| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 23 | 45.1x | 17.8x | Bottom tier | |
Growth | 45 | 14.8% | 7.1% | Around median | |
Quality | 62 | 7.2% | 4.5% | Around median | |
Safety | 66 | 2.4x | 2.6x | Top tier | |
Capital Return | 11 | 0.11% | 2.12% | Bottom tier | |
Momentum | 56 | — | 2.9% | Around median | |
Sentiment | 88 | 4 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Qnity Electronics is a materials and solutions company for the semiconductor industry, generating revenue from consumables used across multiple stages of chip manufacturing, interconnection, and cooling. Its front-end portfolio includes cleaning pads and fluids, chemical mechanical planarization slurries, and lithography materials; its middle-end portfolio includes advanced packaging and interconnection solutions; and its back-end portfolio includes thermal management materials used in data centers and artificial intelligence applications. Growth in content per chip is driven by the increasing number of layers, processing complexity, and packaging steps, while its local manufacturing and support model keeps the company close to its customers' operations.
In Q2 FY2026, Qnity reported revenue of $1.4 billion, up 22% year over year and 9% sequentially, gross profit of $666 million, equivalent to a gross margin of approximately 47.6% based on EDGAR figures, net income of $136 million, and earnings per share of $0.59. On an adjusted basis, EBITDA was $431 million at a 30.2% margin, and adjusted earnings per share rose 53% to $1.19, marking the ninth consecutive quarter of profitable organic growth, according to management.
Q2 FY2026 sales were split between Semiconductor Technologies, with revenue of $744 million, or approximately 52% of the two segments' combined revenue, and Interconnect Solutions, with revenue of $685 million, or approximately 48%. The first segment grew organically by 17%, with a gross margin of approximately 49% and an adjusted EBITDA margin of approximately 34%, while the second segment grew organically by 28% and recorded a gross margin of approximately 44% and an adjusted operating margin of approximately 29%, improving by 290 basis points year over year. On a last-twelve-month basis in FY2026, revenue reached $5.2 billion and net income was $646 million.
The average analyst price target is $179.8, within a range of $165 to $189, compared with a 52-week share-price range of $70.5 to $177.28; accordingly, the average and highest targets are above the upper end of that range, while the lowest target remains below it. The consensus rates the stock a "Buy," but the $24 spread between targets reflects differing assessments of the sustainability of artificial intelligence growth and margins, and the available data do not provide a consistent price-to-earnings multiple that can be relied upon to value the stock on an earnings basis.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Growth came from both of the company's segments, as total organic sales rose 22% year over year in Q2 FY2026. Semiconductor Technologies grew organically by 17%, supported by advanced nodes and HBM, while Interconnect Solutions grew organically by 28%, led by advanced packaging, artificial intelligence printed circuit boards, and thermal management. The three Interconnect Solutions platforms related to artificial intelligence also grew by more than 50% year over year, and the advanced-node portfolio rose by more than 20%.
The strategy means that advances in computing no longer depend only on shrinking transistors, but also on connecting more chips and layers within more complex architectures. Qnity benefits from this through CMP and lithography materials at the front end, advanced packaging and interconnection solutions in the middle, and thermal management materials at the back end. In Q2 FY2026, the impact was reflected in advanced-node growth of more than 20% and growth of more than 50% in advanced packaging, artificial intelligence board, and thermal management platforms.
Automated analysis for informational purposes only — not investment advice.
On August 4, 2026, the company raised its FY2026 revenue outlook to a range of $5.55 billion to $5.65 billion. It also raised its adjusted EBITDA outlook to between $1.675 billion and $1.725 billion and its adjusted earnings per share outlook to between $4.40 and $4.60. At the midpoints, it expects revenue growth of 18%, adjusted operating profit growth of more than 20%, and adjusted earnings per share growth of 35%, along with adjusted free cash flow of between $600 million and $700 million.
Management said on its August 4, 2026, call that it does not face material production constraints preventing it from supporting current ramps, although growth came faster than expected. The company has invested approximately $600 million since 2022 in production capacity expansions and new technologies under its local manufacturing model, and its capital expenditure reached $90 million in Q2 FY2026. It explained that most expansions are rapid incremental modules within existing facilities near customers' primary geographic hubs.
Semiconductor Technologies margins declined slightly in Q2 FY2026 due to product mix and spending to support advanced-node growth, with a gross margin of approximately 49% and an adjusted operating margin of approximately 34%. The company expects approximately $20 million of pressure from logistics and energy costs during FY2026, half of which appeared in the first half, despite implementing pricing measures to offset it. On the other hand, it generated adjusted free cash flow of $259 million during the quarter and raised its full-year outlook to $600–700 million, but capital expenditure will remain elevated to support expansion and the transformation.
Semiconductor Technologies revenue was approximately $744 million in Q2 FY2026, compared with $685 million for Interconnect Solutions, representing a mix of approximately 52% and 48%, respectively, of the two segments' combined revenue. Within the semiconductor business, logic applications represented approximately 80% and memory approximately 20%, with HBM and DRAM growing at a faster pace. Management expected low-single-digit sequential growth for the first segment and mid-single-digit sequential growth for the second segment in Q3 FY2026.
