Wolfspeed 2026 Q1 Earnings Widened Losses as Net Income Falls 128%

Wolfspeed (WOLF) reported mixed results for fiscal 2026 Q1, with a modest revenue increase offset by a sharp deterioration in profitability. The company’s 1.1% revenue growth to $196.80 million contrasts with a 128.1% surge in net losses to $643.60 million, signaling significant operational challenges. Investors reacted cautiously, with shares down 31.80% for the week and 40.88% month-to-date despite a 1.93% daily gain.

Revenue

Wolfspeed’s revenue rose slightly to $196.80 million in Q1 2026, driven by a $131.80 million contribution from Power Products and $65.00 million from Materials Products. While Power Products maintained a strong performance as the core revenue driver, Materials Products showed steady but unremarkable growth. The total revenue reflects a 1.1% year-over-year increase, though the narrow margin expansion underscores ongoing cost pressures.

Earnings/Net Income

The company’s financial struggles deepened, with a loss of $4.12 per share in Q1 2026 compared to $2.23 per share in the prior year, marking an 84.8% widening of losses. Net income fell to -$643.60 million, a 128.1% deterioration from -$282.20 million in Q1 2025. These results highlight structural inefficiencies and underscore the urgency for strategic cost management. The EPS and net loss figures represent a significant negative deviation from expectations.

Post-Earnings Price Action Review

Wolfspeed’s stock exhibited volatile post-earnings behavior, with a 1.93% intraday gain on the day of the report failing to offset a 31.80% weekly decline and a 40.88% monthly drop. The sharp selloff suggests investor skepticism about the company’s ability to reverse its loss trajectory despite the marginal revenue growth. Market sentiment appears anchored to concerns over profitability and long-term sustainability.

CEO Commentary

The CEO emphasized operational progress in Power Products but acknowledged the need for aggressive cost optimization and strategic pivots to address the widening losses. Leadership reiterated a focus on scaling high-margin segments and accelerating R&D in next-generation materials to unlock future growth. However, no concrete guidance on specific targets or timelines was provided, leaving investors to speculate on near-term adjustments.

Guidance

No explicit forward-looking guidance was disclosed in the earnings report. The company’s leadership avoided quantifying revenue, EPS, or margin targets for future periods, citing ongoing uncertainty in market demand and production costs. Qualitative priorities included enhancing operational efficiency and exploring strategic partnerships to stabilize cash flow.

Additional News

Within the three weeks preceding the November 8, 2025, earnings report, Wolfspeed announced no material M&A activity, C-level executive changes, or dividend/buyback initiatives. The company’s focus remained on internal restructuring and cost containment, with no public announcements of external collaborations or capital allocation shifts. Analysts noted the absence of new strategic announcements as a potential factor in the stock’s muted post-earnings performance.