DuPont reported strong quarterly results, with revenue flat at $1.693 billion and earnings per share up 18% to 46 cents, beating estimates. The stock hit an all-time high post slimming down. The company’s new structure, focusing on healthcare, water, and diversified industrials, has unlocked value and led to a 40% rally since the split in November 2025. Qnity Electronics, spun off from DuPont, also hit a record high. The market rotation towards value stocks has not affected DuPont’s performance, with sales exceeding expectations and strong EBITDA margin expansion. The company expects continued growth in healthcare and water technologies, with a slight decline in diversified industrials due to construction market weakness. Management anticipates a short-cycle recovery in the first quarter, driven by a rebound in semiconductors and electronics. DuPont reaffirmed medium-term financial targets and provided guidance for sales, EBITDA, and earnings for the first quarter and full year 2026, expecting organic sales growth and EBITDA margin expansion. The company aims for 2-4% organic annual sales growth, 150-200 basis points of EBITDA margin expansion, and 8-10% annual earnings growth from 2025 to 2028. DuPont’s positive outlook prompted an increase in the price target to $55, with a 2 rating, suggesting waiting for a pullback before buying more shares. The company also trimmed its position to secure gains after a strong rally. Management provided macroeconomic assumptions, including global surgical procedures growth, global water intelligence demand, and global GDP growth. Jim Cramer’s Charitable Trust, a subscriber to CNBC Investing Club, offers trade alerts before executing trades, with no guaranteed outcomes.

Read more at CNBC: Our DuPont thesis is working according to plan. We’re raising our price target