Al Root
Shares of DuPont spinout Qnity Electronics rose after the company beat Wall Street's fourth-quarter estimates and gave solid guidance for 2026.
Qnity stock was up 2.6% at $123 in premarket trading, while S&P 500 and Dow Jones Industrial Average futures were down about 0.1%. Coming into Thursday trading, Qnity stock was up almost 50% so far this year.
The move came after the company on Thursday morning announced fourth-quarter earnings per share of 82 cents from sales of $1.2 billion. Wall Street was looking for earnings per share of 63 cents from sales of $1.2 billion.
A year ago, Qnity reported earnings per share of 87 cents from sales of $1.1 billion. Earnings were lower, but it's tough to compare figures. The company spun off from DuPont de Nemours in November. Shares were below $100 each just after the spin.
The new standalone Qnity provides chemicals and materials for the manufacture of semiconductors and circuit boards. Semiconductors, of course, are big business, powering everything from smartphones to AI datacenters. Qnity projects that the global semiconductor market will grow to roughly $1.3 trillion in 2030, from $740 billion today.
For 2026, Qnity expects earnings per share of between $3.55 to $3.95 from sales of about $5.1 billion. Wall Street currently projects earnings per share of $3.07 from sales of $5.1 billion.
It looks like a solid quarter. "Looking to 2026, we are well-positioned to drive sustained growth by leveraging our deep innovation and application engineering expertise to address our customers' most complex challenges and capitalize on continued demand for AI, high-performance computing, and advanced connectivity," said CEO Jon Kemp in a news release. "At the same time, we are beginning to implement a multi-year transformation plan to simplify our operating model, enhance productivity, and reduce costs."
The company also announced a $500 million share repurchase plan and recently initiated an 8-cents quarterly dividend. Things have started out well for the new materials company.
Write to Al Root at allen.root@dowjones.com
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(END) Dow Jones Newswires
February 26, 2026 07:04 ET (12:04 GMT)
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