Qnity Electronics, Inc. (Q)
NYSE:Q
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Qnity Electronics, Inc.
(NYSE:Q)
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Rating:56Neutral
Price Target:
$110.00
▼(-14.95% Downside)
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 leadership — ICS
Interconnect Solutions’ durable double-digit organic growth and >20% growth in advanced packaging/interconnect subcomponents indicate structural demand and content gains. Margin expansion (175bps) shows scalable economics; sustained leadership in high-growth subsegments supports multi-year revenue and profitability resilience.
Negative Factors
Operating collapse in 2025
An abrupt 2025 operating collapse that produced a large gross loss and deeply negative operating income is a structural red flag. It undermines earnings quality, customer confidence, and long‑term margin stability; recovering prior profitability will require sustained execution, demand normalization, and successful transformation initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Segment leadership — ICS
Interconnect Solutions’ durable double-digit organic growth and >20% growth in advanced packaging/interconnect subcomponents indicate structural demand and content gains. Margin expansion (175bps) shows scalable economics; sustained leadership in high-growth subsegments supports multi-year revenue and profitability resilience.
Read all positive factors
Qnity Electronics, Inc. (Q) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.12B
Dividend Yield0.07%
Average Volume (3M)2.34M
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 Outstanding209,658,900
10 Day Avg. Volume1,255,376
30 Day Avg. Volume2,342,226
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 Cap1.15
Enterprise Value/Revenue6.56
Enterprise Value/Gross Profit15.29
Enterprise Value/Ebitda22.25
Forecast
1Y Price Target
$140.20Price Target Upside8.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)3.82
Revenue Forecast (FY)$5.11B
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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $11.95B | 59.58 | 6.85% | ― | 6.38% | -4.15% | |
77 Outperform | $56.09B | 54.64 | 19.88% | 0.24% | 4.56% | -15.44% | |
68 Neutral | $12.96B | 26.10 | 8.73% | 0.81% | 0.13% | -16.17% | |
63 Neutral | $52.66B | 26.78 | 12.81% | 2.29% | 8.01% | 10.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $27.12B | 24.72 | 8.20% | 0.07% | ― | ― | |
56 Neutral | $1.35B | 16.34 | 2.07% | 2.25% | 0.96% | -85.27% |
* Technology Sector Average
Q
Qnity Electronics, Inc.
129.34
34.17
35.91%
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TER
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358.29
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352.70%
Qnity Electronics, Inc. Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Qnity Electronics appoints interim CFO amid leadership transition
Neutral
Jan 16, 2026
On January 16, 2026, Qnity Electronics announced that Chief Financial Officer Matt Harbaugh resigned effective January 12, 2026, due to health reasons, with the company emphasizing that his departure was unrelated to its financial statements, repo...
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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