News: Microelectronics
31 July 2026
Qorvo grows quarterly margin, despite revenue falling by 2.9%
For its fiscal first-quarter 2027 (ended 27 June 2026), Qorvo Inc of Greensboro, NC, USA (which provides core technologies and RF solutions for mobile, infrastructure and defense applications) has reported revenue of $784.8m, down 2.9% on last quarter’s $808.3m and 4.2% on $818.8m a year ago.
By business segment, Qorvo’s total revenue comprised:
- Advanced Cellular Group (ACG) $476.6m, down 7% on last quarter’s $512.3m and 16.6% on $571.2m a year ago.
- Connectivity & Sensors Group (CSG) $101.9m, down 7.5% on $110.2m a year ago after divesting the MEMS-based Sensing Solutions business, but up 9.2% on last quarter’s $93.3m.
- High-Performance Analog (HPA) $206.3m, up 1.8% on last quarter’s $202.7m and 50.1% on $137.4m a year ago.
Despite the overall revenue decline, there has been double-digit year-on-year revenue growth in defense & aerospace (HPA’s largest business), infrastructure, and power.
This is coupled with a “successful pivot in ACG to higher-value placements,” notes president & CEO Bob Bruggeworth.
On a non-GAAP basis, gross margin has hence grown further, from 44% a year ago and 52.6% last quarter to 52.8%.
“Qorvo is improving business mix within and across operating segments, reducing capital intensity, and structurally enhancing profitability,” says chief financial officer Grant Brown.
Operating expenses have risen slightly from $235m last quarter to $236.6m, but this is still less than the $251.8m a year ago.
Net income was $146.6m ($1.64 per diluted share), down from $156.8m ($1.69 per diluted share) last quarter but up on $86.5m ($0.92 per diluted share) a year ago.
Operating cash flow was $139.5m. Capital expenditure $24.1m (reduced from $37.5m a year ago). Free cash flow was hence $115.3m.
Cash and cash equivalents has therefore risen further, from $1165m a year ago and $1219m last quarter to $1329m. Long-term debt remains about $1549m, with no near-term maturities.
Net inventory has increased again, from $553.7m to $592.5m, although this is still less than $638m a year ago.
“We expect continued strong financial performance throughout fiscal 2027,” says Brown. For full-year fiscal 2027, Qorvo continues to expect gross margin above 50% and now expects diluted earnings per share above $7.00.
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