Qorvo (QRVO) Barclays 22nd Annual Global Technology Conference summary

Business overview and strategic direction

• Focused on global megatrends: electrification, connectivity, mobility, sustainability, datafication, and AI.

• Strategy remains to reinvest cash flows into attractive opportunities and drive profitability.

• Reducing capital intensity and executing share repurchases while evaluating inorganic growth.

• Largest customer represents over 50% of revenue, with content growth expected next year.

• Android business shifting focus to flagship and premium tiers, with China-based revenue expected to bottom out around $50 million quarterly.

Financial actions and margin improvement

• Over $100 million in annualized cost savings targeted through COGS and OpEx reductions, mainly in Android and support functions.

• Actions include workforce reduction, factory consolidation, and divestment of silicon carbide business.

• Cost savings will be partially offset by inflation and continued investment in growth areas.

• Committed to achieving 50% gross margin, with improvements expected from business mix and segment-specific drivers.

• Cost reduction actions are underway and will extend into fiscal 2026.

Segment growth and investment priorities

• HPA segment expanding in defense, aerospace, and power management, targeting mid-teens growth.

• D&A business on track for $400 million this year, with ambitions to reach $1 billion organically and inorganically.

• Power management investments leverage PMIC technology for data centers and consumer devices.

• CSG segment expects sequential growth in March, driven by Wi-Fi, ultra-wideband, and automotive solutions.

• UWB adoption in enterprise and automotive, and Wi-Fi 7 upgrades, are key multi-year growth drivers.