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Qnity Electronics, Inc.
(NYSE:Q)
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Rating:50Neutral
Price Target:
$134.00
▼(-0.78% Downside)
Action:Reiterated
Date:08/11/26
The score is held back primarily by weak financial-statement performance (sharp 2025 breakdown in profitability and cash flow and higher leverage). Offsetting this, the earnings call supports a recovery narrative with raised FY2026 guidance and strong recent operational results, while technicals remain mixed-to-bearish and valuation is split between a high P/E and a very high dividend yield.
Positive Factors
Upgraded FY2026 guidance
Management materially raised FY2026 top‑line and profit/cash guidance after a strong quarter, increasing visibility on a durable operational recovery. Sustained higher sales, EBITDA and free cash flow targets support multi‑quarter funding for CapEx, R&D and deleveraging if execution holds.
Negative Factors
2025 collapse in profitability and revenue
A full‑year collapse in 2025 marks a material structural disruption to core earnings quality. Such a step‑change undermines long‑term confidence in recurring revenue and operating model continuity, creating execution risk that management must sustainably reverse to restore credibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Upgraded FY2026 guidance
Management materially raised FY2026 top‑line and profit/cash guidance after a strong quarter, increasing visibility on a durable operational recovery. Sustained higher sales, EBITDA and free cash flow targets support multi‑quarter funding for CapEx, R&D and deleveraging if execution holds.
Read all positive factors
Qnity Electronics, Inc. (Q) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.83B
Dividend Yield0.15%
Average Volume (3M)1.98M
Price to Earnings (P/E)50.8
Beta (1Y)1.53
Revenue Growth14.83%
EPS Growth-26.14%
CountryUS
Employees10,000
SectorGeneral
Sector StrengthN/A
IndustrySemiconductors
Share Statistics
EPS (TTM)2.80
Shares Outstanding209,208,540
10 Day Avg. Volume1,557,658
30 Day Avg. Volume1,977,458
Financial Highlights & Ratios
PEG Ratio-91.99
Price to Book (P/B)2.41
Price to Sales (P/S)3.60
P/FCF Ratio17.31
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$179.80Price Target Upside33.13% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)4.52
Revenue Forecast (FY)$5.55B
Qnity Electronics, Inc. Business Overview & Revenue Model
Qnity Electronics, Inc. Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 04, 2027
Earnings Call Sentiment Positive
The call presented strong operational and financial results with broad-based organic growth (22% sales growth YoY), significant EBITDA and EPS expansion, raised full-year guidance, robust cash generation and notable traction in high-growth platforms (advanced packaging, AI PCBs, thermal). Lowlights were manageable: modest margin mix effects in the semiconductor segment, a ~ $20 million input/logistics headwind being largely mitigated, near-term elevated CapEx, and seasonally tempered Q3 comparisons due to a prior-year revenue pull-in. Overall, the positives — materially higher sales, margin improvement at the company level, raised guidance, and continued content and share gains — outweigh the limited operational and cost headwinds.Positive Updates
Strong Top-Line Growth
Net sales of $1.4 billion, up 22% year-over-year and 9% sequentially; organic sales also up 22% YoY. Company delivered its ninth consecutive quarter of profitable organic growth.
Negative Updates
Semi Margin Pressure and Mix Effects
Semi gross margins (~49%) and adjusted EBITDA margin (~34%) were slightly down year-over-year and sequentially due to product mix and ongoing investments to support advanced node growth; management noted quarter-to-quarter variability driven by R&D timing and product qualifications.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Net sales of $1.4 billion, up 22% year-over-year and 9% sequentially; organic sales also up 22% YoY. Company delivered its ninth consecutive quarter of profitable organic growth.
Read all positive updates
Company Guidance
Qnity raised full‑year 2026 guidance to net sales of $5.55–$5.65 billion, adjusted operating EBITDA of $1.675–$1.725 billion, adjusted EPS of $4.40–$4.60 and adjusted free cash flow of $600–$700 million (midpoint implies ~18% net sales growth, >20% EBITDA growth and ~35% EPS growth). For Q3 the company expects sequential net‑sales growth in the low single‑digits overall (Semiconductor Technologies: low single‑digits with adjusted EBITDA margins in the mid‑30s; Interconnect Solutions: mid‑single‑digits with adjusted EBITDA margins in the high‑20s), noting the prior‑year Q3 included ~$40 million of accelerated sales ($25M Semi, $15M ICS) that do not recur. Q2 results underpinning the guide were: net sales $1.4B (+22% YoY, +9% seq), adjusted operating EBITDA $431M (+24% YoY; margin 30.2%), adjusted EPS $1.19 (+53%), segment sales of $744M for Semi (≈+3% seq, +17% organic; gross margin ≈49%, adj EBITDA ≈34%) and $685M for ICS (>+30% YoY, +16% seq; gross ≈44%, adj EBITDA ≈29% up ~290 bps YoY); Q2 adjusted free cash flow was $259M, CapEx $90M (full‑year elevated, long‑term target ~6% of sales), cash ≈$960M, total debt $4B (net leverage ≈2x), $25M of buybacks and an annualized ~$6M benefit from a term‑loan repricing.Qnity Electronics, Inc. Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
48
Neutral
Cash Flow
25
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 5.21B | 4.75B | 4.33B | 4.04B |
| Gross Profit | 2.25B | 1.99B | 2.00B | 1.75B |
| EBITDA | 1.45B | 1.40B | 1.29B | 1.03B |
| Net Income | 586.00M | 692.00M | 693.00M | 507.00M |
Balance Sheet | ||||
| Total Assets | 14.33B | 14.07B | 12.27B | 12.52B |
| Cash, Cash Equivalents and Short-Term Investments | 961.00M | 915.00M | 166.00M | 139.00M |
| Total Debt | 4.02B | 4.98B | 191.00M | 222.00M |
| Total Liabilities | 6.79B | 6.70B | 1.38B | 1.33B |
| Stockholders Equity | 7.26B | 7.09B | 10.64B | 10.94B |
Cash Flow | ||||
| Free Cash Flow | 825.00M | 988.00M | 861.00M | 651.00M |
| Operating Cash Flow | 1.17B | 1.27B | 1.06B | 882.00M |
| Investing Cash Flow | -337.00M | -285.00M | -172.00M | -226.00M |
| Financing Cash Flow | -27.00M | -248.00M | -848.00M | -628.00M |
Qnity Electronics, Inc. Risk Analysis
Qnity Electronics, Inc. disclosed 1 risk factors in its most recent earnings report. Qnity Electronics, Inc. reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Qnity Electronics, Inc. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $16.58B | 123.31 | 6.50% | ― | 8.08% | -33.87% | |
72 Outperform | $64.18B | 57.13 | 38.04% | 0.14% | 57.91% | 153.54% | |
61 Neutral | $14.35B | 26.33 | 12.37% | 0.51% | 17.93% | 82.27% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | $85.97B | 44.28 | 17.32% | 1.13% | 18.30% | 82.12% | |
50 Neutral | $29.83B | 50.77 | 7.64% | 0.16% | 14.83% | -26.14% | |
46 Neutral | $2.04B | 28.72 | 9.29% | 1.34% | 22.52% | 1433.51% |
* General Sector Average
Q
Qnity Electronics, Inc.
142.30
47.18
49.60%
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39.54
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AMKR
Amkor
58.99
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147.39%
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ChipMOS Technologies
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270.80%
ONTO
Onto Innovation
331.71
223.05
205.27%
TER
Teradyne
418.79
308.66
280.28%
Qnity Electronics, Inc. Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Qnity Electronics Reprices Term Loans to Lower Interest Costs
Positive
Jul 1, 2026
On July 1, 2026, Qnity Electronics, Inc. and certain subsidiaries executed a repricing amendment to their existing Credit Agreement, affecting all $2,338,250,000 of term loans outstanding as of the closing date. The change lowered the interest mar...
Executive/Board ChangesShareholder Meetings
Qnity Electronics Shareholders Endorse Directors, Executive Pay, Auditor
Positive
May 22, 2026
Qnity Electronics, Inc. held its annual meeting of stockholders on May 21, 2026, at which investors elected three Class I directors to two-year terms and approved, on an advisory basis, the compensation of the company’s named executive offic...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.