Qorvo (QRVO) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 revenue reached $819 million, with non-GAAP EPS of $0.92 and GAAP EPS of $0.27, exceeding guidance due to broad-based demand and content expansion at the largest customer, while defense, aerospace, and connectivity markets diversified growth.

• Strategic actions included exiting low-margin businesses, consolidating manufacturing footprint, and focusing on high-value product categories, resulting in improved profitability and margin expansion.

• Gross margin improved to 44% non-GAAP and 40.5% GAAP, up over 3 percentage points year-over-year, driven by better product costs and lower inventory charges.

• Operating income rose to $30.1 million GAAP and $108.2 million non-GAAP, with net income per diluted share at $0.27 GAAP and $0.92 non-GAAP.

• Net cash from operating activities increased to $183 million, with free cash flow at $145 million.

Financial highlights

• Q1 FY2026 revenue was $819 million, non-GAAP gross margin 44%, GAAP gross margin 40.5%, and non-GAAP diluted EPS $0.92, all above guidance.

• Operating cash flow was $183 million, CapEx $38 million, and free cash flow $145 million.

• Largest customer accounted for 41% of revenue.

• Long-term debt at $1.5 billion, cash and equivalents at $1.2 billion.

• Approximately 0.7 million shares were repurchased for $50 million during the quarter.

Outlook and guidance

• Q2 FY2026 guidance: revenue $1.025 billion ±$50 million, non-GAAP gross margin 48%-50%, non-GAAP diluted EPS $2 ±$0.25.

• Full-year revenue expected roughly flat with FY2025, excluding divested Silicon Carbide business.

• HPA segment on track for strong double-digit growth; CSG growth revised to low single digits due to automotive program delay.

• Non-GAAP tax rate for FY2026 now expected at 15%.

• Sufficient liquidity is anticipated to meet both short- and long-term cash requirements.