Qorvo 2026 Q1 Earnings Net Income Surges Over 6000%

Qorvo (QRVO) reported its fiscal 2026 Q1 earnings on Jul 30th, 2025. The company delivered mixed results against market expectations, with revenue slightly missing targets but demonstrating impressive profitability growth. Qorvo's guidance for the next quarter remains in line with previous forecasts, projecting revenue of approximately $1.025 billion, with a variance of plus or minus $50 million. Non-GAAP gross margin is expected to be between 48% and 50%, and non-GAAP diluted earnings per share are anticipated to reach $2.00, with a range of plus or minus $0.25.

Revenue
Qorvo's total revenue decreased by 7.7% in the first quarter of fiscal 2026, totaling $818.78 million compared to $886.67 million in the same period last year. The High Performance Analog (HPA) segment contributed $137.40 million, while the Connectivity Solutions Group (CSG) brought in $110.20 million. The Advanced Cellular Group (ACG) remained the largest segment with $571.20 million in revenue.

Earnings/Net Income
Qorvo maintained a stable earnings per share (EPS) of $0.28 in 2026 Q1 compared to the previous year. The company experienced a substantial increase in profitability, reporting a net income of $25.59 million, marking a significant growth of 6082.1% from $414,000 in 2025 Q1. This EPS stability, despite revenue challenges, reflects strong financial management.

Price Action
The stock price of Qorvo declined by 5.25% during the latest trading day, decreased by 2.29% over the most recent full trading week, and rose by 3.16% month-to-date.

Post-Earnings Price Action Review
The strategy of buying QRVO when revenues miss and holding for 30 days resulted in significant underperformance. This approach yielded a negative return of -27.32%, starkly contrasting with the benchmark return of 87.61%, thereby illustrating an excess return deficit of -114.94%. The compound annual growth rate (CAGR) of -6.22% further underscores the inefficacy of this strategy. The data indicates that Qorvo's stock movement post-earnings did not align with broader market trends, leading to substantial losses for investors employing this particular strategy. Thus, careful consideration and potentially reevaluating investment tactics may be advisable for stakeholders aiming to mitigate risks associated with earnings misses.

CEO Commentary
Bob Bruggeworth, President and CEO of Qorvo, expressed that the team delivered strong results in the fiscal 2026 first quarter. He noted that the company is implementing initiatives to enhance profitability structurally, with positive outcomes already visible from these strategic actions. Bruggeworth anticipates sequential growth and margin expansion in the September quarter, driven by increased Qorvo content and unit volumes in major customer programs.

Guidance
Qorvo's outlook for the September 2025 quarter includes expected revenue of approximately $1.025 billion, with a variance of plus or minus $50 million. The company anticipates a non-GAAP gross margin between 48% and 50% and non-GAAP diluted earnings per share of $2.00, with a range of plus or minus $0.25.

Additional News
In recent non-earnings news, Qorvo has announced its intention to nominate Peter Feld of Starboard Value for election to the board at the 2025 Annual Meeting, highlighting an ongoing board refreshment process. Furthermore, Qorvo received recognition from BAE Systems with the Bronze Tier Partner 2 Win Supplier Award, showcasing its strong industry partnerships. Additionally, Qorvo has expanded its product offerings with the launch of three new SoCs added to its Matter Solutions Family, underscoring its focus on innovation and market responsiveness. These developments reflect Qorvo's strategic initiatives to enhance leadership and product capabilities, positioning the company for continued growth and success in the competitive semiconductor industry.