Abstract
Qorvo will report fiscal Q3 2026 results on January 27, 2026 Post Market, with investors watching revenue normalization in Advanced Cellular and margin trends following recent mix shifts.
Market Forecast
For fiscal Q3 2026, Qorvo’s internal forecast indicates revenue of $0.99 billion, an adjusted EPS of $1.85, and EBIT of $0.21 billion, with year-over-year growth of 9.57% for revenue and 53.39% for adjusted EPS. The company’s performance is expected to be supported by favorable product mix with a gross profit margin resilience and improving net profitability; consensus highlights an earnings recovery from handset content gains and premium device seasonal strength.
The Advanced Cellular Group remains the core revenue driver with last quarter revenue of $776.96 million, while the company’s most promising business is High-Performance Analog, which delivered $174.62 million last quarter and is positioned for healthy year-over-year growth with diversified end markets.
Last Quarter Review
In fiscal Q2 2026, Qorvo reported revenue of $1.06 billion, gross profit margin of 47.20%, GAAP net profit attributable to the parent company of $0.12 billion, net profit margin of 11.30%, and adjusted EPS of $2.22, reflecting year-over-year adjusted EPS growth of 18.09%.
A key highlight was a sharp sequential improvement in profitability, with net profit rising quarter-on-quarter by 367.31% on improved mix and seasonality. The main business highlights featured the Advanced Cellular Group generating $776.96 million, High-Performance Analog generating $174.62 million, and the Connectivity and Sensors Group generating $106.92 million, underpinned by premium smartphone ramps and stable demand in select infrastructure and IoT applications.
Current Quarter Outlook
Advanced Cellular Group
The Advanced Cellular Group is expected to anchor fiscal Q3 2026 revenue, benefiting from premium handset seasonality and radio frequency (RF) content expansion in flagship devices. The segment’s last quarter revenue base of $776.96 million provides momentum into the holiday demand window, and product cycles suggest continued strength in front-end modules and high-performance filters. Mix improvements toward higher-value content are likely to sustain gross profit margin stability, while disciplined cost control supports EBIT leverage. Risks include smartphone sell-through volatility, cautious channel inventory management, and potential macro softness affecting volumes, but the structural content uplift in premium tiers remains supportive for revenue and margin resilience.
High-Performance Analog
High-Performance Analog stands out as Qorvo’s most promising growth vector given its diversified exposure to power management, precision analog, and select infrastructure applications. The segment’s $174.62 million revenue last quarter demonstrates continued traction outside the handset cycle, providing balance to consolidated results. In the current quarter, demand catalysts include industrial and automotive analog content, infrastructure programs, and expanding design wins that improve visibility and pricing discipline. Profitability is aided by product differentiation and a favorable backlog, while risks revolve around elongated enterprise and industrial procurement cycles and project timing. Nevertheless, execution on new platform ramps should support year-over-year growth and incremental contribution to consolidated EBIT.
Connectivity and Sensors Group
The Connectivity and Sensors Group posted $106.92 million last quarter and is expected to deliver stable performance this quarter, supported by ongoing adoption in IoT, Wi-Fi, UWB, and select sensor solutions. The segment’s contribution is important for margin mix, as design diversity mitigates concentration risks. Near-term growth hinges on customer product cycles and embedded module content gains, but inventory digestion across consumer IoT channels remains a watch item. Over the quarter, steady orders and selective pricing discipline are likely to help maintain contribution margins, while next-generation connectivity standards provide a medium-term roadmap for incremental growth.
Stock Price Drivers This Quarter
Stock performance this quarter will be most influenced by whether Qorvo meets or exceeds its EPS estimate of $1.85 and sustains gross profit margin near the high-40s alongside revenue around $0.99 billion. Investors will focus on Advanced Cellular sell-through data from premium smartphones, visibility into High-Performance Analog backlog and program ramps, and commentary on inventory and lead times across Connectivity and Sensors. Guidance for fiscal Q4 and full-year cadence, including expectations for year-over-year growth continuity and operating leverage, will be closely parsed for implications on valuation multiples. Any updates on supply chain flexibility and execution on differentiated RF and analog platforms will also factor into sentiment.
Analyst Opinions
Across recent institutional commentary, the dominant view is cautiously optimistic, reflecting improving handset content, seasonal strength, and a healthier product mix that supports margin recovery. The majority of analysts preview EPS and revenue in line with or modestly above internal forecasts, citing balanced exposure between premium smartphones and diversified analog franchises as a key underpinning for estimates. Notable broker commentary highlights that sequential normalization in margins from the last quarter provides a stronger starting point for the current quarter, with RF front-end content gains offsetting smartphone unit variability. The consensus expects revenue growth of 9.57% year-over-year and EPS growth of 53.39% year-over-year, with attention on post-earnings guidance tone and trajectory in High-Performance Analog and Connectivity and Sensors. On balance, the majority stance anticipates Qorvo to deliver within or slightly above its forecast ranges, while remaining attentive to inventory dynamics and macro sensitivity that could temper upside.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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