Qnity Electronics, Inc. (Q)
NYSE:Q
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Qnity Electronics, Inc.
(NYSE:Q)
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Rating:56Neutral
Price Target:
$145.00
▲(6.39% Upside)
Action:N/ADate:02/28/26
The score is held down primarily by weak financial performance signals from the latest annual financial statements (sharp profitability and cash-flow breakdown alongside higher leverage). Offsetting this, the earnings call provided solid forward guidance and generally positive sentiment, and technicals show strong momentum (though extended). Valuation is mixed, with a high P/E partly balanced by a high dividend yield.
Positive Factors
Segment growth — ICS
Sustained double-digit growth in Interconnect Solutions reflects secular demand for advanced packaging, thermal management and interconnects. These end-markets are multi-year growth drivers that expand TAM and content per system, supporting durable revenue and margin resilience.
Negative Factors
Income statement collapse
A dramatic one-year operating collapse and large losses materially impair earnings visibility. Even with guidance for recovery, such a disruption weakens recurring earnings power, undermines reinvestment capacity and raises the risk that prior margin structures may not fully re‑establish.
Read all positive and negative factors
Positive Factors
Negative Factors
Segment growth — ICS
Sustained double-digit growth in Interconnect Solutions reflects secular demand for advanced packaging, thermal management and interconnects. These end-markets are multi-year growth drivers that expand TAM and content per system, supporting durable revenue and margin resilience.
Read all positive factors
Qnity Electronics, Inc. (Q) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.48B
Dividend Yield0.07%
Average Volume (3M)1.72M
Price to Earnings (P/E)24.7
Beta (1Y)1.50
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees10,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.82
Shares Outstanding209,582,430
10 Day Avg. Volume1,423,108
30 Day Avg. Volume1,715,000
Financial Highlights & Ratios
PEG Ratio-91.89
Price to Book (P/B)2.41
Price to Sales (P/S)3.60
P/FCF Ratio17.31
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue7.09
Enterprise Value/Gross Profit16.51
Enterprise Value/Ebitda24.03
Forecast
1Y Price Target
$142.40Price Target Upside4.48% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)3.81
Revenue Forecast (FY)$5.12B
Qnity Electronics, Inc. Business Overview & Revenue Model
Company Description
Qnity Electronics, Inc. focuses on the provision of electronic solutions and materials used in semiconductor chip manufacturing and advanced electronic materials. The company was formerly known as Novus SpinCo 1, Inc. and changed its name to Qnity...
Qnity Electronics, Inc. Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture: double-digit organic growth for the year, strong segment performance (notably ICS), robust margins (29.5% adjusted pro forma EBITDA margin), healthy cash and a $500M share buyback authorization. Management provided a constructive 2026 guide while announcing a transformation program to drive incremental EBITDA. Key near-term risks are tied to memory-market dynamics (memory represents ~20% of semi exposure), elevated 2026 CapEx and one-time transformation costs (~$140M) which reduce free cash flow in 2026, and some timing volatility from the spin and customer capacity ramps. On balance, the company showed strong momentum and multiple levers to drive long-term value despite measurable near-term headwinds.Positive Updates
Strong top-line growth
Full-year 2025 net sales grew 10% year-over-year to $4.75 billion; Q4 2025 net sales were $1.2 billion, up 8% year-over-year. Management delivered seven consecutive quarters of strong organic growth.
Negative Updates
Memory market exposure and downside risk
Company notes exposure to the memory market (memory is ~20% of the semi portfolio) and is monitoring potential downstream impacts from memory pricing and capacity; management acknowledged potential demand destruction in consumer electronics and China that could weigh on results.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong top-line growth
Full-year 2025 net sales grew 10% year-over-year to $4.75 billion; Q4 2025 net sales were $1.2 billion, up 8% year-over-year. Management delivered seven consecutive quarters of strong organic growth.
Read all positive updates
Company Guidance
Qnity guided full‑year 2026 net sales of $4.97–$5.17 billion, adjusted operating EBITDA of $1.465–$1.575 billion (implying roughly a 29.5%–30.5% EBITDA margin), adjusted EPS of $3.55–$3.95, and adjusted free cash flow of $450–$550 million; they expect Q1 to deliver high single‑digit sequential sales growth with a margin profile similar to Q4 (Q4: $1.2B sales, $349M adj. EBITDA, $0.82 adj. EPS). The company plans elevated 2026 CapEx of ~9% of sales (normalizing to ~6% thereafter), expects MSI wafer starts to grow mid‑single digits, targets long‑term free cash flow margins in the mid‑teens, and sees ICS outpacing Semi; balance sheet highlights include >$900M cash and net leverage of ~2.2x. Management also announced a transformation to deliver ~$100M EBITDA run‑rate by end‑2028 at ~$140M one‑time cost, a $500M share‑repurchase authorization and a Q1 dividend, with the guidance midpoint aligning to ~6.5% sales growth versus 2025’s $4.75B sales and $1.4B adjusted operating EBITDA.Qnity Electronics, Inc. Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
48
Neutral
Cash Flow
25
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 4.75B | 4.33B | 4.04B |
| Gross Profit | 1.99B | 2.00B | 1.75B |
| EBITDA | 1.40B | 1.29B | 1.06B |
| Net Income | 692.00M | 693.00M | 507.00M |
Balance Sheet | |||
| Total Assets | 14.07B | 12.27B | 12.52B |
| Cash, Cash Equivalents and Short-Term Investments | 915.00M | 166.00M | 139.00M |
| Total Debt | 4.98B | 191.00M | 222.00M |
| Total Liabilities | 6.70B | 1.38B | 1.33B |
| Stockholders Equity | 7.09B | 10.64B | 10.94B |
Cash Flow | |||
| Free Cash Flow | 988.00M | 861.00M | 651.00M |
| Operating Cash Flow | 1.27B | 1.06B | 882.00M |
| Investing Cash Flow | -285.00M | -172.00M | -226.00M |
| Financing Cash Flow | -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 (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $14.68B | 59.58 | 6.85% | ― | 1.82% | -31.84% | |
71 Outperform | $53.77B | 27.09 | 29.72% | 0.24% | 30.33% | 51.65% | |
68 Neutral | $66.31B | 26.48 | 12.81% | 2.29% | 15.55% | 43.35% | |
64 Neutral | $17.29B | 33.43 | 8.73% | 0.81% | 12.71% | 37.49% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $29.48B | 24.72 | 8.20% | 0.07% | ― | ― | |
55 Neutral | $1.55B | 16.34 | 2.07% | 2.25% | 8.86% | -62.89% |
* Technology Sector Average
Q
Qnity Electronics, Inc.
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48.16
50.61%
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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.
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