QRVO earnings analysis
What we found in QRVO's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Qorvo's fiscal Q1 2027 revenue declined 4.2% year over year to $784.8M and was modestly below fiscal Q4 2026 revenue of $808M, but the strategic shift away from lower-margin Android business drove gross margin to 51.1% and operating margin to 12.3%, versus 40.5% and 3.7% a year earlier. GAAP diluted EPS rose to $0.96 from $0.27 year over year and $0.32 sequentially, with HPA's 50.2% revenue growth offsetting much, but not all, of ACG's 16.6% decline. Liquidity strengthened, although operating cash flow fell to $139.5M because inventory increased around device launches; the pending Skyworks merger and associated regulatory process remain the central non-operating overhang.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Mix shift drove substantial gross-margin expansion
- Revenue was $784.8M, down 4.2% year over year from $818.8M, but gross margin expanded 10.6 percentage points to 51.1% from 40.5%. Sequentially, revenue declined from $808M in fiscal Q4 2026 while gross margin improved from 38.0%.
- Profitability improved sharply despite lower revenue
- Operating income rose to $96.8M from $30.1M, lifting operating margin to 12.3% from 3.7%; GAAP diluted EPS increased to $0.96 from $0.27. Sequentially, GAAP EPS improved from $0.32 in fiscal Q4 2026.
- HPA growth offset part of cellular contraction
- HPA revenue increased 50.2% to $206.4M, led by a $57.9M increase in defense, aerospace and infrastructure revenue. Segment operating income more than tripled to $70.0M and margin reached 33.9%.
- ACG portfolio rationalization improved margins
- ACG operating income increased 10.8% to $108.6M even as revenue fell $94.7M, as operating margin expanded 5.7 points to 22.8%. Management attributed the mix benefit to reducing exposure to lower-margin mass-market Android devices.
- Liquidity remained ample
- Cash and cash equivalents increased $109.9M from $1.219B at March 28, 2026 to $1.329B at June 27, 2026, while working capital increased $155.4M to $1.749B. The company had no revolver borrowings against its $325.0M facility.
- Lower capex supported free-cash-flow generation
- Capital expenditures declined to $24.1M from $37.5M, or 3.1% of $784.8M revenue. Operating cash flow of $139.5M less capex produced approximately $115.4M of free cash flow.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Cellular revenue contraction remains material
- ACG revenue declined $94.7M, or 16.6%, to $476.6M as Qorvo deliberately reduced mass-market Android exposure. The segment still accounted for approximately 61% of consolidated revenue of $784.8M, leaving results exposed to the cellular portfolio transition.
- Inventory build reduced cash conversion
- Operating cash flow fell $43.4M to $139.5M from $182.9M as working-capital changes were adversely affected by higher inventories tied to customer device-launch timing. Free cash flow was approximately $115.4M after $24.1M of capex.
- Merger approval and termination-fee exposure
- The Skyworks merger remains subject to regulatory approvals after the FTC issued a Second Request on February 5, 2026. Under specified termination scenarios, Qorvo or Skyworks could owe the other a $298.7M fee; certain antitrust or foreign-investment outcomes could require Skyworks to pay Qorvo $100.0M.
- No standalone Item 1A risk-factor update
- No new or revised risk factors were enumerated in Item 1A of this 10-Q; the filing instead refers investors to the fiscal year ended March 28, 2026 Form 10-K and subsequent reports. Merger-related costs were $14.9M and restructuring charges were $11.7M in the quarter.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.96
- Gross margin
- 51.1%
- Operating margin
- 12.3%
- Segment
- High Performance Analog (HPA): revenue $206.4M, up $69.0M or 50.2% year over year; operating margin 33.9% versus 15.7%.
- Segment
- Connectivity and Sensors Group (CSG): revenue $101.9M, down $8.3M or 7.5% year over year; operating margin improved to 2.9% from negative 6.8%.
- Segment
- Advanced Cellular Group (ACG): revenue $476.6M, down $94.7M or 16.6% year over year; operating margin increased to 22.8% from 17.1%.
What they said about what is next.
The 10-Q provides no formal operating revenue or EPS outlook. Management said it is increasingly hopeful that the Skyworks transaction will close within calendar 2026, subject to required approvals and other closing conditions.
The filing reads better than the one before it.
What came before.
- 10-K · May 8, 2026
- Qorvo, Inc. reported a slight revenue decline of 1.1% to $3.68 billion in fiscal 2026 from $3.72 billion in 2025, although operating income surged to $411.4 million from $95.5 million due to improved margins. The…
- 10-Q · January 28, 2026
- Qorvo reported a strong third quarter with revenues of $993 million, reflecting an 8.4% increase year-over-year driven by demand in its High Performance Analog and Advanced Cellular segments. Diluted EPS surged to…
- 10-Q · November 3, 2025
- Qorvo, Inc. reported second quarter fiscal 2026 results with revenue of $1.058 billion, slightly up 1.1% year-over-year, and a significant EPS of $2.22, beating estimates. The gross margin improved to 47.0% driven by…
- 10-Q · July 30, 2025
- Qorvo, Inc. reported Q1 fiscal 2026 results with revenue of $818.8 million, representing a 7.7% decline year-over-year, attributed primarily to reduced exposure in mass-market Android smartphones. However, the company…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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