Qnity Electronics Q2 FY26: revenue up 22%, adjusted EPS up 53%, guidance raised
Qnity's second quarter was a clean top-line beat with a messy bottom line. Revenue of $1.43 billion rose 22.1% from $1.17 billion a year earlier, yet GAAP net income fell 31.3% to $136 million because spin-off interest, amortization and restructuring now sit in the numbers. Read adjusted EPS of $1.19 against the $1.0829 consensus, and treat GAAP EPS as a year of transition accounting.
1 · Expected vs. Actual
Free preview belowGAAP EPS of $0.59 fell 34.4% because the spin-off loaded the income statement: $61 million of interest expense that did not exist a year ago, $50 million of intangible amortization, $42 million of transformation and integration charges, and $42 million of indirect legacy costs. Adjusted EPS of $1.19 rose 53% and beat the $1.0829 consensus, which is the number management wants you to use. The GAAP effective tax rate jumped to 31.7% from a pro forma 22.4%, while the base tax rate was 19.8%.
Net sales of $1.43 billion were up 22.1% from $1.17 billion a year ago, and volume did all the work: local price and product mix was a 1.0% drag while currency added nothing. Interconnect Solutions grew 30.2% to $685 million and Semiconductor Technologies grew 15.5% to $744 million. Asia Pacific supplied $1.14 billion, or 79.7%, of the total.
Qnity raised full-year 2026 net sales guidance to $5.55–$5.65 billion from a $5.30 billion midpoint last quarter, a 5.7% lift at the midpoint. Adjusted EPS is guided to $4.40–$4.60 and adjusted operating EBITDA to $1.675–$1.725 billion, with adjusted free cash flow of $600–$700 million. The new revenue midpoint leaves about $2.86 billion for the second half, or $1.43 billion a quarter — essentially this quarter's run rate, so no further acceleration is baked in.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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