MillerKnoll, Inc. (MLKN) Q4 2026: Revenue Growth Amid Order Decline — Cautiously Optimistic

MillerKnoll, Inc. (NASDAQ: MLKN) reported its fourth quarter and full fiscal year 2026 results, revealing a mixed performance. The company achieved net sales of $1.004 billion, reflecting an increase of $42.4 million or +4.4% year-over-year. However, orders fell to $971.5 million, a decline of $65.2 million or -6.3% year-over-year.

This quarter's results present a complex picture for shareholders. While revenue growth is a positive sign, the significant drop in orders raises concerns about future sales momentum. The decline in orders, particularly in the North America Contract segment, suggests potential challenges ahead, especially given the prior year's order pull-forward of $55 million to $60 million.

Key Financial Metrics

• Fourth Quarter Results:
  • Net Sales: $1.004 billion, up 4.4% YoY
  • Orders: $971.5 million, down 6.3% YoY
  • Gross Margin: Increased by 20 basis points
  • Operating Margin: 5.1%, down from 5.7% YoY
  • Adjusted Operating Margin: 6.9%, down from 7.5% YoY
  • Cash Flow from Operations: $64.9 million, down from $70.9 million YoY
• Fiscal Year 2026 Results:
  • Net Sales: $3.842 billion, up 4.7% YoY
  • Operating Margin: 5.2%, up from 1.4% YoY
  • Adjusted Operating Margin: 6.2%, down from 6.8% YoY

Shareholder Perspective

For shareholders, this quarter can be viewed as cautiously optimistic. The revenue growth indicates that MillerKnoll is successfully navigating some market challenges, but the decline in orders is a red flag. The company’s ability to convert sales into future orders will be critical in maintaining momentum. The increase in operating expenses, which rose to $344.2 million, also highlights the need for careful cost management moving forward.

Dividend and Guidance

MillerKnoll's Board of Directors declared a quarterly cash dividend of $0.1875 per share, payable on July 15, 2026, to shareholders of record on May 30, 2026. This consistent dividend payment reflects the company's commitment to returning value to shareholders, even amidst fluctuating performance metrics.

Looking ahead, MillerKnoll provided guidance for the first quarter of fiscal 2027, projecting net sales between $928 million and $968 million and adjusted earnings per share between $0.33 and $0.39. For the full fiscal year 2027, the company expects net sales between $3.93 billion and $4.13 billion and adjusted earnings per share between $1.85 and $2.15.

Forward Catalysts

Investors should closely monitor the upcoming quarter for signs of order recovery and sales growth. The company plans to open 14 to 18 new retail stores, with three to four new openings in Q1, which could enhance its market presence and drive sales. Additionally, the impact of macroeconomic factors, including inflation and geopolitical tensions, will be crucial in shaping MillerKnoll's performance in the coming months.

In summary, while MillerKnoll's revenue growth in Q4 2026 is encouraging, the decline in orders and rising expenses warrant a cautious approach. The company's strategic initiatives and market conditions will be key factors to watch as it moves into fiscal 2027.

Condensed Consolidated Statements of Operations (in millions)

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Condensed Consolidated Balance Sheets (in millions)

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(Unaudited)	(Dollars in millions)	May 30, 2026	May 31, 2025
ASSETS	Current Assets:	Cash and cash equivalents	$167.7	$193.7
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