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…
Earnings analysis · 10-Q
QRVO earnings analysis
Filed July 28, 2026 · Our reading of the company's report
The latest report
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%…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.96
What stood out
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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%.
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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.
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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%.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.