Qnity Raises 2026 Guidance as Q3 Sales Jump 21.9% and Adjusted EPS Rises 55.3% to $1.46
Qnity Electronics raised its full-year guidance after third-quarter sales jumped 21.9%, as demand for its semiconductor materials and interconnect products kept climbing in its first year as an independent company.
Net sales rose to $1.56 billion from $1.28 billion a year earlier, according to the earnings release Qnity filed with an 8-K on Wednesday. Adjusted EPS rose 55.3% to $1.46 from a pro forma $0.94.
GAAP results moved the other way. Net income fell 12.1% to $196 million from $223 million, and diluted EPS dropped 13.9% to $0.87 from $1.01.
"We delivered our tenth consecutive quarter of profitable growth with strong performance across both segments," CEO Jon Kemp said in the release.
Both segments grow
Interconnect Solutions led the quarter, with sales up 30.2% to $759 million from $583 million. Semiconductor Technologies sales rose 15.0% to $797 million from $693 million.
Gross profit rose 29.2% to $743 million, for a gross margin of 47.8%. Adjusted operating EBITDA climbed 35.9% to $503 million from a pro forma $370 million.
Kemp said materials innovation is becoming "a critical driver of chip performance as the industry shifts toward shrink and stack," and that Qnity is investing where it sees "visible customer demand."
Guidance raised
Qnity, which was spun off from DuPont on Nov. 1, 2025, raised its full-year 2026 outlook on the strength of the quarter. It now expects:
- Net sales of $5.77 billion to $5.83 billion
- Adjusted operating EBITDA of $1.785 billion to $1.805 billion
- Adjusted EPS of $4.95 to $5.05
- Adjusted free cash flow of $800 million to $900 million
The company noted that its prior-year non-GAAP figures are presented on a pro forma basis, as if the spin-off had taken place on Jan. 1, 2025.
By the numbers
- Net sales: $1.56 billion, up 21.9%
- Adjusted EPS: $1.46, up 55.3%
- GAAP EPS: $0.87, down 13.9%
- Interconnect Solutions sales: $759 million, up 30.2%
- Gross margin: 47.8%
- 2026 adjusted EPS guidance: $4.95 to $5.05
Sources
- Qnity Electronics Form 8-K with third-quarter 2026 earnings release, filed Nov. 4, 2026 (accession 0002058873-26-000039)
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