Qorvo (NASDAQ:QRVO) reported fiscal 2026 third-quarter results that management said came in above its guidance, while also outlining strategic moves to improve profitability and reduce capital intensity. On the call, executives emphasized ongoing restructuring actions, a deliberate pullback from lower-margin segments in Android, and continued momentum in defense and aerospace and other high-performance markets.
Quarterly results and balance sheet
CFO Grant Brown said Qorvo delivered fiscal third-quarter revenue of $993 million, non-GAAP gross margin of 49.1%, and non-GAAP diluted earnings per share of $2.17. Brown noted that results compared favorably to the company’s prior guidance.
Inventory ended the period at $530 million, which Brown said was down $75 million sequentially and down $111 million versus the end of the prior fiscal year. Operating cash flow was approximately $265 million, capital expenditures were $28 million, and free cash flow totaled $237 million.
Restructuring and manufacturing footprint changes
CEO Bob Bruggeworth said Qorvo continues to execute restructuring actions intended to “optimize profitability and reduce capital intensity.” He highlighted progress in the company’s factory network, including the closure of its Costa Rica facility in December, which he said occurred “a few months ahead of schedule,” with production transitioned to external partners.
Bruggeworth also said the transfer of SAW filter production from Greensboro, North Carolina, to Richardson, Texas, “remains on track.” He added that Qorvo intends to continue differentiating its products through onshore manufacturing capabilities spanning GaAs, GaN, BAW, SAW, and advanced multi-chip modules.
Mobile: largest customer content, Android repositioning, and modem transition
In the Advanced Cellular Group (ACG), Bruggeworth said December-quarter revenue declined sequentially in line with typical seasonality and the company’s prior outlook. He noted that at Qorvo’s largest customer, “content gains on their ramping platform helped to support double-digit revenue growth compared to last December.”
However, management also described shifting socket dynamics on upcoming platforms. Bruggeworth said Qorvo received lower share in an ultra-high-band PAD placement in upcoming phone models than last year and expects ultra-high-band PAD revenue to decline year over year. He said the company remains confident in its technology and ability to compete in later generations.
Qorvo also reported a content win in its largest customer’s cellular-enabled iPads. Bruggeworth said the company was awarded the high-band PAD, calling it a product and technology milestone and “new content for Qorvo on that platform.”
In Q&A, management reiterated it would not comment on future platform architectures or customer unit volumes, but maintained that its fiscal 2027 view incorporates its best current understanding of content awards. Executives also said certain components such as tuners can be awarded later in the cycle, though management characterized the fiscal 2027 outlook as reflective of underlying assumptions at this time.
On Android, Bruggeworth said Qorvo remains a leading supplier in premium and flagship devices but is intentionally reducing exposure to low-margin, mass-tier smartphones. Total Android revenue declined sequentially in the “low double digits” in the December quarter, and the company expects “greater than seasonal” decline in Android revenue in the March quarter.
Looking ahead, Bruggeworth said Qorvo expects Android revenue to decline by approximately $300 million in fiscal 2027 versus fiscal 2026. He attributed the decline primarily to the company’s actions to reduce exposure to lower-margin segments, and secondarily to memory pricing and availability impacts on mass-tier Android build plans. Management said it is not seeing those memory-related issues affect flagship and premium tiers.
Brown added that Qorvo previously described the Android exit as a multi-year event, with roughly $150 million to $200 million of exit expected in fiscal 2026 and now a larger estimated $300 million in fiscal 2027. He said the increase reflects both the strategic exit and the impact of memory constraints on customer build plans.
Management said the planned Android resizing is intended to improve profitability and mix. Bruggeworth said the mix improvement should support higher gross margin in ACG and, combined with ongoing operating expense reductions, expanding ACG operating margins on a healthier revenue base.
Connectivity and High Performance: automotive UWB, Wi-Fi roadmap, defense and power growth
In the Connectivity Systems Group (CSG), Bruggeworth said Qorvo is on track with an automotive ultra-wideband (UWB) program with a leading automotive Tier 1 and announced it received its first production orders during the December quarter. He said the program is expected to span multiple years and support multiple OEMs, with use cases including secure access, digital key, child presence detection, and short-range radar sensing.
Bruggeworth also highlighted enterprise deployments combining UWB and Wi-Fi 7 solutions through Tier 1 network access point partners, citing initial installations in hospitals, factories, and other enterprises requiring “ultra-precision indoor navigation and location awareness.” He said Qorvo delivered first Wi-Fi 8 samples during the quarter and is seeing increasing customer engagement.
On restructuring within CSG, Bruggeworth said actions discussed previously remain on track and that Qorvo divested its MEMS-based sensing solutions business during the quarter. He said the divestiture will be a headwind to year-over-year CSG growth next fiscal year but is part of broader efforts to improve profitability.
In the High Performance Analog (HPA) segment, Bruggeworth pointed to “multiyear tailwinds” in defense and aerospace, data center power, and infrastructure markets. He cited passage of the fiscal 2026 National Defense Authorization Act (NDAA) and referenced priorities including Golden Dome, the F-47 fighter, and the Navy’s next-generation fighters, warships, and drones. He said Qorvo expects defense and aerospace sales to total approximately $500 million for full fiscal year 2027.
In power management, Bruggeworth said Qorvo’s emphasis on PMICs for enterprise-class SSDs has aligned with data center growth and strong customer demand. He said Qorvo taped out its first chip for a next-generation enterprise SSD platform during the quarter. In infrastructure, he said Qorvo is a leading supplier of broadband amplifiers for DOCSIS 4.0 and is positioned with major suppliers, while also noting adoption of 5G RF building blocks in adjacent applications such as drones and low Earth orbit satellite communications, including direct-to-cell architectures.
March-quarter guidance and fiscal 2027 framework
For fiscal Q4 (the March quarter), Brown guided to revenue of $800 million plus or minus $25 million, non-GAAP gross margin between 48% and 49%, and non-GAAP diluted EPS of $1.20 plus or minus $0.15. He said guidance reflects continued momentum in HPA, offset by the company’s pivot away from lower-margin mass-tier Android and the seasonal decline at its largest customer.
Brown said Qorvo expects year-over-year gross margin improvement similar to the prior quarter’s approximately 260 basis point increase versus last fiscal year, attributing the trend to portfolio and pricing actions in Android, growth in margin-accretive defense and aerospace, divestitures and exits of margin-dilutive businesses, and manufacturing footprint consolidation.
Additional March-quarter assumptions included non-GAAP operating expenses of $240 million to $250 million, non-operating expense of $8 million to $10 million, and a non-GAAP tax rate for fiscal 2026 of approximately 15%.
Looking to fiscal 2027, Bruggeworth forecast a “mid-single-digit” decline in full-year revenue, driven by lower ACG revenue with improved profitability, roughly flat CSG, and continued double-digit growth in HPA. He added that as fiscal 2027 progresses, Qorvo expects defense and aerospace revenue to surpass Android revenue, describing it as a meaningful portfolio shift. Bruggeworth said this mix change, along with operating expense discipline, positions Qorvo for full-year fiscal 2027 gross margins above 50% and EPS “approaching $7 per share.”
About Qorvo (NASDAQ:QRVO)
Qorvo, Inc is a leading provider of advanced radio-frequency (RF), analog and mixed-signal semiconductor solutions. The company designs, develops and manufactures a broad portfolio of components and modules that enable wireless and wired connectivity across mobile devices, network infrastructure, defense systems and Internet of Things (IoT) applications.
Qorvo’s product offerings include RF filters, power amplifiers, switches, integrated front-end modules and other custom mixed-signal devices.
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