Qnity Electronics, Inc. (Q)

Price$123.57Cached quoteAs of 2026-09-25 16:06 UTC

AI: Overvalued

Price checkQnity is growing quickly, but today’s price already assumes unusually strong semiconductor demand continues.

Qnity traded at $130.74 at 2:03 p.m. Eastern on August 20, 2026. Management now expects 2026 adjusted earnings of $4.40-$4.60 per share, putting the stock near 29 times the midpoint. It also guides to $600-$700 million of free cash flow, meaning cash left after running and investing in the business. Using roughly 209 million shares distributed at separation, the market value is about $27 billion and the midpoint cash yield only about 2.4%. That is demanding despite excellent growth.

Big pictureArtificial-intelligence chip demand is driving exceptional growth, but semiconductor materials remain tied to an investment cycle.

Revenue increased from $4.04 billion in 2023 to $4.75 billion in 2025, while operating cash flow rose from $882 million to $1.27 billion. Growth accelerated in 2026: second-quarter sales jumped 22% to $1.43 billion, led by 30% growth in Interconnect Solutions and 17% organic growth in Semiconductor Technologies. Qnity supplies materials used in chip manufacturing, packaging and high-speed electronics, so artificial-intelligence infrastructure is a powerful tailwind. However, semiconductor capital spending and customer inventories can reverse quickly after periods of unusually strong demand.

Business strengthDeep customer relationships support margins and cash generation, while separation debt reduced the balance-sheet cushion.

Qnity spent $354 million on research and development in 2025, supporting materials that are designed into demanding semiconductor and electronics processes. Operating cash flow reached $1.27 billion with only $285 million of capital spending. The weakness is leverage created around the DuPont separation: June 2026 debt was about $4.0 billion against $961 million of cash, versus essentially no debt at year-end 2024. Capital returns remain modest, with $25 million of quarterly buybacks and about $17 million of dividends, so debt reduction and growth investment currently matter more than large shareholder distributions.

What could change the storyFaster advanced-packaging growth could justify the premium, while a semiconductor slowdown would expose today’s valuation.

The bull case is that artificial intelligence requires more complex chips, packaging and high-speed connections, increasing the amount and value of Qnity materials used per system. Management raised 2026 sales guidance to $5.55-$5.65 billion and adjusted operating earnings guidance after another strong quarter. The bear case is valuation plus leverage: at roughly 29 times adjusted earnings and a 2.4% guided cash yield, investors need sustained double-digit growth. Slower chip investment, customer inventory corrections or weaker pricing could compress both earnings expectations and the valuation multiple.

AI: News

Second-quarter guidance raisedSurging artificial-intelligence demand drove another earnings beat and prompted management to raise its full-year outlook.

On August 4, 2026, Qnity reported $1.43 billion of second-quarter sales, up 22%, while adjusted earnings rose 53% to $250 million and adjusted earnings per share reached $1.19. Management raised full-year sales guidance to $5.55-$5.65 billion and free-cash-flow guidance to $600-$700 million. Investing.com reported shares about 6.2% higher in premarket trading. The mechanism is direct: faster advanced-chip and packaging demand raised expected revenue, profit and future cash generation.

First-quarter outlook raisedAn earlier earnings beat showed the current growth surge was already broadening before the latest quarter.

On May 12, 2026, Qnity reported $1.32 billion of first-quarter sales, up 18%, with adjusted earnings rising 33% to $226 million and adjusted earnings per share of $1.08. Management raised its full-year sales forecast to $5.225-$5.375 billion and free-cash-flow guidance to $500-$600 million. Investing.com reported the stock up about 5.5% in premarket trading. The later August increase in guidance confirms that demand remained stronger than management had expected only three months earlier.

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Revenue

2022

2023

2024

2025

Net income

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2023

2024

2025

Financial statements

	2025	2024	2023	2022
Revenue	$4.75B	$4.33B	$4.04B	$4.75B
Gross profit	$2.19B	$2.00B	$1.75B	$2.16B
Gross margin	46.17%	46.04%	43.49%	45.36%
Research & development	$354.0M	$314.0M	$303.0M	$329.0M
Operating expenses	$1.18B	$1.15B	$1.10B	$1.12B
Operating income	$1.01B	$847.0M	$657.0M	$1.03B
Operating margin	21.33%	19.54%	16.28%	21.75%
EBITDA	$1.40B	$1.29B	$1.03B	$1.45B
EBITDA margin	29.51%	29.87%	25.65%	30.45%
Net income	$729.0M	$724.0M	$533.0M	$774.0M
Net profit margin	15.33%	16.70%	13.21%	16.28%
Basic EPSper basic share	$6.60	$6.62	$4.84	—
Diluted EPSper diluted share	$6.60	$6.62	$4.84	—

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of Q
Holder	Shares held
BlackRock, Inc.	16.06M
VANGUARD CAPITAL MANAGEMENT LLC	13.67M
VANGUARD PORTFOLIO MANAGEMENT LLC	10.21M
STATE STREET CORP	9.36M
GEODE CAPITAL MANAGEMENT, LLC	5.59M
Durable Capital Partners LP	4.55M
Allspring Global Investments Holdings, LLC	4.35M
Invesco Ltd.	4.06M
MORGAN STANLEY	3.37M
JANE STREET GROUP, LLC	2.51M
NORTHERN TRUST CORP	2.1M
GOLDMAN SACHS GROUP INC	2.08M
BANK OF AMERICA CORP /DE/	1.96M
PointState Capital LP	1.8M
Amundi	1.75M
TWO SIGMA INVESTMENTS, LP	1.73M
NORGES BANK	1.67M
Bank of New York Mellon Corp	1.65M
DIMENSIONAL FUND ADVISORS LP	1.63M
PRICE T ROWE ASSOCIATES INC /MD/	1.61M

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys2$329.6K disclosed value

Sells (SEC code S)6$970.3K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 5, 2026Form 4	Sterin StevenDirector	SellCommon Stock	400	$148.35	$59.3K	12.2K
May 26, 2026Form 4	Sterin StevenDirector	SellCommon Stock	511	$161.97	$82.8K	12.6K
Dec 11, 2025Form 4	Goss Michael G.VP & Controller	SellCommon Stock	1.9K	$84.79	$160.7K	13.3K
Dec 11, 2025Form 4	Kemp Jon D.Chief Executive Officer	SellCommon Stock	5.7K	$85.01	$480.7K	89.2K
Nov 21, 2025Form 4	Noonan Anne PDirector	SellCommon Stock	7	$76.30	$534.10	3.2K

Review ownership filings at SEC.gov ↗

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Qnity Electronics, Inc. (Q)

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