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Qorvo Q3 Earnings Surpass Estimates on Solid Revenue Growth
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Key Takeaways
Qorvo posts Q3 net income of $164.1M, up from $41.3M a year ago.
Revenues rise to $993M, driven by premium smartphones and iPad wins.
HPA, CSG, and ACG segments see growth, lifting margins and profitability.
Qorvo, Inc. (QRVO - Free Report) reported strong third-quarter fiscal 2026 results, with both adjusted earnings and revenues surpassing the Zacks Consensus Estimate.
During the quarter, the company’s strong growth was driven by content gains, focus on higher-margin flagship smartphones, an improved product mix, growth in Wi-Fi and automotive ultra-wideband, steady HPA demand, and efficiency gains from restructuring, all of which boosted margins and profitability.
Net Income
On a GAAP basis, the company reported a net income of $164.1 million or $1.75 per share compared with a net income of $41.3 million or 43 cents per share in the prior-year quarter. Top-line growth and lower operating expenses boosted the bottom line during the quarter.
Non-GAAP net income was $203.2 million or $2.17 per share compared with $152.8 million or $1.61 per share in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate by 30 cents.
Net sales during the quarter improved to $993 million from $916.3 million in the prior-year quarter, driven by a new high-band pad win in cellular-enabled iPads and strong demand for flagship and premium smartphones. In addition, early production orders in automotive ultra-wideband programs and steady demand across defense, aerospace, and infrastructure markets buoyed the revenues. The top line beat the Zacks Consensus Estimate of $991.3 million.
Segmental Performance
The High-Performance Analog (HPA) segment contributed $190.9 million in revenues compared with $171.7 million in the year-ago quarter, largely driven by strong demand across defense, aerospace, satellite, power, and infrastructure markets. The segment continues to benefit from multiyear tailwinds in D&A, data power, and infrastructure end markets.
Revenues from the Connectivity and Sensors Group (CSG) segment were $111.3 million compared with $109.5 million in the year-earlier quarter, driven by broad Wi-Fi adoption and growth in industrial, enterprise, and other end markets. Net sales in the Advanced Cellular Group (ACG) segment were $690.8 million, up 8.8% year over year, backed by growth in the premium smartphone segment.
Other Details
Non-GAAP gross profit was $487.5 million compared with $426.3 million in the year-ago quarter, with respective margins of 49.1% and 46.5%. Non-GAAP operating expenses decreased to $239.9 million from $248.4 million a year ago. Non-GAAP operating income was $247.6 million compared with $177.9 million in the year-ago quarter.
Cash Flow & Liquidity
As of Dec. 27, 2025, QRVO had $1.3 billion in cash and cash equivalents and $1.55 billion of long-term debt. The company generated $265.4 million in net cash from operating activities in the quarter, with a free cash flow of $236.9 million.
Outlook
For fourth-quarter fiscal 2026, the company expects revenues to be $800 million (+/- $25 million). Non-GAAP gross margin is projected to be in the range of 48-49%. Non-GAAP earnings are expected to be $1.20 per share (+/- 15 cents).
Arista Networks Inc. (ANET - Free Report) is scheduled to release fourth-quarter 2025 earnings on Feb.12. The Zacks Consensus Estimate for earnings is pegged at 75 cents per share, suggesting growth of 15.38% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 20.08%. The company delivered an average earnings surprise of 10.17% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release fourth-quarter 2025 earnings on Feb.19. The Zacks Consensus Estimate for earnings is pegged at $1.75 per share, indicating 5.4% growth from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 5.96%. The company delivered an average earnings surprise of 10.46% in the last four reported quarters.
Advanced Micro Devices, Inc. (AMD - Free Report) is set to release fourth-quarter 2025 earnings on Feb.3. The Zacks Consensus Estimate for earnings is pegged at $1.32 per share, implying growth of 21.1% from the year-ago reported figure.
Advanced Micro Devices has a long-term earnings growth expectation of 43.26%. The company delivered an average earnings surprise of 2.45% in the last four reported quarters.
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Qorvo Q3 Earnings Surpass Estimates on Solid Revenue Growth
Key Takeaways
Qorvo, Inc. (QRVO - Free Report) reported strong third-quarter fiscal 2026 results, with both adjusted earnings and revenues surpassing the Zacks Consensus Estimate.
During the quarter, the company’s strong growth was driven by content gains, focus on higher-margin flagship smartphones, an improved product mix, growth in Wi-Fi and automotive ultra-wideband, steady HPA demand, and efficiency gains from restructuring, all of which boosted margins and profitability.
Net Income
On a GAAP basis, the company reported a net income of $164.1 million or $1.75 per share compared with a net income of $41.3 million or 43 cents per share in the prior-year quarter. Top-line growth and lower operating expenses boosted the bottom line during the quarter.
Non-GAAP net income was $203.2 million or $2.17 per share compared with $152.8 million or $1.61 per share in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate by 30 cents.
Qorvo, Inc. Price, Consensus and EPS Surprise
Qorvo, Inc. price-consensus-eps-surprise-chart | Qorvo, Inc. Quote
Revenues
Net sales during the quarter improved to $993 million from $916.3 million in the prior-year quarter, driven by a new high-band pad win in cellular-enabled iPads and strong demand for flagship and premium smartphones. In addition, early production orders in automotive ultra-wideband programs and steady demand across defense, aerospace, and infrastructure markets buoyed the revenues. The top line beat the Zacks Consensus Estimate of $991.3 million.
Segmental Performance
The High-Performance Analog (HPA) segment contributed $190.9 million in revenues compared with $171.7 million in the year-ago quarter, largely driven by strong demand across defense, aerospace, satellite, power, and infrastructure markets. The segment continues to benefit from multiyear tailwinds in D&A, data power, and infrastructure end markets.
Revenues from the Connectivity and Sensors Group (CSG) segment were $111.3 million compared with $109.5 million in the year-earlier quarter, driven by broad Wi-Fi adoption and growth in industrial, enterprise, and other end markets. Net sales in the Advanced Cellular Group (ACG) segment were $690.8 million, up 8.8% year over year, backed by growth in the premium smartphone segment.
Other Details
Non-GAAP gross profit was $487.5 million compared with $426.3 million in the year-ago quarter, with respective margins of 49.1% and 46.5%. Non-GAAP operating expenses decreased to $239.9 million from $248.4 million a year ago. Non-GAAP operating income was $247.6 million compared with $177.9 million in the year-ago quarter.
Cash Flow & Liquidity
As of Dec. 27, 2025, QRVO had $1.3 billion in cash and cash equivalents and $1.55 billion of long-term debt. The company generated $265.4 million in net cash from operating activities in the quarter, with a free cash flow of $236.9 million.
Outlook
For fourth-quarter fiscal 2026, the company expects revenues to be $800 million (+/- $25 million). Non-GAAP gross margin is projected to be in the range of 48-49%. Non-GAAP earnings are expected to be $1.20 per share (+/- 15 cents).
Zacks Rank
Qorvo currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Arista Networks Inc. (ANET - Free Report) is scheduled to release fourth-quarter 2025 earnings on Feb.12. The Zacks Consensus Estimate for earnings is pegged at 75 cents per share, suggesting growth of 15.38% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 20.08%. The company delivered an average earnings surprise of 10.17% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release fourth-quarter 2025 earnings on Feb.19. The Zacks Consensus Estimate for earnings is pegged at $1.75 per share, indicating 5.4% growth from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 5.96%. The company delivered an average earnings surprise of 10.46% in the last four reported quarters.
Advanced Micro Devices, Inc. (AMD - Free Report) is set to release fourth-quarter 2025 earnings on Feb.3. The Zacks Consensus Estimate for earnings is pegged at $1.32 per share, implying growth of 21.1% from the year-ago reported figure.
Advanced Micro Devices has a long-term earnings growth expectation of 43.26%. The company delivered an average earnings surprise of 2.45% in the last four reported quarters.