Kornit Digital (KRNT) Stock Forecast & Price Target

Kornit Digital Ltd demonstrated strong financial performance with a net cash flow from operating activities of $26.7 million for the quarter, reflecting solid operational efficiency. The company achieved a 7.3% year-over-year revenue growth, primarily driven by an increase in system sales and favorable trends in revenue recognition, particularly under the AIC model, with a notable 22% quarter-over-quarter growth in the Americas. Additionally, Kornit Digital reported an improved gross margin of 55.1%, which marked a significant increase from both the previous quarter and the same period last year, indicating effective cost management and pricing power.

Kornit Digital reported a slight decline in services revenue by 0.2% year-over-year, with a more pronounced quarterly drop of 5.5%, reflecting challenges in meeting market expectations. Despite a non-GAAP gross margin of 55.1%, which surpassed estimates, the company’s operating expenses exceeded projections, signaling inefficiencies that may impact future profitability. Additionally, the uncertainty surrounding macroeconomic conditions, including potential tariffs and government policies, has led to downward revisions in revenue and EPS estimates for 2025 and 2026, indicating a cautious outlook for the company.