Core Insights - Qorvo's shares have declined approximately 10.3% since the last earnings report, underperforming the S&P 500 [1][2] Financial Performance - Qorvo reported strong second-quarter fiscal 2026 results, with adjusted earnings and revenues exceeding Zacks Consensus Estimates [3] - The company achieved a net income of $119.6 million or $1.28 per share, a significant improvement from a net loss of $17.4 million or a loss of $0.18 per share in the same quarter last year [5] - Revenues for the quarter were $1.05 billion, slightly up from $1.04 billion year-over-year, driven by demand in the Advanced Cellular Group and High Performance Analog segments [6] Segment Analysis - High Performance Analog (HPA) revenues increased to $174.6 million from $148.3 million year-over-year, supported by strong performance in defense and aerospace [7] - Connectivity and Sensors Group (CSG) revenues decreased to $106.9 million from $146.8 million due to a delayed product ramp-up from a major customer [8] - Advanced Cellular Group (ACG) net sales were $777 million, reflecting a 3.4% year-over-year growth, primarily from the premium smartphone segment [8] Profitability Metrics - Non-GAAP gross profit rose to $526.2 million with a margin of 49.7%, compared to $492 million and a margin of 47% in the previous year [9] - Non-GAAP operating expenses decreased to $273.5 million from $279.8 million year-over-year, leading to a non-GAAP operating income of $252.6 million, up from $212.2 million [9] Cash Flow and Liquidity - As of September 27, 2025, Qorvo had $1.1 billion in cash and cash equivalents and $1.54 billion in long-term debt [10] - The company generated $84 million in net cash from operating activities during the quarter, with a free cash flow of $42.2 million [10] Future Outlook - For the third quarter of fiscal 2026, Qorvo expects revenues of approximately $985 million, with a non-GAAP gross margin projected between 47% and 49% [12] - Non-GAAP earnings are anticipated to be around $1.85 per share, reflecting an increase from $1.88 per share in the prior year [12] Estimate Trends - Recent estimates for Qorvo have shown an upward trend, with the consensus estimate shifting by 8.97% [13] - The stock currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [15]

Core Insights - Qorvo Inc. (QRVO) reported strong second-quarter fiscal 2026 results, with adjusted earnings and revenues exceeding Zacks Consensus Estimate [1] Revenue Performance - The company achieved revenue growth year over year, driven by demand in the Advanced Cellular Group (ACG) and High Performance Analog (HPA) segments, with net sales reaching $1.05 billion compared to $1.04 billion in the prior-year quarter [2][4] - The transition to DOCSIS 4 is increasing demand for Qorvo's broadband amplifiers, while strong traction is noted in radars, drones, enterprise and AI data centers, smartphones, and wearables [4] Net Income - On a GAAP basis, net income was reported at $119.6 million or $1.28 per share, a significant improvement from a net loss of $17.4 million or a loss of 18 cents per share in the prior-year quarter [3] - Non-GAAP net income was $208.3 million or $2.22 per share, up from $179.8 million or $1.88 per share in the year-ago quarter, surpassing the Zacks Consensus Estimate by 19 cents [3] Segmental Performance - HPA revenues increased to $174.6 million from $148.3 million year over year, driven by solid performance in defense and aerospace [5] - CSG revenues were $106.9 million, down from $146.8 million in the prior-year quarter due to a delayed ramp-up for a major customer's ultra-wideband product [6] - ACG net sales were $777 million, reflecting a 3.4% year-over-year growth, supported by the premium smartphone segment [6] Other Financial Details - Non-GAAP gross profit rose to $526.2 million with margins of 49.7%, compared to $492 million and 47% in the previous year [7] - Non-GAAP operating expenses decreased to $273.5 million from $279.8 million year over year, resulting in non-GAAP operating income of $252.6 million compared to $212.2 million in the year-ago quarter [7] Cash Flow & Liquidity - As of September 27, 2025, Qorvo had $1.1 billion in cash and cash equivalents and $1.54 billion in long-term debt, generating $84 million in net cash from operating activities with a free cash flow of $42.2 million [8] Outlook - For the third quarter of fiscal 2026, Qorvo expects revenues of $985 million (+/- $50 million) and non-GAAP gross margin to be within 47%-49%, with projected non-GAAP earnings of about $1.85 per share (+/- 20 cents) [10]