Qorvo Inc. (QRVO) reported fiscal 2026 third‑quarter revenue of $993.0 million, up 8.4% year‑over‑year, and diluted earnings per share of $2.17, a $0.30 (16%) beat on the consensus estimate of $1.87. GAAP gross margin expanded to 46.7% and non‑GAAP gross margin rose to 49.1%, while operating income reached $192.1 million GAAP and $247.6 million non‑GAAP, reflecting strong cost control and a favorable product mix.
The revenue lift was driven by growth in all three operating segments. High‑performance analog (HPA) revenue rose to $190.9 million, up 11.2% YoY; the advanced communications group (ACG) grew to $690.8 million, up 8.8%; and the connectivity solutions group (CSG) increased to $111.3 million, up 1.6%. Compared with Q3 FY2025, which generated $916.3 million, the quarter’s 8.4% growth reflects a 76.7 million increase, while sequentially the company fell 4.4% from Q2 FY2026’s $1,058.5 million.
Management guided for fiscal fourth‑quarter revenue of $800 million ± $25 million, a sharp decline from the $985 million guidance issued in the prior quarter. The company cited a seasonal downturn at its largest customer—primarily Apple—and the ongoing strategic resizing of its Android business as the main reasons for the weaker outlook. The guidance shortfall, combined with a mixed view of revenue versus analyst estimates, contributed to a muted market reaction despite the earnings beat.
Cash and balance‑sheet metrics remained solid. Operating cash flow was $265 million and free cash flow $237 million. Qorvo ended the quarter with $1.3 billion in cash and equivalents and $1.5 billion of long‑term debt, with no near‑term maturities. The company’s inventory fell to $530 million, a $75 million sequential reduction, indicating improved working‑capital management.
Strategically, Qorvo is accelerating its shift toward higher‑margin defense and aerospace, automotive, and premium connectivity markets while winding down lower‑margin Android activities. The company also announced a $22 billion merger with Skyworks, expected to close in 2027, which is positioned to create a leading RF semiconductor platform and broaden its customer base.
"Qorvo’s fiscal third‑quarter revenue of $993 million, non‑GAAP gross margin of 49.1%, and non‑GAAP diluted earnings per share of $2.17 all compared favorably to guidance," said CFO Grant Brown. "We continue to execute on cost and productivity initiatives to structurally enhance our gross and operating margins. Our largest customer represented approximately 53% of revenue during the quarter, and we ended the period with about $1.3 billion of cash and equivalents and approximately $1.5 billion of long‑term debt, with no near‑term maturities."
"Looking forward, our March quarterly outlook reflects the seasonal decline at our largest customer, the ongoing strategic resizing of our Android business, and continued strength in HPA," added President and CEO Bob Bruggeworth.
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