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1. Company Snapshot

1.a. Company Description

Qorvo, Inc.develops and commercializes technologies and products for wireless, wired, and power markets worldwide.The company operates through two segments, Mobile Products, and Infrastructure and Defense Products.


It offers mobile devices, such as smartphones, wearables, laptops, tablets and other devices; radio frequency power management integrated circuits, ultra-wideband (UWB) system-on-a-chip (SoC) and system-in-package (SiP) solutions, MEMS-based sensors, antenna tuners, and antennaplexers, as well as discrete multiplexers, duplexers, filters, and switches; and cellular base stations include switch-low noise amplifier (LNA) modules, variable gain amplifiers, integrated power amplifier (PA) Doherty modules, discrete LNAs, and high power GaN amplifiers.The company's also provides SiC products, such as Schottky diodes and transistors for automotive, industrial, IT infrastructure and renewable energy markets; SoC hardware, firmware, and application software for smart home applications; power management solutions include programmable power management integrated circuits (ICs) and power application controllers; RF products and compound semiconductor foundry services to defense primes and other global defense and aerospace customers; RF connectivity and UWB SoC solutions for automotive connectivity; and Wi-Fi products, such as PAs, switches, LNAs and bulk acoustic wave filters, as well as integrated solutions including front end modules (FEMs) and integrated FEMs. It sells its products directly to original equipment manufacturers and original design manufacturers, as well as through a network of sales representative firms and distributors.The company was founded in 1957 and is headquartered in Greensboro, North Carolina.

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1.b. Last Insights on QRVO

Qorvo, Inc.'s recent performance has been negatively impacted by impending lower revenues, sparking concerns about the company's Q2 earnings. An investigation by Halper Sadeh LLC into the fairness of the sale to Skyworks Solutions, Inc. has raised shareholder concerns. Stephens Inc. AR reduced its position in Qorvo by 4.0% in Q2. Despite strong quarterly results, with revenue and EPS beats, growth is pressured by headwinds in China and strategic business shifts. The company faces a class-action investigation related to its merger with Skyworks.

1.c. Company Highlights

2. Qorvo's Fiscal Second Quarter Results Exceed Expectations

Qorvo reported revenue of $1.059 billion for its fiscal second quarter, with a non-GAAP gross margin of 49.7% and non-GAAP diluted earnings of $2.22 per share, surpassing estimates of $2.03 per share. The company's operating cash flow was $84 million, and it incurred $42 million in capital expenditures, resulting in free cash flow of $42 million. The non-GAAP tax rate for fiscal '26 is expected to be approximately 15%, which is a positive indicator for future profitability.

Publication Date: Nov -09

📋 Highlights
  • Revenue & Margins:: Fiscal Q2 revenue of $1.059B, non-GAAP gross margin 49.7%, non-GAAP EPS $2.22.
  • Cost Restructuring:: $70M annual operating expense savings by 2027 from CSG segment restructuring.
  • ACG Revenue Shift:: Lower-margin Android revenue declines $200M in FY26 and >$200M in FY27; focus on premium smartphones.
  • Defense/Aerospace Growth:: 25% YoY growth in FY26, driven by radar, comms, and emerging tech (drones, missile defense).
  • December Guidance:: Revenue $985M, non-GAAP gross margin 47–49%, free cash flow $42M (op cash flow $84M - $42M CAPEX).

Restructuring and Strategic Initiatives

Qorvo is restructuring its CSG segment to focus on top opportunities and improve profitability, which is expected to reduce operating expenses by $70 million per year in fiscal 2027. The company is driving a richer mix toward premium and flagship smartphone tiers, anticipating a decline in lower-margin Android revenue by roughly $200 million this fiscal year and by more than $200 million next year. As the company stated, "exit from the low-tier Android area will help its premium and flagship products, contributing to a better mix."

Segment Performance and Outlook

In ACG, Qorvo is making progress with its largest customer on mid- to high-band technologies. The company's aerospace and defense business is growing rapidly, with a 25% year-over-year increase, driven by demand for radar and comms technologies. Qorvo expects double-digit year-over-year growth in defense and aerospace markets. For the December quarter, the company expects revenue of $985 million, non-GAAP gross margin between 47% and 49%, and non-GAAP diluted EPS of $1.85.

Valuation and Growth Prospects

With a P/E Ratio of 36.6 and an EV/EBITDA of 18.83, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 1.9%. The company's ROIC is 6.1%, and ROE is 6.35%, indicating a decent return on capital and equity. The Free Cash Flow Yield is 6.73%, which is a positive indicator. Given the company's strategic initiatives and growth prospects, the current valuation appears reasonable.

3. NewsRoom

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Qorvo, Inc. (NASDAQ:QRVO) Given Average Rating of “Hold” by Analysts

Dec -03

Source: defenseworld.net

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Creative Planning Grows Holdings in Qorvo, Inc. $QRVO

Nov -26

Source: defenseworld.net

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Halper Sadeh LLC Encourages THS, CDTX, SPNS Shareholders to Contact the Firm to Discuss Their Rights

Nov -22

Source: globenewswire.com

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Here are Tuesday's Top Wall Street Analyst Research Calls: Coreweave, Instacart, Qorvo, Robinhood Markets, Skyworks Solutions, Viasat and More

Nov -11

Source: 247wallst.com

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Qorvo Q2 Earnings Surpass Estimates, Revenues Rise Y/Y

Nov -04

Source: zacks.com

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Qorvo, Inc. (QRVO) Q2 2026 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

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Qorvo® Announces Fiscal 2026 Second Quarter Financial Results

Nov -03

Source: globenewswire.com

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Mid Cap Stocks To Research – October 28th

Oct -30

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.19%)

6. Segments

Advanced Cellular Group

Expected Growth: 7%

Advanced Cellular Group from Qorvo, Inc. growth driven by increasing demand for 5G-enabled smartphones, expansion in IoT and automotive markets, and growing adoption of Wi-Fi 6 and 6E technologies, resulting in 7% growth.

High Performance Analog

Expected Growth: 5%

Qorvo's High Performance Analog segment growth is driven by increasing demand for 5G infrastructure, proliferation of IoT devices, and growing adoption of advanced driver-assistance systems (ADAS) in the automotive industry, as well as the company's strategic investments in research and development, and its strong relationships with top-tier customers.

Connectivity and Sensors Group

Expected Growth: 4%

Qorvo's Connectivity and Sensors Group growth is driven by increasing demand for IoT devices, proliferation of 5G networks, and rising adoption of advanced driver-assistance systems (ADAS) in the automotive industry. Additionally, growing need for high-performance, low-power connectivity solutions and increasing use of sensors in smartphones, wearables, and industrial applications contribute to the segment's growth.

7. Detailed Products

RF Products

Qorvo's RF products include amplifiers, switches, and filters that enable wireless communication in mobile devices, base stations, and other wireless infrastructure.

Power Management

Qorvo's power management products include power amplifiers, switches, and controllers that manage power in wireless devices and networks.

Foundry Services

Qorvo's foundry services provide custom semiconductor manufacturing for a wide range of applications, including wireless, aerospace, and defense.

IDP (Integrated Duplexer Products)

Qorvo's IDP products integrate multiple functions, such as filtering, switching, and amplification, into a single device.

BAW (Bulk Acoustic Wave) Filters

Qorvo's BAW filters provide high-performance filtering for wireless communication systems.

GaAs (Gallium Arsenide) and GaN (Gallium Nitride) Devices

Qorvo's GaAs and GaN devices provide high-power and high-frequency capabilities for wireless communication systems.

8. Qorvo, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Qorvo, Inc. operates in the semiconductor industry, which is characterized by rapid technological advancements. While there are substitutes available, such as alternative semiconductor materials, the company's focus on RF solutions and its strong research and development capabilities mitigate the threat of substitutes.

Bargaining Power Of Customers

Qorvo, Inc. has a diverse customer base, including major OEMs and contract manufacturers. While some customers may have significant bargaining power, the company's strong relationships and customized solutions reduce the overall bargaining power of customers.

Bargaining Power Of Suppliers

Qorvo, Inc. relies on a limited number of suppliers for certain components and materials. While the company has implemented strategies to mitigate supply chain risks, the bargaining power of suppliers remains a moderate threat.

Threat Of New Entrants

The semiconductor industry has high barriers to entry, including significant capital expenditures and technological expertise. While new entrants may emerge, Qorvo, Inc.'s established position, strong research and development capabilities, and intellectual property portfolio reduce the threat of new entrants.

Intensity Of Rivalry

The semiconductor industry is highly competitive, with several established players competing for market share. Qorvo, Inc. faces intense competition from companies such as Skyworks Solutions, Broadcom, and Qualcomm, which may lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 36.04%
Debt Cost 3.95%
Equity Weight 63.96%
Equity Cost 11.58%
WACC 8.83%
Leverage 56.34%

11. Quality Control: Qorvo, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Qorvo

A-Score: 3.3/10

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Growth: 3.9

Quality: 5.1

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

90.17$

Current Price

90.17$

Potential

-0.00%

Expected Cash-Flows