Qorvo, Inc.

What they do

Qorvo develops and commercializes technologies and products for wireless, wired and power markets, organized into three reportable segments: High Performance Analog (HPA), Connectivity and Sensors Group (CSG), and Advanced Cellular Group (ACG). HPA supplies RF, analog mixed signal and power management solutions, including defense and aerospace products and compound semiconductor foundry services. CSG provides connectivity solutions spanning UWB, Matter, BLE, Zigbee, Thread and Wi-Fi for IoT. ACG supplies advanced cellular solutions for smartphones, wearables, laptops and tablets.

Revenue drivers

• High Performance Analog (HPA) — Serves defense and aerospace, infrastructure, industrial and enterprise, and consumer markets, with a focus on phased array radar, electronic warfare and communications systems. Generated $206.3 million in Q1 fiscal 2027, up 50.1% year over year.
• Connectivity and Sensors Group (CSG) — Provides UWB, Matter, BLE, Zigbee, Thread, Wi-Fi and cellular IoT connectivity solutions. Reported $101.9 million in Q1 fiscal 2027, a smaller revenue contributor than HPA.
• Advanced Cellular Group (ACG) — Supplies cellular solutions for smartphones, wearables, laptops and tablets. Management cited a successful pivot to higher-value placements in this segment during the June quarter.

Recent performance

For fiscal 2027 first quarter ended June 27, 2026, Qorvo reported GAAP revenue of $784.8 million, down from $818.8 million a year earlier. GAAP gross margin was 51.1% and GAAP diluted EPS was $0.96. Non-GAAP gross margin was 52.8%, up 880 basis points year over year, and non-GAAP diluted EPS was $1.64, up 78%. Management attributed the expansion to improved business mix and cited double-digit year-over-year revenue growth in defense and aerospace, infrastructure, and power.

Strategy

Qorvo is pursuing a merger with Skyworks Solutions under a Merger Agreement signed October 27, 2025, which stockholders of both companies approved on February 11, 2026. Management states it is improving business mix within and across segments, reducing capital intensity, and structurally enhancing profitability. The company has discontinued conference calls and forward-looking guidance because of the pending transaction. It expects the Mergers to complete early in calendar year 2027, subject to regulatory approvals and customary closing conditions.

Risks

• Merger completion uncertainty — The Mergers require antitrust and foreign investment approvals and other customary conditions, and may be delayed, modified, or abandoned.
• Customer concentration — Qorvo depends on several large customers for a substantial portion of revenue, and loss of share at one or more could materially harm results.
• New product and design win dependence — Operating results fluctuate and depend on developing new products and achieving design wins, as customer requirements change rapidly and product life cycles can be short.
• Defense and aerospace contract exposure — Qorvo faces risk of revenue loss if defense and aerospace contracts are canceled or delayed.

Outlook

For full-year fiscal 2027, management continues to expect non-GAAP gross margin above 50% and now expects non-GAAP diluted earnings per share above $7.00. The company notes fiscal 2027 is a 53-week year, with the fiscal second quarter ending October 3, 2026 including 14 weeks. Because of the pending Skyworks transaction, Qorvo has discontinued conference calls and forward-looking guidance.