Can Qorvo's Rising Revenues Rescue the Stock in Q3 Earnings?

Qorvo, Inc. QRVO is set to report third-quarter fiscal 2026 results on Jan. 27, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 9.36%. It pulled off a trailing four-quarter earnings surprise of 33.13% on average. 

The leading provider of radio frequency solutions is expected to have witnessed a year over year revenue growth due to higher customer demand and strength in its defense and connectivity businesses. 

Factors at Play

Qorvo and Skyworks Solutions, Inc. SWKS agreed to merge in a cash-and-stock deal to create a U.S.-based semiconductor company valued at about $22 billion. Combining their RF, analog, and mixed-signal technologies risks major integration headaches, operational inefficiencies, and cultural clashes. Promised gains in scale, market reach, and innovation may never materialize, leaving shareholders exposed to high debt, execution risk, and an uncertain competitive landscape.

Qorvo is operating in a challenging environment with intense competition, pricing pressure, and weak end-market demand despite easing channel inventory. The company is engaged in developing a custom product for Apple, which has increased the R&D expense, thereby hurting its profitability. and the ongoing U.S. ban on Huawei continues to weigh on profitability and growth.

Qorvo faces integration risks from frequent acquisitions and a high debt burden, making it more vulnerable during economic downturns, while macroeconomic weakness continues to pressure its sales.

Overall Expectations

For the December quarter, the Zacks Consensus Estimate for total revenues is pegged at $991.28 million, indicating an increase from $916.3 million recorded a year ago. The consensus mark for earnings is pegged at $1.87 per share, indicating a rise from $1.61 per share in the year-ago quarter.

Earnings Whispers

Our proven model does not predict an earnings beat for Qorvo for the fiscal third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -0.46%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Qorvo carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Qorvo, Inc. Price and EPS Surprise

Qorvo, Inc. price-eps-surprise | Qorvo, Inc. Quote

Stocks to Consider

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

Advanced Micro Devices, Inc. AMD is set to release its fourth-quarter 2025 numbers on Feb. 3. It has an Earnings ESP of +2.01% and carries a Zacks Rank #3 at present. 

The Earnings ESP for Cirrus Logic, Inc. CRUS is +5.90%, and it sports a Zacks Rank of 1 at present. The company is scheduled to report third-quarter 2026 numbers on Feb. 3.

The Earnings ESP for Alphabet Inc. GOOGL is +0.49%, and it carries a Zacks Rank of 3 at present. The company is scheduled to report fourth-quarter 2026 numbers on Feb. 4.

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

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