Qorvo (QRVO) Q3 2026 earnings summary

Executive summary

• Fiscal Q3 2026 revenue reached $993 million, up 8.4% year-over-year, with growth across all segments, especially in automotive, Wi-Fi, D&A, base station, and power management, driven by higher content in flagship smartphones, infrastructure, and defense/aerospace.

• Gross margin improved to 49.1% non-GAAP and 46.7% GAAP, reflecting a shift to higher-margin products and favorable business mix.

• Operating income surged to $192.1 million GAAP and $247.6 million non-GAAP, with diluted EPS at $1.75 GAAP and $2.17 non-GAAP, both up sharply year-over-year.

• Strategic restructuring included closure of Costa Rica and North Carolina facilities, transfer of production to Texas, and resizing of the Android business to focus on higher-margin segments.

• Entered into a merger agreement with Skyworks Solutions, with integration and execution risks pending regulatory and shareholder approvals.

Financial highlights

• Q3 revenue was $993 million, up 8.4% year-over-year, with non-GAAP gross margin at 49.1% and GAAP gross margin at 46.7%.

• Operating cash flow reached $265 million, with $28 million in capital expenditures, resulting in $237 million free cash flow.

• GAAP net income was $164.1 million; non-GAAP net income was $203.2 million.

• Ended quarter with $1.32 billion in cash and equivalents and $1.5 billion in long-term debt.

• Free cash flow margin was 23.9%.

Outlook and guidance

• Q4 revenue guidance: $800 million ± $25 million; non-GAAP gross margin 48%-49%; non-GAAP diluted EPS $1.20 ± $0.15.

• FY 2027 revenue expected to decline mid-single digits as ACG declines, CSG remains flat, and HPA grows double digits.

• FY 2027 gross margin projected above 50% and EPS approaching $7 per share, driven by improved mix and cost discipline.

• Merger with Skyworks anticipated to close in early 2027, subject to approvals.

• Additional restructuring charges of $30–40 million expected.