Qnity Q3 FY2026: sales up 22.0%, guidance raised, GAAP EPS down 14.0%
Qnity's third quarter was a clean operating beat: sales of $1.556 billion rose 22.0% and gross margin climbed to 47.8%. Adjusted EPS of $1.46 beat the $1.2273 consensus by 19.0%, and management raised full-year sales guidance to a $5.80 billion midpoint. The catch sits below the operating line, where spin-off costs and interest pushed GAAP EPS down 14.0%. Read the adjusted figures for the business and the GAAP figures for what shareholders actually own.
1 · Expected vs. Actual
Free preview belowGAAP EPS fell 14.0% to $0.87 as interest expense jumped to $64 million from $14 million and $53 million of transformation and integration charges landed in the quarter. Adjusted EPS of $1.46 was up 55.3% from $0.94 and beat the $1.2273 consensus by 19.0%. The $0.59 gap between the two numbers is the price of standing alone: IT separation, intangible amortization and legacy cost-sharing.
Sales of $1.556 billion rose 22.0% from $1.276 billion a year earlier, and all of it was volume: price and mix were flat and currency added nothing. Interconnect Solutions grew 30.2% to $759 million while Semiconductor Technologies grew 15.0% to $797 million. Asia Pacific supplied $1.241 billion, or 79.8% of the total.
Full-year sales guidance was lifted to $5.77–$5.83 billion, a $5.80 billion midpoint, up from the $5.60 billion midpoint set last quarter, alongside adjusted EBITDA of $1.785–$1.805 billion and adjusted EPS of $4.95–$5.05. That EPS range implies $1.23–$1.33 in the fourth quarter after $3.72 booked in the first nine months. It is a real raise, but not an aggressive one.
Log in to read 35 analyses a week for free
Create a free account to read 35 full earnings analyses each week — all five steps: expected vs. actual, guidance tracker, money flow, balance sheet and risks. Members get unlimited access.
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 2026-11-04
Answers are based on the earnings release and the analysis above. Free accounts get 3 questions a week; members get 30 a day.