Qorvo(QRVO) - 2026 Q3 - Quarterly Results

Financial Performance - Qorvo's fiscal 2026 third quarter revenue was $993.0 million, with a gross margin of 46.7% and diluted earnings per share of $1.75 on a GAAP basis[2] - Non-GAAP gross margin for the same quarter was 49.1%, with operating income of $247.6 million and diluted earnings per share of $2.17[2] - Revenue decreased by approximately 6.2% sequentially from Q2 fiscal 2026, but increased by 8.4% year-over-year compared to Q3 fiscal 2025[8] - Qorvo's net income for Q3 fiscal 2026 was $164.1 million, reflecting a 122.8% increase year-over-year[8] - Operating income for the total company increased by 21.8% sequentially and 262.5% year-over-year[12] - Non-GAAP net income for the three months ended December 27, 2025, was $203,238,000, up from $152,753,000 year-over-year[39] - Net income for the three months ended December 27, 2025, was $164.062 million, a significant increase from $41.271 million for the same period in 2024, representing a growth of 297%[47] Revenue Growth - The automotive components, consumer and enterprise Wi-Fi, and power management segments showed notable year-over-year revenue growth[3] - The HPA segment revenue grew by 11.2% year-over-year, while the ACG segment revenue increased by 8.8% year-over-year[12] - Qorvo reported revenue of $992.96 million for the three months ended December 27, 2025, an increase of 8.4% compared to $916.32 million for the same period in 2024[37] Cost Management - The company continues to focus on cost and productivity initiatives to enhance gross and operating margins[4] - Qorvo's total operating expenses for the three months ended December 27, 2025, were $272.05 million, down from $338.39 million in the same period last year, indicating cost management efforts[37] - Non-GAAP operating income margin was 24.9% for the three months ended December 27, 2025, compared to 19.4% for GAAP operating income margin[41] Future Outlook - Qorvo's March 2026 quarter outlook projects revenue of approximately $800 million, with a non-GAAP gross margin between 48% and 49%[5] - The company anticipates continued growth in free cash flow and gross margin, reflecting positive future outlooks despite potential market uncertainties[28] Cash Flow and Liquidity - Free cash flow for the three months ended December 27, 2025, was $236.9 million, calculated as net cash provided by operating activities minus property and equipment expenditures[41] - Net cash provided by operating activities for the nine months ended December 27, 2025, was $532.367 million, compared to $423.019 million for the same period in 2024, reflecting a year-over-year increase of 25.9%[47] - Cash and cash equivalents at the end of the period were $1.318 billion, up from $769.432 million at the end of the same period last year, indicating a 71.4% increase[47] Asset and Liability Management - Total current assets increased to $2,483,098,000 as of December 27, 2025, from $2,167,275,000 as of March 29, 2025[45] - Total liabilities decreased to $2,465,671,000 as of December 27, 2025, from $2,540,819,000 as of March 29, 2025[45] - The company recorded goodwill and intangible asset impairment of $113.066 million in the nine months ended December 27, 2024, with no impairment reported for the same period in 2025[47] Expenses - Research and development expenses for the three months ended December 27, 2025, were $178,066,000, compared to $179,126,000 in the same period last year[43] - The company reported depreciation expenses of $37.228 million for the three months ended December 27, 2025, down from $41.345 million in the same period of 2024, a decrease of 10.2%[47] - Stock-based compensation expense for the nine months ended December 27, 2025, was $109.749 million, slightly up from $108.931 million in the same period of 2024, an increase of 0.8%[47] Inventory and Receivables - The company’s inventories increased by $73.196 million for the three months ended December 27, 2025, compared to a minimal increase of $1.269 million in the same period of 2024, indicating a significant rise in inventory levels[47] - Accounts receivable increased by $54.964 million for the three months ended December 27, 2025, compared to an increase of $151.764 million in the same period of 2024, indicating a decrease in growth rate[47]