Qnity Electronics, Inc. stock research
FY2026 Q1
Qnity Electronics (Q) Gross Margin — Quarter Ended Mar 31, 2026
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved sequentially but declined relative to the year-ago period.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved sequentially but declined relative to the year-ago period.
- The sequential improvement in gross margin was the strongest observable driver, as revenue growth outpaced cost of revenue growth.
- Compared to the immediately preceding quarter, gross margin strengthened. Compared to the same quarter one year earlier, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.0%
Gross profit
$618.0M
Revenue
$1.3B
Cost of revenue
$697.0M
Quarter-over-quarter change
+0.9 pts
Year-over-year change
-0.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $1.1B | $531.0M | $587.0M | 47.5% |
| Sep 30, 2025 | $1.3B | $575.0M | $701.0M | 45.1% |
| Dec 31, 2025 | $1.2B | $549.0M | $641.0M | 46.1% |
| Mar 31, 2026 | $1.3B | $618.0M | $697.0M | 47.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+0.9 pts
Year-over-year change
Mar 31, 2025
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was the strongest observable driver, as revenue growth outpaced cost of revenue growth.
Compared to the immediately preceding quarter, gross margin strengthened. Compared to the same quarter one year earlier, gross margin weakened.
Monitor the trend in cost of revenue relative to revenue, as it has increased over both periods.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Qnity Electronics, Inc. (Q) | 47.0% |