Qorvo Beats Q1 Earnings Estimates Despite Lower Y/Y Revenues

QRVO tops Q1 earnings and revenue estimates despite lower smartphone-related sales, as strong growth in High-Performance Analog and disciplined cost management lift margins.

Zacks Equity Research

3 min read

Qorvo, Inc. QRVO reported strong first-quarter fiscal 2027 results, with both adjusted earnings and revenues surpassing the Zacks Consensus Estimate.

During the quarter, lower smartphone-related revenues weighed on the company’s overall sales. However, solid growth in the High-Performance Analog business, along with disciplined cost management, helped improve profitability and margins.

Net Income

On a GAAP basis, the company reported a net income of $85.8 million or 96 cents per share compared with $25.6 million or 27 cents per share in the prior-year quarter. Despite lower net sales, lower cost of goods sold boosted the bottom line during the quarter.

Non-GAAP net income was $146.6 million or $1.64 per share compared with $86.5 million or 92 cents per share in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of $1.10 per share.

Qorvo, Inc. Price, Consensus and EPS Surprise

Qorvo, Inc. price-consensus-eps-surprise-chart | Qorvo, Inc. Quote

Revenues

Net sales during the quarter declined to $784.8 million from $818.8 million in the prior-year quarter, primarily due to soft demand in the Advanced Cellular Group segment. The top line beat the Zacks Consensus Estimate of $745.8 million.

Segmental Performance

The High-Performance Analog segment contributed $206.3 million in revenues, up from $137.4 million in the year-ago quarter, reflecting continued strength across its diversified portfolio, including defense and aerospace applications.

Revenues from the Connectivity and Sensors Group segment were $101.9 million compared with $110.2 million in the year-earlier quarter. Net sales in the Advanced Cellular Group segment were $476.6 million, down 16.6% year over year due to weaker demand from certain smartphone customers and changes in product mix.

Other Details

Non-GAAP gross profit was $414.3 million compared with $360 million in the year-ago quarter, with respective margins of 52.8% and 44%. Non-GAAP operating expenses decreased to $236.6 million from $251.8 million a year ago. Non-GAAP operating income was $177.6 million compared with $108.2 million in the year-ago quarter.

Cash Flow & Liquidity

As of June 27, 2026, QRVO had $1.33 billion in cash and cash equivalents and $1.55 billion of long-term debt. During the first quarter of fiscal 2027, the company generated $139.5 million in cash from operations compared with $182.9 million in the year-earlier quarter.

Zacks Rank

Qorvo currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Arista Networks Inc. ANET is scheduled to release second-quarter 2026 earnings on Aug.4. The Zacks Consensus Estimate for earnings is pegged at 89 cents per share, suggesting growth of 21.92% from the year-ago reported figure.

Arista has a long-term earnings growth expectation of 19.86%. The company delivered an average earnings surprise of 8.31% in the last four reported quarters.

Motorola Solutions, Inc. MSI is set to release second-quarter 2026 earnings Aug.5. The Zacks Consensus Estimate for earnings is pegged at $3.86 per share, implying growth of 8.12% from the year-ago reported figure.

Motorola has a long-term earnings growth expectation of 9.47%. The company delivered an average earnings surprise of 5.17% in the last four reported quarters.

HubSpot, Inc. HUBS is scheduled to release second-quarter 2026 earnings on Aug.5. The Zacks Consensus Estimate for earnings is pegged at $3.02 per share, suggesting growth of 37.9% from the year-ago reported figure.

HubSpot has a long-term earnings growth expectation of 20.84%. The company delivered an average earnings surprise of 4.97% in the last four reported quarters.

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