Q changes
Pick any two versions below to diff them.
- Price
- $115.37 → $126.57(+9.7%)
- Next earnings
- Nov 4, 2026 → Feb 4, 2027
- Next earnings is estimate
- No → Yes
- About
- Qnity Electronics makes materials and solutions for semiconductor chips and electronics, and it is based in Wilmington, Delaware. DuPont spun it off as an independent public company on November 1, 2025. It has two segments. Semiconductor Technologies sells materials that chip makers use to make chips, such as polishing pads and slurries and materials for lithography. Interconnect Solutions sells materials for chip packaging, circuit boards and electronic devices. Demand for AI and high-performance computing chips drives much of its growth. Net sales were removed: $1.43 added: $1.56 billion in removed: Q2 added: Q3 2026.
- Thesis
- The market prices Qnity for the risk that the strong chip cycle slows and for its debt and legacy liabilities after the spin-off. Sales grew 22% in Q2 added: 2026 and again 22% in Q3 2026, mostly from AI and advanced chips, and the market fears that this demand is near a peak. Qnity carries about $4.0 billion of debt. Under the spin-off agreements, it also pays a share of certain DuPont PFAS liabilities: for the North Carolina settlement of September 2026, its share is 44%, or $43 million. A new CFO started on October 1, 2026. For the gap to close, Qnity must reach its removed: raised 2026 removed: guidance: added: guidance, which it raised again on November 4, 2026: net sales of removed: $5.55 added: $5.77 billion to removed: $5.65 added: $5.83 billion, Adjusted Operating EBITDA of removed: $1.675 added: $1.785 billion to removed: $1.725 added: $1.805 billion and adjusted EPS of removed: $4.40 added: $4.95 to removed: $4.60. added: $5.05. Sales must keep growing in 2027. Its free cash flow must reduce debt, and PFAS costs must stay small. removed: Qnity reports Q3 added: The Q4 2026 removed: results on November 4, 2026, which added: report with the 2027 guidance, expected in February 2027, is the next test. If these checks pass, the gap can close over the next two to four quarters. The main reason it may not close is a downturn in chip production, which would cut demand for its materials.
- Balance sheet
- Cash: removed: $961M added: $1.1B Debt: $4.0B Net debt: removed: $3.1B added: $2.9B Interest cover: removed: 4.4× added: 4.6× Debt due within 12 months: $23M Qnity took on debt at the spin-off from DuPont. At removed: June added: September 30, 2026, debt was $4.02 billion: long-term debt of $4.00 billion and short-term borrowings of $23 million. The debt includes $2.34 billion of senior secured term loans, which Qnity repriced on July 1, 2026 to SOFR plus 1.75%. Cash was added: $1.12 billion at September 30, 2026, up from $961 removed: million. added: million at June 30, 2026 and $915 million at December 31, 2025. The $1.25 billion senior secured revolving credit facility matures in October 2030. Interest expense was removed: $122 added: $186 million in the first removed: half added: nine months of 2026, and interest cover is income before income taxes plus interest expense, divided by interest expense. added: In the first nine months of 2026, Qnity added: used $75 million to repurchase shares and paid $50 million of dividends. Qnity expects Adjusted Free Cash Flow of added: $800 million to $900 million in 2026, up from $600 million to $700 million in removed: 2026. added: its August 2026 guidance. As of removed: Jun added: Sep 30, 2026.
- Checkpoints
- Nov 4, 2026: Q3 2026 earnings: AI chip demand. removed: Pending. added: Passed. Watch: Sales and Adjusted Operating EBITDA on track for the raised 2026 guidance pass; a cut to the guidance fails. added: Outcome: Q3 2026 net sales rose 22% to $1.56 billion and Adjusted Operating EBITDA was $503 million, and Qnity raised its 2026 guidance again, to net sales of $5.77 billion to $5.83 billion and adjusted EPS of $4.95 to $5.05. Feb added: 4, 2027 (estimate): Q4 2026 results and the 2027 guidance. Pending. Watch: A 2027 outlook with sales growth and lower net debt passes; an outlook for falling sales fails.
- Recent events
- added: Nov 4, 2026: Qnity reported Q3 2026 results. Net sales were $1.56 billion, up 22%, with organic growth of 22%. Semiconductor Technologies sales were $797 million and Interconnect Solutions sales were $759 million. Net income was $196 million, or $0.87 per share, down from $1.01, mostly because interest expense rose to $64 million from $14 million after the spin-off, and adjusted EPS was $1.46, up 55%. Adjusted Operating EBITDA was $503 million. Qnity raised its 2026 guidance to net sales of $5.77 billion to $5.83 billion, adjusted EPS of $4.95 to $5.05 and Adjusted Free Cash Flow of $800 million to $900 million. Oct 1, 2026: Qnity said that it will report Q3 2026 results before the market opens on November 4, 2026. Ken Rizvi, the former CFO of Synaptics, became its Chief Financial Officer on the same day, October 1. Sep 10, 2026: DuPont, Chemours and Corteva settled PFAS claims with the State of North Carolina and some municipalities. Qnity had already set up an indemnification liability of $43 million in Q2 2026, which is its 44% share of the after-tax cost to DuPont. Aug 4, 2026: Qnity reported Q2 2026 results. Net sales were $1.43 billion, up 22%, with organic growth of 22%. Net income was $136 million, or $0.59 per share, and adjusted EPS was $1.19, up 53%. Adjusted Operating EBITDA was $431 million, up 24%. Qnity raised its 2026 guidance to net sales of $5.55 billion to $5.65 billion and adjusted EPS of $4.40 to $4.60. Jul 1, 2026: Qnity repriced all $2.34 billion of its term loans, which lowered the interest margin from SOFR plus 2.00% to SOFR plus 1.75%. Feb 20, 2026: The board approved a share repurchase authorization of up to $500 million.