v3.26.1
REVENUE
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Revenue Recognition
Products
Substantially all of Qnity’s revenue is derived from product sales. Product sales consist of sales of Qnity’s products to supply manufacturers and distributors. Qnity considers purchase orders, which in some cases are governed by master supply agreements, to be a contract with a customer. Contracts with customers are considered to be short-term when the time between order confirmation and satisfaction of the performance obligations is equal to or less than one year.

Net sales to Samsung Electronics Co., Ltd accounted for 11% and 10% of total net sales for each of the three months ended March 31, 2026 and 2025, respectively. Additionally, net sales to Taiwan Semiconductor Manufacturing Company Limited (TSMC) accounted for 8% of total net sales for the three months ended March 31, 2026 and 2025. The majority of revenues for both customers relate to the Semiconductor Technologies segment.

Disaggregation of Revenue
The Company disaggregates its revenue from contracts with customers by segment and geographic region, as the Company believes it best depicts the nature, amount, timing and uncertainty of its revenue and cash flows.
Net Sales by SegmentThree Months Ended
 March 31,
In millions20262025
Semiconductor Technologies$722 $644 
Interconnect Solutions593 474 
Total$1,315 $1,118 
Net Sales by Segment by Geographic RegionThree Months Ended
March 31,
20262025
Semiconductor TechnologiesInterconnect SolutionsTotalSemiconductor TechnologiesInterconnect SolutionsTotal
In millions
Americas:$78 $93 $171 $66 $78 $144 
United States77 84 161 65 71 136 
Other Americas 1
1 9 10 1 7 8 
EMEA 2
51 51 102 49 43 92 
Asia Pacific:593 449 1,042 529 353 882 
China205 230 435 205 191 396 
Rest of Asia Pacific:388 219 607 324 162 486 
South Korea164 30 194 140 23 163 
Taiwan151 53 204 121 36 157 
Other73 136 209 63 103 166 
Total$722 $593 $1,315 $644 $474 $1,118 
1.Includes Canada and Latin America.
2.Europe, Middle East and Africa.

Contract Balances
From time to time, the Company enters into arrangements in which it receives payments from customers based upon contractual billing schedules. The Company records accounts receivables when the right to consideration becomes unconditional. Contract liabilities primarily reflect deferred revenue from advance payment for product that the Company has received from customers. The Company classifies deferred revenue as current or noncurrent based on the timing of when the Company expects to recognize revenue.

Revenue recognized from amounts included in contract liabilities at the beginning of the period were insignificant for the three months ended March 31, 2026 and 2025. The Company did not recognize any asset impairment charges related to contract assets during the periods. The Company will begin recognizing its deferred revenue when the project associated with the revenue that was deferred is completed and commercial production begins, currently expected in 2027.
Contract BalancesMarch 31, 2026December 31, 2025
In millions
Accounts receivable - trade 1
$702 $656 
Deferred revenue - current 2
$2 $1 
Deferred revenue - noncurrent 3
$46 $46 
1.Included in "Accounts and notes receivable - net" in the interim Condensed Consolidated Balance Sheets.
2.Included in "Accrued and other current liabilities" in the interim Condensed Consolidated Balance Sheets.
3.Included in "Other noncurrent obligations" in the interim Condensed Consolidated Balance Sheets.