufacturer MillerKnoll (NASDAQ: MLKN) announced better-than-expected revenue in Q2 CY2026, with sales up 4.4% year on year to $1.00 billion. Revenue guidance for the full year exceeded analysts’ estimates, but next quarter’s guidance of $948 million was less impressive, coming in 0.8% below expectations. Its non-GAAP profit of $0.55 per share was 6.8% above analysts’ consensus estimates.

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Company Overview

Created through the 2021 merger of industry icons Herman Miller and Knoll, MillerKnoll (NASDAQ: MLKN) designs, manufactures, and distributes interior furnishings for offices, healthcare facilities, educational settings, and homes worldwide.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.

With $3.84 billion in revenue over the past 12 months, MillerKnoll is one of the larger companies in the business services industry and benefits from a well-known brand that influences purchasing decisions.

As you can see below, MillerKnoll’s sales grew at an impressive 9.3% compounded annual growth rate over the last five years. This shows it had high demand, a useful starting point for our analysis.

Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. MillerKnoll’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 2.9% over the last two years was well below its five-year trend.

This quarter, MillerKnoll reported modest year-on-year revenue growth of 4.4% but beat Wall Street’s estimates by 3.1%. Company management is currently guiding for flat sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 3.1% over the next 12 months, similar to its two-year rate. This projection doesn’t excite us and suggests its newer products and services will not accelerate its top-line performance yet.

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Adjusted Operating Margin

Adjusted operating margin is a key measure of profitability. Think of it as net income (the bottom line) excluding the impact of non-recurring expenses, taxes, and interest on debt - metrics less connected to business fundamentals.

MillerKnoll was profitable over the last five years but held back by its large cost base. Its average adjusted operating margin of 6.8% was weak for a business services business.

On the plus side, MillerKnoll’s adjusted operating margin rose by 2.1 percentage points over the last five years, as its sales growth gave it operating leverage.

This quarter, MillerKnoll generated an adjusted operating margin profit margin of 6.9%, down 16.1 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions.

Sadly for MillerKnoll, its EPS declined by 11% annually over the last five years while its revenue grew by 9.3%. However, its adjusted operating margin actually improved during this time, telling us that non-fundamental factors such as interest expenses and taxes affected its ultimate earnings.

Diving into the nuances of MillerKnoll’s earnings can give us a better understanding of its performance. A five-year view shows MillerKnoll has diluted its shareholders, growing its share count by 15.9%. This dilution overshadowed its increased operational efficiency and has led to lower per share earnings. Taxes and interest expenses can also affect EPS but don’t tell us as much about a company’s fundamentals.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For MillerKnoll, its two-year annual EPS declines of 5.4% show it’s still underperforming. These results were bad no matter how you slice the data.

In Q2, MillerKnoll reported adjusted EPS of $0.55, down from $0.60 in the same quarter last year. Despite falling year on year, this print beat analysts’ estimates by 6.8%. Over the next 12 months, Wall Street expects MillerKnoll’s full-year EPS to grow 9.1% from $1.86 to $2.03.

Key Takeaways from MillerKnoll’s Q2 Results

We enjoyed seeing MillerKnoll beat analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. On the other hand, its EPS guidance for next quarter missed and its revenue guidance for next quarter fell slightly short of Wall Street’s estimates. Zooming out, we think this was a mixed quarter. The stock remained flat at $17.29 immediately following the results.

So do we think MillerKnoll is an attractive buy at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).