News: Microelectronics
2 February 2026
Qorvo’s quarterly revenue grows a more-than-expected 8.4% year-on-year
For its fiscal third-quarter 2026 (ended 27 December 2025), Qorvo Inc of Greensboro, NC, USA (which provides core technologies and RF solutions for mobile, infrastructure and defense applications) has reported revenue of $993m, down 6.2% on $1058.5m last quarter but up 8.4% on $916.3m a year ago, and above the mid-point of the guidance range of $985m±$50m.
“December quarterly revenue primarily reflects strength at our largest customer [Apple, which comprised about 53% of revenue],” notes president & CEO Bob Bruggeworth.
“Each of our operating segments grew revenue year-over-year, with notable strength in automotive components, consumer and enterprise Wi-Fi, defense & aerospace, base-station, and power management,” he notes.
By business segment, Qorvo’s total revenue comprised:
- Advanced Cellular Group (ACG) $690.8m, down 11.1% on last quarter’s $777m due to typical seasonality (with a low double-digit decline for Android revenue), but up 8.8% on $635.1m a year ago. At Qorvo’s largest customer, content gains on their ramping platform helped to support double-digit revenue growth.
- Connectivity & Sensors Group (CSG) $111.3m, up 4.1% on $106.9m last quarter and 1.6% on $109.5m a year ago, despite divesting the MEMS-based Sensing Solutions business.
- High-Performance Analog (HPA) $190.9m, up 9.3% on last quarter’s $174.6m and 11.2% on $171.7m a year ago, with continuing double-digit year-on-year growth being driven by defense & aerospace (HPA’s largest business) supported by increasing content and rising defense spending (by both the USA and allies, boosted by Qorvo’s expanding position in high-priority programs). Additionally, infrastructure business is benefiting from the industry’s transition to DOCSIS 4.0 (which has increased content requirements), where Qorvo is a leading supplier of broadband amplifiers.
“Fiscal third-quarter revenue, non-GAAP gross margin, and non-GAAP EPS all compared favorably to guidance,” notes chief financial officer Grant Brown. “We continue to execute on cost and productivity initiatives to structurally enhance our gross and operating margins.”
On a non-GAAP basis, gross margin was 49.1%, down from 49.7% last quarter but up on 46.5% a year ago, and above the guidance range of 47–49%. This is attributed to improved portfolio mix and operational actions, specifically portfolio management, exiting low-margin businesses, pricing strategy, and factory consolidation.
“Within our factory network, we closed our Costa Rica facility in December a few months ahead of schedule and have transitioned to external partners. Transfer of SAW filter production to Greensboro, North Carolina, and Richardson, Texas remains on track,” says Bruggeworth. “We will be able to operate more efficiently with reduced capital intensity and we will continue to differentiate our products with onshore manufacturing of GaAs, GaN, BAW, SAW, and advanced multichip modules.”
Operating expenses have been cut to $239.9m, from $273.5m last quarter and $248.4m a year ago. This is due mainly to R&D spending being reduced from $183.5m last quarter to $163m. Marketing & selling expenses have been cut from $52.5m to $43.8m, while general & administrative expenses have fallen from $33.2m to $29m.
Net income was $203.2m ($2.17 per diluted share, exceeding the $1.65–$2.05 guidance), down from $208.3m ($2.22 per diluted share) last quarter but up on $152.8m ($1.61 per diluted share) a year ago.
Operating cash flow was $265.4m (up from $214.1m a year ago). Capital expenditure was $28.5m. Free cash flow was hence $236.9m.
During the quarter, cash and cash equivalents rose from $1103.3m to $1318.5m (almost doubling from $769.4m a year ago). Long-term debt remains about $1549m, with no near-term maturities.
Net inventory has been reduced to $530m, down sequentially by $75m and $111m lower than the $641m at the end of fiscal 2025.
Outlook
For fourth-quarter 2026 (to end-March), Qorvo expects revenue to fall by about $70m year-on-year from $869.5m to $800m±$25m, reflecting continued momentum in HPA offset mainly by the pivot from lower-margin mass-tier Android business (leading to an unseasonal decline in Android revenue) as well as a smaller impact from the firm’s strategic exits and divestitures, plus the normal seasonal decline at Qorvo’s largest customer Apple. (The total revenue loss from exiting low-margin Android business is expected to be $150–200m for full-year fiscal 2026.)
Gross margin for fourth-quarter 2026 is expected to fall slightly sequentially to 48–49%. However, it continues to improve on a year-on-year basis (by a similar amount as in fiscal Q3, and up from 45.9% a year earlier). “This improvement is a direct result of multiple initiatives,” notes Brown. “We’ve actively managed our product portfolio and pricing strategies to reduce exposure to mass-tier Android 5Gs. We’ve positioned the company to benefit from growth in D&A, which is margin accretive, divested or exited margin-dilutive businesses, and we continue to manage factory costs aggressively as we have consolidated our manufacturing footprint.”
“We are reducing exposure to lower-margin segments while continuing to serve Android's high-value and premium and flagship tiers,” says Bruggeworth. “We expect the improvement in product mix to support a higher gross margin in ACG,” he adds.
Operating expenses should rise only slightly to $240–250m. “With ongoing OpEx reduction efforts, we expect to deliver expanding operating margins in ACG on the healthier revenue mix,” says Bruggeworth. Diluted earnings per share (EPS) is expected to fall to $1.20±$0.15.
For full-year fiscal 2027, Qorvo expects a mid-single-digit decline in revenue year-on-year, by about $300m, due mostly to the intentional resizing and strategic exit from the low-margin Android segment, accelerated by the impact of memory pricing and availability constraints on mass-tier Android OEM build plans.
While revenue from Qorvo’s largest customer Apple should be approximately flat in fiscal 2027, ACG segment revenue is expected to decline, due to the $300m reduction in Android revenue. However, the resultant improved product mix should support higher gross margin.
CSG’s revenue will be roughly flat year-on-year, as its organic growth is counteracted by the divestiture of the MEMS-based Sensing Solutions business.
HPA revenue is expected to continue its double-digit growth trajectory, as defense & aerospace (D&A) and data-center market exposure is expanding. Specifically, D&A revenue should be about $500m (surpassing Android revenue, a meaningful shift in the portfolio that reflects both the strategic resizing of Android business and continued growth in HPA). Qorvo also cites ongoing opportunities in adjacent infrastructure, satellite, and radar domains.
Both the business mix (as the margin-accretive HPA segment becomes a larger percentage of the total) and the increasingly favorable product mix (within each business segment) position Qorvo to deliver full-year fiscal 2027 gross margin exceeding 50% and EPS approaching $7 per share, reckons Bruggeworth. “These outcomes reflect continued OpEx discipline, a structurally improved portfolio mix, and our sustained commitment to innovation and operations excellence,” he adds.
Outlook by business segment
In ACG: “We supply a diverse portfolio of high-performance discretes, tuners, ET PMICs [envelope-tracking power management integrated circuits], and integrated modules to our largest customer, not all of which have been awarded on the upcoming platforms,” notes Bruggeworth. “For our ET PMICs, increasing internal modem adoption provides a multi-year structural tailwind as platforms transition away from third-party modems. With regard to integrated modules, on the ultra-high-band PAD [power amplifier duplexer], we received lower share in the upcoming phone models than last year and we expect our ultra-high-band PAD revenue to decline year-over-year.” However: “As a placement, we have demonstrated success across multiple generations. We remain confident in our highly differentiated technology and our ability to compete effectively over subsequent generations,” he adds.
“In our largest customers’ cellular-enabled iPads, we were awarded the high-band PAD. Representing a product and technology milestone and new content for Qorvo on that platform. The win gives us the opportunity to demonstrate capability and execute at scale on that platform consistent with our long-term investment strategy,” Bruggeworth continues. “Qorvo enjoys broad participation across smartphone OEMs, and we are not seeing signs of memory pricing or memory availability impacting the flagship and premium tiers.”
In CSG, “We’re on track with an automotive ultra-wideband program with a leading automotive tier-one,” says Bruggeworth. “We received our first production orders during December. This program will span multiple years and support multiple OEMs. We continue to see expansion of our engagements across the automotive customer base,” he adds. “Use-cases for Qorvo’s automotive ultra-wideband technology include secure access, digital key, child presence detection, and short-range radar sensing. We are supplying both our ultra-wideband and Wi-Fi 7 solutions in collaboration with multiple tier-one manufacturers of network access points. We’re seeing strong customer demand and initial deployments include hospitals, factories and other enterprises requiring ultra-precision indoor navigation, and location awareness. Our Wi-Fi portfolio is broadly represented in flagship smartphones, fiber gateways, mesh networks, client devices, and SATCOM ground terminals. And we continue to expand our Wi-Fi, FEM [front-end module], and filter portfolio to enable higher-bandwidth lower-latency interconnected networks. We delivered first Wi-Fi 8 samples during December, and customer engagement in Wi-Fi 8 is increasing. Next fiscal year, it is one of multiple initiatives we are undertaking to improve CSG’s profitability.”
In the HPA segment, Qorvo continues to see multi-year tailwinds in D&A data-center power and infrastructure markets. “In D&A, the passage of the fiscal 2026 NDAA [US National Defense Authorization Act] includes top priorities, such as Golden Dome, the F47 fighter, and the Navy’s next-generation fighters, warships, and drones. Qorvo is a beneficiary of new platforms, upgrade cycles, RF content growth, and increases in defense spending,” says Bruggeworth. “As an example, Golden Dome is a multi-layer defense system that requires significant RF content.” For the full fiscal year 2027, sales in D&A markets are expected to total approximately $500m.
“In power management, our strategic emphasis on PMICs for enterprise-class SSDs [solid-state drives] has been met with continued data-center growth where customer demand has been very strong. During the quarter, we taped out our first chip for our next-generation enterprise SSD platform. Other power opportunities for Qorvo include AESA radars, drones, robotics, wearables, and smartphones. There is strong interest globally in Qorvo’s AESA solutions combining our FEMs, beam-form ASICs, power management, and power control,” says Bruggeworth.
“In infrastructure markets, there are increased content requirements in DOCSIS 4.0 systems that align well with our amplifier and control portfolios. Qorvo is a leading supplier of broadband amplifiers for DOCSIS 4.0 and we are well positioned with all major suppliers. We are also a market leader in small-signal receive and transmit components used across the RF chain of 5G radio access networks. While these products have historically been deployed in terrestrial 5G infrastructure, we are increasingly seeing the same RF building blocks adopted in adjacent applications, such as drones and low Earth orbit [LEO] satellite communications including direct-to-cell satellite architectures,” he adds.
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