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Qnity Earnings Surpass Estimates in Q1, Revenues Increase Y/Y
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Key Takeaways
Q posted Q1 EPS of $1.08, rising 33.3% y/y and beating the consensus estimate by 17.4%.
Qnity's Q1 sales rose 18% to $1.315B, led by Interconnect Solutions' growth of 25.1%.
Q raised its 2026 sales, adjusted EBITDA, EPS and free cash flow guidance after strong Q1 results.
Qnity Electronics, Inc. (Q - Free Report) reported first-quarter 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.
Qnity reported first-quarter non-GAAP earnings of $1.08 per share, which beat the Zacks Consensus Estimate by 17.4%. The bottom line increased 33.3% on a year-over-year basis.
Net sales came in at $1.315 billion, increasing 18% from the year-ago quarter and beating the consensus estimate of $1.27 billion. Management attributed the outperformance to continued momentum across its portfolio, while organic sales rose 17% year over year in the first quarter of 2026.
Qnity Electronics, Inc. Price, Consensus and EPS Surprise
Revenue growth of Q in the first quarter reflected solid demand across advanced chips and packaging, and interconnect solutions, alongside ongoing traction in thermal management offerings. Management highlighted that the company’s integrated portfolio and customer co-innovation efforts are helping it participate in AI-related and other emerging technology buildouts.
Qnity’s Semiconductor Technologies revenues were $722 million (54.9% of the total revenues), up 12.1% year over year. The Zacks Consensus Estimate for Semiconductor Technologies revenues was pegged at $713 million.
In the Interconnect Solutions, revenues were $593 million, comprising 45.1% of the total revenues. This marks an increase of 25.1% from the year-ago period. The Zacks Consensus Estimate for Interconnect Solutions revenues was pegged at $556 million.
Operating Details of Q
Qnity’s non-GAAP gross profit increased 16.2% on a year-over-year basis to $618 million. As a percentage of revenues, the non-GAAP gross margin contracted 60 basis points on a year-over-year basis to 47%.
Q’s non-GAAP operating EBITDA increased 22.3% year over year to $411 million. As a percentage of revenues, the non-GAAP operating EBITDA margin expanded 120 basis points year over year to 31.3%.
Qnity’s Balance Sheet & Cash Flow
As of March 31, 2026, Qnity held $857 million in cash and cash equivalents, down from $915 million at the end of the prior quarter.
The company generated an operating cash flow of $135 million in the first quarter of 2026.
During the quarter, Qnity paid out dividends totaling $17 million and repurchased shares worth $25 million.
Q Raises 2026 Guidance
For 2026, Qnity raised its outlook across key metrics. The company expects net sales of $5.225-$5.375 billion, up from the prior stated $4.97-$5.17 billion. The Zacks Consensus Estimate is pegged at $5.11 billion, indicating a year-over-year increase of 7.5%.
Qnity expects adjusted operating EBITDA of $1.535-$1.625 billion, up from the prior stated $1.465-$1.575 billion.
Adjusted EPS is projected at $3.80-$4.14, up from the previously mentioned $3.55 to $3.95. The Zacks Consensus Estimate for earnings is pegged at $3.78 per share, indicating a year-over-year increase of 12.8%.
The adjusted free cash flow is expected to be $500-$600 million, up from the previously stated $450-$550 million.
Shares of Broadcom have gained 21.2% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.45 per share, up by a penny over the past 30 days, indicating a year-over-year surge of 67.9%.
Shares of Celestica have gained 26.5% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 15.1% over the past 30 days, indicating a year-over-year jump of 67.9%.
Amphenol shares have declined 5.3% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up 11.4% over the past 30 days, indicating a year-over-year increase of 42.5%.
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Qnity Earnings Surpass Estimates in Q1, Revenues Increase Y/Y
Key Takeaways
Qnity Electronics, Inc. (Q - Free Report) reported first-quarter 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.
Qnity reported first-quarter non-GAAP earnings of $1.08 per share, which beat the Zacks Consensus Estimate by 17.4%. The bottom line increased 33.3% on a year-over-year basis.
Net sales came in at $1.315 billion, increasing 18% from the year-ago quarter and beating the consensus estimate of $1.27 billion. Management attributed the outperformance to continued momentum across its portfolio, while organic sales rose 17% year over year in the first quarter of 2026.
Qnity Electronics, Inc. Price, Consensus and EPS Surprise
Qnity Electronics, Inc. price-consensus-eps-surprise-chart | Qnity Electronics, Inc. Quote
Qnity’s Q1 Revenues in Detail
Revenue growth of Q in the first quarter reflected solid demand across advanced chips and packaging, and interconnect solutions, alongside ongoing traction in thermal management offerings. Management highlighted that the company’s integrated portfolio and customer co-innovation efforts are helping it participate in AI-related and other emerging technology buildouts.
Qnity’s Semiconductor Technologies revenues were $722 million (54.9% of the total revenues), up 12.1% year over year. The Zacks Consensus Estimate for Semiconductor Technologies revenues was pegged at $713 million.
In the Interconnect Solutions, revenues were $593 million, comprising 45.1% of the total revenues. This marks an increase of 25.1% from the year-ago period. The Zacks Consensus Estimate for Interconnect Solutions revenues was pegged at $556 million.
Operating Details of Q
Qnity’s non-GAAP gross profit increased 16.2% on a year-over-year basis to $618 million. As a percentage of revenues, the non-GAAP gross margin contracted 60 basis points on a year-over-year basis to 47%.
Q’s non-GAAP operating EBITDA increased 22.3% year over year to $411 million. As a percentage of revenues, the non-GAAP operating EBITDA margin expanded 120 basis points year over year to 31.3%.
Qnity’s Balance Sheet & Cash Flow
As of March 31, 2026, Qnity held $857 million in cash and cash equivalents, down from $915 million at the end of the prior quarter.
The company generated an operating cash flow of $135 million in the first quarter of 2026.
During the quarter, Qnity paid out dividends totaling $17 million and repurchased shares worth $25 million.
Q Raises 2026 Guidance
For 2026, Qnity raised its outlook across key metrics. The company expects net sales of $5.225-$5.375 billion, up from the prior stated $4.97-$5.17 billion. The Zacks Consensus Estimate is pegged at $5.11 billion, indicating a year-over-year increase of 7.5%.
Qnity expects adjusted operating EBITDA of $1.535-$1.625 billion, up from the prior stated $1.465-$1.575 billion.
Adjusted EPS is projected at $3.80-$4.14, up from the previously mentioned $3.55 to $3.95. The Zacks Consensus Estimate for earnings is pegged at $3.78 per share, indicating a year-over-year increase of 12.8%.
The adjusted free cash flow is expected to be $500-$600 million, up from the previously stated $450-$550 million.
Zacks Rank & Stocks to Consider
Currently, Qnity carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Broadcom (AVGO - Free Report) , Celestica (CLS - Free Report) and Amphenol (APH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Broadcom have gained 21.2% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.45 per share, up by a penny over the past 30 days, indicating a year-over-year surge of 67.9%.
Shares of Celestica have gained 26.5% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 15.1% over the past 30 days, indicating a year-over-year jump of 67.9%.
Amphenol shares have declined 5.3% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up 11.4% over the past 30 days, indicating a year-over-year increase of 42.5%.