Qorvo (QRVO) Financials

Qorvo’s latest results show a significant improvement in profitability compared with the weak results reported during fiscal 2025. In Q1 fiscal 2027, revenue was $784.8 million, down from $808.3 million in the prior quarter and below the $1.06 billion reported in Q2 fiscal 2026. However, gross profit increased to $401.0 million, producing a gross margin of approximately 51.1%. Operating income rose to $96.8 million, or roughly 12.3% of revenue, compared with $31.5 million in Q4 fiscal 2026.

Net income was $85.8 million, or $0.96 per diluted share, versus $29.7 million, or $0.32 per share, in the prior quarter. The improvement reflects stronger gross margins and lower operating expenses, particularly selling, general and administrative costs. Research and development spending remained elevated at $172.4 million, indicating that Qorvo continues to invest heavily in product development.

The balance sheet remains reasonably liquid. Qorvo ended the quarter with $1.33 billion in cash and equivalents and $2.44 billion in current assets against $688 million in current liabilities, implying a current ratio of approximately 3.5. Long-term debt was largely unchanged at $1.55 billion, leaving the company with modest net debt of approximately $220 million. Operating cash flow was $139.5 million, and capital expenditures of $24.1 million resulted in estimated free cash flow of approximately $115.4 million.

• Profitability has recovered: Q1 fiscal 2027 operating income of $96.8 million and net income of $85.8 million were substantially higher than the $31.5 million and $29.7 million reported in Q4 fiscal 2026.
• Gross margin improved: The latest gross margin was approximately 51.1%, up from 48.9% in Q4 fiscal 2026 and 46.8% in Q1 fiscal 2026, suggesting better product mix, pricing or manufacturing efficiency.
• Cash generation remains positive: Qorvo produced $139.5 million of operating cash flow and approximately $115.4 million of free cash flow in the latest quarter despite a sequential decline in operating cash flow.
• Liquidity is strong: Cash and equivalents of $1.33 billion and a current ratio near 3.5 provide a substantial cushion for operations, debt service and future investment.
• Debt is stable and manageable: Long-term debt has remained near $1.55 billion across recent quarters, while Qorvo continues to make debt repayments without relying on significant new borrowing.
• Share count has declined: Diluted weighted-average shares fell to 89.4 million in Q1 fiscal 2027 from 93.5 million in Q4 fiscal 2026, partly reflecting the company’s prior share-repurchase activity and supporting per-share earnings.
• Revenue recovery is incomplete: Revenue has improved substantially from the fiscal 2025 downturn, but the latest $784.8 million was below the $993.0 million in Q3 fiscal 2026 and $1.06 billion in Q2 fiscal 2026.
• Operating cash flow is volatile: Cash flow from operations was $139.5 million in the latest quarter, compared with $276.3 million in Q4 and $265.4 million in Q3. Changes in operating assets and liabilities reduced cash flow by $30.9 million.
• Customer and end-market cyclicality remain a risk: Quarterly revenue has fluctuated widely, ranging from $651.2 million in Q1 fiscal 2024 to more than $1.1 billion in earlier periods, highlighting Qorvo’s exposure to changing semiconductor demand.
• Asset concentration warrants monitoring: Goodwill of $2.35 billion and intangible assets of $106.3 million represented a large portion of total assets. Future operating weakness could increase the risk of impairment charges, which affected results in prior periods.

Overall, Qorvo’s financial statements point to a company emerging from a difficult operating period, with improving margins, positive free cash flow and strong liquidity. The main questions for investors are whether the margin recovery can continue and whether revenue can return to the levels seen earlier in fiscal 2026. Until revenue growth becomes more consistent, the stock’s fundamental outlook remains improved but still cyclical.