# Qorvo (QRVO) Q1 2026 Financial Results Summary
Released on July 29, 2025, Qorvo, a leading global provider of connectivity and power solutions, announced its financial results for the fiscal 2026 first quarter, which ended on June 28, 2025.
## Key Financial Metrics
– **Revenue**:
– GAAP: $818.8 million (↓7.7% from Q1 2025)
– Non-GAAP: $818.8 million (↓7.7% from Q1 2025)
– **Gross Margin**:
– GAAP: 40.5% (↑3.0 ppts from Q1 2025)
– Non-GAAP: 44.0% (↑3.1 ppts from Q1 2025)
– **Operating Income**:
– GAAP: $30.1 million (↑554.3% from Q1 2025)
– Non-GAAP: $108.2 million (↑10.1% from Q1 2025)
– **Net Income**:
– GAAP: $25.6 million (↑25.2 from Q1 2025)
– Non-GAAP: $86.5 million (↑3.0% from Q1 2025)
– **Diluted Earnings Per Share (EPS)**:
– GAAP: $0.27 (From $0.00 in Q1 2025)
– Non-GAAP: $0.92 (↑5.8% from $0.87 in Q1 2025)
## Operational Highlights
– Sequential growth and margin expansion expected for the September quarter, primarily driven by increases in Qorvo’s content and unit volumes in significant customer programs.
– Non-GAAP gross margin guidance for the second quarter is between **48% to 50%**, showing an expected **200 basis points improvement** compared to the prior year.
## Selected Financial Information
### GAAP Results Overview
– **Q1 2026 versus Q4 2025**:
– Revenue decreased by $50.7 million
– Gross profit decreased by $34.8 million
– Operating income increased by $1.9 million
### Non-GAAP Results Summary
– Identical revenue of $818.8 million as quarter before, but down from the previous year.
– Significant improvements in non-GAAP net income up to $86.5 million.
– Costs of goods sold for the quarter amounted to $486.98 million.
### Business Segment Performance
– **High Performance Analog (HPA)**: Revenue $137.4 million (↑6.1% from Q1 2025), but down sequentially.
– **Connectivity & Solutions Group (CSG)**: Revenue $110.2 million (↓4.1% from Q1 2025), up 8.8% from Q4 2025.
– **Advanced Cellular Group (ACG)**: Revenue $571.2 million (↓11.1% from Q1 2025), slightly decreased sequentially.
### Stock Buybacks and Dividends
– **Repurchase of Common Stock**: $49.9 million during the quarter.
## Future Outlook
– Qorvo anticipates revenue for the September 2025 quarter to be approximately **$1.025 billion**, with a potential variance of **±$50 million**. Non-GAAP diluted EPS is projected to be **$2.00**, ± $0.25.
## Summary of Changes
– The total operating expenses and the cost structure are being effectively managed with reduced operating expenses through strategic initiatives.
– The ongoing improvements in gross margin show a trend of better management and product performance, indicating solid groundwork for future growth as fiscal 2026 progresses.
In conclusion, Qorvo’s fiscal 2026 first quarter results reflect a significant recovery from prior periods, showcasing revenue management and profitability improvements, setting a positive trajectory for upcoming quarters.
| June 28, 2025 | June 29, 2024 | |
|---|---|---|
| Revenue | $818,778 | $886,671 |
| Cost of goods sold | $486,976 | $554,367 |
| Gross profit | $331,802 | $332,304 |
| Operating expenses: | ||
| Research and development | $179,244 | $187,602 |
| Marketing and selling | $56,891 | $59,816 |
| General and administrative | $50,998 | $55,107 |
| Other operating expense | $14,583 | $25,173 |
| Total operating expenses | $301,716 | $327,698 |
| Operating income | $30,086 | $4,606 |
| Interest expense | $-18,787 | $-17,094 |
| Other income, net | $20,386 | $11,765 |
| Income (loss) before income taxes | $31,685 | $-723 |
| Income tax (expense) benefit | $-6,091 | $1,137 |
| Net income | $25,594 | $414 |
| Net income per share: | ||
| Basic | $0.28 | $0.00 |
| Diluted | $0.27 | $0.00 |
| Weighted-average shares of common stock | ||
| outstanding: | ||
| Basic | $92,915 | $95,467 |
| Diluted | $93,770 | $96,510 |
| June 28, 2025 | March 29, 2025 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $1,165,478 | $1,021,176 |
| Accounts receivable, net of allowances | $328,326 | $386,719 |
| Inventories | $637,961 | $640,992 |
| Prepaid expenses | $30,759 | $32,808 |
| Other receivables | $14,958 | $11,023 |
| Other current assets | $68,774 | $74,557 |
| Total current assets | $2,246,256 | $2,167,275 |
| Property and equipment, net of accumulated depreciation | $794,273 | $801,895 |
| Goodwill | $2,389,741 | $2,389,741 |
| Intangible assets, net | $252,397 | $273,478 |
| Long-term investments | $21,637 | $23,433 |
| Other non-current assets | $293,220 | $277,309 |
| Total assets | $5,997,524 | $5,933,131 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $280,122 | $260,663 |
| Accrued liabilities | $251,980 | $287,981 |
| Other current liabilities | $266,228 | $234,538 |
| Total current liabilities | $798,330 | $783,182 |
| Long-term debt | $1,549,200 | $1,549,215 |
| Other long-term liabilities | $212,925 | $208,422 |
| Total liabilities | $2,560,455 | $2,540,819 |
| Commitments and contingent liabilities | ||
| Stockholders’ equity: | ||
| Preferred stock, $.0001 par value; 5,000 shares authorized; no shares issued and outstanding | $— | $— |
| Common stock and additional paid-in capital, $.0001 par value; 405,000 shares authorized; 92,798 and 92,920 shares issued and outstanding at June 28, 2025 and March 29, 2025, respectively | $3,439,103 | $3,431,308 |
| Accumulated other comprehensive income (loss) | $6,355 | $-5,013 |
| Accumulated deficit | $-8,389 | $-33,983 |
| Total stockholders’ equity | $3,437,069 | $3,392,312 |
| Total liabilities and stockholders’ equity | $5,997,524 | $5,933,131 |
