Qnity Electronics, Inc. (Q) AI Stock Analysis

• Market Cap: $23.53B
• Dividend Yield: 0.07%
• Average Volume (3M): 2.06M
• Price to Earnings (P/E): 24.7
• Beta (1Y): 2.02
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): N/A
• Shares Outstanding: 209,658,900
• 10 Day Avg. Volume: 2,591,253
• 30 Day Avg. Volume: 2,058,866
• PEG Ratio: -91.89
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 3.60
• P/FCF Ratio: 17.31
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 5.81
• Enterprise Value/Gross Profit: 13.53
• Enterprise Value/Ebitda: 19.69
• 1Y Price Target: $132.67
• Price Target Upside: 18.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $112.00 ▼(-0.22% Downside)
• Action: N/A Date: 02/28/26
• Date: Action: N/A 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

Product & technology leadership

POR wins and the Emblem CMP platform signal multi-year commercial scale potential and differentiated IP. Process-of-record status entrenches customer qualification cycles, raises switching costs and supports durable content gains as customers ramp advanced nodes and packaging over several years.

Interconnect Solutions (ICS) outperformance

ICS’s above-market growth and broad subcomponent strength diversify revenue and drive margin resilience. Durable structural demand for advanced packaging and thermal/interconnect solutions underpins sustained higher-margin contribution even if other end markets ebb.

Capital allocation flexibility & liquidity

Material cash on hand, a manageable net leverage target and a $500M repurchase program provide strategic optionality. This balance between returns and flexibility supports investment in node ramps, targeted M&A or debt reduction while maintaining shareholder distributions over the medium term.

Negative Factors

2025 operating collapse

An abrupt operating collapse in 2025 severely undermines earnings quality and creates a high bar for management to restore normalized operations. Such a structural disruption can damage customer relationships, delay technology ramps and require sustained remediation before margins normalize.

Cash generation breakdown

A sudden drop to zero in operating and free cash flow removes internal funding for capex, transformation and dividends, increasing reliance on external financing. Persistent cash volatility raises refinancing and continuity risk during multi-year node ramps and elevated CapEx cycles.

Step-change in leverage

A large increase in absolute debt materially raises financial risk, especially given recent earnings and cash shortfalls. Higher leverage constrains flexibility for opportunistic investment, magnifies earnings volatility from margin shocks, and increases refinancing sensitivity in adverse cycles.

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 Electronics, Inc. in April 2025. Qnity Electronics, Inc. is based in Wilmington, Delaware.

How the Company Makes Money

Qnity Electronics, Inc. Financial Statement Overview

Summary

Financial statement scores indicate a sharp deterioration in the latest annual period: income statement weakness (Score 22) with revenue falling to 0 and large losses, cash flow falling to 0 (Score 25) versus strong prior-year generation, and a major leverage increase (balance sheet Score 48) with debt rising to ~$4.03B. Despite a sizable equity base, the abrupt operating and cash-flow breakdown drives a low financial performance score.

Income Statement

Results deteriorated sharply in 2025 (annual report): revenue fell to 0 with a large gross loss (-$1.324B) and deeply negative operating profit (-$1.820B), signaling a major disruption versus 2024’s healthy profitability (about 46% gross margin and ~16% net margin). While 2024 improved versus 2023 with modest revenue growth and higher earnings, the abrupt 2025 collapse dominates the trend and materially weakens confidence in earnings quality and near-term stability.

Balance Sheet

The balance sheet shows a step-change in leverage in 2025 (annual report): total debt rose to ~$4.03B from a very low level in 2024 (~$0.19B), pushing debt relative to equity to ~0.57. Equity remains sizable (~$7.10B) and total assets increased (~$14.07B), providing some cushion, but profitability on equity drops to 0% in 2025 alongside the operating collapse, making the higher leverage meaningfully riskier than prior years.

Cash Flow

Cash generation weakened materially in 2025 (annual report) with operating cash flow and free cash flow reported at 0, versus strong positive cash flow in 2024 (operating cash flow ~$1.06B; free cash flow ~$0.86B). Prior to 2025, cash conversion looked solid with operating cash flow exceeding net income and free cash flow covering a large portion of earnings, but the 2025 drop to zero is a significant negative inflection and raises funding/continuity concerns.

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. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ONTO	79 Outperform	$9.67B	59.58	6.85%	―	6.38%	-4.15%
TER	77 Outperform	$46.70B	54.64	19.88%	0.24%	4.56%	-15.44%
AMKR	68 Neutral	$11.04B	26.10	8.73%	0.81%	0.13%	-16.17%
ASX	63 Neutral	$46.31B	26.78	12.81%	2.29%	8.01%	10.41%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
Q	56 Neutral	$23.53B	24.72	―	0.07%	―	―
IMOS	56 Neutral	$1.37B	16.34	2.07%	2.25%	0.96%	-85.27%

Qnity Electronics, Inc. Corporate Events

Qnity Electronics appoints interim CFO amid leadership transition

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, reporting or internal controls. Principal Accounting Officer and Controller Michael Goss, a veteran finance executive with nearly three decades of experience including senior roles at DuPont and Ernst & Young, has been appointed interim CFO as Qnity launches a search for a permanent successor, while the company reaffirmed its full-year 2025 guidance for approximately $4.7 billion in net sales and about $1.4 billion in adjusted pro forma operating EBITDA, signaling management’s confidence in its financial trajectory and operational continuity despite the leadership transition.

The most recent analyst rating on (Q) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Qnity Electronics, Inc. stock, see the Q Stock Forecast page.