Qorvo, Inc.

Q3 fiscal 2026 revenue was $993 million, non-GAAP gross margin was 49.1%, and non-GAAP diluted EPS was $2.17, each above guidance. Gross margin was up approximately 260 basis points versus last fiscal year. The largest customer represented approximately 53% of revenue. Q3 operating cash flow was approximately $265 million, capital expenditures were $28 million, and free cash flow was $237 million. Quarter-end cash and equivalents were approximately $1.3 billion, long-term debt was approximately $1.5 billion, and net inventory was $530 million, down $75 million sequentially and $111 million versus last fiscal year-end. For fiscal Q4, Qorvo guided to revenue of $800 million plus or minus $25 million, non-GAAP gross margin of 48%-49%, non-GAAP EPS of $1.20 plus or minus 15 cents, and non-GAAP operating expenses of $240 million to $250 million. For fiscal 2026, the non-GAAP tax rate is expected to be approximately 15%. Management said fiscal 2027 company revenue is expected to decline mid-single digits, with FY27 gross margin above 50% and EPS approaching $7 per share.

Bob Bruggeworth said Q3 showed solid performance alongside strategic progress in all three segments, with restructuring actions aimed at improving profitability and lowering capital intensity. He emphasized that Qorvo is intentionally resizing the Android business by exiting lower-margin mass-tier content while maintaining focus on premium and flagship tiers, and he highlighted new wins such as the high-band pad in cellular-enabled iPads and first production orders in automotive ultra-wideband. His tone was confident and forward-looking, stressing a better mix, stronger HPA growth, and an increasingly favorable portfolio.

Grant Brown said Q3 financials beat guidance, with revenue of $993 million, gross margin of 49.1%, and EPS of $2.17. He pointed to strong cash generation, including $265 million of operating cash flow and $237 million of free cash flow, with $1.3 billion of cash and equivalents, $1.5 billion of long-term debt, and net inventory of $530 million. On outlook, he guided Q4 revenue to $800 million plus or minus $25 million, gross margin to 48%-49%, EPS to $1.20 plus or minus 15 cents, and OpEx to $240 million-$250 million, while noting FY27 margin expansion should come mainly from mix, portfolio actions, and factory cost discipline.

Analysts focused heavily on Android shrinkage, Apple content, and whether the FY27 outlook leaves room for surprises. Management reiterated that the Android decline is intentional and multi-year, now expected to total about $300 million in fiscal 2027 due to both strategic exits and some memory-pricing/availability pressure on mass-tier build plans, but they said flagship and premium tiers are not seeing the same constraint. They also said the Apple/large-customer revenue outlook is roughly flat and that the FY27 guide already reflects their current assumptions, while underutilization charges were not incurred in the quarter and are not specifically expected.