Qorvo (QRVO) Q1 2027 earnings summary

Executive summary

• Revenue for Q1 FY2027 was $784.8 million, down 4.2% year-over-year, with declines in ACG and CSG partially offset by HPA growth.

• GAAP gross margin improved to 51.1% from 40.5% year-over-year, and non-GAAP gross margin reached 52.8%.

• Operating income rose to $96.8 million from $30.1 million, and GAAP diluted EPS increased to $0.96 from $0.27; non-GAAP diluted EPS rose 78% to $1.64.

• Net cash provided by operating activities was $139.5 million, down from $182.9 million, while free cash flow was $115.3 million.

• The company is progressing toward a merger with Skyworks Solutions, with regulatory approvals pending and expected closure within the calendar year.

Financial highlights

• Revenue: $784.8 million, down 4.2% year-over-year.

• GAAP net income: $85.8 million, up from $25.6 million; non-GAAP net income: $146.6 million, up from $86.5 million.

• GAAP gross margin: 51.1%, up from 40.5%; non-GAAP gross margin: 52.8%, up from 44.0%.

• GAAP operating income: $96.8 million, up 221.6%; non-GAAP operating margin: 22.6%.

• Diluted EPS: $0.96, up from $0.27; non-GAAP diluted EPS: $1.64, up from $0.92.

• Net cash from operations: $139.5 million, down from $182.9 million; free cash flow: $115.3 million.

Outlook and guidance

• Management expects the merger with Skyworks to close within the calendar year, subject to regulatory approvals.

• For full-year fiscal 2027, non-GAAP gross margin is expected to remain above 50%, and non-GAAP diluted EPS above $7.00.

• No additional material restructuring charges are anticipated related to the 2026 Restructuring Initiatives.

• No further forward-looking guidance will be provided due to the pending Skyworks transaction.

• The company believes it has sufficient liquidity to meet both short- and long-term cash requirements.