Start here if you're new
what it is
Qnity makes the materials and connector parts that let chips, servers, and electronics actually work.
how it gets paid
Last year Qnity Electronics made $4.8B in revenue. Semiconductor Technologies was the main engine at $2.2B, or 46% of sales.
why it's growing
Revenue grew 9.7% last year. The beat was $0.10 a share. When a 34.1x earnings stock clears estimates by 13.89%.
what just happened
Qnity's latest quarter beat by 13.89%, which is the kind of number that keeps a rich multiple alive.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
34.1x trailing p/e — you're paying up for this one
0.6% dividend yield — cash in your pocket every quarter
8.5% return on capital — nothing to write home about
$4.45 fy2027 eps est
xvary composite: 60/100 — average
What they do
Qnity makes the materials and connector parts that let chips, servers, and electronics actually work.
This business sits inside the manufacturing mess you never see. Qnity runs 43 sites across three regions, so your customers can keep building even when one node jams. Operating margin was 25.0% and net margin was 17.0%, which means the chemistry is hard to copy and the pricing usually sticks.
How they make money
$4.8B
annual revenue · their business grew +9.7% last year
Semiconductor Technologies
$2.2B
+12.0%
Interconnect Solutions
$1.6B
+7.0%
Wearable Electronics Materials
$0.5B
+6.0%
Aerospace and Industrial Electronics
$0.3B
+4.0%
Other Advanced Materials
$0.2B
+3.0%
The products that matter
advanced semiconductor materials
Advanced Nodes & Packaging
$2.4B · 40% of revenue
This is the largest named segment at $2.4B, and Q4 revenue in the category reached $1.2B after growing 8% from a year ago. If advanced packaging demand stays strong, this is where you feel it first.
largest segment
interconnect and thermal solutions
Interconnects & Thermal Management
$1.44B · 24% of revenue
This $1.44B segment grew 12%, faster than the company average of 7.7%. In plain English: the more heat and complexity advanced chips create, the more relevant this business becomes.
fastest growth
global sourcing footprint
Diversified Supply Chain
80% sourced outside exposed regions
About 80% of products are now sourced outside tariff-exposed regions. That doesn't erase geopolitical risk, but it tells you management is not sleepwalking into it.
risk control
Key numbers
34.1x
trailing p/e
P/E → price divided by earnings → so what: you are paying a premium price for profits that still need to scale.
25.0%
operating margin
Operating margin → profit before interest and taxes → so what: the core business throws off good money before financing costs show up.
$4.5B
long-term debt
Long-term debt → money owed over years → so what: this is a real balance-sheet weight for a company worth about $24B.
$142
18-month target
Target price → analyst estimate of fair value → so what: the base-case upside is about 24.3%, not a moonshot.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- long-term debt $4.5B (16% of capital)
- net profit margin 17.0% — keeps 17 cents of every dollar in revenue
- return on equity 10% — $0.10 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for Q right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Qnity's latest quarter beat by 13.89%, which is the kind of number that keeps a rich multiple alive.
Last reported EPS was $0.82 versus a $0.72 estimate, according to consensus data. EDGAR shows annual revenue of $4.8B, up 9.7% vs. prior year, while the latest quarter in the filing showed $1.2B of net sales, up 8%.
$1.2B
revenue
$0.82
eps
13.89%
surprise
the number that mattered
The beat was $0.10 a share. When a 34.1x earnings stock clears estimates by 13.89%, you usually get time, not forgiveness.
-
at the end of last year, net sales clocked in at $1.2 billion, marking an 8% increase compared to the same period of the previous year.this growth was driven by key areas such as advanced nodes, advanced packaging, interconnects, and thermal management solutions. additionally, qnity reported adjusted earnings per share of $0.82 for the quarter, showcasing a solid financial performance.
-
the future looks bright.we expect 2026 to be another year of growth, driven by increasing demand for ai (artificial intelligence), high-performance computing, and advanced connectivity solutions. management anticipates mid-single-digit growth in msi wafer starts, which aligns with its overall demand expectations. for the full year, company leadership projects net sales to range between $4.97 billion and $5.17 billion, with adjusted operating ebitda expected to be between $1.465 billion and $1.575 billion. adjusted earnings per share is forecasted to land between $3.55 and $3.95, while adjusted free cash flow is estimated to range from $450 million to $550 million.
-
our estimates land on the high side of these ranges.
-
we are looking for 2026 revenue of $5.15 billion and earnings per share of $3.80.regarding the current quarter, net sales are expected to reflect high-single-digit sequential growth, with margins similar to those in the fourth quarter of last year.
-
demand looks healthy.the company is benefiting from structural shifts in end markets, such as data centers, automotive, communication infrastructure, and aerospace and defense, which are increasingly incorporating advanced aidriven technologies. what’s more, the semiconductor industry is evolving quickly, with increasing complexity in chip designs and a growing need for materials that enhance performance.
source: company earnings report, 2026
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What could go wrong
The top risk is geopolitical disruption in a still-global semiconductor supply chain. Even after diversification, about 20% of sourcing remains exposed.
med
Supply-chain disruption
About 20% of products are still sourced from tariff-exposed regions. On a $6B revenue base, that's roughly $1.2B of exposure tied to geopolitics, logistics, or trade friction.
If sourcing gets hit, a business priced at 34.1x trailing earnings does not get much room for excuses.
med
New-capacity execution
Q is funding a $61.5M facility expansion while also managing the ramp of a 385,000-square-foot Delaware plant opened in March 2026. Capacity is good. Unused capacity is expensive.
If the ramp slips, margins can get squeezed before revenue catches up.
med
Multiple compression
The stock trades at 34.1x trailing earnings and 25.7x forward earnings while return on capital is just 8.5%. That's a premium setup that assumes growth and margin stability keep showing up together.
If results merely turn decent instead of impressive, the multiple can do the damage even if the business stays fine.
You can summarize the risk case in one line: a premium multiple sits on top of a business that still has to prove its returns deserve it.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
next revenue guide versus the high end
Management guided 2026 sales to $4.97B–$5.17B. If updates drift away from the high end, the valuation argument gets harder fast.
risk
how much of that 20% exposed sourcing gets reduced
About 80% of products are now sourced outside exposed regions. The next move matters because geopolitical resilience is part of the thesis now.
metric
adjusted ebitda margin staying near 30%
That margin is one of the few clean signs of operating strength on this page. If it fades while revenue grows, the premium multiple stops making sense.
trend
whether interconnects and thermal keeps outgrowing the rest
Interconnects & Thermal grew 12% versus 7.7% for the company overall. If that gap persists, the mix improves. If it narrows, the story gets more ordinary.
Analyst rankings
composite
60
This is not a broken stock and not an obvious bargain. In human-speak, analysts see a decent company priced like a better one.
valuation
34.1x
You're paying about 70% more than the average semiconductor equipment peer on trailing earnings. That's a confidence score hidden inside a multiple.
quality
B++
Above average balance-sheet quality helps, but 8.5% return on capital keeps this from looking elite.
source: institutional data
Institutional activity
775 buyers vs. 0 sellers in 4q2025. total institutional holdings: 0.1B shares.
source: institutional data
Price targets
3-5 year target range
$115
$170
$114
current price
$142
target midpoint · +25% from current · 3-5yr high: $170 (+50% · 11% ann'l return)
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