Qnity Electronics, Inc. (Q)
NYSE:Q
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Qnity Electronics, Inc.
(NYSE:Q)
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Rating:60Neutral
Price Target:
$165.00
▲(21.07% Upside)
Action:Reiterated
Date:05/23/26
The score is held down primarily by the weak financial-statement profile (2025 revenue/cash flow collapse and higher leverage). Offsetting this, technicals are constructive and the latest earnings call was strongly positive with raised guidance, while valuation remains demanding despite an elevated dividend yield.
Positive Factors
Secular tailwinds & strategic partnerships
Sustained demand from AI, advanced packaging and thermal management represents a multi-year structural market expansion. Coupled with partnerships (e.g., Nvidia, Apple program) and new facilities, this supports persistent revenue runway, scale advantages and customer stickiness over 2–6 months and beyond.
Negative Factors
2025 revenue and profit collapse
A complete 2025 revenue and profit collapse is a structural red flag: it erodes earnings quality, customer and supplier confidence, and may reflect lost contracts or product disruptions. Recovery requires durable restoration of demand and margins, which can take multiple quarters to validate.
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Positive Factors
Negative Factors
Secular tailwinds & strategic partnerships
Sustained demand from AI, advanced packaging and thermal management represents a multi-year structural market expansion. Coupled with partnerships (e.g., Nvidia, Apple program) and new facilities, this supports persistent revenue runway, scale advantages and customer stickiness over 2–6 months and beyond.
Read all positive factors
Qnity Electronics, Inc. (Q) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.54B
Dividend Yield0.07%
Average Volume (3M)1.83M
Price to Earnings (P/E)48.6
Beta (1Y)1.58
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees10,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)3.11
Shares Outstanding209,339,200
10 Day Avg. Volume1,814,697
30 Day Avg. Volume1,827,895
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/Revenue7.23
Enterprise Value/Gross Profit17.23
Enterprise Value/Ebitda24.87
Forecast
1Y Price Target
$179.00Price Target Upside31.34% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)4.06
Revenue Forecast (FY)$5.36B
Qnity Electronics, Inc. Business Overview & Revenue Model
Company Description
Qnity Electronics, Inc. specializes in providing electronic solutions and materials essential for manufacturing semiconductor chips, alongside advanced electronic materials. Previously known as Novus SpinCo 1, Inc., the company officially adopted ...
Qnity Electronics, Inc. Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Mar 04, 2027
Earnings Call Sentiment Positive
Overall the call was strongly positive: Qnity reported a record quarter with robust top-line and margin expansion, raised full-year guidance across sales, EBITDA, EPS and free cash flow, and showcased durable secular tailwinds (AI, advanced packaging, thermal management) plus strategic partnerships and capacity builds. Notable risks include elevated near-term CapEx and modest Q1 free cash flow, input-cost inflation (~$20M headwind), inventory restocking, and geopolitical/operational uncertainties, but management outlined mitigations (pricing actions, local-for-local model, scenario planning). Highlights materially outweigh the lowlights.Positive Updates
Record Quarter and Strong Financial Performance
Q1 net sales of $1.3B, up 18% year-over-year and 11% sequentially; organic sales +17% YoY. Adjusted operating EBITDA of $411M, up 22% YoY, with adjusted EBITDA margin 31.3% (expanded >125 bps YoY). Adjusted EPS was $1.08, up 33% YoY. Cash and short-term investments ~ $850M; repurchased $25M of shares.
Negative Updates
Elevated Near-Term Capital Intensity and Modest Q1 Free Cash Flow
CapEx elevated at ~9% of sales for FY26 to fund capacity expansion; Q1 adjusted free cash flow was $28M, reflecting strong operating cash flow partly offset by annual variable compensation and higher CapEx timing (about one-third of a $61.5M Taiwan investment recorded in Q1).
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Q1-2026 Updates
Positive
Negative
Record Quarter and Strong Financial Performance
Q1 net sales of $1.3B, up 18% year-over-year and 11% sequentially; organic sales +17% YoY. Adjusted operating EBITDA of $411M, up 22% YoY, with adjusted EBITDA margin 31.3% (expanded >125 bps YoY). Adjusted EPS was $1.08, up 33% YoY. Cash and short-term investments ~ $850M; repurchased $25M of shares.
Read all positive updates
Company Guidance
Qnity raised its 2026 guidance after a strong Q1 and now expects full-year net sales of $5.225B–$5.375B (midpoint +5%), adjusted operating EBITDA $1.535B–$1.625B (midpoint +4%), adjusted EPS $3.80–$4.14 (midpoint +6%) and adjusted free cash flow $500M–$600M (midpoint +10%); Q1 results were net sales $1.3B (+18% YoY, +17% organic), adjusted operating EBITDA $411M (+22% YoY) with a 31.3% margin (+125 bps YoY), adjusted EPS $1.08 (+33%) and FCF $28M. For Q2 the company expects overall mid-single-digit sequential net sales growth, Semiconductor roughly flat sequential with mid‑30s margins, ICS high‑single‑digit sequential growth with mid‑to‑high‑20s margins, and MSI wafer-start growth now seen in the mid‑ to high‑single‑digit range. It assumes ~ $20M of raw‑materials/logistics inflation for the rest of 2026 (to be largely offset by pricing), plans elevated CapEx of ~9% of sales this year (longer‑term ~6%), had ~$850M cash, $4B total debt (net leverage 2.2x), repurchased $25M of stock, and noted inventory ~100 days with ~6x turns.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 | 4.95B | 4.75B | 4.33B | 4.04B |
| Gross Profit | 2.08B | 1.99B | 2.00B | 1.75B |
| EBITDA | 1.44B | 1.40B | 1.29B | 1.03B |
| Net Income | 650.00M | 692.00M | 693.00M | 507.00M |
Balance Sheet | ||||
| Total Assets | 14.06B | 14.07B | 12.27B | 12.52B |
| Cash, Cash Equivalents and Short-Term Investments | 857.00M | 915.00M | 166.00M | 139.00M |
| Total Debt | 4.02B | 4.98B | 191.00M | 222.00M |
| Total Liabilities | 6.60B | 6.70B | 1.38B | 1.33B |
| Stockholders Equity | 7.19B | 7.09B | 10.64B | 10.94B |
Cash Flow | ||||
| Free Cash Flow | 898.00M | 988.00M | 861.00M | 651.00M |
| Operating Cash Flow | 1.20B | 1.27B | 1.06B | 882.00M |
| Investing Cash Flow | -304.00M | -285.00M | -172.00M | -226.00M |
| Financing Cash Flow | -198.00M | -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 (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $16.11B | 151.39 | 5.19% | ― | 0.54% | -51.32% | |
74 Outperform | $63.12B | 73.84 | 29.72% | 0.24% | 30.33% | 51.65% | |
64 Neutral | $20.52B | 46.99 | 9.96% | 0.81% | 12.71% | 37.49% | |
62 Neutral | $81.87B | 54.60 | 14.45% | 2.29% | 15.55% | 43.35% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $31.54B | 48.60 | 7.57% | 0.07% | ― | ― | |
60 Neutral | $2.16B | 82.43 | 3.46% | 2.25% | 16.77% | -23.42% |
* Technology Sector Average
Q
Qnity Electronics, Inc.
150.65
55.53
58.38%
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Qnity Electronics, Inc. Corporate Events
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.