Qorvo reported lower quarterly revenue but improved margins as strong growth in defence, infrastructure, and power offset weakness in its mobile business.
Radio frequency (RF) solutions provider Qorvo reported mixed results for the first quarter of fiscal 2027, posting lower revenue but stronger profitability as improved product mix and growth in high-value markets boosted margins.
For the quarter ended June 27, 2026, the company reported revenue of $784.8 million, down 2.9 per cent from $808.3 million in the previous quarter and 4.2 per cent lower than $818.8 million in the same period last year.
The Advanced Cellular Group (ACG) generated $476.6 million, declining 7 per cent sequentially and 16.6 per cent year-on-year, reflecting continued weakness in the mobile segment. The Connectivity & Sensors Group (CSG) reported $101.9 million, up 9.2 per cent from the previous quarter but down 7.5 per cent from a year earlier following the divestment of its micro-electro-mechanical-systems (MEMS)-based sensing business.
The standout performer was the High-Performance Analog (HPA) segment, where revenue climbed to $206.3 million, up 1.8 per cent sequentially and 50.1 per cent year-on-year, driven by robust demand from defense, aerospace, infrastructure, and power markets.
Despite lower overall sales, Qorvo expanded its non-GAAP gross margin to 52.8 per cent, compared with 52.6 per cent in the previous quarter and 44 per cent a year ago.
“We delivered double-digit year-over-year growth in defense and aerospace, infrastructure, and power while successfully shifting our Advanced Cellular business toward higher-value product placements,” said Bob Bruggeworth, President and CEO of Qorvo.
Operating expenses remained largely stable at $236.6 million, slightly higher than the previous quarter’s $235 million but below $251.8 million recorded a year earlier.
Net income reached $146.6 million, or $1.64 per diluted share, compared with $156.8 million ($1.69 per share) in the previous quarter and $86.5 million ($0.92 per share) a year earlier.
The company generated $139.5 million in operating cash flow during the quarter. Lower capital expenditure of $24.1 million, down from $37.5 million a year ago, helped free cash flow reach $115.3 million.
Qorvo ended the quarter with $1.33 billion in cash and cash equivalents, up from $1.22 billion in the prior quarter, while long-term debt remained steady at approximately $1.55 billion. Inventory increased sequentially to $592.5 million but remained below the $638 million reported a year ago.
Looking ahead, the company reiterated its outlook for fiscal 2027, expecting gross margins to remain above 50 per cent and raising its forecast for diluted earnings per share to more than $7.00.
