Q US S&P 500Russell 1000 Earnings call · transcribed from the recording
Qnity Electronics (Q) · Q3 2026 results and valuation
Share price: $126.57 · 2026-11-11
Results Q3 2026 vs Q2 2026 · previous quarter · published 4 Nov 2026 and 4 Aug 2026
Net income up 44.1% on the previous quarter, guidance raised. Management sounded cautious, though noticeably more positive answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+44.1%
Net income vs Q2 2026
Guidance raised
Net income 196.0M vs 136.0M
Revenue +8.9%
Against the same quarter last year (Q3 2025) it is −12.1%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: very upbeat, and more positive than the script.
Last call it was different: script and answers matched.
3 · What stood out
Guidance
At the midpoint of its updated guidance for the full year, Qnity Electronics now expects to deliver 22% net sales growth, over 28% adjusted EBITDA…
Valuation
Is Qnity Electronics undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 10.0% growth a year (the standard assumption), the model's fair value is $92.85 a share — the stock trades 36% above it. Today's price assumes 13.2% growth a year.
Current price
$126.57
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+13.2% for 10 yrs
Fair value / share
$92.85
Buy below
$69.64
Price vs fair value
Overvalued 36%
Price vs buy-below price
Overvalued 82%
Management expects
Sales +22% · from the Q3 2026 report: “At the midpoint of our updated guidance for the full year, we now expect to deliver 22% net sales growth, over 28% adjusted EBITDA growth, and adjusted EPS...”
A guidance figure for sales, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Key theme
Semiconductor value chain
Source quote
“Over the past 12 months, we've executed a focused strategy that builds on more than and 50 years of technology... ...teams, and I'm pleased to have him with us today as we build on the progress of our first year as an independent company. That strategy is delivering results as AI accelerates two industry shifts, shrink and stack.”
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Guidance ↑
Qnity Electronics' full-year outlook reflects its strong continued momentum and expectations of 2026 MSI Waper-Start growth to be in the high single-digit to low double-digit range, increasing from previous expectations.
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Figure
Net sales were $1.6 billion, with organic growth of 22% year-over-year.
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Fading
Semi gross margins were steady at approximately 49% and adjusted operating EBITDA margin was approximately 34%, both down a bit year-over-year and sequentially.
Source quote
“Semi gross margins were steady at approximately 49% and adjusted operating EBITDA margin was approximately 34%, both down a bit year-over-year and sequentially, in line... ...advanced logic and HBM chips. ICS delivered another exceptional quarter with net sales of $685 million, up more than 30% year-over-year and 16% sequentially.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Management was more positive answering analysts than in its script — usually a sign it was comfortable with the details it was asked about.
Sentences that drove the tone
“Please refer to our earnings release and SEC filings for discussion of these risks.”
“And within data centers, we're seeing an accelerating adoption of the most advanced technologies across both shrink and stack.”
“So you've got some extraordinarily challenging physical and environmental requirements.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.56B | 1.43B | +8.9% | 1.28B | +21.9% |
| Gross profit | 743.0M | 666.0M | +11.6% | 575.0M | +29.2% |
| Operating income | 247.0M | 199.0M | +24.1% | 272.0M | −9.2% |
| Net income | 196.0M | 136.0M | +44.1% | 223.0M | −12.1% |
| EPS | 0.87 | 0.59 | +47.5% | 1.01 | −13.9% |
| P/E today 44.2 | 47.4 | 58.5 | −11.1 | — | — |
Topics
Most discussed now
- Qnity Electronics' third quarter results provide clear evidence that this strategy is translating into strong financial performance.
- Ken brings a proven track record as a public company CFO, as well as significant experience in the semi-industry.
- In Q3, Qnity Electronics did have excellent close margins, 47.8% overall for the company.
Faded since Q2 2026
- Fading In the middle, Qnity Electronics provides comprehensive advanced packaging solutions from both business segments to enable next-generation…
- Fading Qnity Electronics is aligned with the industry's most groundbreaking technology road maps, embedded in its customers' next-generation…
- Fading Taking a closer look at each of Qnity Electronics' business segments, Semiconductor Technologies net sales were $744 million, up…
- Fading Organic sales grew 17% year-over-year, driven by continued demand strength, especially for advanced logic and HBM chips.
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Other events · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K