01—Abstract
Summary
Summary of the 8-K filed May 12, 2026. Cited figures are marked; the original filing is the authoritative source.
Qnity Electronics, Inc. (NYSE: Q) reported first quarter 2026 results on May 12, 2026, as disclosed in an 8-K furnishing a press release (Exhibit 99.1) under Item 2.02.
Net sales were $1.315 billiona, up from $1.118 billion in Q1 2025, with Semiconductor Technologies at $722 million and Interconnect Solutions at $593 million. GAAP net income was $162 million versus $199 million a year earlier, and GAAP diluted EPS was $0.72 versus $0.92. Adjusted Operating EBITDA was $411 million, compared with $336 million on a pro forma basis for Q1 2025, and Adjusted EPS was $1.08 versus $0.81 pro forma.
The company described the quarter as its eighth consecutive quarter of strong profitable organic growth, with double-digit gains in both segments. Qnity raised its full-year 2026 guidance across all metrics: net sales of $5.225 billion to $5.375 billionb, Adjusted Operating EBITDA of $1.535 billion to $1.625 billion, Adjusted EPS of $3.80 to $4.14, and Adjusted Free Cash Flow of $500 million to $600 million. Investors should note that the company's GAAP net income declined year over year, largely because interest expense of $61 million was incurred in Q1 2026 versus none in Q1 2025, and transformation and IT independence costs ($28 million in Q1 2026) were excluded from non-GAAP measures.
Cash provided by operating activities was $135 millionc, capital expenditures were $122 million, and Adjusted Free Cash Flow was $28 million for the quarter. The filing states that the information is furnished rather than filed for purposes of Section 18 of the Exchange Act. Cash and cash equivalents stood at $857 million at March 31, 2026, and long-term debt was $4.000 billion.
02—Key points
Key Highlights
- Q1 2026 net sales of $1.315 billion, up from $1.118 billion in Q1 2025; Asia Pacific was the largest region at $1.042 billion.
- GAAP net income of $162 million (down from $199 million) and GAAP diluted EPS of $0.72 (down from $0.92).
- Adjusted Operating EBITDA of $411 million versus $336 million pro forma in Q1 2025; Adjusted EPS of $1.08 versus $0.81 pro forma.
- Full-year 2026 guidance raised: net sales $5.225B-$5.375B, Adjusted Operating EBITDA $1.535B-$1.625B, Adjusted EPS $3.80-$4.14, Adjusted Free Cash Flow $500M-$600M.
- Q1 2026 interest expense of $61 million, compared with none in Q1 2025, reflecting the company's current debt structure.
- Cash provided by operating activities was $135 million, versus $207 million a year earlier, and Adjusted Free Cash Flow was $28 million.
- Transformation, integration and other charges of $28 million were mainly IT independence costs of approximately $24 million, excluded from Adjusted results.
03—Questions
Frequently Asked Questions
How did Qnity perform in the first quarter of 2026?
Net sales rose 18% year over year to $1.315 billion, with organic sales up 17%. GAAP net income fell to $162 million from $199 million, while Adjusted Earnings rose to $226 million on a pro forma basis from $170 million.
Did Qnity change its full-year 2026 outlook?
Yes. The company raised its full-year 2026 guidance across all metrics, now projecting net sales of $5.225 billion to $5.375 billion, Adjusted Operating EBITDA of $1.535 billion to $1.625 billion, Adjusted EPS of $3.80 to $4.14, and Adjusted Free Cash Flow of $500 million to $600 million.
Why did GAAP net income decline while adjusted results improved?
GAAP net income was $162 million versus $199 million. The filing shows Q1 2026 interest expense of $61 million, where Q1 2025 had none, along with $28 million of transformation, integration and other charges. Adjusted measures exclude these items, amortization of intangibles and other specified items, and the Q1 2025 comparison is presented on a pro forma basis.
What drove segment performance?
Semiconductor Technologies net sales were $722 million, up 12% year over year, with Adjusted Operating EBITDA of $263 million. Interconnect Solutions net sales were $593 million, up 25%, with Adjusted Operating EBITDA of $169 million, compared with $114 million a year earlier.
How much cash did Qnity generate and what did it do with it?
Cash provided by operating activities was $135 million, and capital expenditures were $122 million. The company also paid $17 million in dividends and repurchased $25 million of common stock during the quarter, and cash and cash equivalents ended the period at $857 million.
04—Continue