Qorvo Q2 Earnings Surpass Estimates, Revenues Rise Y/Y

Qorvo Inc. QRVO reported strong second-quarter fiscal 2026 results, with both adjusted earnings and revenues surpassing the respective Zacks Consensus Estimate.

The company reported revenue growth year over year due to healthy demand in the Advanced Cellular Group (ACG) and High Performance Analog (HPA) segments. Solid momentum in the aerospace, defense and data center vertical is a tailwind. Management’s restructuring initiative in the Connectivity and Sensors Group (CSG) segment to improve prospects and profitability is a positive.

Net Income

On a GAAP basis, the company reported a net income of $119.6 million or $1.28 per share against a net loss of $17.4 million or a loss of 18 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 208.3 million or $2.22 per share compared with $179.8 million or $1.88 per share in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate by 19 cents.

Revenues

Net sales during the quarter were $1.05 billion from $1.04 billion in the prior-year quarter. Industry-wide transition to DOCSIS 4 is driving demand for Qorvo’s broadband amplifiers. Demand for Qorvo’s base station small signal devices also remains strong. It is also witnessing healthy traction in the radars, drones, enterprise and AI data centers, smartphones and wearables verticals. The top line beat the Zacks Consensus Estimate of $1.02 billion.

Segmental Performance

High Performance Analog (HPA) contributed $174.6 million in revenues compared with $148.3 million in the year-ago quarter, largely driven by solid revenues in the defense and aerospace business. In power management, the company continues to boast a strong presence in the consumer electronics sector. The growing demand for DOCSIS 4.0 hybrid power doublers is supporting the growth of the infrastructure business.

Revenues from CSG were $106.9 million compared with $146.8 million in the year-earlier quarter. A delayed ramp-up for the ultra-wideband product from a major customer is impacting the revenue. Net sales in ACG were $777 million, up 3.4% year over year, backed by growth in the premium smartphone segment.

Other Details

Non-GAAP gross profit declined to $526.2 million from $492 million, with respective margins of 49.7% and 47%. Non-GAAP operating expenses decreased to $273.5 million from $279.8 million a year ago. Non-GAAP operating income was $252.6 million compared with $212.2 million in the year-ago quarter.

Cash Flow & Liquidity

As of Sept. 27, 2025, QRVO had $1.1 billion in cash and cash equivalents and $1.54 billion of long-term debt. The company generated $84 million in net cash from operating activities in the quarter, with a free cash flow of $42.2 million.

Outlook

For third-quarter fiscal 2026, the company expects revenues of $985 million (+/- $50 million). Non-GAAP gross margin is projected to be within 47%-49%. Non-GAAP earnings are likely to be about $1.85 per share (+/- 20 cents).

Zacks Rank & Stocks to Consider

Qorvo currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Arista Networks Inc. ANET is scheduled to release third-quarter 2025 earnings on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at 72 cents per share, suggesting growth of 20% from the year-ago reported figure.

Arista has a long-term earnings growth expectation of 18.7%. The company delivered an average earnings surprise of 12.8% in the last four reported quarters.

Akamai Technologies, Inc. AKAM is slated to release third-quarter 2025 earnings on Nov. 6. The Zacks Consensus Estimate for earnings is pegged at $1.64 per share, indicating 3.1% growth from the year-ago reported figure.

Akamai has a long-term earnings growth expectation of 4.9%. The company delivered an average earnings surprise of 7.1% in the last four reported quarters.

Workday, Inc. WDAY is set to release third-quarter 2025 earnings on Nov. 25. The Zacks Consensus Estimate for earnings is pegged at $2.12 per share, implying growth of 12.17% from the year-ago reported figure.

Workday has a long-term earnings growth expectation of 21.25%. The company delivered an average earnings surprise of 9.35% in the last four reported quarters.

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This article originally published on Zacks Investment Research (zacks.com).

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