Qorvo's Q4 2025: Navigating Key Contradictions on Customer Growth, Tariffs, and Margins

Content growth with the largest customer, tariff impact assumptions, RF content opportunity with the largest customer, gross margin expectations, and content and market dynamics are the key contradictions discussed in Qorvo's latest 2025Q4 earnings call.



Growth and Margin Strategy:
- Qorvo reported revenue of $869 million for the March quarter, surpassing the midpoint of their guidance, with a non-GAAP gross margin of 45.9%.
- The growth was driven by strategic actions such as the ramp of envelope tracking power management solutions and increased sales in defense and aerospace.

Defense and Aerospace Expansion:
- Qorvo achieved a record fiscal year in D&A revenue, with a sales funnel exceeding $5 billion.
- Growth was fueled by strong demand in manned and drone-based airborne radar, space-based radar, and SATCOM applications, supported by government allocations for defense spending.

Automotive and Connectivity Growth:
- Qorvo's automotive qualified Ultra-wideband programmable SoC addresses industry demand for precision short-range radar applications, with an expected sales funnel exceeding $2 billion.
- Growth was driven by the sampling of a fully integrated Ultra-wideband programmable SoC for automotive applications and expansion in automotive connectivity in Japan.

Content Growth with Large Customer:
- Qorvo reported a 10% year-over-year content growth in the upcoming fall launch of their largest customer, beyond envelope tracking power management solutions.
- The increase was attributed to capturing content in multiple product categories, including tuning, switches, filters, and high-band pad solutions.