Qorvo Reports Q1 Fiscal 2026 Results with Revenue of $818.8 Million, Operating Income Surge

Qorvo, Inc. reported its financial results for the first quarter of fiscal 2026, revealing a revenue of $818.8 million, a decrease of 7.7% from $886.7 million in the same period last year. The decline in revenue was primarily attributed to a strategic decision to reduce exposure in the mass-market Android smartphone segment, while revenue from defense and aerospace sectors increased due to heightened demand for defense programs and broadband deployments. The company's gross profit margin improved to 40.5%, up from 37.5% in the prior year, driven by better product costs and lower inventory-related charges.

Operating income for the quarter was $30.1 million, a significant increase from $4.6 million in the previous year, reflecting a 553.2% rise. This improvement was supported by reduced operating expenses, which fell to $301.7 million from $327.7 million year-over-year. Notably, research and development expenses decreased by 4.5% to $179.2 million, while marketing and selling expenses also saw a decline. The net income for the quarter was $25.6 million, translating to a diluted earnings per share of $0.27, compared to a net income of $414, or $0.00 per share, in the same quarter last year.

In terms of operational developments, Qorvo's restructuring initiatives, aimed at streamlining operations and reducing costs, resulted in cumulative expenses of approximately $59.3 million. The company has also been active in share repurchases, buying back approximately 0.7 million shares for about $50 million during the quarter, leaving approximately $898.8 million available under its existing repurchase program. As of June 28, 2025, Qorvo had a total of 92,798 shares outstanding.

Geographically, revenue from the United States accounted for $425.3 million, down from $447.5 million, while revenue from China decreased to $155.9 million from $196.4 million. The company continues to focus on its three operating segments: High Performance Analog (HPA), Connectivity and Sensors Group (CSG), and Advanced Cellular Group (ACG). HPA reported a revenue increase of 6.1% to $137.4 million, while ACG experienced a decline of 11.1% to $571.2 million, reflecting the strategic shift away from mass-market products.

Looking ahead, Qorvo anticipates continued challenges in the mass-market smartphone segment but expects growth in defense and infrastructure markets. The company remains committed to its restructuring efforts and strategic focus on high-margin products, which it believes will enhance profitability in the long term. The management's outlook reflects cautious optimism, emphasizing the importance of adapting to market conditions and maintaining operational efficiency.