Qnity Reports Third Quarter 2026 Results, Raises Full-Year Financial Guidance
Qnity Electronics, Inc. (Q) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Qnity Reports Third Quarter 2026 Results, Raises Full-Year Financial Guidance – Third quarter Net Sales and Organic Sales (1) of $1.6 billion, up 22% year-over-year – Gross Margin and Adjusted Gross Margin (1) of 47.8% – GAAP Net Income of $196 million and Adjusted O
How this was made
The 30-second read
Why it matters
The raised guidance signals stronger demand for semiconductor materials, potentially boosting related stocks.
Market read
Guidance raise is likely to drive Q stock higher and may benefit the broader semiconductor sector.
What to watch
Potential supply-chain constraints or macro slowdown could temper the upside.
Qnity Reports Third Quarter 2026 Results, Raises Full-Year Financial Guidance
Third-quarter net sales rose 22% year-over-year to $1,556 million, both segments and major geographic regions grew, gross margin expanded to 47.8%, adjusted pro forma operating EBITDA rose to $503 million, and the company raised full-year guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 Net salesGAAP | $1.56B | – | 22 % |
| Q3 2026 Cost of salesGAAP | 813 | – | – |
| Q3 2026 Gross ProfitGAAP | $743M | – | – |
| Q3 2026 Gross MarginGAAP | 47.8 % | – | – |
| Q3 2026 Adjusted Pro Forma Gross Profitnon-GAAP | $743M | – | – |
| Q3 2026 Adjusted Pro Forma Gross Marginnon-GAAP | 47.8 % | – | – |
| Q3 2026 Research and development expensesGAAP | 105 | – | – |
| Q3 2026 Selling, general and administrative expensesGAAP | 200 | – | – |
| Q3 2026 Amortization of intangiblesGAAP | 50 | – | – |
| Q3 2026 Transformation, integration and other chargesGAAP | 53 | – | – |
| Q3 2026 Interest expenseGAAP | 64 | – | – |
| Q3 2026 Income before income taxesGAAP | $247M | – | – |
| Q3 2026 Provision for income taxesGAAP | 51 | – | – |
| Q3 2026 Effective Tax RateGAAP | 20.6 % | – | – |
| Q3 2026 Net incomeGAAP | $196M | – | – |
| Q3 2026 Net income available for Qnity common stockholdersGAAP | $183M | – | – |
| Q3 2026 Earnings per common share - dilutedGAAP | $ 0.87 | – | down 14% year-over-year |
| Q3 2026 Adjusted Operating EBITDAnon-GAAP | $503M | – | – |
| Q3 2026 Adjusted Operating EBITDA Marginnon-GAAP | 32.3 % | – | – |
| Q3 2026 Adjusted Pro Forma Operating EBITDAnon-GAAP | $503M | – | – |
| Q3 2026 Adjusted Pro Forma Operating EBITDA Marginnon-GAAP | 32.3 % | – | – |
| Q3 2026 Adjusted Earningsnon-GAAP | $306M | – | – |
| Q3 2026 Adjusted Pro Forma Earningsnon-GAAP | $306M | – | – |
| Q3 2026 Adjusted Pro Forma Earnings Per Sharenon-GAAP | $ 1.46 | – | up 55% year-over-year |
| Q3 2026 Cash provided by operating activitiesGAAP | $271M | – | – |
| Q3 2026 Capital expendituresGAAP | 78 | – | – |
| Q3 2026 Adjusted Free Cash Flownon-GAAP | $320M | – | – |
| Q3 2026 Adjusted Pro Forma Free Cash Flownon-GAAP | $320M | – | – |
| Nine Months 2026 Net salesGAAP | $4.3B | – | 21 % |
| Nine Months 2026 Gross ProfitGAAP | $2.03B | – | – |
| Nine Months 2026 Gross MarginGAAP | 47.1 % | – | – |
| Nine Months 2026 Net incomeGAAP | $494M | – | – |
| Nine Months 2026 Earnings per common share - dilutedGAAP | $ 2.18 | – | – |
| Nine Months 2026 Adjusted Operating EBITDAnon-GAAP | $1.34B | – | – |
| Nine Months 2026 Adjusted Pro Forma Operating EBITDAnon-GAAP | $1.34B | – | – |
| Nine Months 2026 Cash provided by operating activitiesGAAP | $647M | – | – |
| Nine Months 2026 Capital expendituresGAAP | (290) | – | – |
| Nine Months 2026 Adjusted Free Cash Flownon-GAAP | $607M | – | – |
| Nine Months 2026 Adjusted Pro Forma Free Cash Flownon-GAAP | $607M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Semiconductor TechnologiesVolume of 16 % was partly offset by Currency of (1) %; Local Price & Product Mix was — %. | $797M | – | 15 % |
| Interconnect SolutionsVolume was 29 %, Currency was 1 %, and Local Price & Product Mix was — %. | $759M | – | 30 % |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Full Year 2026 outlook
- Revenue$5.77B - $5.83B
- NoteAdjusted Operating EBITDA $1.785B - $1.805B
- NoteAdjusted EPS $4.95 - $5.05
- NoteAdjusted Free Cash Flow $800M - $900M
Capital returns
- Repurchases of common stock (75) for the nine months ended September 30, 2026.
- Dividends paid to stockholders (50) for the nine months ended September 30, 2026.
What drove it
- Total Q3 net sales variance was driven by Volume of 22 %, with Local Price & Product Mix of — % and Currency of — %.
- Interconnect Solutions posted Total Organic growth of 29 % and Total growth of 30 %.
- Asia Pacific net sales were $ 1,241, with Total growth of 24 %.
- Americas net sales were $ 210, with Total growth of 24 %.
- The company cited strong performance across both segments and visible customer demand for differentiated technologies.
Concerns
- GAAP net income was $ 196 in Q3 2026, compared with $ 223 in Q3 2025.
- GAAP diluted earnings per share was $ 0.87, down 14% year-over-year from $1.01.
- Q3 2026 transformation, integration and other charges were 53, including approximately $35 million for information technology independence initiatives.
- Q3 2026 interest expense was 64, compared with 14 in Q3 2025.
- EMEA net sales were $ 105, and Total growth was — %.
What to watch
- Delivery against full-year 2026 Net Sales guidance of $5.77B - $5.83B.
- Delivery against full-year 2026 Adjusted Operating EBITDA guidance of $1.785B - $1.805B.
- Delivery against full-year 2026 Adjusted EPS guidance of $4.95 - $5.05.
- Delivery against full-year 2026 Adjusted Free Cash Flow guidance of $800M - $900M.
- Costs associated with information technology independence initiatives, transformation initiatives, other integration-related costs, and severance and other asset-related charges.
- The effect of international operations, geopolitical uncertainty and conflict, trade restrictions and sanctions laws.
Balance sheet and cash flow
- Cash and cash equivalents were $ 1,124 at September 30, 2026, versus $ 915 at December 31, 2025.
- Short-term borrowings were $ 23 at September 30, 2026, versus $ 24 at December 31, 2025.
- Long-Term Debt was 3,996 at September 30, 2026, versus 4,003 at December 31, 2025.
- Total Assets were $ 14,717 at September 30, 2026, versus $ 14,070 at December 31, 2025.
- Total Liabilities were $ 6,828 at September 30, 2026, versus $ 6,704 at December 31, 2025.
- Total Qnity equity was $ 7,591 at September 30, 2026, versus $ 7,095 at December 31, 2025.
- Increase in cash and cash equivalents was $ 209 for the nine months ended September 30, 2026, versus decrease in cash and cash equivalents of $ (38) in the prior-year period.
Analysis
Qnity reported Q3 2026 net sales of $1,556 million, compared with $1,276 million in Q3 2025. The company reported Total Organic sales growth of 22 %, entirely driven by Volume of 22 %, while Currency and Local Price & Product Mix were each — %. Semiconductor Technologies generated $797 million of sales and 15 % total growth. Interconnect Solutions generated $759 million and 30 % total growth, making it the faster-growing segment. Asia Pacific sales were $1,241 and rose 24 %, while Americas sales were $210 and rose 24 %; EMEA sales were $105 and Total growth was — %.
Profitability improved materially on the reported gross-profit and adjusted EBITDA measures. Q3 gross profit was $743 and gross margin was 47.8 %, compared with $575 and 45.1 % in the prior-year quarter. Adjusted Operating EBITDA was $503, with an Adjusted Operating EBITDA Margin of 32.3 %, compared with $382 and 29.9 %. On the pro forma basis used for the standalone comparison, Adjusted Pro Forma Operating EBITDA was $503, compared with $370, and Adjusted Pro Forma Operating EBITDA Margin was 32.3 %, compared with 29.0 %.
GAAP earnings were affected by higher financing and transformation-related costs. Net income was $196 versus $223, and diluted EPS was $0.87 versus $1.01. Interest expense was 64 versus 14. Transformation, integration and other charges were 53 versus 1. Q3 2026 transformation, integration and other charges primarily included approximately $35 million for information technology independence initiatives, approximately $11 million of transformation initiatives, approximately $4 million of other integration-related costs, and approximately $3 million of severance and other asset-related charges. Adjusted Pro Forma Earnings Per Share was $1.46, compared with $0.94.
Cash generation remained positive while investment and working-capital requirements were significant. Q3 cash provided by operating activities was $271, capital expenditures were 78, and Adjusted Free Cash Flow was $320. For the nine months ended September 30, 2026, cash provided by operating activities was $647, capital expenditures were (290), and Adjusted Free Cash Flow was $607. Cash and cash equivalents were $1,124 at September 30, 2026, and Long-Term Debt was 3,996. The company repurchased common stock of (75) and paid dividends to stockholders of (50) during the nine-month period.
Management raised full-year 2026 guidance following strong third-quarter performance and continued momentum. The new outlook calls for Net Sales of $5.77B - $5.83B, Adjusted Operating EBITDA of $1.785B - $1.805B, Adjusted EPS of $4.95 - $5.05, and Adjusted Free Cash Flow of $800M - $900M. No prior outlook was provided with this filing, so a comparison of actual results with prior guidance is not available.
Management, verbatim
We delivered our tenth consecutive quarter of profitable growth with strong performance across both segments as Qnity continues to establish itself as the premier solutions provider across the semiconductor value chain.
Jon Kemp, Chief Executive Officer
Materials innovation is quickly becoming a critical driver of chip performance as the industry shifts toward shrink and stack.
Jon Kemp, Chief Executive Officer
We see tremendous opportunities ahead, and we’re continuing to invest in differentiated technologies where we see visible customer demand to create significant value for our shareholders.
Jon Kemp, Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported Q3 and nine-month metrics were not provided.
- GAAP operating income was not reported.
- Full-year 2026 guidance for gross margin, operating expenses, and tax rate was not provided.
- Prior-period guidance was not provided.
- A declared dividend amount or future share-repurchase authorization was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Qnity Electronics, a S&P 500 component, reported Q3 2026 results and increased its full-year sales and EPS forecasts.
Ticker impact
Qnity raised full-year guidance after reporting Q3 results with higher sales and adjusted EPS.
likely upward pressure as investors price in higher sales and earnings expectations
The company disclosed higher full-year sales and EPS targets, which typically supports a price rally.
Market effects
Positive outlook may lift other semiconductor materials and equipment stocks.
U.S. semiconductor sector could see modest gains.
Limited to investors tracking U.S. tech and semiconductor exposure.
Counterpoint
If the guidance is overly optimistic, a pullback could follow once detailed execution risks emerge.
Key entities
- companyQnity Electronics, Inc.
Semiconductor materials and solutions provider.
