Guidance Raise Clears a High Bar

Qnity (Q) reported a strong 1Q26 beat and raised its FY26 guidance, driven by robust demand in AI/HPC and a recovery in mature logic wafer starts. Goldman Sachs reiterates its Buy rating and raised the price target to $165.

Key Takeaways

• 1.Qnity delivered strong 1Q26 results beating street expectations on revenue and margins, leading to a guidance raise for FY26.
• 2.The company is benefiting from strong secular tailwinds in AI/HPC and advanced packaging, with its Interconnect Solutions (ICS) segment showing 22% organic growth.
• 3.Management raised wafer start growth assumptions to the mid-to-high single-digit range, indicating confidence in a cyclical recovery.

Table of Contents

• Key stock takeaways
• Read-through to our coverage
• Quarterly results above the Street
• Mainstream volume recovery
• Interconnect Solutions
• Margins
• FY26 guidance above the Street
• Estimate changes
• Price target
• We remain Buy rated on Q
• Disclosure Appendix
• GS Factor Profile
• M&A Rank
• Quantum
• Disclosures

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