Loading...
01/10 15:46
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents a mixed outlook. Financial performance shows strong EPS and gross margin improvements, but revenue remains flat. Strategic initiatives like workforce reduction and divestiture aim to boost margins, yet Android revenue decline and regulatory uncertainties pose risks. Shareholder returns through buybacks and debt retirement are positive, but Q&A reveals evasive management responses and concerns about tariffs. Overall, the sentiment is balanced, suggesting a neutral stock price movement.
Revenue $869,000,000, up from $3,700,000,000 for the fiscal year 2025, which is consistent with the previous year.
Non-GAAP Diluted Earnings Per Share $1.42, reflecting strong performance.
Non-GAAP Gross Margin 45.9%, an increase of approximately 70 basis points compared to fiscal year 2024.
Non-GAAP Operating Expenses $247,000,000, reflecting continued cost discipline.
Cash and Equivalents Approximately $1,000,000,000 as of quarter end.
Long-term Debt Approximately $1,500,000,000 remaining with no near-term maturities.
Net Inventory Balance $641,000,000, a decrease of $15,000,000 sequentially and a decrease of $70,000,000 year-over-year.
Operating Cash Flow Approximately $200,000,000 for the fourth quarter.
Capital Expenditures (CapEx) $29,000,000 for the fourth quarter.
Free Cash Flow $171,000,000 for the fourth quarter and $485,000,000 for the fiscal year.
Shareholder Returns Returned over $350,000,000 to shareholders via share repurchases and retired over $400,000,000 of debt.
New Product Launches: Qorvo ramped production of its first power management IC design win for a smartwatch launching later this year.
Automotive SoC: Qorvo began sampling a fully integrated ultra wideband programmable SoC for automotive applications.
Smart Lock Reference Design: Collaboration with Nordic Semiconductor to announce an Alero compliant Smart Lock reference design.
WiFi 7 and 8 Development: Qorvo is supporting the migration to WiFi 7 and has begun development for WiFi 8 front ends.
Automotive Market Expansion: Expanded automotive connectivity footprint in Japan with a WiFi design win for a leading OEM.
Defense and Aerospace Growth: Achieved record revenue in defense and aerospace business, with a sales funnel exceeding $5 billion.
Consumer Market Growth: Increased demand for BAW filters across consumer and enterprise WiFi markets.
Operational Efficiency: Consolidation of manufacturing footprint, including the closure of the Costa Rica facility.
Cost Discipline: Non GAAP operating expenses were $247 million, reflecting continued cost discipline.
Strategic Shift in Android Business: Shifting away from legacy Android programs to focus on premium and flagship tiers.
Focus on High-Value Products: Scaling high-value products and diversifying through CSG and HPA.
Tariff Impact: The company anticipates a direct tariff-related impact of less than $1,000,000 for the quarter, with potential increases to high single-digit millions if current exemptions expire and retaliatory tariffs become permanent.
Supply Chain Challenges: Ongoing supply chain challenges are acknowledged, with the company actively monitoring the situation and working closely with customers to mitigate impacts.
Regulatory Issues: Uncertainty surrounding tariffs and broader macroeconomic conditions is highlighted, affecting the company's outlook and operational strategies.
Inventory Management: The company has made significant progress in reducing inventory levels, which is expected to unlock free cash flow.
Competitive Pressures: The company is strategically exiting lower-margin Android business segments to focus on higher-value products, indicating competitive pressures in the mass market.
Economic Factors: The company is navigating a dynamic global trade environment, which may impact revenue and operational costs.
Workforce Reduction: A meaningful workforce reduction was executed to align the cost structure with long-term strategic priorities, indicating challenges in operational efficiency.
Manufacturing Footprint Consolidation: Closure of the Costa Rica facility is part of a strategy to consolidate manufacturing and reduce costs, reflecting operational challenges.
Envelope Tracking Power Management Solution: Qorvo supported a critical new phone launch by their largest customer, which includes an envelope tracking power management solution developed over multiple years.
Ultra Wideband Opportunities: The ultra wideband sales funnel for automotive has grown more than $500 million over the last twelve months, now exceeding $2 billion.
Defense and Aerospace Revenue: Qorvo achieved record revenue in defense and aerospace, with a sales funnel exceeding $5 billion and a path to scale this business to $1 billion annually.
WiFi 7 and 8 Development: Qorvo ramped production for WiFi 7 and began development for WiFi 8 front ends, securing design wins across multiple years.
Automotive Connectivity: Expanded automotive connectivity footprint in Japan with a WiFi design win for a leading OEM, expecting shipments to commence in calendar 2026.
Revenue Guidance for June Quarter: Expected revenue of approximately $775 million, plus or minus $25 million.
Gross Margin Guidance for June Quarter: Non-GAAP gross margin expected between 42% and 44%.
Operating Expenses Guidance for June Quarter: Projected non-GAAP operating expenses of approximately $250 million.
Fiscal Year 2026 Outlook: Expecting flat revenue with a 150 basis points gross margin expansion.
Content Growth: Expecting greater than 10% year-over-year content growth for the fall launch with their largest customer.
Share Repurchases: Returned over $350,000,000 to shareholders via share repurchases.
Debt Retirement: Retired over $400,000,000 of debt.
Free Cash Flow: Generated free cash flow of $485,000,000 for fiscal year 2025.
The earnings call presents a mixed outlook. Positive aspects include strong defense and aerospace growth, DOCSIS 4.0 transition, and improved gross margins. However, the exit from low-margin Android business creates a $200 million headwind, and management's reluctance to provide specific guidance or updates raises concerns. The absence of underutilization charges and a healthy inventory situation are positives, but the lack of clarity on future growth and restructuring impacts tempers enthusiasm, resulting in a neutral sentiment.
The earnings call presents a mixed picture: strong financial metrics, operational efficiencies, and growth in defense and aerospace are positive. However, declining Android business in China, lack of full-year guidance, and tariff-related buffering pose concerns. The Q&A reveals cautious optimism but also highlights uncertainties. Overall, the sentiment is balanced, leading to a neutral stock price movement prediction.
The earnings call presents a mixed outlook. Financial performance shows strong EPS and gross margin improvements, but revenue remains flat. Strategic initiatives like workforce reduction and divestiture aim to boost margins, yet Android revenue decline and regulatory uncertainties pose risks. Shareholder returns through buybacks and debt retirement are positive, but Q&A reveals evasive management responses and concerns about tariffs. Overall, the sentiment is balanced, suggesting a neutral stock price movement.
The earnings call presents a mixed picture. Financial performance shows solid metrics with increased gross margins and shareholder returns. However, the strategic shift away from Android and unclear guidance on tariffs and baseband growth create uncertainties. Positive elements like share repurchases and cost discipline are offset by competitive pressures and a decline in Android revenue. The Q&A reveals management's confidence in premium product positioning but lacks clarity on some strategic aspects. Overall, the sentiment is neutral, reflecting balanced positive and negative factors.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
