$Q · Qnity Electronics, Inc.
Qnity Electronics filed its Q3 FY2026 10-Q. Revenue grew 21.9% YoY to $1.556B (nine months $4.30B vs $3.564B). Net income declined to $196M from $223M, and diluted EPS fell to $0.87 from $1.01, driven by a jump in interest expense ($64M vs $14M), transformation/integration charges ($53M vs $1M), and other expense of $39M. Nine-month net income was $494M vs $620M.
- Revenue rose 21.9% YoY to $1.556B in Q3 FY2026.
- Diluted EPS fell to $0.87 from $1.01 a year earlier.
- Interest expense surged to $64M from $14M in the prior-year quarter.
- Transformation, integration and other charges hit $53M vs $1M a year ago.
- Nine-month operating cash flow was $647M, down from $782M.
Shares are up 1.11% since filing to $118.00, suggesting investors are focusing on the strong revenue growth rather than the EPS decline.
Strong top-line growth is being offset by rising debt costs and integration charges, squeezing profitability despite a 21.9% revenue jump.
The company operates in semiconductor technologies and interconnect solutions, with revenue growth outpacing the EPS drag from post-separation integration costs.
Higher interest expense and transformation/integration charges are compressing margins; the company also cites trade restrictions, tariffs, and reliance on key customers as risks.