Qnity, the DuPont spin-off, reports November 4 with China at 33% of sales and no AI cooling revenue yet
The DuPont spin-off put memory cooling for AI servers on the wire October 13, then added a dividend, an Apple camera deal and a $2 billion film legacy inside ten days. It still trades about a third below its June high with China at 33% of sales, and the November 4 report decides which story owns the stock.
Vincent Jiang · 3 min read
Seven days to the print, and the stock is still a third off its high
Qnity Electronics+0.93% — Qnity Electronics, up 0.93 percent today (NYSE: Q), the semiconductor materials business DuPont+0.46% — DuPont, up 0.46 percent today spun off in autumn 2025, closed Tuesday at $118.75, about 33% below its June 22 high of $177.28 12. The third-quarter report lands before the open on November 4, consensus $1.20 adjusted earnings per share on $1.49 billion of revenue 2.
The launch hit the wire October 13; the press caught it October 25
On October 13 Qnity introduced two memory-cooling materials, Laird Graphite-over-Foam and a thermal interface material, built for servers that can carry up to 48 DDR5 memory modules in densely packed rows 3. "Keeping memory modules cool is critical to sustaining performance and reliability," said Chuck Xu, president of the Interconnect Solutions business 3. A Chester County paper retold the release on October 25, and a wire brief passed it on the same day 89.
In between came the rest of the record: an 8-cent quarterly dividend payable December 15 to holders of record November 30, about 32 cents a year if maintained 4; Apple on October 20 expanding Qnity's American Manufacturing Program role to films for the iPhone 18 Pro's variable-aperture camera, with no dollar figure for Qnity while titanium partner Perryman drew up to $100 million 5.
Ultra-thin flex materials for AI glasses and AR devices followed on October 21 6. And on October 27 the American Institute of Chemical Engineers honored Qnity technical fellow Scott Herrmann for a Kapton and Pyralux film line that has passed $2 billion in sales 7.
Revenue is at a record while profit has fallen since late 2024
The market spoke in between. After Lam Research+3.19% — Lam Research, up 3.19 percent today said October 21 that Chinese sales will fall meaningfully, Qnity closed October 22 down 9.48% at $108.78 2. The filings show why one warning could do that: Q2 revenue rose 22.14% year over year to $1.43 billion and adjusted EPS of $1.19 beat the $1.07 consensus, yet net profit fell 34% to $124 million and operating cash flow fell 11.7% to $241 million 2.
The quarterly record runs the wedge longer. Revenue grew from $983 million in the first quarter of 2024 to $1.43 billion in the second quarter of 2026, while net income peaked at $213 million in the fourth quarter of 2024 and now sits at $124 million 10.
Revenue is at a record while profit sits a third below its late-2024 peak
- Revenue
- Net income
Data
| Revenue | Net income | |
|---|---|---|
| Q1 '24 | $0.98B | $0.13B |
| Q2 '24 | $1.1B | $0.15B |
| Q3 '24 | $1.15B | $0.2B |
| Q4 '24 | $1.1B | $0.21B |
| Q1 '25 | $1.12B | $0.19B |
| Q2 '25 | $1.17B | $0.19B |
| Q3 '25 | $1.28B | $0.21B |
| Q4 '25 | $1.19B | $0.1B |
| Q1 '26 | $1.32B | $0.15B |
| Q2 '26 | $1.43B | $0.12B |
China feeds a third of the revenue; the new cooling line feeds none of it yet
The fork is geographic. China is 33% of net sales and Asia-Pacific another 45.8% 1. Pads and slurries are consumed on every wafer a fab runs, so a pullback in Chinese wafer starts reaches that revenue with a lag and no cushion, against about $3 billion of net debt 2.
The other path is new: cooling materials priced off AI-server builds rather than wafer starts, grown from the Laird thermal franchise 3 and the $2 billion film record behind it 7. What no source carries is the thermal line's customers or revenue; it launched with neither.
China is a third of the revenue base the market just repriced
Data
| Value | |
|---|---|
| Asia/Pacific | 45.8% |
| China | 33% |
| United States | 12.4% |
| Europe/Middle East/Africa | 8% |
| Americas | 0.8% |
The November 4 print prices the fork
Two numbers settle it: whether China revenue holds against Lam's warning, and whether the thermal line gets a customer or a dollar figure. The street has picked a side for now, ten analysts at a consensus buy, an average target of $174.20, 47% above Tuesday's close, with Truist initiating at Buy, $170 and Barclays at Overweight, $211 in mid-October 1.
The print decides whether that target prices a China bet or a franchise.
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