Qnity Electronics, Inc.

Qnity Electronics, Inc.

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Market Cap$32.64B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Qnity Electronics, Inc.Qnity Electronics, Inc.50.30.14%9%6.70.6

Earnings Call Q1 2026

May 12, 2026 - AI Summary

Strong Q1 performance + profitability/leveraging momentum - Q1 net sales $1.3B, +18% YoY and +11% sequentially. - Organic sales +17% YoY; adjusted operating EBITDA $411M (+22% YoY) with margin 31.3% (+125 bps YoY). - Adjusted EPS $1.08 (+33% YoY) — described as a *record quarter* driven by volume, operating leverage, and favorable mix. - Investors should note: profitability improved materially despite macro/geopolitical uncertainty discussed later on the call.
Segment outlook: semi and ICS both strong; guidance raised for full-year - Semiconductor Technologies (Q1 net sales $722M, +12% organic YoY) - Driven by advanced logic and HBM, plus strength in CMP-related items. - Positive utilization trend: fab utilization improving as volume mix shifts to leading edge; 3nm scaling and “meaningful activity” at 2nm. - Interconnect Solutions (ICS) (Q1 net sales $593M, +22% organic YoY) - Led by Advanced Packaging, Interconnect, and Thermal Management; these three together grew >50% YoY in the quarter. - Margin expansion: ICS adjusted EBITDA margin 28.5% (+280 bps sequentially) tied to volumes and mix. - Full-year guidance raised (vs prior): - Net sales: $5.225B–$5.375B (+~5% at midpoint). - Adjusted operating EBITDA: $1.535B–$1.625B (+4% at midpoint). - Adjusted EPS: $3.80–$4.14 (+6% at midpoint). - Adjusted free cash flow: $500M–$600M (+10% at midpoint). - Expect double-digit YoY growth in sales and EBITDA.
Forward demand drivers (and the “shrink → stack” framing) - Management’s core thesis: physical limits constrain further shrink, so the industry shifts to 3D stacking—raising the importance of materials, integration, and reliability. - For semi: more advanced nodes = more CMP steps, more intricate patterning; increasing content per wafer. - For ICS: stacking and advanced packaging increase layers, process steps, and material intensity, driving more content and faster growth in Advanced Packaging + Thermal + AI PCB. - Mainstream recovery: they cited improving utilization from mid-70s (last year) to high-70s (Q1) and possibly low-80s, with expectation of sequential improvement through the year, supported by AI-driven applications extending beyond premium devices.

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Target Price by Analysts

1.1% upsideQnity Electronics Target Price DetailsTarget Price
$27.79

Current Fair Value

82% downside

Overvalued by 82% based on the discounted cash flow analysis.

Share Statistics

Market cap$32.64 Billion
Enterprise Value$35.97 Billion
Dividend Yield$0.32 (0.14%)
Earnings per Share$3.3
Beta1.68
Outstanding Shares209,700,000

Return

Return on Equity9.05%ROE
Return on Assets4.62%
Return on Invested Capital8.43%

Valuation & Multiples

P/E Ratio50.3P/E Ratio
PEG-231.15PEG
Price to Sales6.73Price to Sales
Price to Book Ratio4.42Price to Book Ratio
Enterprise Value to Revenue7.26
Enterprise Value to EBIT33.33
Enterprise Value to Net Income55
Total Debt to Enterprise0.12
Debt to Equity0.58Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
June 3, 2026
EPS Estimate
$0.93
Average shareholder expectation
Revenue Estimate
$1.27 B
Average shareholder expectation

Next Earnings Call

Expected Date
August 11, 2026
EPS Estimate
$1.06
Average shareholder expectation
Revenue Estimate
$1.36 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.7059▲ 39.31%
Total Calls1,583,700▲ 33.17%
Total Puts1,117,906▲ 200.51%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %73.99%▲ 0.87%
Total Invested$17.84B▲ 42.56%
Investors Holding1,186▲ 165.00%

ESG Score

No data

About Qnity Electronics, Inc.

CEO: Jon D. Kemp

Qnity Electronics, Inc. focuses on the provision of electronic solutions and materials used in semiconductor chip manufacturing and advanced electronic materials. The company was formerly known as Novus SpinCo 1, Inc. and changed its nam...

Relevant Senate Committees

Finance

Controls corporate tax rates, R&D tax credits, and trade tariffs, all of which are primary drivers of valuation and cost structure for semiconductor firms.

Appropriations

Controls the actual distribution of funds for the CHIPS Act and other federal R&D programs that directly benefit semiconductor manufacturing.

Judiciary

Oversees intellectual property, patents, and antitrust laws, which are vital for protecting Qnity's proprietary material solutions and navigating M&A.

Armed Services

Authorizes the NDAA, which includes significant funding for microelectronics and ensures the domestic supply of chips for defense applications.

Select Committee on Intelligence

Briefed on foreign industrial espionage and national security threats related to semiconductor technology, leading to potential non-public shifts in policy.

Commerce, Science, and Transportation

Direct jurisdiction over the CHIPS Act, NIST, and technology standards that govern the semiconductor industry and federal R&D grants.

Foreign Relations

Determines export controls and sanctions, particularly regarding China and Taiwan, which are critical to the global semiconductor supply chain and international sales for Qnity.