Qorvo Q4 2025 Earnings Report

Qorvo EPS Results

• Actual EPS: $1.42
• Consensus EPS: $1.00
• Beat/Miss: Beat by +$0.42
• One Year Ago EPS: $1.39

Qorvo Revenue Results

• Actual Revenue: $869.47 million
• Expected Revenue: $850.13 million
• Beat/Miss: Beat by +$19.35 million
• YoY Revenue Growth: -7.60%

Qorvo Announcement Details

• Quarter: Q4 2025
• Date: 4/29/2025
• Time: After Market Closes
• Conference Call Date: Tuesday, April 29, 2025
• Conference Call Time: 4:30PM ET

Qorvo (NASDAQ:QRVO) is a semiconductor company that develops and manufactures radio-frequency (RF) and related connectivity solutions. Its products are used to generate, filter, amplify and manage wireless signals in communications equipment and electronic devices.

The company supplies RF components, modules and integrated circuits for smartphones, cellular base stations, Wi-Fi equipment, automotive systems, Internet of Things devices, consumer electronics, and aerospace and defense applications. Qorvo also develops products supporting ultra-wideband, power management, sensors and other technologies used in connected and autonomous systems.

Qorvo was formed in 2015 through the merger of RF Micro Devices and TriQuint Semiconductor. Headquartered in Greensboro, North Carolina, the company serves customers worldwide through operations and sales activities across North America, Europe and Asia. Bob Bruggeworth has served as Qorvo’s president and chief executive officer.

Qorvo Q4 2025 Earnings Call Transcript

Key Takeaways

• Q4 results: Revenue of $869 M (+ midpoint guidance), non-GAAP EPS $1.42 and gross margin 45.9%, driven by record defense and aerospace performance in HPA.
• Automotive CSG segment: Ultra wideband sales funnel up $500 M YoY to $2 B+, with sampling of automotive-qualified UWB SoC and new Wi-Fi design win in Japan for CY26 shipment.
• Mobile ACG segment: >10% year-over-year content growth for fall ’25 flagship at largest customer, including ramp of envelope tracking power management IC and multiple 5G and Wi-Fi FEM design wins.
• Tariff uncertainty: June quarter assumes <$1 M direct tariff impact, but if pauses aren’t extended and exemptions lapse, tariffs could rise to high single-digit millions per quarter across COGS, OpEx and CapEx.
• Strategic margin actions: Exiting low-end Android and divesting SiC, consolidating manufacturing footprint (including Costa Rica facility closure), aiming to reduce cost, diversify revenue mix and improve margins.

Presentation

[Operator]

Good day, and welcome to the Qorvo Fourth Quarter 2025 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note, this conference is being recorded. I would now like to turn the conference over to Doug DeLieto, Vice President of Investor Relations. Please go ahead.

[Doug DeLieto, VP of Investor Relations at Qorvo]

Thanks very much. Hello everyone, and welcome to Qorvo's Fiscal 2025 Fourth Quarter Earnings Call. This call will include forward-looking statements that involve risk factors that could cause our actual results to differ materially from management's current expectations. We encourage you to review the safe harbor statement contained in the earnings release published today, as well as the risk factors associated with our business in our annual report on Form 10-K filed with the SEC, because these risk factors may affect our operations and financial results.

[Doug DeLieto, VP of Investor Relations at Qorvo]

In today's release and on today's call, we provide both GAAP and non-GAAP financial results. We provide this supplemental information to enable investors to perform additional comparisons of operating results and to analyze financial performance without the impact of certain non-cash expenses or other items that may obscure trends in our underlying performance.

[Doug DeLieto, VP of Investor Relations at Qorvo]

During our call, our comments and comparisons to income statement items will be based primarily on non-GAAP results. For complete reconciliation of GAAP to non-GAAP financial measures, please refer to our earnings release issued earlier today, available on our investor relations website at ir.qorvo.com under financial releases.

[Doug DeLieto, VP of Investor Relations at Qorvo]

Joining us today are Bob Bruggeworth, President and CEO, Grant Brown, CFO, Dave Fullwood, Senior Vice President of Sales and Marketing, Philip Chesley, President of High Performance Analog, Eric Creviston, President of our Connectivity and Sensors Group, Frank Stewart, President of our Advanced Cellular Group, as well as other members of Qorvo's management team. With that, I'll turn the call over to Bob.

[Bob Bruggeworth, President and CEO at Qorvo]

Thanks, Doug. Welcome everyone to our call. Qorvo delivered a strong March quarter with notable achievements in each of our operating segments. In ACG, we supported a critical new phone launch by our largest customer. Qorvo content in this highly anticipated model includes an envelope tracking power management solution, custom developed for this customer over multiple years in support of their internal baseband. Our envelope tracking roadmap represents a long-term content growth opportunity for Qorvo as our largest customer's baseband shipments expand. In HPA, we posted a record revenue quarter in our defense and aerospace business. Strength was broad-based and included applications such as manned and drone-based airborne radar, space-based radar, SATCOM, EW, and missile defense systems. In CSG, we continue to increase our sales funnel of ultra-wideband opportunities.

[Bob Bruggeworth, President and CEO at Qorvo]

Our ultra-wideband sales funnel for automotive has grown more than $500 million over the last 12 months and now exceeds $2 billion. For fiscal year 2025, both CSG and HPA grew revenue double digits. As we think about the business broadly, we are pleased to see the positive impact of our ongoing initiatives to improve performance.

[Bob Bruggeworth, President and CEO at Qorvo]

Our growth and margin targets are anchored in multi-year strategy focused on winning content with our largest customer, building on our core RF and power expertise to drive diversification through CSG and HPA, and continuing to operate our business and manufacturing footprint in a disciplined and efficient manner. Key growth levers include continued momentum in defense and aerospace, expansion of our power management and ultra-wideband businesses, and sustained content growth in flagship and premium mobile devices.

[Bob Bruggeworth, President and CEO at Qorvo]

On the margin side, we are executing a clear set of actions. These include shifting away from legacy Android programs, scaling high-value products, and consolidating our manufacturing footprint in GaAs and in assembly and test, as well as the closure of our facility in Costa Rica, which Grant will discuss further in his remarks. These moves are already yielding benefits and position us well for the future success across our operating segments. Turning to our strategic highlights by market. In the automotive market, we began sampling a fully integrated ultra-wideband programmable SOC.

[Bob Bruggeworth, President and CEO at Qorvo]

This automotive qualified SOC addresses industry demand for highly accurate and reliable UWB technology in automotive applications such as secure keyless entry, child presence detection, kick sensors, and other precision short-range radar applications. Also, during the quarter, we significantly expanded our automotive connectivity footprint in Japan with a Wi-Fi design win for the leading OEM, and we expect first shipments to commence in calendar 2026.

[Bob Bruggeworth, President and CEO at Qorvo]

In consumer markets, we ran production of our first power management IC design win for a wearable. This PMIC optimizes charging for a smartwatch launching later this year. We also supplied a global manufacturer of power tools and outdoor power equipment with first samples of our battery management SOC, leveraging embedded AI and machine learning algorithms to improve battery performance. In collaboration with Nordic Semiconductor, we announced the availability of an Aliro-compliant smart lock reference design that combines BLE and ultra-wideband. The Aliro protocol is backed by industry leaders and is expected to accelerate adoption by securing communication between smart locks and personal devices like smartphones and wearables. The reference design combines a Qorvo ultra-wideband SOC, enabling critical functionality like precision location and secure transaction with Nordic's multi-protocol SOC.

[Bob Bruggeworth, President and CEO at Qorvo]

Leveraging AI-trained algorithms and superior radar functionality enabled by our ultra-wideband front ends, consumer applications such as smart locks can establish and differentiate end-user direction of travel and their intent to enhance security, safety, and efficiency. We continue to support the migration to Wi-Fi 7 with front-end wins spanning multiple years in routers, access points, and extenders. We also saw an increase in demand for our BAW filters across 2.4, 5, and 6 gigahertz for consumer and enterprise Wi-Fi markets.

[Bob Bruggeworth, President and CEO at Qorvo]

Lastly, we have begun development for Wi-Fi 8 front ends in alignment with market-leading chipset providers. Turning to defense and aerospace, we achieved a record quarter and record fiscal year in D&A revenue. This is the third consecutive year of year-over-year revenue growth. Qorvo is a leading supplier of high-performance products and foundry services to the U.S. government, defense primes, and other global defense and aerospace customers.

[Bob Bruggeworth, President and CEO at Qorvo]

The sales funnel for our defense and aerospace business currently exceeds $5 billion, and we see a path to scale this business both organically and inorganically to $1 billion annually. During the quarter, Northrop Grumman recognized Qorvo as one of their top supplier partners at their Supplier Excellence Awards. The award recognizes Qorvo for delivering U.S.-based BAW filter technologies that enhance national security for the U.S. and our allies. We were also recognized by BAE Systems for being a critical supplier for airborne electronic warfare and commercial airborne SATCOM applications.

[Bob Bruggeworth, President and CEO at Qorvo]

Looking at our defense business broadly, governments around the world are allocating a higher percentage of GDP to defense spending, and Qorvo is critical to many of the highest priority programs. We view this as a multi-year tailwind to revenue and diversification. Also, during the quarter, we launched next-generation silicon Ku-band SATCOM beamformer ICs for phased-array-based SATCOM user terminals.

[Bob Bruggeworth, President and CEO at Qorvo]

There is robust demand for high-speed, reliable connectivity around the globe, and the SATCOM terminal market is expected to see very strong growth over the next several years. In industrial and enterprise markets, customer demand continues to grow for Qorvo's data center power management ICs. We are leveraging our performance leadership and client SSDs as we pivot to higher-value SSD opportunities in enterprise and AI data centers. We also began sampling our next-generation motor drive SOC for industrial applications.

[Bob Bruggeworth, President and CEO at Qorvo]

The motor drive SOC integrates our third-generation microcontroller with our analog front end. Qorvo pioneered ARM-based motor drive SOCs over a decade ago, and commercial availability of our newest offering is expected next year.

[Bob Bruggeworth, President and CEO at Qorvo]

To continue growing our power franchise and deliver added flexibility to customer designs, we expanded our power management portfolio to include a brushless DC motor driver that pairs with a variety of MCUs and is optimized for a broad range of applications, including power and garden tools, drones, EVs, and e-bikes. Also, during the quarter, customers leveraged our ultra-wideband SOC to develop a range of monitoring, security, and radar-based sensing applications.

[Bob Bruggeworth, President and CEO at Qorvo]

Qorvo's fully integrated ultra-low-power SOC contains RF processing, memory, and onboard software, and it's optimized to support a broad set of use cases. Radar-based applications include intrusion detection, gesture recognition, vital sign monitoring, and active monitoring and tracking of room occupancy. Turning to infrastructure, inventories in our base station business have stabilized, and our customer demand for our small signal portfolio has strengthened.

[Bob Bruggeworth, President and CEO at Qorvo]

We are also in the early stages of DOCSIS 4.0 deployments, where Qorvo is a market leader. During the March quarter, we secured a new design win with a leading broadband supplier headquartered in Europe. In mobile, we expanded our opportunity at our largest customer beyond discrete components like tuners and integrated placements such as ultra-high-band PADs with the production ramp of our envelope tracking power management solution. Qorvo played a critical role in supporting this customer's spring phone launch.

[Bob Bruggeworth, President and CEO at Qorvo]

Our ET solution is mated with our internal baseband, and this represents a key design win and a durable multi-year content opportunity. For our largest customer, we are doing what we said during our investor day, which is to invest more and win more.

[Bob Bruggeworth, President and CEO at Qorvo]

For their upcoming fall launch, we have been awarded design wins supporting greater than 10% year-over-year content growth, and we are addressing additional content in future programs over multiple years. At our second-largest smartphone customer, Qorvo's design wins this year span our product portfolio. We are broadly represented in flagship and mid-tier smartphone launches ramping now and in additional programs launching throughout the year.

[Bob Bruggeworth, President and CEO at Qorvo]

Design wins in 2025 include low-band, mid-high-band, and ultra-high-band PADs, as well as mid-high secondary transmit and antenna tuning, discrete filters, and Wi-Fi 7 FEMs. We also secured Wi-Fi 7 design wins in support of multiple Android smartphone OEMs, and we are engaged on Wi-Fi 8 development with mobile Wi-Fi chipset providers. For Android OEMs based in China, shipments during the quarter supported 5G smartphones across the mid, premium, and flagship tiers.

[Bob Bruggeworth, President and CEO at Qorvo]

Though we continue to ship mid-tier design wins customers awarded to Qorvo prior to our pivot, all 5G product development in ACG is focused exclusively on premium and flagship tiers. In summary, we are seeing the positive effects of the actions taken to improve our performance. In HPA, a portion of the savings from our strategic exits of base station PAs and silicon carbide is supporting growth in our defense and aerospace, as well as our power management franchise.

[Bob Bruggeworth, President and CEO at Qorvo]

In CSG, we're leveraging decades of leadership in RF solutions, exceptional customer relationships, and our core R&D to broaden and accelerate growth in automotive connectivity and SOCs for ultra-wideband and Matter. In ACG, we've expanded our product portfolio for our largest customer with a successful ramp of ET power management, and we expect to build upon this with greater than 10% year-over-year content growth in our largest customer's 2025 fall launch.

[Bob Bruggeworth, President and CEO at Qorvo]

With that, I'll turn the call over to Grant.

[Grant Brown, CFO at Qorvo]

Thanks, Bob, and good afternoon, everyone. We delivered solid results for the March quarter, exceeding the midpoint of our guidance with revenue of $869 million and non-GAAP diluted earnings of $1.42 per share. Similarly, non-GAAP gross margin of 45.9% and non-GAAP operating expenses of $247 million were also better than the midpoint of our guidance, reflecting continued cost discipline across COGS and OpEx, including recent restructuring actions. In the March quarter, our largest customer represented approximately 43% of total revenue.

[Grant Brown, CFO at Qorvo]

For the full year of fiscal 2025, our two largest customers represented 47% and 10%, respectively. For fiscal 2025, in total, we achieved revenue of $3.7 billion and non-GAAP gross margin of 45.2%, up approximately 70 basis points compared to fiscal 2024, which is consistent with our commentary last year when we guided to year-over-year improvement.

[Grant Brown, CFO at Qorvo]

On the balance sheet, as of quarter end, we held approximately $1 billion in cash and equivalents. We currently have approximately $1.5 billion of long-term debt remaining and no near-term maturities. We ended the quarter with a net inventory balance of $641 million. This represents a decrease of $15 million sequentially and a decrease of $70 million on a year-over-year basis. Turning to the cash flow statement, in the fourth quarter, we generated operating cash flow of approximately $200 million and CapEx of $29 million, which resulted in free cash flow of $171 million.

[Grant Brown, CFO at Qorvo]

For fiscal 2025, in total, we generated free cash flow of $485 million, returned over $350 million to shareholders via share repurchases, and retired over $400 million of debt. Regarding our outlook for the current quarter, we are providing forward-looking quarterly guidance despite the continued uncertainty surrounding tariffs and broader macroeconomic conditions.

[Grant Brown, CFO at Qorvo]

Our view reflects numerous underlying assumptions, including those related to a dynamic global trade environment and ongoing supply chain challenges. For reference, in our June quarter guidance, we have assumed a direct tariff-related impact of less than $1 million. This represents a historical run rate plus relevant new tariffs that will impact the quarter.

[Grant Brown, CFO at Qorvo]

Beyond the June quarter, if the 90-day pause is not extended, relevant exemptions expire, and other retaliatory tariffs become permanent, we expect the direct tariff impact could rise to high single-digit millions per quarter in total across COGS, OpEx, and CapEx. While the timing and scope of these changes remain uncertain, we are actively monitoring the situation, working closely with customers, and taking action to mitigate the impact.

[Grant Brown, CFO at Qorvo]

With that context, our expectations for the June quarter are as follows: revenue of approximately $775 million plus or minus $25 million, non-GAAP gross margin between 42% and 44%, and non-GAAP diluted EPS between $0.50 and $0.75. As expressed during our previous call, the June quarter has multiple seasonal items to consider. June is the lowest seasonal quarter for our largest customer, and we are on the other side of the Galaxy ramp at Samsung.

[Grant Brown, CFO at Qorvo]

Like prior years, our D&A business will be down sequentially in June due to program timing. However, given the strength in bookings activity, our expectations for revenue in the June quarter are higher than what we anticipated when we provided guidance last quarter. We project non-GAAP operating expenses in the June quarter to be approximately $250 million.

[Grant Brown, CFO at Qorvo]

This includes other operating expense of $1-$2 million associated with the residual portions of our digital transformation project and other related items. Below the operating income line, non-operating expense is expected to be between $10 and $12 million, reflecting interest paid on our fixed-rate debt offset by interest income earned on our cash balances, FX gains, or losses, along with other items. Our non-GAAP tax rate for fiscal 2026 is expected to be between 18%-19%.

[Grant Brown, CFO at Qorvo]

However, the impact of global minimum tax legislation for U.S.-based companies under the new administration, as well as changes to international tax policy, remains uncertain. Qorvo continues to execute on initiatives to improve revenue mix and gross margin with contributions anticipated from each business segment. Beginning with ACG, we expect to enhance margins and reduce variability as our portfolio management efforts and pricing strategies reduce our exposure to mass-tier Android 5G.

[Grant Brown, CFO at Qorvo]

In HPA, the divestiture of our silicon carbide business is a margin accretive move, as is the expected growth within D&A. In CSG, gross margin will increase given the relocation of GaAs production to our high-volume Oregon site, and we expect operating margin will continue to improve as our SOC and automotive connectivity businesses scale. Additionally, we expect to expand gross margin in CSG as we transition our UWB products to external foundries from a 40-nanometer to a 22-nanometer production process.

[Grant Brown, CFO at Qorvo]

Qorvo's manufacturing strategy is to internally produce only the most differentiated elements of our products, to geographically align production with customers and suppliers, and leverage the scale, capabilities, and cost-effectiveness of our outsourced partners. For reference, over two-thirds of our production costs are external. This includes procured raw materials, wafers purchased from external foundries, as well as packaging, assembly, and test services provided by our OSAT partners.

[Grant Brown, CFO at Qorvo]

We continuously evaluate opportunities to reduce our capital intensity and product costs. As another step in this direction, we have decided to close our facility in Costa Rica to further consolidate our footprint and move closer to our customers and external manufacturing partners. The complexity of our solutions, coupled with global RF compliance requirements and multi-year design cycles, require considerable collaboration with our customers. We are working closely with our customers and the team in Costa Rica to ensure a smooth transition and expect this action to be completed early next calendar year.

[Grant Brown, CFO at Qorvo]

Regarding operating expenses, as a part of our ongoing efforts to drive operational efficiency and align our cost structure with long-term strategic priorities, we executed a meaningful workforce reduction late last year. This action was primarily focused on our mass-market Android business and the related corporate support functions.

[Grant Brown, CFO at Qorvo]

In parallel, we streamlined our digital transformation efforts, canceling elements of the project to ensure the scope aligns with the anticipated economic benefits. Finally, we sold our silicon carbide business, which will be accretive to both gross and operating margins in fiscal 2026. We remain committed to optimizing our portfolio and regularly evaluate each of our investment areas. Where businesses do not meet our financial or strategic objectives, we will continue to act decisively, whether through divestiture or exit, to focus our resources on core high-performing areas.

[Grant Brown, CFO at Qorvo]

We're confident that the steps we're taking today across our product portfolio, business segments, and manufacturing footprint enable us to expand growth, profitability, and diversification. We're reducing capital intensity and focusing our internal production only where it differentiates our products. The benefits of these strategic actions will become increasingly evident as we advance through fiscal 2026 and into fiscal 2027.

[Grant Brown, CFO at Qorvo]

Before we open up the call for questions, I'd like to reiterate that the purpose of today's call is to discuss our fourth quarter results and outlook. We appreciate you keeping your questions focused on those topics. At this time, please open the line for questions. Thank you.

[Operator]

Thank you. We will now begin the question and answer session. To ask a question, you may press star, then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. Request to all participants, please restrict yourself to one question and one follow-up.

[Operator]

At this time, we will pause momentarily to assemble our roster. Our first question comes from Thomas O'Malley from Barclays. Please go ahead.

[Thomas O'Malley, Equity Research Director at Barclays]

Hey, guys.

[Thomas O'Malley, Equity Research Director at Barclays]

Thanks for taking my question and congrats on the nice results. I wanted to ask about the commentary on content. The largest smartphone customer. Obviously, that's a really nice forecast for the year. Could you talk about things that are driving that? Obviously, you have an ET chip that's coming into play, but also you would be concerned in a broader environment that there may be pricing headwinds.

[Thomas O'Malley, Equity Research Director at Barclays]

Maybe just broadly, can you talk about your largest customers and if you're facing any sort of pricing squeeze over the next couple of quarters or if you're able to offset that in any way? Just want to understand the context there. Thank you.

[Bob Bruggeworth, President and CEO at Qorvo]

Sure. Thanks, Tom. I think we'll go ahead and let Frank Stewart, who runs the business, go ahead and answer your question for you.

[Frank Stewart, President of Advanced Cellular Group at Qorvo]

Yeah. Hi, Tom.

[Frank Stewart, President of Advanced Cellular Group at Qorvo]

Maybe I'll start with the largest customer side of your question. Yeah, we're really excited about the fall launch upcoming. Really proud of what the team accomplished in capturing content there across multiple product categories. It covers things that you know well and tenant tuning and switches. We've added filters there. We've continued to be strong in our ultra-high-band content. As we talked about for the spring launch, we're going to enjoy some envelope tracking content in those models as well.

[Bob Bruggeworth, President and CEO at Qorvo]

Dave, you want to talk about how things are going at Samsung as well?

[Dave Fullwood, SVP of Sales & Marketing at Qorvo]

Yeah. As I said, Tom, you asked about pricing too. I mean, we've talked a lot about what's been going on in the mass tier and the challenges that we face there. We've been exiting that part of the business.

[Dave Fullwood, SVP of Sales & Marketing at Qorvo]

We still see in that premium flagship tier, it's about performance, and that's where we're competing. Like Bob mentioned on the call, we had some nice content in our Galaxy S25 ramp. Still some phones coming in that platform that are yet to ramp. We talked last quarter, I think, about our content in the second-half flagships. This is kind of the flip and fold and Fan Edition type models. We had pretty low content last year.

[Dave Fullwood, SVP of Sales & Marketing at Qorvo]

We said we were going to win that back, and we have. We had less than $1 of content last year, and we've got multiple dollars of content. Very similar to what we have in the S25 ramping in the second half of the year. We feel pretty good about our position there.

[Thomas O'Malley, Equity Research Director at Barclays]

Super helpful on all the color.

[Thomas O'Malley, Equity Research Director at Barclays]

Just on the fiscal year, you guys had kind of previously talked about a little bit of a decline. One side of things, it sounds like you're seeing some real strength. Then on the Android side, you're obviously being more strategic in where you invest. If you look at the cadence for the year, which is something that I think is a little difficult to kind of model and look at, how fast should we be seeing Android fall off?

[Thomas O'Malley, Equity Research Director at Barclays]

Just because it looks like in the March quarter, you actually had a little bit of an uptick there. Is that last-time buys? How quickly is that going to fall off throughout the year?

[Bob Bruggeworth, President and CEO at Qorvo]

Thanks, Tom. This is Bob. Actually, we're going to see a little bit of an uptick this quarter in June, which is typically consistent with the last three years.

[Bob Bruggeworth, President and CEO at Qorvo]

We typically see Android up as a % of sales in our business, and it's going to be up slightly in dollars. It's going to, depending on what new phones that are launched that we're in and the decline in some of the mass-tier phones are ramping down. We're also enjoying good business. We talked about some of the U.S. customers, that being Google, obviously. We're doing well there as they ramp. Dave mentioned other phones. It has all to do with the timing of new phones and how well they sell. It is going to decline year over year, as we said. We're not backing away from that change.

[Thomas O'Malley, Equity Research Director at Barclays]

Thank you, guys.

[Operator]

Thank you. Our next question comes from Harsh Kumar from Piper Sandler. Please go ahead.

[Harsh Kumar, Managing Director and Senior Research Analyst at Piper Sandler]

Yeah. Hey, guys. Congratulations also on very nice quarter and results.

[Harsh Kumar, Managing Director and Senior Research Analyst at Piper Sandler]

Bob, maybe you could clarify something for us. You mentioned that you want an ET solution on the internal baseband for a customer. Are you sharing this with somebody? You also talked about sort of a nice double-digit kind of content increase. Is the content increase coming because the baseband is moving to other models, or is it coming because you're also winning stuff across the board in other categories as well? Just send another follow-up.

[Bob Bruggeworth, President and CEO at Qorvo]

Yeah. Thanks, Harsh. I'll go ahead and take the second question. I mean, as Frank's already outlined, we've picked up some share in a number of different buckets. We'll start there. In ET PMIC, we are sole sourced. We've been sole sourced when that first, the baseband started at Infineon that they used. Then it went to Intel, and now it's their internal modem.

[Bob Bruggeworth, President and CEO at Qorvo]

We continue to be sole sourced. It's a highly iterative process. They're very integral to work with the baseband. And as you know, I'll just use Qualcomm as an example, they were very tightly coupled with their own ET PMIC. It's the same way with this baseband.

[Harsh Kumar, Managing Director and Senior Research Analyst at Piper Sandler]

Understood. Thank you. Then, Bob, another clarification. I guess curious what you're seeing with your largest customers. There's been a lot of reports of pull forward companies. I don't blame them, but a lot of companies are doing stuff to avoid tariffs. I guess curious if you are seeing that and you think your results are reflecting that. If that's the case, when do you think you go back to normal? Or maybe you're not seeing it. I'd just love to understand what's happening.

[Bob Bruggeworth, President and CEO at Qorvo]

Yeah.

[Bob Bruggeworth, President and CEO at Qorvo]

I think one thing that people need to keep in mind here is they did launch a spring phone, which they typically do not. When you launch a new phone, you typically produce more to go ahead and stock your channels so that you get ready for the sell-through. We are expecting that to come down next quarter, which is typical when you launch a new phone. From that perspective, it is pretty normal. When I look at the overall business, we have seen some things move in the quarter, some things move out the quarter, kind of normal. I will stop there, Harsh. I mean, we are not seeing anything massive moving one way or another right now.

[Harsh Kumar, Managing Director and Senior Research Analyst at Piper Sandler]

Thank you. Yeah. No, I would reiterate that. I think we have seen some modest activity.

[Harsh Kumar, Managing Director and Senior Research Analyst at Piper Sandler]

It's only notable in light of the tariff environment, but not meaningful in terms of dollars, primarily smartphones generally, but nothing that suggests customers are overreacting in terms of push-ins or, excuse me, push-outs or pull-ins have been every quarter. Nothing abnormal there. Appreciate it, guys. Congrats again. Thank you.

[Bob Bruggeworth, President and CEO at Qorvo]

Thank you, Harsh.

[Operator]

Thank you. The next question comes from Chris Caso from Wolfe Research. Please go ahead.

[Chris Caso, Managing Director at Wolfe Research]

Yes. Thank you. Good evening. I guess the first question is regarding some of your comments about the direct tariff impact if things are in pause. You talked about high single-digit millions. Can you detail a little bit more of what your assumptions are behind that? What do you mean by that? In general, there is a lot of uncertainty with tariffs in the U.S.

[Chris Caso, Managing Director at Wolfe Research]

There's some concern about what tariffs may be charged and what might be paused going into China. Can you just kind of update us on your position and what your assumptions are right now?

[Grant Brown, CFO at Qorvo]

Hey, Chris, this is Grant. Let me spend some time on this one because I think it's an important question. The first part of it there is the assumptions themselves, at least in the high single-digit million. I wouldn't necessarily think of us as anticipating any twists or turns in the tariff environment. It's probably unknowable. You could think of if all of the worst things that we know of today would work against us, that would be how we would size it. It's an unlikely scenario, but wanted to highlight just in the grand scheme of things how small the overall impact could be.

[Grant Brown, CFO at Qorvo]

Maybe on that front, how we think about the tariff environment, it does remain dynamic and unpredictable. I can start there, and then we can talk a little bit about how we're managing it. We've had mitigation measures in place for quite a number of years, and today we continue to leverage those same tools. The situation's fluid, as we pointed out in my prepared remarks. In the June quarter, we've got about $1 million there or less than that. It represents a historical run rate, plus some of the new tariffs that are relevant in the quarter.

[Grant Brown, CFO at Qorvo]

That's across all of COGS, OpEx, and CapEx. It's probably better than feared. They're complex as to what goods they apply to, how they're calculated, and who pays them. All depends on the countries involved, the nature of the products, and relevant commercial terms.

[Grant Brown, CFO at Qorvo]

It is specific to any given company. Regardless, you should know that we are not disadvantaged due to our geographic presence. We have a hybrid manufacturing footprint, multiple qualified flows, and a lot of flexibility in how we serve our customers. That said, maybe a little bit of detail. I could break it into maybe four categories for you. The first would be U.S. to U.S., where a meaningful amount of our revenue comes from products that we manufacture in the U.S., and then we sell to U.S. customers.

[Grant Brown, CFO at Qorvo]

Our defense business is a good example of that, and it is sizable. It has some exposure related to input costs, such as aluminum, but generally very little tariff exposure. The international to U.S., in that case, there is not much product that comes back into the U.S. that is subject to tariffs. However, tariffs do increase the acquisition costs for factory equipment.

[Grant Brown, CFO at Qorvo]

In that particular scenario, the impact is largely CapEx-related. In an international to international scenario, we generate revenue from products that are built and sold outside the U.S. For example, our tuners and ET PMICs are fabbed at non-U.S. silicon foundries and then sold to international customers and contract manufacturers. That is a good example of things that are on that international to international exposure. Lastly, probably the most misunderstood is the U.S. to international category.

[Grant Brown, CFO at Qorvo]

In this case, our integrated module business is a good example. We produce intermediate goods such as wafers that contain our filters and PAs at our U.S. facilities, and then we ship those to bonded free trade zones. Once in Asia, our OSAT partners integrate those with a considerable amount of other content, non-U.S. components such as laminates, capacitors, etc.

[Grant Brown, CFO at Qorvo]

The bill of material contains dozens and dozens of components, and they substantially transform those raw materials into some finished goods. That is where the substantial transformation occurs in the country of origin as designated when the part is actually built during assembly. We're actually made in China, sold in China, if you will. There is no noticeable impact. Obviously, the tariffs are complicated, and we're managing it, but I think it comes down to each company's particular circumstances.

[Grant Brown, CFO at Qorvo]

The overall impact being generally small today. Obviously, there could be some broader demand-related impacts, but just in so far as the direct impacts, I think that helps shape Qorvo's exposure for you. We have a lot of options and flexibility, and we'll continue to leverage those.

[Chris Caso, Managing Director at Wolfe Research]

That's very helpful, and thank you very much for the detailed answer.

[Chris Caso, Managing Director at Wolfe Research]

For my follow-up, I guess I wanted to get to the fiscal 2026 guidance. You had mentioned, and I guess perhaps it was not guidance, but it was some indication of kind of flat revenue, 150 basis points gross margin expansion. In the current environment, is that still a good model for us to follow?

[Grant Brown, CFO at Qorvo]

Sure. I'll take that one too. It is probably worth reflecting on it. I'm not going to restate it here, what we said last quarter, but we did not have overly ambitious forecasts to begin with. We are making substantive changes to our business this year in fiscal 2026, and our commentary has reflected that. We have removed base station PAs and silicon carbide business. We have sold, and we are exiting $150 million-$200 million worth of lower margin Android business. We are making some substantive changes.

[Grant Brown, CFO at Qorvo]

I mean, if you think of the drivers on the year, D&A is arguably cyclical, but far less correlated to the macroeconomy than perhaps consumer-related end markets. Similarly, we're seeing the content that Frank talked about at our largest customer growing over 10% and added a new revenue category there with the ET PMIC. There are some secular trends here that we're still seeing that help buoy our perspective on the year.

[Grant Brown, CFO at Qorvo]

All that said, we're repositioning the business for long-term success. Fiscal 2026 is really more about execution and margin improvement to create diversification opportunities outside of mobile where we're on track. We haven't seen anything that materially changes our forward view, but acknowledge that there are potential for indirect tariff impacts.

[Grant Brown, CFO at Qorvo]

I mean, in the meantime, we'll just continue to issue quarter-by-quarter guidance, incorporating all that we know at the time it's issued and executing on the things that are under our control to drive those financial results we talked about last quarter.

[Chris Caso, Managing Director at Wolfe Research]

Got it. Thank you.

[Operator]

Thank you. The next question comes from Karl Ackerman from BNP Paribas. Please go ahead.

[Karl Ackerman, Managing Director at BNP Paribas]

Yes. Thank you. I have two, please. First, is your content growth with the largest customer coming from your attach rate on their own baseband, or are you also seeing content on third-party basebands as well? Another follow-up, please.

[Frank Stewart, President of Advanced Cellular Group at Qorvo]

Yeah. Hi, this is Frank again. Both. The team did a good job of succeeding on content across the board.

[Frank Stewart, President of Advanced Cellular Group at Qorvo]

I think we've been clear that when it comes to our ET PMIC, that is unique to the internal baseband, but the content that we captured on all the other product categories mentioned is broad-based across both.

[Karl Ackerman, Managing Director at BNP Paribas]

Helpful. Thank you. Where are you on working through previously under absorbed inventory? Do you foresee tariffs to impact your China-based demand? I suppose if demand were to moderate, is the margin associated with the China-based demand higher than corporate average? If you could just follow up on that, that'd be great. Thank you.

[Bob Bruggeworth, President and CEO at Qorvo]

We've actually made really good progress bringing down our inventory overall. Very proud of that. It's unlocking some free cash flow for us. I think it's been a positive trend for us. We didn't overbuild.

[Bob Bruggeworth, President and CEO at Qorvo]

We brought utilization down very quickly, quite some number of quarters ago in order to react to it, and we've worked through the inventory levels successfully. We don't see anything abnormal from an inventory perspective or expect there to be a noticeable impact at this point.

[Karl Ackerman, Managing Director at BNP Paribas]

Thank you.

[Operator]

Thank you. The next question comes from Srini Pajjuri from Raymond James. Please go ahead.

[Srini Pajjuri, Managing Director at Raymond James]

Thank you. First, a clarification, and then I have a question on the clarification. You talked about the $150 million-$200 million headwind from exiting the Android, I think low-end Android last quarter. Is that still on track? Are you tracking better or worse? If you can clarify that, then I have a question.

[Frank Stewart, President of Advanced Cellular Group at Qorvo]

Yeah. Thanks, Srini. It's on track, playing out as we expected.

[Srini Pajjuri, Managing Director at Raymond James]

Okay. Thank you.

[Srini Pajjuri, Managing Director at Raymond James]

Then, Bob, on the D&A, looks like the business has been faring quite well, and some of the trends that you highlighted make a lot of sense. You also talked about potentially getting to a $1 billion annual run rate. Could you give us maybe some color as to where the business is today in terms of run rate? Also in terms of product categories and maybe geographic exposure, if you could give us because we do not get a lot of details on this business. I think any color on the business would be helpful in terms of the growth drivers. Thank you.

[Philip Chesley, President of High Performance Analog at Qorvo]

Yeah. Srini, this is Philip Chesley. I'll maybe dive into that a little bit as well. I think kind of break down your question here.

[Philip Chesley, President of High Performance Analog at Qorvo]

I think Bob said in his prepared remarks that we have over a $5 billion design win funnel right now. We sized the business, I believe it was last quarter or so, at around $400 million. When you look at our design win funnel, it really is broken pretty evenly between the big end market segments that we kind of play in today.

[Philip Chesley, President of High Performance Analog at Qorvo]

If you look at that, that's radar comms, electronic warfare with our solid-state PA technology that we have, which is high power RF, space and satellite-based comms, SATCOM, differentiating that between space-based, more ground-based kind of SATCOM terminal business, as well as missile applications, whether that's traditional, hypersonic. We touch a lot of most of the segments in the D&A space.

[Philip Chesley, President of High Performance Analog at Qorvo]

When you look at where we're winning, it's really driven around this big upgrade cycle that we've been seeing for a while, right? We've talked about it at investor day, where whether it's an older asset, whether that's a ship or a plane, it needs upgraded radar capability. Whether it's a new system, I mean, they just announced the F-47 as an example, right? That's going to require a lot of advanced radar platforms, that is right technologies, that is what we provide. You look at that. The other thing I would say is that the DOD has an approved continual resolution right now for FY2025.

[Philip Chesley, President of High Performance Analog at Qorvo]

If you look at where that is focused, that's focused on deterring China, that's focused on hypersonics, that's focused on alternative GPS, that's focused on UAVs, all segments where we play and have wins in big programs. Now, we can't mention them all. We're under contract. I can't give specifics.

[Philip Chesley, President of High Performance Analog at Qorvo]

The other thing that gets me excited as well, you look at the budget for FY 2026, they already are talking about $150 billion worth of additions over the next few years to really beef up advanced technology platforms here in the U.S. I think one of the things that we haven't sized, because it's relatively new, you look at the foreign military sales and what's happening in Europe with their kind of rebuilding of their military capability.

[Philip Chesley, President of High Performance Analog at Qorvo]

What I'm hearing talked about is that that's a $1 trillion opportunity upgrade over the next few years, over the next 5-10 years as they do that. Today, we have, I would say, a meaningful percentage of our revenue in D&A that's foreign military sales. We're engaged with every one of the key customers in Europe in particular, but not just Europe, outside of Europe as well.

[Philip Chesley, President of High Performance Analog at Qorvo]

I think the last thing that I would, well, two last things I'd leave you with. One is that the other area that I think is exciting is you see a lot of these what I'll call new tech defense players. I won't list them by name, but there's a lot of new Silicon Valley entrants that are coming in and coming in with new technologies that they're trying to move faster than what they ever have.

[Philip Chesley, President of High Performance Analog at Qorvo]

We have really strong partnerships with those customers. I think that's big for us. Last thing I would say, and again, I'm saying this because we don't get to talk about this a lot, is that I want to remind everyone, Qorvo is really unique in this space.

[Philip Chesley, President of High Performance Analog at Qorvo]

We have most of the key RF technology onshore that are needed for these platforms, whether that's GaN, whether that's GaAs, beamforming through our Anokiwave acquisition, BAW filters, low frequency, high frequency, high power solid-state PAs, which are critical for electronic warfare applications, and we have that advanced RF packaging. I can't think of a single other company out there that has all of that in one place. I think that's why you see such excitement around it and our funnel really accelerating over the last year or so.

[Srini Pajjuri, Managing Director at Raymond James]

Thanks, Phil. It's very detailed.

[Srini Pajjuri, Managing Director at Raymond James]

I appreciate it.

[Operator]

Thank you. The next question comes from Edward Snyder from Charter Equity Research. Please go ahead.

[Edward Snyder, Managing Director at Charter Equity Research]

Thanks a lot. Grant, based on the number you just gave for your largest customer with the fiscal year, it looks like you were flat year over year in total revenue. We can talk different unit volumes, etc., but it kind of speaks to maybe I know you've gotten some content gains on the last fall's phone, but it doesn't seem like you got a lot of boost from the spring phone. One, I want to get your feeling on, were the content gains material and unit volumes just weak, or why are we seeing kind of flat? Secondarily, based on even our tear down, it looks like your content might have been a little bit light.

[Edward Snyder, Managing Director at Charter Equity Research]

Without the ET PMIC, it would have been light on the spring phone. With the ET PMIC, it looks about even, maybe still a little bit down. Is that a correct assessment? Is that the baseline we should expect from the internal modem phone for this year or next year? I have a follow-up.

[Frank Stewart, President of Advanced Cellular Group at Qorvo]

Yeah. Hey, Ed. This is Frank. Maybe let me take the last one with respect to the SE that was just released. Maybe I could clarify. That is definitely what I would consider one of their consumer SKUs. We have different content across different phone types. For a consumer SKU for Qorvo, that was actually a pretty good phone for us. We are pretty happy with our dollar content there. Maybe that is the first clarification.

[Frank Stewart, President of Advanced Cellular Group at Qorvo]

I'll let you do your follow-on question, but I've got some more thoughts for you that I'm guessing will correlate.

[Edward Snyder, Managing Director at Charter Equity Research]

Okay. In terms of tariffs, you've had several module houses. Correct me if I'm wrong, but in your latest filings, you had module assembly in Costa Rica, Korea, Germany, and China. You're closer to Costa Rica to consolidate. I understand that. It's an old TriQuint facility. Does that mean most of this stuff will shift to Asia, or are you going to try to distribute? How are you working that business? That seems to be a critical factor in determining where the tariffs are going to wind up in the end.

[Bob Bruggeworth, President and CEO at Qorvo]

Yeah. Ed, this is Bob. I want to make sure we're clear.

[Bob Bruggeworth, President and CEO at Qorvo]

What was done in Costa Rica was really the filter technologies there, the final, we'll call backend packaging there, which is then shipped to our module manufacturers, whether they're in China or Vietnam or wherever they are in the world. We are moving that to Asia. In Germany, that does not build modules. That builds product for us, the CATV line amplifiers, which is nothing like anything in mobile. I just want to make sure we're clear on those factories do not build modules. Costa Rica, nor Germany.

[Dave Fullwood, SVP of Sales & Marketing at Qorvo]

Ed, maybe just to follow up on your question regarding Asia, we have multiple flows for a number of these products as well as multiple partners that we can use. Depending on the optimal structure, we'll work that with our suppliers and partners. We have a lot of options and flexibility as it relates to tariffs.

[Frank Stewart, President of Advanced Cellular Group at Qorvo]

Yeah. Ed, if I could, this is Frank. I was going to circle back to answer what might have been your broader question. Maybe to give as much color as I can at our largest customer, there's actually multiple product types where there's two suppliers that share content when they service that customer. And Qorvo, for example, our antenna tuning, maybe just to clarify on that topic, Qorvo has actually shared that antenna tuning content with another supplier for a number of years, actually going all the way back to 2020. It's the same situation we have for ultra high band. It's a similar situation we have for discrete filters where Qorvo has shared content with some other supplier for multiple generations.

[Frank Stewart, President of Advanced Cellular Group at Qorvo]

If you think within that environment, within that environment that we've been in for multiple years, as we said before, Qorvo is on track to capture greater than 10% content upside in this year, this fall model. That's something we're really excited about. When you look forward, we see a similar environment going forward that I just described. In that environment, we're excited about the additional content that we're working to gain there.

[Edward Snyder, Managing Director at Charter Equity Research]

I understand it's very difficult to predict because of the wackiness of this year, next year in terms of having two phones and that sort of thing too.

[Edward Snyder, Managing Director at Charter Equity Research]

Your 10% content increase year over year, can you just maybe give us a little bit of idea how that, what assumption you're using in terms of split between the internal versus, say, the Qualcomm in the fall that drives you that number?

[Bob Bruggeworth, President and CEO at Qorvo]

Yeah. This is Bob. My usual line when we get to this place is we don't comment on future architectures. Obviously, we know it because we have to build to it, but it's not something we can comment on here.

[Edward Snyder, Managing Director at Charter Equity Research]

Okay. Thanks, guys. Thanks.

[Operator]

Thank you. The next question comes from the line of Gary Mobley from Loop Capital. Please go ahead.

[Gary Mobley, Managing Director at Loop Capital]

Hey, guys. Most of the juicy topics have been addressed, but I'll do my best here. Do you still feel comfortable with the HPA and CSG businesses growing a double-digit % in fiscal year 2026?

[Gary Mobley, Managing Director at Loop Capital]

Within those two segments, how much of business would you characterize as maybe being classically technical or subject to ebbs and flows in distribution of customer inventory and on that specific prior? You've seen any sort of green shoots in terms of order and backlog, Phil?

[Bob Bruggeworth, President and CEO at Qorvo]

Gary, you were pretty choppy. Let me first start with, I believe your first question was our outlook for HPA and CSG growing double digits this year. The answer is yes. The second part, I'm not sure we totally understood. We're not counting on any inventory builds or anything like that at customers. This is we're in the right places. Philip's done a great job talking about D&A. I'll let Eric talk a little bit about CSG and where he's seeing growth this year, but.

[Eric Creviston, President of Connectivity and Sensors Group at Qorvo]

Sure. Sure.

[Eric Creviston, President of Connectivity and Sensors Group at Qorvo]

In CSG, of course, the largest revenue segment today is Wi-Fi, in particular, high-performance Wi-Fi transitioning 6 to 7 and already beginning R&D on 8. That has dollar content growth just as we have seen in multiple generations of cellular RF. I think that is moving at a pretty high velocity. We are filling channel right to demand, and demand is moving out for new base stations and Wi-Fi access points for industrial and enterprise and so forth.

[Eric Creviston, President of Connectivity and Sensors Group at Qorvo]

That is the largest segment. It certainly has growth opportunity with content. Most of the investment is going into the SoC business and the sensor business today. In the SoC business, we are looking at BLE Matter as well as ultra-wideband, both experiencing really rapid growth relative to our average. I have been particularly excited, actually, about the Matter growth opportunity.

[Eric Creviston, President of Connectivity and Sensors Group at Qorvo]

We're not the first in that space, but we've got some unique capability we're bringing to it. Design traction and even volume ramping is going very well. Ultra-wideband, of course, we are a leader in technology there. Automotive has gotten very, very strong for us in terms of design in. It takes quite a while, of course, to get that to production revenue, but once we do, we'll be running for many years.

[Eric Creviston, President of Connectivity and Sensors Group at Qorvo]

We're engaged across a number of very large opportunities, and it's going very well in auto. Ultra-wideband, I think we're leading in the other applications, in particular, connected home applications. We've got a lot of opportunity there and also in other sort of lighting applications, as we mentioned, with Matter. Really, across the board, a lot of opportunities driving these new technologies.

[Eric Creviston, President of Connectivity and Sensors Group at Qorvo]

The wheel's just beginning to spin and pick up momentum here.

[Frank Stewart, President of Advanced Cellular Group at Qorvo]

The other, Eric, is the indoor location and real-time location services. We talked about that ramping. That is ramping now. It takes time. It's another market that takes a while to develop, but that will start to build on itself as we head through this fiscal year and into the next couple of years.

[Gary Mobley, Managing Director at Loop Capital]

Thank you for that. Grant, just a quick follow-up. Are you still expecting OpEx to hover in this $250 million per quarter level for the balance of fiscal year 2026?

[Grant Brown, CFO at Qorvo]

I think you were referring to maybe our guidance for the year quarterly for OpEx at $250 million. We still believe that's a reasonable threshold, plus or minus 2-3% maybe. There are seasonal impacts. There are potentially other items in there.

[Grant Brown, CFO at Qorvo]

I'd call out the weakness in the US dollar is one that works against us insofar as our OpEx, again, not necessarily meaningful on a normal basis, but should it continue to weaken significantly, that could add to OpEx and other seasonal factors. Generally, that's a good working assumption as the baseline.

[Eric Creviston, President of Connectivity and Sensors Group at Qorvo]

Thank you.

[Operator]

Thank you. The next question comes from Timothy Arcuri from UBS. Please go ahead.

[Marcus Yang, Research Associate at UBS]

Thank you, Marcus Yang I'm for Tim. Guys, I just wanted to ask about tariffs' impact, and you mentioned taking steps to limit the impacts. Can you talk about exactly what is it that you're doing? We know you benefit from tariff-free zones in China, but what exactly are you doing to limit the impact here?

[Bob Bruggeworth, President and CEO at Qorvo]

Yeah, sure. I mean, we have a pretty experienced team, right?

[Bob Bruggeworth, President and CEO at Qorvo]

I mean, you go all the way back to Huawei's ET being banned, and there were similar dynamics in play there. We successfully navigated those challenges before, and we identified the same solutions that are being used and have been for quite some time and will continue to use. We will optimize around those. We have flexibility in our supply chain. We have alternate second sources.

[Bob Bruggeworth, President and CEO at Qorvo]

We have been collaborating with customers on their mitigation strategies and the locations where they work and produce their end products. At the end of the day, I think it really comes down to the country of origin question, right? I mean, we have a substantial transformation in the parts when they are built, assembled, and tested in China and sold to Chinese OEMs or contract manufacturers. There is a, I think, probably misunderstood, but a really key element of what is going on here.

[Marcus Yang, Research Associate at UBS]

Got it. Okay. And then just one quick one. I just want to double-click again on the demand pulling point that was made previously on the call, but in the context of your guidance. How much of the demand into the June quarter, in your view, could be related to tariffs?

[Grant Brown, CFO at Qorvo]

This is Grant. Let me take that one. I think what you're alluding to maybe is some pull-ins related to tariff activity. I mean, like we had commented, we've seen modest activity. It's only notable in the light of the tariff discussion, but it's not meaningful in terms of dollars. It's largely smartphones. We're not seeing any customers overreacting, pushing, or excuse me, pull-ins and push-outs occur every quarter. It's relatively normal. I don't know, Dave, if you have any.

[Dave Fullwood, SVP of Sales & Marketing at Qorvo]

Yeah.

[Dave Fullwood, SVP of Sales & Marketing at Qorvo]

I can shed some light on that too, in particular with some of our customers in China. Of course, initially, when all this stuff gets announced, it creates a bit of panic, and people just do not understand how things are going to work, right? We get on calls, and we kind of work through our supply chain, their supply chain, and what are the real risks and whether they can be mitigated or not.

[Dave Fullwood, SVP of Sales & Marketing at Qorvo]

I can tell you that a lot of that activity has died down, right? As people really start to understand the situation, really understand what Grant described in terms of how country of origin is determined, all that activity kind of starts to fade away. The motivation to change their demand profile goes away as well. That is kind of what we are seeing play out.

[Marcus Yang, Research Associate at UBS]

Thanks, guys. Very helpful.

[Operator]

Thank you. We'll take that as the last question for today. This concludes our question and answer session. I would now like to turn the conference back over to the management for closing remarks.

[Bob Bruggeworth, President and CEO at Qorvo]

Want to thank everyone for joining us on tonight's call. We appreciate your interest. We look forward to speaking with many of you at our upcoming investor events. Thanks again. Hope you have a great evening.

[Operator]

Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Participants

Executives

• Eric Creviston, President of Connectivity and Sensors Group
• Dave Fullwood, SVP of Sales & Marketing
• Bob Bruggeworth, President and CEO
• Philip Chesley, President of High Performance Analog
• Frank Stewart, President of Advanced Cellular Group
• Grant Brown, CFO
• Doug DeLieto, VP of Investor Relations

Analysts

• Chris Caso, Managing Director at Wolfe Research
• Karl Ackerman, Managing Director at BNP Paribas
• Harsh Kumar, Managing Director and Senior Research Analyst at Piper Sandler
• Srini Pajjuri, Managing Director at Raymond James
• Thomas O'Malley, Equity Research Director at Barclays
• Gary Mobley, Managing Director at Loop Capital
• Edward Snyder, Managing Director at Charter Equity Research
• Marcus Yang, Research Associate at UBS