Qnity revenue rallies to $1.3B as adjusted earnings jump 33%

Qnity Electronics (NYSE:Q) posted first-quarter net sales of $1.3 billion, an 18% increase over the $1.1 billion reported in the same period last year.

Organic sales, which exclude the impact of acquisitions and currency fluctuations, rose 17%, highlighting strong underlying demand for the company’s high-performance connectivity solutions.

While GAAP net income fell 19% to $162 million due to one-time integration costs and tax adjustments, adjusted earnings surged 33% to $226 million.

The company’s operational performance was bolstered by a 22% increase in adjusted operating EBITDA, which reached $411 million.

On a per-share basis, adjusted EPS was $1.08, up 33% year-over-year, significantly outperforming consensus estimates.

The divergence between GAAP and adjusted figures primarily reflects the non-cash amortization of intangibles related to the company's recent expansion into the Silicon Carbide (SiC) power module market.

Citing a "record-level" order backlog and stabilizing supply chain conditions, Qnity raised its full-year 2026 financial outlook.

The company now expects total revenue to grow between 15% and 17% for the fiscal year, up from previous estimates of 12%.

Management also signaled confidence in margin expansion, targeting a full-year adjusted operating EBITDA margin of at least 31%.