Qorvo (QRVO) Q3 2025 earnings summary

Executive summary

• Fiscal Q3 2025 revenue was $916.3M, with non-GAAP diluted EPS of $1.61, both exceeding guidance; GAAP gross margin was 42.7% and non-GAAP gross margin was 46.5%.

• Strategic focus is on premium and flagship Android tiers, with mass-tier programs being phased out by fiscal 2027.

• Actions taken include workforce reduction, divestiture of the silicon carbide business, and manufacturing consolidation to improve margins and efficiency.

• Largest customer accounted for just over 50% of revenue in the December quarter; content growth expected in upcoming launches.

• Record Defense & Aerospace (HPA) revenue, with HPA and CSG expected to deliver double-digit growth in FY25 and FY26.

Financial highlights

• Non-GAAP gross margin was 46.5%, with operating expenses at $248M, both favorable to guidance.

• Operating cash flow was $214M; free cash flow reached $176.3M after $38M in CAPEX.

• $100M of stock repurchased at an average price of $73 per share; $308.3M in share repurchases YTD, with $998.6M remaining authorized.

• Ended quarter with $769.4M in cash and equivalents, after retiring $412M of 2024 notes.

• GAAP net income was $41.3M, a turnaround from a $126.9M loss in Q3 FY24.

Outlook and guidance

• March quarter revenue expected at ~$850M (±$25M), non-GAAP gross margin 43–44%, and EPS $0.90–$1.10.

• Fiscal 2026: ACG revenue to decline single digits, CSG and HPA to grow 10–12% (excluding silicon carbide).

• Gross margin projected to expand by 150 bps in fiscal 2026 on flat revenue; high 40% margin in strong quarters, up to 50% in fiscal 2027.

• Non-GAAP tax rate expected to rise from 11% to 18–19% in fiscal 2026.

• Sufficient liquidity projected, with $769.4M in cash and $325M undrawn credit facility.