Qorvo (QRVO) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 revenue reached $993 million, up 8.4% year-over-year, with growth across all segments, especially in flagship smartphones, automotive, Wi-Fi, D&A, base station, and power management.

• Gross margin improved to 46.7% GAAP and 49.1% non-GAAP, reflecting a shift to higher-margin products and favorable business mix.

• Operating income surged to $192.1 million GAAP and $247.6 million non-GAAP, with diluted EPS of $1.75 GAAP and $2.17 non-GAAP, both up sharply year-over-year.

• Strategic restructuring actions included facility closures, transition to external partners, and divestiture of the MEMS-based sensing business.

• Continued execution on cost management and productivity initiatives to optimize profitability and reduce capital intensity.

Financial highlights

• Q3 revenue was $993 million, with non-GAAP gross margin of 49.1% and non-GAAP EPS of $2.17, all above guidance.

• Operating cash flow was $265 million; free cash flow reached $237 million.

• Ended quarter with $1.32 billion in cash and $1.5 billion in long-term debt.

• Net inventory reduced to $530 million, down $75 million sequentially and $111 million year-over-year.

• Non-GAAP gross margin improved by 2.6 percentage points year-over-year to 49.1%.

Outlook and guidance

• Q4 revenue guidance: $800 million ± $25 million; non-GAAP gross margin 48%-49%; non-GAAP EPS $1.20 ± $0.15.

• FY27 revenue expected to decline mid-single digits as ACG declines, CSG remains flat, and HPA grows double digits.

• FY27 gross margin projected above 50% and EPS approaching $7.

• Additional restructuring charges of $30–40 million expected, mainly for employee termination and legal/consulting fees.

• Management anticipates the merger with Skyworks to close in early 2027, subject to approvals.