WILMINGTON, DE — Qnity Electronics Inc. (NYSE: Q) raised its full-year 2026 financial guidance after second-quarter sales climbed 22% to $1.43 billion, as demand tied to increasingly complex semiconductor manufacturing and advanced computing lifted both of the company’s operating segments.
The Wilmington-based company now expects 2026 net sales of $5.55 billion to $5.65 billion, adjusted operating EBITDA of $1.675 billion to $1.725 billion and adjusted earnings of $4.40 to $4.60 per share. Adjusted free cash flow is projected at $600 million to $700 million.
The higher outlook follows a quarter in which Qnity generated $1.429 billion in sales, compared with $1.170 billion a year earlier. Organic sales, which exclude currency and portfolio effects, also increased 22%.
The top-line growth contrasted with weaker results under generally accepted accounting principles. Net income fell 31% to $136 million from $198 million, while diluted earnings per share declined to 59 cents from 90 cents.
Adjusted results moved in the opposite direction. Adjusted earnings rose 53% to $250 million from $163 million, while adjusted EPS increased 53% to $1.19 from 78 cents. Adjusted operating EBITDA reached $431 million, up 24% from the prior-year pro forma figure of $347 million.
Qnity’s Interconnect Solutions business posted the stronger sales growth, with second-quarter revenue rising 30% to $685 million from $526 million. Semiconductor Technologies sales increased 16% to $744 million from $644 million.
Adjusted operating EBITDA for Semiconductor Technologies increased to $253 million from $226 million, while Interconnect Solutions rose to $197 million from $137 million. Corporate costs increased to $19 million from $9 million.
Asia Pacific remained Qnity’s largest geographic market, generating $1.139 billion of second-quarter sales, up 24% from $915 million. Americas sales increased 16% to $185 million, while Europe, the Middle East and Africa rose 11% to $105 million.
Chief Executive Officer Jon Kemp linked the growth to semiconductor manufacturers adding process steps and layers as chip designs become more complex.
“The industry shift toward shrink and stack is lengthening the journey every chip takes, requiring more process complexity and more layers, creating a multiplier effect for materials intensity,” Kemp stated. He also pointed to demand from artificial intelligence, high-performance computing and advanced connectivity.
The earnings gap between Qnity’s GAAP and adjusted results partly reflects expenses associated with operating as a newly independent company following its separation from DuPont. During the first six months of 2026, Qnity recorded $70 million of transformation, integration and other charges, including about $48 million for information-technology independence initiatives.
For the first half, net income fell to $298 million from $397 million a year earlier even as sales increased to $2.744 billion from $2.288 billion. Six-month diluted EPS declined to $1.31 from $1.82.
Cash provided by operating activities totaled $376 million during the first six months, down from $480 million, while capital expenditures increased to $212 million from $153 million. Qnity reported adjusted free cash flow of $287 million for the period.
The company also repurchased $50 million of common stock during the first half and ended June with $961 million in cash and cash equivalents. Long-term debt stood at approximately $4 billion.
Qnity supplies materials and technologies used across the semiconductor value chain, including chip manufacturing and high-speed electronic interconnect systems. The company was separated from DuPont and operates as a stand-alone publicly traded company. More information is available at http://www.qnityelectronics.com.
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