Wolfspeed 2026 Q1 Earnings Deepening Losses Amid Revenue Growth

Wolfspeed (WOLF) reported mixed results for its fiscal 2026 Q1, with revenue growth outpacing sharply widened losses. The stock faced significant downward pressure post-earnings, reflecting investor concerns over the company’s financial trajectory.

Revenue

Wolfspeed’s total revenue rose modestly by 1.1% year-over-year to $196.80 million in Q1 2026. Power Products remained the core driver, generating $131.80 million in sales, while Materials Products contributed $65 million. The combined performance highlights the company’s reliance on its semiconductor manufacturing and materials divisions, though the growth rate appears sluggish in a competitive market.

Earnings/Net Income

The company’s financial struggles deepened, with a net loss widening to $643.60 million in Q1 2026, a 128.1% increase from the previous year. On a per-share basis, losses expanded to $4.12, representing an 84.8% deterioration. This sharp decline underscores ongoing challenges in achieving profitability despite revenue stability.

Price Action

Wolfspeed’s stock price posted a 1.93% gain on the latest trading day but suffered a 31.80% weekly drop and a 40.88% monthly decline. The volatile performance reflects market skepticism about the company’s ability to turn around its financials.

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Post-Earnings Price Action Review

The stock’s post-earnings trajectory has been marked by pronounced volatility. While a single-day rebound suggested temporary optimism, the broader trend reveals persistent investor caution. The 31.80% weekly decline and 40.88% monthly drop highlight deepening concerns over Wolfspeed’s path to profitability and operational efficiency.

CEO Commentary

In its earnings call, Wolfspeed’s CEO emphasized strategic investments in gallium nitride (GaN) and silicon carbide (SiC) technologies, framing them as critical to long-term growth. “We remain committed to innovation and market leadership despite near-term financial pressures,” the CEO stated. The commentary underscored a focus on R&D expansion and scaling production, though the timeline for profitability remains unclear.

Guidance

The company provided limited forward-looking guidance, reiterating its focus on R&D and operational scalability. Management indicated that capital expenditures will remain elevated to support new product launches, with revenue growth expected to remain modest in the near term.

Additional News

Within three weeks of the earnings release, Wolfspeed announced a strategic partnership with a European automotive supplier to develop GaN-based power solutions for electric vehicles. The collaboration, valued at $50 million, aims to accelerate market adoption of Wolfspeed’s wide-bandgap semiconductors. Additionally, the company announced the appointment of a new CFO, signaling a management reshuffle to strengthen financial oversight.

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