Summary
William Blair has initiated coverage of MillerKnoll (NASDAQ:MLKN) with an Outperform rating. At the time of the research note the stock was trading at $22.07 and has delivered a 20.73% return year-to-date. InvestingPro Fair Value estimates indicate the shares appear slightly undervalued.
Research rationale
The firm framed its bullish view around four principal pillars. First, William Blair expects sustainable momentum in MillerKnoll's North America contract business as fundamentals in commercial office space improve, supported by steady demand from government, healthcare and education customers. InvestingPro data referenced in the note also shows that three analysts have recently revised earnings estimates for the company upward.
Second, the research highlighted a sizable opportunity to capture market share in international contract markets as commercial office tailwinds develop in those regions. Third, the firm pointed to robust growth prospects for MillerKnoll’s retail channel, driven by accelerating store openings and planned assortment expansion. Fourth, William Blair anticipates outsized earnings-per-share growth and margin expansion over time as volumes recover and the company realizes synergies from prior acquisitions and ongoing operational efficiency initiatives.
Recent financials and corporate developments
MillerKnoll reported fiscal second-quarter 2026 results showing an adjusted EPS of $0.43, ahead of the $0.41 consensus. Revenue for the quarter was $955 million, which missed the anticipated $962.47 million. These mixed results underline a divergence between profit metrics and top-line performance in the period reported.
In governance news, MillerKnoll expanded its board with the appointment of Claire Spofford, bringing more than 30 years of retail industry experience. Spofford previously served as President and CEO of J. Jill, where she led business transformation efforts. Her addition brings the board to eleven members.
Market context and near-term outlook
William Blair’s thesis centers on improving contract demand, international expansion potential and retail execution, coupled with expected margin leverage as volumes normalize and acquisition synergies are realized. The research note and the company’s most recent quarterly figures together describe a business in transition, with profitability measures modestly ahead of expectations while revenue fell short of forecasts.
Implications for investors
Investors should weigh the analyst’s optimism about secular recovery and operational improvements against the company’s near-term revenue execution. The board addition signals a continued focus on retail capabilities and corporate transformation.
These developments represent active strategic and financial dynamics as MillerKnoll navigates current market conditions.