Q

Qnity Electronics, Inc. Q used its second-quarter 2026 earnings call to emphasize stronger demand tied to AI, advanced packaging and higher materials intensity across the semiconductor stack. Management also raised full-year guidance as customer engagement and second-half visibility improved. Adjusted earnings per share of $1.19 topped the Zacks Consensus Estimate of $1.07. Revenues of $1.43 billion exceeded the consensus mark of $1.36 billion. Qnity Electronics, Inc. price-consensus-eps-surprise-chart | Qnity Electronics, Inc. Quote Michael Goss, interim chief financial officer, said third-quarter net sales should rise in the low-single-digit range sequentially, led by AI applications, high-performance computing and advanced connectivity. For 2026, Q now expects net sales of $5.55 billion to $5.65 billion, adjusted operating EBITDA of $1.675 billion to $1.725 billion, adjusted EPS of $4.40 to $4.60 and adjusted free cash flow of $600 million to $700 million. Goss said the midpoint implies 18% sales growth, more than 20% adjusted EBITDA growth and 35% adjusted earnings-per-share growth for the year. Jon Kemp, chief executive officer, said Semiconductor Technologies’ organic sales rose 17% year over year as the advanced-nodes portfolio grew more than 20%. Kemp said improving fab utilization and increasing process complexity are lifting Qnity content per wafer. He highlighted continued 3-nanometer growth, emerging 2-nanometer activity and strong customer engagement around future angstrom-era platforms. Goss said Semiconductor Technologies generated $744 million in sales, with an adjusted operating EBITDA margin of about 34%. Management expects low-single-digit sequential sales growth and a mid-30s margin profile in the third quarter. Kemp said Interconnect Solutions’ organic sales grew 28%, powered by advanced packaging and interconnects, AI printed circuit boards and thermal management. Those three growth platforms collectively expanded more than 50%. In Q&A, a Deutsche Bank analyst asked whether the long-term growth profile had improved. Kemp said advanced packaging and thermal demand had accelerated faster than management discussed at its prior Investor Day. Goss added the segment produced $685 million in sales and an adjusted operating EBITDA margin of about 29%. He views the business as structurally capable of a high-20s margin profile. Kemp stated Qnity has deployed about $600 million in growth investments since 2022, largely through modular capacity additions aligned with customer road maps and its local-for-local model. Goss said second-quarter capital expenditures were $90 million and should remain elevated this year before returning over time to roughly 6% of net sales. He also said the transformation program is beginning to improve productivity and throughput. Warehouse consolidation is targeted to generate about 10% logistics cost savings, while roughly two-thirds of sites are expected to migrate to Qnity's own IT systems by year-end. A Goldman Sachs analyst pressed management on the implied fourth-quarter slowdown. Goss said order books remain healthy, while consumer-electronics seasonality, customer ramp timing, Middle East developments and utilization trends remain key variables. Kemp added that consumer electronics normally peaks modestly in the third quarter before easing, while customers often exercise additional inventory control in the fourth quarter. On margins, Goss said about half of the roughly $20 million logistics and energy cost pressure has already occurred, with the balance expected in the second half. Targeted pricing and mitigation actions are intended to offset those pressures. Kemp framed the company's direction around the shift from shrink to stack, where more layers and more complex architectures increase materials intensity across front-end, packaging and thermal applications. Management's emphasis remained on customer road-map alignment, disciplined capacity spending and transformation work designed to support growth while preserving margin flexibility. Qnity sports a Zacks Rank #1 (Strong Buy), while its Momentum Score is A. Under the Zacks Style Score framework, an A represents the strongest grade and can complement a top Zacks Rank for investors focused on momentum. You can see the complete list of today’s Zacks #1 Rank stocks here. The Value Score of D, Growth Score of C and VGM Score of D are less favorable within the same A-to-F hierarchy, leaving the broader Style Score picture mixed despite the top rank. The Zacks Rank can change as analyst estimate revisions are updated following the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Qnity Electronics, Inc. (Q) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Qnity Electronics, Inc.? Here are five stocks we like better. Qnity exceeded second-quarter expectations: Sales rose 22% year over year to $1.4 billion, adjusted EPS increased 53% to $1.19, and adjusted EBITDA grew 24% to $431 million. Growth was led by AI, high-performance computing, advanced packaging and semiconductor manufacturing demand. The company raised its full-year outlook to $5.55 billion-$5.65 billion in sales, $1.675 billion-$1.725 billion in adjusted EBITDA, $4.40-$4.60 in adjusted EPS and $600 million-$700 million in adjusted free cash flow. Qnity is investing heavily to capitalize on the industry shift toward more complex chip architectures and advanced packaging, including capacity expansions, new polishing and thermal-management products, and interconnect solutions for AI-related applications. Bearish Pressure Is Building Around These 3 Stocks Qnity Electronics (NYSE:Q) reported second-quarter results that exceeded its expectations, driven by demand tied to artificial intelligence, high-performance computing, advanced connectivity and semiconductor manufacturing. The company raised its full-year outlook after posting 22% year-over-year organic sales growth and 53% growth in adjusted earnings per share. Chief Executive Officer Jon Kemp said the semiconductor industry is moving beyond traditional transistor scaling toward more complex chip architectures and advanced packaging, a shift he described as a transition from “shrink to stack.” He said the trend is increasing demand for materials used across semiconductor fabrication, packaging, interconnects and thermal management. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Quantum Earnings Could Decide Whether the Sector’s Sell-Off Has Gone Too Far “As customers move to increasingly advanced nodes, every wafer requires more layers, more processing complexity, and more packaging steps,” Kemp said. “All of this translates to more volume and to more Qnity content.” Qnity recorded net sales of $1.4 billion in the second quarter, up 22% from a year earlier and 9% sequentially. Adjusted operating EBITDA rose 24% to $431 million, while adjusted operating EBITDA margin was 30.2%. Adjusted EPS increased 53% to $1.19, and adjusted free cash flow totaled $259 million. Semiconductor Technologies sales were $744 million, up about 3% sequentially, with 17% organic growth from the prior year. Interconnect Solutions sales were $685 million, rising more than 30% year over year and 16% sequentially, with 28% organic growth. Capital expenditures were $90 million during the quarter as the company continued capacity expansion and transformation investments. Qnity ended the quarter with about $960 million in cash and short-term investments, $4 billion in total debt and net debt leverage of about 2 times. → 3 Drone Stocks That Should Soar After the Summer Slump D-Wave’s AT&T Deal Shows Quantum Computing Is Moving Beyond Theory Kemp said Semiconductor Technologies was supported by demand for advanced logic and high-bandwidth memory, or HBM, applications. The segment’s advanced-nodes portfolio grew more than 20% during the quarter. He cited industry fab-utilization levels in the mid-80% range for advanced logic, low-80% range for mainstream logic, high-80% range for DRAM and low-80% range for NAND. Interconnect Solutions benefited from advanced packaging and interconnect products, AI-focused printed circuit boards and thermal-management products. Collectively, those platforms grew more than 50% year over year, according to Kemp. → Why Rare Earth Processing Could Be the Real 2027 Opportunity During the quarter, Qnity introduced its Optivision Max polishing pad, a chemical mechanical planarization product intended for critical semiconductor processing steps. Kemp said the product has already seen adoption in leading-edge nodes and advanced-packaging applications, including AI- and HBM-related architectures. The company also secured multiple product-of-record wins at 16 and 14 angstroms during the first half of the year, Kemp said. In addition, it is pursuing new business in pulse plating for advanced AI circuit boards and expanded its thermal portfolio to include liquid thermal interface materials, phase-change materials, thermal pads and gap fillers. Since 2022, Qnity has deployed about $600 million in growth investments, primarily to expand capacity and support customer technology roadmaps under its local-for-local manufacturing and technical-support model. Kemp said the company has facilities in major geographic centers and is using modular expansions to respond to customer ramps. Interim Chief Financial Officer Mike Goss said the company has begun seeing benefits from a multiyear transformation plan. In its Kalrez business, Qnity is pursuing productivity, capacity-release and automation projects to address strong demand from wafer-fab equipment customers. The company is also consolidating warehouses, an effort it expects to produce about 10% logistics-cost savings over time, and plans to migrate about two-thirds of its sites to its own IT systems by year-end. For the third quarter, Qnity expects low-single-digit sequential sales growth overall. Semiconductor Technologies is expected to grow at a low-single-digit sequential rate, with adjusted EBITDA margins in the mid-30% range. Interconnect Solutions is expected to post mid-single-digit sequential growth and adjusted EBITDA margins in the high-20% range. Goss said third-quarter demand should be supported by AI applications, high-performance computing, advanced connectivity and a seasonal consumer-electronics peak. However, he noted that third-quarter 2025 sales included approximately $40 million accelerated ahead of pre-spin IT system go-lives, creating a more difficult year-over-year comparison. The company said it continues to monitor supply-chain conditions, including memory and other materials, as well as customer-ramp timing and developments in the Middle East. Goss said roughly half of a previously identified $20 million in logistics and energy-related costs occurred in the first half, with the remainder expected in the second half. He said pricing actions and Qnity’s local operating model are expected to offset those pressures. Qnity raised its full-year guidance to: Net sales of $5.55 billion to $5.65 billion; Adjusted operating EBITDA of $1.675 billion to $1.725 billion; Adjusted EPS of $4.40 to $4.60; and Adjusted free cash flow of $600 million to $700 million. At the midpoint of the updated outlook, Qnity expects 18% sales growth, more than 20% adjusted EBITDA growth and 35% adjusted EPS growth for 2026. Kemp said logic remains roughly 80% of the Semiconductor Technologies portfolio, while memory accounts for about 20%, with HBM and DRAM growing faster. Data-center exposure has increased with AI demand, while automotive, aerospace and defense, telecommunications infrastructure and other industrial markets have shown steady growth. Consumer electronics has continued to grow, though at a slower pace, he said. Qnity also named Kate Dei Cas as president of its Semiconductor Technologies segment. Kemp said Dei Cas brings more than 25 years of semiconductor-industry experience. The company is in the final stages of its search for a permanent chief financial officer, he added. Qnity Electronics, Inc is an electronics materials company focused on supplying products used in semiconductor manufacturing and advanced electronic systems. The company was formed from DuPont's former Electronics business and operates as an independent publicly traded company. Its portfolio includes materials and solutions used throughout the semiconductor production process, including wafer fabrication, advanced packaging, and related interconnect applications. Qnity's technologies are designed to support the performance, reliability, and miniaturization of electronic devices and components. The company serves semiconductor manufacturers, advanced packaging providers, and other electronics customers through operations and commercial relationships spanning major technology markets worldwide. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Qnity Electronics Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Qnity Electronics, Inc. Q reported second-quarter 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate. Qnity reported second-quarter non-GAAP earnings of $1.19 per share, which beat the Zacks Consensus Estimate by 11.2%. The bottom line increased 53% on a year-over-year basis. Net sales came in at $1.43 billion, which increased 22% from the year-ago quarter and beat the consensus estimate by 5.2%. Growth was supported by AI-driven demand, while advanced-node sales increased more than 20% and key Interconnect Solutions growth platforms expanded more than 50%. Qnity Electronics, Inc. price-consensus-eps-surprise-chart | Qnity Electronics, Inc. Quote Qnity’s Semiconductor Technologies revenues were $744 million (52.1% of the total revenues), up 15.5% year over year. The Zacks Consensus Estimate for Semiconductor Technologies revenues was pegged at $715 million. Management noted that fab utilization improved across the industry. Advanced logic utilization reached the mid-80% range, while mainstream logic was in the low 80s. DRAM utilization was in the high 80s, and NAND was in the low 80s, supporting demand for Qnity's consumable materials. In Interconnect Solutions, revenues were $685 million, comprising 47.9% of the total revenues. This marks an increase of 30.2% from the year-ago period. The Zacks Consensus Estimate for Interconnect Solutions revenues was pegged at $636 million. The company said the adoption of AI applications accelerated demand for advanced packaging and thermal products. Larger package formats and tighter geometries require more complex materials and greater material intensity, expanding Q's content opportunity across next-generation architectures. Customer capacity additions in high-value advanced packaging applications also supported management's long-term confidence. Qnity’s non-GAAP gross profit increased 22.9% on a year-over-year basis to $666 million. As a percentage of revenues, the non-GAAP gross margin expanded 30 basis points on a year-over-year basis to 46.6%. Q’s non-GAAP operating EBITDA increased 24.2% year over year to $431 million. As a percentage of revenues, the non-GAAP operating EBITDA margin expanded 50 basis points year over year to 30.2%. As of June 30, 2026, Qnity held $961 million in cash and cash equivalents, up from $857 million at the end of the prior quarter. The company generated an operating cash flow of $241 million in the second quarter of 2026. As of June 30, 2026, Qnity’s long-term debt was $3.997 billion, down marginally from the previous quarter’s $4 billion. For 2026, Qnity raised its outlook across key metrics. The company expects net sales in the range of $5.55-$5.65 billion, up from the prior guidance of $5.225-$5.375 billion. The Zacks Consensus Estimate is pegged at $5.38 billion, indicating a year-over-year increase of 13.2%. Qnity expects adjusted operating EBITDA of $1.675-$1.725 billion, up from the earlier guided range of $1.535-$1.625 billion. Adjusted EPS is projected to be in the band of $4.40-$4.60, up from the previously guided range of $3.80-$4.14. The Zacks Consensus Estimate for earnings is pegged at $4.16 per share, indicating a year-over-year increase of 24.2%. The adjusted free cash flow is expected to be in the band of $600-$700 million, up from the previous guidance of $500-$600 million. For the third quarter of 2026, Q expects net sales to grow in the low-single-digit range sequentially. The Zacks Consensus Estimate is pegged at $1.41 billion, indicating a year-over-year increase of 10.8%. Currently, Qnity carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader Zacks Computer and Technology sector are AppFolio APPF, Amkor Technology AMKR and Amphenol APH, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Shares of AppFolio have plunged 14.2% year to date. The Zacks Consensus Estimate for APPF’s 2026 earnings is pegged at $6.90 per share, up by 2.2% over the past 30 days, indicating an increase of 30.4% year over year. Shares of Amkor Technology have jumped 41.5% year to date. The Zacks Consensus Estimate for AMKR’s 2026 earnings is pegged at $2.62 per share, up by 17.5% over the past seven days, indicating a rise of 74.7% year over year. Amphenol shares have surged 26.8% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $5.25 per share, up by 7.8% over the past seven days, indicating an increase of 57.2% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Qnity Electronics, Inc. (Q) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report Amkor Technology, Inc. (AMKR) : Free Stock Analysis Report AppFolio, Inc. (APPF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

– Second quarter net sales of $1.4 billion, up 22% year-over-year, organic sales(1) up 22%– GAAP net income of $136 million, down 31% year-over-year; Adjusted Earnings(1) of $250 million, up 53% year-over-year– Adjusted Operating EBITDA(1) of $431 million, up 24% year-over-year– GAAP EPS of $0.59, down 34% year-over-year; Adjusted EPS(1) of $1.19, up 53% year-over-year– Raises full year 2026 financial guidance WILMINGTON, Del., August 04, 2026--(BUSINESS WIRE)--Qnity Electronics, Inc. ("Qnity") (NYSE: Q) today reported results for the second quarter ended June 30, 2026. "We delivered our ninth consecutive quarter of profitable growth driven by disciplined execution across both segments," said Jon Kemp, Qnity’s Chief Executive Officer. "The continued momentum reflects our deep alignment with the industry’s most advanced technology roadmaps, our embedded role in customers’ next-generation platforms, and our ability to deliver the solutions they need at scale." Kemp added, "The industry shift toward shrink and stack is lengthening the journey every chip takes, requiring more process complexity and more layers, creating a multiplier effect for materials intensity. Qnity sits at the center of this trend with one of the broadest portfolios of end-to-end solutions across the stack. As AI, high-performance computing and advanced connectivity reshape demand, we are uniquely positioned to continue enhancing value for customers and deliver long-term growth for our shareholders." Financial Results Summary Guidance for Full Year 2026 Qnity is raising full‑year guidance based on strong second‑quarter performance and continued near‑term momentum, including strong customer engagement and demand across end markets. Qnity’s full year 2026 guidance (3) is as follows: Conference Call and Webcast Information Qnity will hold a conference call to review these results on Tuesday, August 4, 2026, at 8:00 a.m. ET. Investors can join the conference call via telephone by dialing (800) 343-5172 (domestic) or +1 (203) 518-9856 (international) and using the participant code QNITY. An audio-only live webcast, presentation materials, and replay will also be made available at Events | Qnity Electronics, Inc. (Q). About Qnity Qnity is a premier technology provider across the semiconductor value chain, empowering AI, high performance computing, and advanced connectivity. From groundbreaking solutions for semiconductor chip manufacturing, to enabling high-speed transmission within complex electronic systems, our high-performance materials and integration expertise make tomorrow’s technologies possible. More information about the company, its businesses and solutions can be found at http://www.qnityelectronics.com. Qnity™, the Qnity Node Logo, and all products, unless otherwise noted, denoted with TM or ® are trademarks, trade names or registered trademarks of affiliates of Qnity Electronics, Inc. Cautionary Statement Regarding Forward-Looking Statements This release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements use words such as "plans", "expects", "will", "would", "anticipates", "believes", "intends", "seeks", "projects", "efforts", "estimates", "potential", "continue", "intend", "outlook", "may", "could", "should" and similar expressions, among others, as well as other words or expressions referencing future events, conditions or circumstances. Statements that describe or relate to the market, industry and macroeconomic environment, Qnity's business plans or prospects, goals, intentions, strategies, future operating or financial performance, outlook, including without limitation statements under the heading "Guidance for Full Year 2026" and statements regarding Qnity’s strategic path, operating model, transformation plan and its expected costs and benefits and timing thereof, IT independence, share repurchases, and capital allocation plan to deliver above-market growth and strong profitability and statements that do not relate to historical or current fact, are examples of forward-looking statements. Forward-looking statements are based on our current beliefs, expectations and assumptions, which may not prove to be accurate, and involve a number of known and unknown risks and uncertainties, many of which are out of Qnity's control. Forward-looking statements are not guarantees of future performance, and there are a number of important factors that could cause actual outcomes and results to differ materially from the results contemplated by such forward-looking statements, including Qnity’s ability to realize the anticipated benefits of its multi-year transformation plan in the anticipated timeframe or at all and the risk that the costs of such plan may be higher than currently anticipated; the competitive environment in which Qnity operates; the risks from Qnity’s international operations, including geopolitical uncertainty and conflict, trade restrictions and sanctions laws; Qnity’s ability to comply with complex and increasing legal and regulatory requirements; the ability to realize the intended benefits of Qnity’s spin off from DuPont, including achievement of the anticipated synergies and operational efficiencies in connection with the spin off and completed and future, if any, divestitures, mergers, acquisitions, and other portfolio management, productivity and infrastructure actions; contractual allocation of certain liabilities in connection with the spin-off; and the possibility of disputes, litigation or unanticipated costs in connection with the spin-off. Additional information concerning risks and uncertainties can be found in Qnity's filings with the U.S. Securities and Exchange Commission (the "SEC"), including under the headings "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" in our most recent Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the "SEC") on February 26, 2026, and in Qnity’s future filings with the SEC. Any forward-looking statement speaks only as of the date on which it is made. Qnity does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Non-GAAP Financial Measures This press release includes information that does not conform to accounting principles generally accepted in the United States of America ("U.S. GAAP") and are considered non-GAAP measures, including the presentation of Organic Sales, Adjusted Gross Profit, Adjusted Pro Forma Gross Profit, Adjusted Operating EBITDA, Adjusted Pro Forma Operating EBITDA, Adjusted Operating EBITDA Margin, Adjusted Pro Forma Operating EBITDA Margin, Adjusted Earnings, Adjusted Pro Forma Earnings, Adjusted EPS, Adjusted Pro Forma EPS, Base Tax Rate, Adjusted Free Cash Flow, Adjusted Pro Forma Free Cash Flow, Adjusted Pro Forma Base Tax Rate. The non-GAAP measures presented are not necessarily indicative of the future possible key performance indicators or non-GAAP measures of Qnity. Qnity believes these non-GAAP financial measures are useful to investors because they provide additional information related to the performance of Qnity on an as-managed basis by DuPont and a stand-alone basis. These non-GAAP financial measures supplement disclosures prepared in accordance with U.S. GAAP and reflect results in a manner that enables, in some instances, more meaningful analysis of trends and facilitates comparison of results across periods. These non-GAAP financial measures should not be viewed as an alternative to U.S. GAAP. Furthermore, such non-GAAP measures may not be consistent with similar measures provided or used by other companies. Reconciliations for these non-GAAP measures to their most directly comparable U.S. GAAP financial measures are provided below. Non-GAAP measures included in this press release are defined below. Adjusted Earnings is defined as net income available for Qnity common stockholders excluding the impacts of significant items, amortization expense of intangibles, non-operating pension / other post-employment benefits ("OPEB") credits / costs, and indirect legacy costs / benefits and adjusted for the income tax effect of these excluded items. Adjusted Earnings is the numerator used in the calculation of Adjusted EPS. Adjusted EPS is defined as Adjusted Earnings per common share - diluted. Base Tax Rate is a non-GAAP measure defined as the GAAP Effective Tax Rate excluding the tax rate impacts of adjustments to net income available for Qnity common stockholders in determining Adjusted Earnings. Adjusted Operating EBITDA is defined as Pre-tax Earnings (i.e., "Income before income taxes") before interest, depreciation, amortization, non-operating pension / OPEB benefits credits / costs, foreign exchange gains / losses, indirect legacy costs / benefits, and adjusted for significant items. Adjusted Operating EBITDA Margin is defined as Adjusted Operating EBITDA divided by Net Sales. Adjusted Free Cash Flow is defined as cash provided by/used for operating activities less capital expenditures and excluding the impact of indirect legacy costs / benefits related to cost sharing arrangements executed between DuPont and Qnity at the time of spin-off, IT independence costs, and transformation, integration, and other charges, as well as cash inflows/outflows that are unusual in nature and/or infrequent in occurrence that neither relate to the ordinary course of the Company's underlying business liquidity. Significant items are items that impact Qnity and arise outside the ordinary course of business that management believes may cause misinterpretation of underlying business performance, both historical and future, based on a combination of some or all of the item’s size, unusual nature and infrequent occurrence. Within this definition, Management classifies as significant items certain costs and expenses associated with transformation, integration, and other charges related to transformational activities, including acquisitions and divestitures, as they are considered unrelated to ongoing business performance. Indirect legacy costs/benefits relate to cost sharing arrangements executed between DuPont and Qnity at the time of the spin-off. Such costs include certain litigation and environmental-related shared costs, taxes, and indirect cost sharing arrangements, and are excluded from Adjusted Earnings, Adjusted Operating EBITDA, and Adjusted Free Cash Flow, as defined above, as they are considered unrelated to ongoing Qnity business performance. Organic Sales is defined as net sales excluding the impacts of currency and portfolio actions. Adjusted gross profit is calculated as Gross Profit (net sales less cost of sales), excluding the impact of Significant items on Net Sales and Cost of Sales and the impact on Cost of Sales from certain services associated with transaction agreements entered with DuPont, including the Transition Services Agreement, certain product service agreements, contract manufacturing agreements, raw materials supply agreements, and site services agreements. Qnity has also presented measures on a pro forma basis which were prepared in a manner consistent with Article 11 of Regulation S-X. Our pro forma results give effect to the spin-off and related transactions as if the Spin Off occurred on January 1, 2025. Our Pro Forma adjustments reflect: Interest expense associated with our current debt structure; Income tax effect of incremental interest expense; The impact of the Transition Services Agreements and other commercial agreements entered into with DuPont in connection with the spin-off; and Transaction and other incremental costs required to operate as a stand-alone entity. We believe pro forma measures are helpful to supplement our financial results as they allow a comparison of results as a stand-alone company as if the agreements were in place for the periods presented. Adjusted Pro Forma Earnings is defined as net income available for Qnity common stockholders excluding the impacts of significant items, amortization expense of intangibles, non-operating pension / other post-employment benefits credits / costs, and indirect legacy costs / benefits, less the after-tax impacts of the pro forma adjustments described above and adjusted for the income tax effect of these excluded items. Adjusted Pro Forma Earnings is the numerator used in the calculation of Adjusted Pro Forma EPS. Adjusted Pro Forma EPS is defined as Adjusted Pro Forma Earnings per common share - diluted. Adjusted Pro Forma Base Tax Rate is a non‑GAAP measure defined as the Base Tax Rate adjusted to reflect the estimated income tax effects of the pro forma adjustments described above. Adjusted Pro Forma Operating EBITDA is defined as Adjusted Operating EBITDA less certain pro forma adjustments described above. Adjusted Pro Forma Operating EBITDA Margin is defined as Adjusted Pro Forma Operating EBITDA divided by Net Sales. Adjusted Pro Forma Free Cash Flow is defined as pro forma cash provided by/used for operating activities less capital expenditures and excluding the impact of indirect legacy costs / benefits related to cost sharing arrangements executed between DuPont and Qnity at the time of spin-off, IT independence costs, transformation, integration, and other charges, and transaction and other incremental costs required to operate as a stand-alone entity, as well as cash inflows/outflows that are unusual in nature and/or infrequent in occurrence that neither relate to the ordinary course of the Company's underlying business liquidity. Adjusted Pro Forma Gross Profit is calculated as Gross Profit (net sales less cost of sales), excluding the impact on Cost of Sales from certain services associated with transaction agreements entered with DuPont, including the Transition Services Agreement, certain product service agreements, contract manufacturing agreements, raw materials supply agreements, and site services agreements. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804374088/en/ Contacts Investor Contact Meg [email protected] Media Contact Ashley [email protected]

Qnity Electronics, Inc. (NYSE:Q) reported second-quarter 2026 results that comfortably surpassed Wall Street expectations and raised its financial guidance for the full year, sending the company’s shares 10.4% higher. The rally was driven by stronger-than-expected earnings and an improved outlook that exceeded analyst forecasts. Qnity posted adjusted earnings of $1.19 per share for the second quarter, beating the analyst consensus estimate of $0.65 by $0.54. Quarterly revenue increased 22% year over year to $1.4 billion, compared with $1.17 billion in the same period last year. The combination of robust revenue growth and a substantial earnings beat reinforced investor confidence in the company’s operating momentum. Management increased its full-year 2026 adjusted earnings per share guidance to a range of $4.40 to $4.60. The midpoint of the updated forecast, $4.50 per share, is well above the current analyst consensus estimate of $4.17. Qnity also lifted its full-year revenue outlook to between $5.55 billion and $5.65 billion. The midpoint of $5.60 billion exceeds the market consensus estimate of approximately $5.38 billion. Chief Executive Officer Jon Kemp said the company continues to benefit from long-term trends within the semiconductor industry. “We delivered our ninth consecutive quarter of profitable growth driven by disciplined execution across both segments,” said Jon Kemp, Qnity’s Chief Executive Officer. “The industry shift toward shrink and stack is lengthening the journey every chip takes, requiring more process complexity and more layers, creating a multiplier effect for materials intensity.” The Semiconductor Technologies division generated revenue of $744 million during the quarter, representing a 16% increase from a year earlier. Revenue from the Interconnect Solutions business climbed 30% to $685 million, reflecting continued demand across multiple end markets. Adjusted operating EBITDA rose 24% to $431 million, compared with $347 million on a pro forma basis in the second quarter of last year. GAAP earnings per share declined to $0.59 from $0.90 a year earlier, primarily due to higher transformation and integration costs of $42 million, compared with just $2 million in the prior-year period. GAAP net income fell 31% year over year to $136 million. Despite those charges, the company said strong customer engagement and healthy demand across its end markets supported the improved outlook. Management also expects continued growth opportunities from expanding investment in artificial intelligence, high-performance computing and advanced connectivity technologies. Qnity Electronics stock price

This article first appeared on GuruFocus. Net Sales: $1.4 billion, up 22% year-over-year and 9% sequentially. Organic Sales Growth: 22% year-over-year. Adjusted Operating EBITDA: $431 million, up 24% year-over-year. Adjusted Operating EBITDA Margin: 30.2%. Adjusted EPS: $1.19, up 53% year-over-year. Semiconductor Technologies Net Sales: $744 million, up approximately 3% sequentially; organic sales grew 17% year-over-year. Semiconductor Technologies Gross Margin: Approximately 49%. Semiconductor Technologies Adjusted Operating EBITDA Margin: Approximately 34%. Interconnect Solutions Net Sales: $685 million, up more than 30% year-over-year and 16% sequentially; organic sales grew 28%. Interconnect Solutions Gross Margin: Approximately 44%. Interconnect Solutions Adjusted Operating EBITDA Margin: Approximately 29%, an improvement of 290 basis points year-over-year. Adjusted Free Cash Flow: $259 million. Capital Expenditures: $90 million in the quarter. Share Repurchases: $25 million worth of shares during the quarter. Cash and Short-Term Investments: Approximately $960 million at the end of the second quarter. Total Debt Outstanding: $4 billion, with net debt leverage of approximately 2 times. Full-Year 2026 Net Sales Guidance: $5.55 billion to $5.65 billion. Full-Year 2026 Adjusted Operating EBITDA Guidance: $1.675 billion to $1.725 billion. Full-Year 2026 Adjusted EPS Guidance: $4.40 to $4.60. Full-Year 2026 Adjusted Free Cash Flow Guidance: $600 million to $700 million. Warning! GuruFocus has detected 3 Warning Sign with Q. Is Q fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Qnity Electronics Inc (NYSE:Q) delivered its ninth consecutive quarter of strong, profitable organic growth, with organic sales up 22% year-over-year and adjusted EPS up 53%. The company's Interconnect Solutions segment saw exceptional performance, with 28% organic growth, driven by over 50% growth in advanced packaging, AI PCBs, and thermal management platforms. Qnity Electronics Inc (NYSE:Q) is well-positioned in the semiconductor industry's shift from shrink to stack, with a broad portfolio of end-to-end solutions across the stack, including CMP, lithography, advanced packaging, and thermal materials. The company raised its full-year 2026 guidance, now expecting net sales of $5.55-$5.65 billion, adjusted EBITDA of $1.675-$1.725 billion, and adjusted EPS of $4.40-$4.60, reflecting strong momentum and improved visibility. Qnity Electronics Inc (NYSE:Q) is making progress on its multi-year transformation plan, with initiatives like warehouse consolidations and IT independence expected to deliver cost savings and operational efficiencies. The company's advanced nodes portfolio grew over 20% in Q2, with strong adoption at 3nm, emerging activity at 2nm, and increasing engagement in future angstrom-era platforms, indicating robust long-term growth potential. Qnity Electronics Inc (NYSE:Q) has a strong balance sheet with approximately $960 million in cash and short-term investments, and successfully repriced its term loan to enhance free cash flow. The company is seeing broad-based improvements in fab utilization across the industry, with advanced logic in the mid-80% range and memory in the high 80% for DRAM, supporting demand for its materials. Qnity Electronics Inc (NYSE:Q) faces modest upward pressure on input costs, approximately $20 million, primarily from logistics and energy, which could impact margins if not fully mitigated. The company's Semiconductor Technologies segment saw gross margins decline slightly year-over-year and sequentially, driven by product mix and continued investments for advanced node growth. Qnity Electronics Inc (NYSE:Q) expects a muted sequential growth in Q4, with potential deceleration due to typical consumer electronics seasonality and customer inventory control, which could temper overall growth. The third quarter of 2026 will face an elevated prior year comparison base due to approximately $40 million in accelerated sales in Q3 2025, which will modestly temper year-over-year growth. The company is watching industry supply chain dynamics, including memory and other materials, which could pose risks to meeting customer demand in the back half of the year. Qnity Electronics Inc (NYSE:Q) is experiencing slower growth in consumer electronics, which, while resilient, is growing at a slower pace than other end markets, potentially affecting overall portfolio mix. The company's capital expenditures remain elevated, with expectations of continued high CapEx investment for the full year, which could pressure free cash flow in the near term. Qnity Electronics Inc (NYSE:Q) is in the final stages of its CFO search, and the interim CFO role may create some uncertainty in financial leadership during this transition period. Q: Can you provide an early view into 2027 growth, given that your long-term model was for 7% growth, but you grew 10% last year and are guiding for 18% growth this year?A: Mike Goss (Interim CFO) stated it is too early to speculate on 2027, but the key takeaway is the continued broad-based demand and investment across the same secular drivers seen this year, including AI-driven applications, high-performance computing, and advanced connectivity. He noted that customers have put a lot of steel on the ground, which is expected to drive capacity coming online, positioning the company well to capitalize on expected growth from a broad portfolio perspective. Q: How are you seeing sequentials play out, especially into Q4, given that the implied Q4 sequential looks muted or potentially down? Is there any pull-in in Q3 or headwinds in specific areas?A: Mike Goss (Interim CFO) explained that the updated guidance reflects first-half momentum and better second-half visibility, including customer ramp timing and industry supply dynamics. For Q3, they expect a seasonal peak around consumer electronics, with semi in the low single digits and ICS in the mid-single digits. He reminded that Q3 2025 included approximately $40 million of accelerated sales tied to pre-spin IT systems go-lives, creating an elevated comparison base. Jon Kemp (CEO) added that typically there is a small seasonal peak in Q3 tied to consumer electronics, followed by a sequential deceleration into Q4 and customer inventory control. Q: You cited headwinds to gross and EBITDA margins in the quarter, specifically mix and investments. Can you unpack those and discuss the prospects for margin improvement over the next few quarters, including the impact of pricing actions?A: Mike Goss (Interim CFO) noted that Q2 margins reflected a combination of product mix, coming off a strong Q1, and growth investments, with variability from R&D efforts and product qualifications. He expects semi margins to remain around 35% in the back half of the year. The $20 million of headwinds from logistics and energy costs are playing out as expected, with half in the first half and the remainder in the back half, but the mitigation playbook is working. Jon Kemp (CEO) added that benefits from the transformation program, such as plant productivity and footprint optimization, will be weighted towards the back half of next year, creating opportunities for margin expansion. Q: The Interconnect Solutions business had another strong quarter with 28% organic growth. Given AI and the shift from shrink to stack, do you have updated thoughts on the long-term growth profile of this business?A: Jon Kemp (CEO) said the growth is powered by the three key growth platforms of advanced packaging and interconnect, AI PCBs, and thermal management. The pace of adoption for advanced packaging and thermal has accelerated due to AI-based applications, creating a favorable trajectory. He noted the business is fundamentally consumable-based and tied to volume, and they are working with third parties to better model PCB area and advanced packaging volumes. He expressed excitement about customer expansions adding capacity to the highest-value areas, reinforcing confidence in the durable long-term growth profile. Q: Are you capacity constrained anywhere given the strong ramp in both businesses, and how are you thinking about your ability to supply?A: Jon Kemp (CEO) explained that their strategy is anchored in a local-for-local model aligned to customer footprint, with steady capacity additions since the 2022 peak, highlighted by the $600 million investment. Most investments are high-return, modular capacity expansions done in step with customer technology roadmaps. While growth is faster than expected, they are able to quickly adjust and bring capacity online to support the ramps, and they are well prepared for expected long-term growth in 2027 and 2028. Q: You've been launching products and collaborations across EUV, HBM, CMP, and other areas. When will we see the vast majority of these benefits, and were these announcements considered at the time of the spin or are they new?A: Jon Kemp (CEO) said the announcements reflect the benefit of being a pure-play company, allowing them to tell a story specific to customers and investors. The track record of innovation and partnerships has long been part of their strategy, now more in the spotlight since the spin. He highlighted POR wins across every line of business targeting the most advanced technologies, which are the fastest-growing and highest-value parts of the market, setting up a favorable growth trajectory. Q: Do you see Qnity's portfolio distribution across logic, mainstream advanced, and memory changing over the next two to three years?A: Jon Kemp (CEO) noted that customers are allocating capacity to their highest-value applications, so the mix continues to evolve. Advanced logic remains the most significant part of the portfolio at roughly 80%, with memory at about 20%, with HBM and DRAM growing faster. From an end-market perspective, data centers have ticked up, industrial markets like automotive and aerospace are steady, and consumer electronics is growing at a slower pace. The highest growth is aligned with the highest-value parts of the market, including advanced nodes, advanced packaging, interconnects, and thermal materials. Q: There are multiple roadmaps for advanced packaging architectures, each with different material requirements. How are you positioned to serve these different architectures, and is your content opportunity consistent across them?A: Jon Kemp (CEO) explained that all new advanced packaging architectures fundamentally do two things: they are generally larger format sizes and have tighter geometries. Both trends lead to more material complexity and intensity, which means fewer players can provide the necessary solutions. The companies driving these architectures are the same ones they have worked with for years to commercialize existing advanced packaging formats, giving them a strong position of incumbency and confidence to capitalize on the benefits of process complexity and more layers. Q: What is driving the improvement in mainstream logic utilization, and what do you expect in the next quarter?A: Jon Kemp (CEO) said mainstream logic is seeing steady improvement, consistent with expectations, driven by better data center and industrial demand. He expects continued sequential improvement, though memory market dynamics may temper utilization gains. He expressed excitement about the broader participation in physical AI, where demand is moving from cloud to edge devices, vehicles, and machines, creating more opportunities for Qnity across the industry landscape. Q: Advanced nodes grew over 20% in the second quarter versus your Investor Day expectation of around 7% growth. Can we expect this 20% growth to continue For the complete transcript of the earnings call, please refer to the full earnings call transcript.

WILMINGTON, Del., June 24, 2026--(BUSINESS WIRE)--Qnity Electronics, Inc. ("Qnity") (NYSE: Q), a premier technology solutions leader across the semiconductor value chain, announced that its Board of Directors has declared a quarterly dividend of 0.08 cents ($0.08) per share for each share of issued and outstanding common stock of the Company (par value $0.01 per share). The dividend will be payable on September 15, 2026 to stockholders of record on August 31, 2026. Learn about how Qnity is powering the next leap forward at www.qnityelectronics.com. About QnityQnity is a premier technology provider across the semiconductor value chain, empowering AI, high performance computing, and advanced connectivity. From groundbreaking solutions for semiconductor chip manufacturing, to enabling high-speed transmission within complex electronic systems, our high-performance materials and integration expertise make tomorrow’s technologies possible. More information about the company, its businesses and solutions can be found at www.qnityelectronics.com. Qnity™, the Qnity Node Logo, and all products, unless otherwise noted, denoted with TM or ® are trademarks, trade names or registered trademarks of affiliates of Qnity Electronics, Inc. Cautionary Statement Regarding Forward-Looking Statements This press release contains "forward-looking statements" that describe or relate to Qnity's current views with respect to business plans or prospects, future operating or financial performance, future use of cash and dividend payments, and other future events. Forward-looking statements are based on our current beliefs, expectations and assumptions, which may not prove to be accurate, and involve a number of known and unknown risks and uncertainties, many of which are out of Qnity's control. Forward-looking statements are not guarantees of future performance, and there are a number of important factors that could cause actual outcomes and results to differ materially from the results contemplated by such forward-looking statements. Additional information concerning risks and uncertainties can be found in Qnity's filings with the U.S. Securities and Exchange Commission (the "SEC"), including Qnity's registration statement on Form 10 and current reports on Form 8-K and future filings with the SEC. Any forward-looking statement speaks only as of the date on which it is made. Qnity does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260624668699/en/ Contacts Investor Contact Meg [email protected] Media Contact Ashley [email protected]