Qnity Electronics (NYSE:Q) Shares Gap Up on Better-Than-Expected Earnings

Qnity Electronics, Inc. (NYSE:Q) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $119.86, but opened at $139.94. Qnity Electronics shares last traded at $125.65, with a volume of 1,678,034 shares trading hands.

The premier technology solutions leader reported $0.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.64 by $0.18. The business’s quarterly revenue was up 8.1% on a year-over-year basis. Qnity Electronics has set its FY 2026 guidance at 3.550-3.950 EPS.

Qnity Electronics Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Friday, February 27th will be issued a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date is Friday, February 27th. Qnity Electronics’s dividend payout ratio is 23.76%.

Key Qnity Electronics News

Here are the key news stories impacting Qnity Electronics this week:

• Positive Sentiment: Q4 earnings beat — EPS $0.82 vs. $0.64 consensus and revenue grew ~8.1% year‑over‑year, signaling healthier execution versus estimates. Qnity Electronics Inc (Q) Q4 2025 Earnings Call Highlights
• Positive Sentiment: Management raised FY‑2026 guidance materially: EPS 3.550–3.950 (vs. ~2.89 consensus) and revenue guidance of $5.0–$5.2B, implying stronger top‑line momentum from AI/HPC demand. Qnity forecasts upbeat full-year earnings as AI boom boosts demand
• Positive Sentiment: Board authorized a $500 million share buyback, which reduces float and supports near‑term EPS and the stock price. Qnity Electronics Sets $500 Million Stock Buyback
• Positive Sentiment: Analysts are reacting: RBC raised its price target and kept an Outperform rating, adding to buy‑side momentum. Q Price Target Raised at RBC
• Positive Sentiment: Management unveiled a transformation plan targeting a $100M EBITDA run‑rate improvement by 2028, which should improve margins if execution stays on track. Qnity targets $100M EBITDA run rate improvement by 2028
• Neutral Sentiment: Company released the earnings transcript and slide deck for investors to review guidance detail and modeling assumptions. Listen to Conference Call / View Slide Deck
• Neutral Sentiment: Metric deep‑dives (Zacks) highlight that while headline growth was solid, some unit/margin details bear watching versus longer‑term estimates. Here’s What Key Metrics Tell Us About Q’s Q4 Earnings
• Negative Sentiment: Valuation and execution risk: Qs trades at a high P/E (~123x forward), and upside depends on sustaining AI‑led demand and delivering on the $100M cost plan — both could cause volatility if growth slows or savings miss targets.

Analyst Upgrades and Downgrades

Q has been the topic of several recent research reports. New Street Research set a $110.00 price objective on Qnity Electronics in a research report on Monday, November 3rd. Oppenheimer initiated coverage on shares of Qnity Electronics in a research note on Tuesday, December 16th. They issued an “outperform” rating and a $100.00 target price for the company. Wall Street Zen raised shares of Qnity Electronics to a “hold” rating in a research note on Friday, November 28th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $126.00 price target on shares of Qnity Electronics in a report on Friday, February 20th. Finally, Royal Bank Of Canada upped their price objective on shares of Qnity Electronics from $118.00 to $133.00 and gave the company an “outperform” rating in a research note on Wednesday. Five analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Qnity Electronics currently has a consensus rating of “Moderate Buy” and a consensus price target of $116.50.

Insider Buying and Selling

In other news, VP Michael G. Goss sold 1,895 shares of Qnity Electronics stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $84.79, for a total transaction of $160,677.05. Following the transaction, the vice president directly owned 13,305 shares in the company, valued at approximately $1,128,130.95. This trade represents a 12.47% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Jon D. Kemp sold 5,655 shares of the business’s stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $85.01, for a total value of $480,731.55. Following the completion of the sale, the chief executive officer directly owned 89,177 shares in the company, valued at $7,580,936.77. This represents a 5.96% decrease in their position. The disclosure for this sale is available in the SEC filing. 6.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in Q. Moisand Fitzgerald Tamayo LLC acquired a new stake in shares of Qnity Electronics during the 4th quarter valued at $25,000. Dunhill Financial LLC acquired a new stake in shares of Qnity Electronics during the fourth quarter worth $25,000. Armstrong Advisory Group Inc. purchased a new stake in shares of Qnity Electronics during the fourth quarter valued at $26,000. Provenance Wealth Advisors LLC acquired a new position in shares of Qnity Electronics in the 4th quarter valued at $27,000. Finally, Motco purchased a new position in Qnity Electronics in the 4th quarter worth about $27,000.

Qnity Electronics Stock Performance

The stock has a 50 day moving average price of $97.54. The company has a current ratio of 1.78, a quick ratio of 1.07 and a debt-to-equity ratio of 0.18. The company has a market capitalization of $26.12 billion and a PE ratio of 123.48.

About Qnity Electronics

Qnity Electronics Inc is a premier technology solution provider across the semiconductor value chain. Qnity Electronics Inc is based in WILMINGTON, Del.