---
title: "Qnity, the DuPont spin-off, reports November 4 with China at 33% of sales and no AI cooling revenue yet"
description: "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."
publisher: "The Inference"
section: "Chips"
published: 2026-10-28T13:08:13.322Z
modified: 2026-10-28T13:08:13.322Z
canonical: https://theinference.org/article/qnity-the-dupont-spin-off-reports-november-4-with-china-at-33-of-sales-and-no-ai-cooling-revenue-yet
language: en
keywords: "Qnity Electronics, Semiconductors, Earnings, China, AI Data Centers, DuPont"
---

# 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.

## Seven days to the print, and the stock is still a third off its high

[Qnity Electronics](https://theinference.org/markets/companies/qnity-electronics) (NYSE: Q), the semiconductor materials business [DuPont](https://theinference.org/markets/companies/dupont) spun off in autumn 2025, closed Tuesday at $118.75, about 33% below its June 22 high of $177.28 [1][2]. The third-quarter report lands before the open on November 4, [consensus $1.20 adjusted earnings per share on $1.49 billion of revenue](https://theinference.org/article/lam-research-warned-china-sales-will-fall-qnity-down-9-5-with-china-a-third-of-revenue-reports-nov-4) [2].

## The launch hit the wire October 13; the press caught it October 25

On October 13 Qnity [introduced two memory-cooling materials](https://www.businesswire.com/news/home/20261013746015/en/), 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](https://theinference.org/markets/people/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 [8][9].

In between came the rest of the record: [an 8-cent quarterly dividend](https://www.mychesco.com/a/news/regional/qnity-electronics-sets-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](https://www.apple.com/newsroom/2026/10/apple-announces-american-manufacturing-program-partners-for-latest-iphone-lineup/) 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](https://theinference.org/markets/companies/lam-research) 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].

*Chart: **Revenue is at a record while profit sits a third below its late-2024 peak** Line chart of Qnity quarterly revenue rising from $0.98B to $1.43B across ten quarters while net income peaks at $0.21B in Q4 2024 and falls to $0.12B in Q2 2026.*

*Quarterly revenue and net income, USD billions, Q1 2024 through Q2 2026, from Qnity's SEC filings, retrieved October 28, 2026. [10]*

## 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.

*Chart: **China is a third of the revenue base the market just repriced** Bars ranking Qnity net sales by region: Asia/Pacific 45.8%, China 33%, United States 12.4%, Europe/Middle East/Africa 8%, Americas 0.8%, with China highlighted.*

*Share of Qnity net sales by region, percent, company geographic split as carried by MarketScreener, late October 2026. [1]*

## 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](https://www.marketscreener.com/news/truist-securities-initiates-coverage-on-qnity-electronics-with-buy-rating-170-price-target-ce785dd2dd8af121) [1].

The print decides whether that target prices a China bet or a franchise.

## Takeaway

Qnity's record revenue hides falling profit and China at 33% of sales; the November 4 print, and whether the thermal line names a customer, decides whether the stock is a China bet or a franchise.

## Sources

1. [MarketScreener, Qnity Electronics Inc. company page: profile, geographic split, consensus and news flow, accessed 28 October 2026](https://www.marketscreener.com/news/truist-securities-initiates-coverage-on-qnity-electronics-with-buy-rating-170-price-target-ce785dd2dd8af121)
2. [The Inference, Lam Research warned China sales will fall; Qnity, down 9.5% with China a third of revenue, reports Nov. 4, 23 October 2026](https://theinference.org/article/lam-research-warned-china-sales-will-fall-qnity-down-9-5-with-china-a-third-of-revenue-reports-nov-4)
3. [Business Wire, Qnity Extends Thermal Management Solutions for Advanced Memory Cooling for AI Data Centers, 13 October 2026](https://www.businesswire.com/news/home/20261013746015/en/)
4. [MyChesCo, Qnity Electronics Sets 8-Cent Quarterly Dividend, collected 26 October 2026](https://www.mychesco.com/a/news/regional/qnity-electronics-sets-8-cent-quarterly-dividend/)
5. [Apple Newsroom, Apple announces new American Manufacturing Program partners for iPhone Duo and iPhone 18 Pro, 20 October 2026](https://www.apple.com/newsroom/2026/10/apple-announces-american-manufacturing-program-partners-for-latest-iphone-lineup/)
6. [Qnity Electronics press release, Qnity is Empowering Next-Generation Smart Consumer Electronic Devices with Advanced Interconnect Innovations, 21 October 2026](https://www.qnityelectronics.com/news/2026/qnity-is-empowering-next-generation-smart-consumer-electronic-devices)
7. [AIChE ChEnected, Scott Herrmann of Qnity Electronics Named AIChE's 2026 Lawrence B. Evans Award Recipient, 27 October 2026](https://chenected.aiche.org/2026/10/scott-herrmann-qnity-electronics-named-aiches-2026-lawrence-b-evans-award)
8. [MyChesCo, Qnity Expands AI Data Center Cooling Portfolio, collected 26 October 2026](https://www.mychesco.com/a/news/regional/qnity-expands-ai-data-center-cooling-portfolio/)
9. [Fusion42 Wire, Qnity Expands AI Data Center Cooling Portfolio, 25 October 2026](https://wire.fusion-42.com/stories/46266716-3443-44fa-935e-cde04a392193)
10. [Qnity Electronics, quarterly figures from its SEC filings, retrieved 28 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0002058873)


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Qnity, the DuPont spin-off, reports November 4 with China at 33% of sales and no AI cooling revenue yet — The Inference. Canonical: https://theinference.org/article/qnity-the-dupont-spin-off-reports-november-4-with-china-at-33-of-sales-and-no-ai-cooling-revenue-yet