Revenue growth accelerated to 17.6% in 2026Q1, while the company maintained a resilient 43.0% gross margin despite the complexities of its independent operational transition.
| Sales/Revenue | 4.95B | 4.75B | 4.33B | 4.04B |
| Revenue Growth % | - | 9.67% | 7.43% | - |
| Cost of Goods Sold | 2.87B | 2.77B | 2.34B | 2.28B |
| COGS % of Revenue | - | 58.18% | 53.89% | 56.51% |
| Gross Profit | 2.08B | 1.99B | 2B | 1.75B |
| Gross Margin % | 41.97% | 41.82% | 46.11% | 43.49% |
| Gross Profit Growth % | - | -0.55% | 13.9% | - |
| Operating Expenses | 1.02B | 974M | 1.16B | 1.1B |
| OpEx % of Revenue | - | 20.49% | 26.76% | 27.21% |
| Selling, General & Admin | 653M | 620M | 617M | 533M |
| SG&A % of Revenue | - | 13.04% | 14.23% | 13.21% |
| Research & Development | 364M | 354M | 311M | 303M |
| R&D % of Revenue | - | 7.45% | 7.17% | 7.51% |
| Other Operating Expenses | 0 | 0 | 232M | 262M |
| Operating Income | 1.06B | 1.01B | 847M | 657M |
| Operating Margin % | 21.43% | 21.33% | 19.54% | 16.28% |
| Operating Income Growth % | - | 19.72% | 28.92% | - |
| EBITDA | 1.44B | 1.39B | 1.24B | 1.06B |
| EBITDA Margin % | 29.11% | 29.24% | 28.63% | 26.27% |
| EBITDA Growth % | - | 12.01% | 17.08% | - |
| D&A (Non-Cash Add-back) | 380M | 376M | 394M | 403M |
| EBIT | 1.06B | 1.01B | 898M | 657M |
| Net Interest Income | -124M | -61M | -280M | 0 |
| Interest Income | 2M | 4M | 0 | 0 |
| Interest Expense | 126M | 65M | 280M | 0 |
| Other Income/Expense | -127M | -52M | 54M | -25M |
| Pretax Income | 934M | 962M | 901M | 632M |
| Pretax Margin % | 18.86% | 20.24% | 20.78% | 15.66% |
| Income Tax | 242M | 233M | 177M | 99M |
| Effective Tax Rate % | 25.91% | 24.22% | 19.64% | 15.66% |
| Net Income | 650M | 692M | 693M | 507M |
| Net Margin % | 13.13% | 14.56% | 15.99% | 12.57% |
| Net Income Growth % | - | -0.14% | 36.69% | - |
| Net Income (Continuing) | 692M | 729M | 724M | 533M |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | 275M | 271M | 252M | 246M |
| EPS (Diluted) | 3.09 | 3.30 | 3.31 | 2.42 |
| EPS Growth % | - | -0.27% | 36.69% | - |
| EPS (Basic) | - | 3.30 | 3.31 | 2.42 |
| Diluted Shares Outstanding | 210.3M | 209.48M | 209.43M | 209.43M |
| Basic Shares Outstanding | 209.7M | 209.48M | 209.43M | 209.43M |
| Dividend Payout Ratio | - | 1.88% | - | - |
Geopolitical supply chain concentration
According to the most recent quarterly filings, Qnity Electronics achieved a 17.6% year-over-year revenue growth in 2026Q1, signaling a successful capture of semiconductor recovery trends that appears to outpace the broader electronics materials market as the company establishes its independent operational footprint post-spin-off.
The acceleration to $1.3B in revenue suggests that the company's consumable-based model is effectively leveraging the current uptick in wafer fabrication utilization. Investors should monitor whether this growth trajectory remains sustainable as the company moves further away from its legacy conglomerate structure.
As reported in financial statements, Qnity maintained a gross margin of 43.0% in 2026Q1, reflecting a consistent ability to command pricing power for its specialized semiconductor materials despite the inherent volatility of raw material inputs and the ongoing integration of independent corporate infrastructure.
The stability of these margins, hovering consistently above 41% since 2025Q1, indicates that the company's 'Process-of-Record' status provides a significant buffer against commodity price fluctuations. This performance suggests that the firm's proprietary chemical formulations remain essential to customer yields, insulating them from the lower-margin pressures seen in broader electronics manufacturing.
Based on Qnity's reported figures, operating income reached $299M in 2026Q1, demonstrating that the company is successfully scaling its profitability faster than its revenue growth as it optimizes its standalone cost structure following the separation from its former parent company.
The expansion of the operating margin to 22.7% suggests that management is effectively managing the 'stranded costs' associated with the spin-off. This operational discipline appears to be a key driver of the company's ability to maintain high profitability while simultaneously investing in critical R&D.
Data from recent income statements indicates that Qnity's net income of $151M in 2026Q1, while lower than previous quarters, reflects the absence of non-recurring items and the cessation of stock-based compensation expenses that were present during the initial phases of the company's transition to a standalone entity.
The shift toward a cleaner earnings profile suggests that the company is moving toward a more predictable financial reporting cadence. However, investors should remain cautious regarding the potential for future tax rate adjustments as the company fully settles into its new Delaware-based corporate tax structure.
Quick answers to the most common questions about buying Q stock.
For fiscal year 2025, Qnity Electronics, Inc. (Q) reported total revenue of $4.75B. This represents a 17.8% increase compared to $4.04B in 2023.
Qnity Electronics, Inc. (Q) is profitable, generating $692.0M in net income for the fiscal year ending 2025 with a net profit margin of 14.6%.
Qnity Electronics, Inc. (Q) reported an operating income of $1.01B, resulting in an operating profit margin of 21.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Qnity Electronics, Inc. (Q) generated $1.99B in gross profit for the year, representing a gross profit margin of 41.8%. This demonstrates the company's core pricing power and production efficiency.