Qnity Raises Full-Year Sales and Profit Outlook

The Tip Desk · November 11, 2026 · 2 min read

Third-quarter net sales were $1.56 billion, up 22% from a year earlier, as the semiconductor materials company lifted its full-year 2026 sales range to $5.77 billion–$5.83 billion.

Qnity Electronics (Q) reported third-quarter net sales of $1.56 billion, matching the 22% year-over-year growth it posted in the second quarter, and raised its full-year 2026 outlook across sales, Adjusted Operating EBITDA, Adjusted EPS and Adjusted Free Cash Flow.

The semiconductor materials company said the lift followed strong third-quarter performance and continued momentum. Full-year 2026 net sales guidance moved to $5.77 billion–$5.83 billion from $5.55 billion–$5.65 billion. Adjusted Operating EBITDA guidance rose to $1.785 billion–$1.805 billion from $1.675 billion–$1.725 billion. Adjusted EPS guidance increased to $4.95–$5.05 from $4.40–$4.60, and Adjusted Free Cash Flow guidance rose to $800 million–$900 million from $600 million–$700 million.

Chief Executive Officer Jon Kemp said the company delivered its tenth consecutive quarter of profitable growth, with performance across both reportable segments. He pointed to a deep portfolio, alignment with customer roadmaps, and a local-for-local model, and said materials innovation is becoming a critical driver as the industry shifts toward shrink and stack.

Adjusted Operating EBITDA was $503 million, up 36% from $370 million a year earlier on a pro forma basis, after a 24% year-over-year increase in the second quarter. Adjusted Operating EBITDA margin expanded to 32.3% from 29.9%. Gross margin was 47.8%, up from 45.1% a year earlier.

GAAP net income was $196 million, down 12% from $223 million a year earlier, after a 31% year-over-year decline in the second quarter. Diluted earnings were $0.87 a share, down 14% from $1.01. Adjusted EPS was $1.46, up 55% from $0.94 a year earlier, after a 53% year-over-year increase in the second quarter.

Interconnect Solutions was the faster-growing reportable segment. Net sales there were $759 million, up 30% year-over-year, with volume up 29% and organic sales up 30%. Semiconductor Technologies net sales were $797 million, up 15%, with volume up 16% and organic sales up 15%.

Adjusted Operating EBITDA at Interconnect Solutions was $236 million, up from $152 million a year earlier. Semiconductor Technologies Adjusted Operating EBITDA was $285 million, up from $240 million. Corporate Adjusted Operating EBITDA was a $18 million loss.

Adjusted Free Cash Flow was $320 million in the quarter, up from $207 million a year earlier on a pro forma basis. Cash provided by operating activities was $271 million. Capital expenditures were $78 million.

Kemp said Qnity’s end-to-end solutions across the stack enable customers to address signal reliability, power density and thermal management, and that the company is continuing to invest in differentiated technologies where it sees visible customer demand.