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.

• Delivered solid Q3 financial performance, exceeding guidance, and executed restructuring actions to optimize profitability and reduce capital intensity.

• Strategic resizing of the Android business underway, reducing exposure to low-margin segments and supporting higher gross margins.

• Entered into a merger agreement with Skyworks Solutions, with the merger expected to close in early 2027, subject to approvals.

• Operating income and EPS rose sharply year-over-year, reflecting significant margin expansion.

Financial highlights

• Q3 revenue was $993 million, up 8.4% year-over-year, with non-GAAP gross margin at 49.1% and non-GAAP diluted EPS at $2.17, all exceeding guidance.

• GAAP gross margin was 46.7%; GAAP operating income was $192.1 million; GAAP diluted EPS was $1.75.

• Operating cash flow was $265 million; free cash flow $237 million after $28 million in capex.

• Cash and equivalents at quarter end: $1.32 billion; long-term debt: $1.5 billion.

• Net inventory reduced to $530 million, down $75 million sequentially and $111 million year-over-year.

Outlook and guidance

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

• FY27 revenue expected to decline mid-single digits as ACG declines, CSG remains flat, and HPA grows double digits.

• FY27 gross margin expected above 50% and EPS approaching $7 per share.

• Additional restructuring charges of $30–40 million expected, mainly for employee termination and legal/consulting fees.

• No material impact expected from recent U.S. tax legislation or new global minimum tax guidance.