Qorvo’s fourth quarter results were met with a negative market reaction, despite the company meeting Wall Street’s revenue expectations and outperforming on non-GAAP earnings per share. Management attributed the quarter’s mixed reception to a deliberate reduction in lower-margin Android business and the impact of memory pricing and availability, which pressured mass-tier smartphone demand. CEO Robert Bruggeworth highlighted the benefit of these actions, noting, “We are reducing exposure to lower-margin segments while continuing to serve Android's premium and flagship tiers.”
Is now the time to buy QRVO? Find out in our full research report (it’s free for active Edge members).
Qorvo (QRVO) Q4 CY2025 Highlights:
- Revenue: $993 million vs analyst estimates of $988.6 million (8.4% year-on-year growth, in line)
- Adjusted EPS: $2.17 vs analyst estimates of $1.86 (16.4% beat)
- Adjusted EBITDA: $284.8 million vs analyst estimates of $277.2 million (28.7% margin, 2.7% beat)
- Revenue Guidance for Q1 CY2026 is $800 billion at the midpoint, above analyst estimates of $900.6 million
- Adjusted EPS guidance for Q1 CY2026 is $1.20 at the midpoint, below analyst estimates of $1.37
- Operating Margin: 19.4%, up from 5.8% in the same quarter last year
- Inventory Days Outstanding: 91, down from 99 in the previous quarter
- Market Capitalization: $7.4 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Qorvo’s Q4 Earnings Call
- Thomas O'Malley (Barclays) asked about future content opportunities at Qorvo’s largest customer. CEO Robert Bruggeworth responded that while dual sourcing is increasing, Qorvo continues to invest in R&D to expand its footprint.
- Peter Peng (JPMorgan) pressed for details on the accelerated reduction in Android business. CFO Grant Brown explained the faster pace was due to both strategic repositioning and memory component constraints impacting customer build plans.
- Gary Mobley (Loop Capital) sought clarity on the impact of divestitures versus Android declines in Q1 guidance. Brown confirmed most of the year-over-year revenue drop was Android-related, with divestitures playing a minor role.
- Christopher Rolland (Susquehanna) inquired about integrated module prospects and the impact of dual sourcing. Bruggeworth noted dual sourcing was not new and that Qorvo’s content remains strong, especially in high band modules.
- Edward Snyder (Charter Equity Research) asked about share dynamics and underutilization. Brown acknowledged utilization has room to improve, but there were no specific period charges this quarter as operations have managed costs effectively.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will watch (1) the pace and profitability of Qorvo’s exit from low-margin Android products, (2) the ramp-up in defense and aerospace revenue contribution as HPA becomes a larger part of the portfolio, and (3) ongoing operational efficiencies from manufacturing consolidation and restructuring. The trajectory of Wi-Fi 8 and automotive programs will also be important markers for sustained growth.
Qorvo currently trades at $80.03, down from $82.81 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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