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what it is
Qorvo makes the radio chips that let your phone, base station, and defense hardware actually talk to each other.
how it gets paid
Last year Qorvo made $3.7B in revenue. mobile rf solutions was the main engine at $2.20B, or 60% of sales.
why growth slowed
Revenue fell 1.3% last year. The 45.1% gross margin mattered most because margin recovery tells you the revenue bounce was not just low-quality volume.
what just happened
Qorvo's latest quarter beat expectations, with EPS at $2.17 versus a $1.85 estimate.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
30/100 earnings predictability — expect surprises
14.0x trailing p/e — the market's not buying it — or you found a deal
10.0% return on capital — nothing to write home about
$6.90 fy2026 eps est
xvary composite: 58/100 — below average
What they do
Qorvo makes the radio chips that let your phone, base station, and defense hardware actually talk to each other.
Qorvo sells parts you do not see but you notice when they fail. Its RF solutions (radio-frequency chips → the parts that send and receive signals → your phone becomes useless without them) sit in phones, networks, and defense gear. The company spends 20% of sales on R&D, which is a large tax on copycats and a reason customers stick around.
How they make money
$3.7B
annual revenue · their business grew -1.3% last year
mobile rf solutions
$2.20B
3.0%
defense and aerospace
$0.50B
+10.0%
wireless infrastructure
$0.45B
+4.0%
connectivity, industrial and auto
$0.55B
+6.0%
The products that matter
analog chip design
Analog and power solutions
part of a $3.7B revenue base
these chips sit inside the same $3.7B business that still produces a 45.1% gross margin. That tells you the product set has value even before growth shows up.
45.1% gross margin
signal processing chips
Mixed-signal integrated circuits
25.0% operating margin
mixed-signal products help turn revenue into profit, and the current business still converts $3.7B of sales into a 25.0% operating margin. The question is whether demand can do more of the work next.
profitable mix
wireless rf chips
RF solutions for wireless infrastructure
30 / 100 predictability
this is where end-market swings matter fast. When earnings predictability is only 30 / 100, you should expect wireless demand and customer timing to move the story around.
cyclical exposure
Key numbers
$6.90
fy2026 eps est
$5B
fy2028 rev est
14.0x
trailing p/e
45.1%
gross margin
Gross profit kept about 45.1% of each revenue dollar.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 35 / 100
- long-term debt $1.5B (16% of capital)
- net profit margin 16.0% — keeps 16 cents of every dollar in revenue
- return on equity 12% — $0.12 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in QRVO 3 years ago → it's now worth $9,050.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Qorvo's latest quarter beat expectations, with EPS at $2.17 versus a $1.85 estimate.
Quarterly revenue reached about $993M, up 8.4% vs. prior year, while gross margin came in at 45.1%. That is the good version of Qorvo: better demand and solid chip pricing showing up at the same time.
$993M
revenue
$2.17
eps
45.1%
gross margin
the number that mattered
The 45.1% gross margin mattered most because margin recovery tells you the revenue bounce was not just low-quality volume.
-
qorvo inc. has agreed to be acquired by skyworks solutions.the two wireless chipmakers inked a definitive merger agreement in a cash-and-stock transaction valuing the combined company at roughly $22 billion. qrvo shareholders will receive $32.50 in cash plus 0.96 of a share of skyworks common stock for each share held.
-
the total $114.00 per share consideration represents a 24% premium to qorvo’s preannouncement closing price on october 27th.the boards of both companies approved the transaction, which is set to close in early calendar year 2027.
-
upon closing, qrvo shareholders will own 37% of the combined entity.
-
there seem to be many positives to the marriage.the combination would create a global leader in high-performance radio frequency components and semiconductor solutions that support a broad array of technologies. with global demand for radio frequency content rising (namely from 5g and the expansion of aienablement), the combination boasts complementary strengths. skyworks solutions specializes in high volume consumer wireless radio frequency front-end modules, while qorvo manufacturers broader radio frequency and power solutions. the deal is projected to deliver immediate accretion to earnings and generate at least $500 million in annual cost within the first three years of integration.
-
fiscal second-quarter results were solid (quarter ended september 27th).
source: company earnings report, 2026
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What could go wrong
the #1 risk is wireless and broader chip demand staying soft long enough to turn a cheap multiple into a value trap.
high
Revenue stays stuck
Sales already slipped to $3.7B, down 1.3% from last year. If that base does not start moving higher, the stock stays in prove-it mode.
If revenue cannot move toward the $5B FY2028 estimate, the $111 midpoint target starts to look generous.
med
Profitability slips before growth returns
A 45.1% gross margin and 25.0% operating margin are doing a lot of the work right now. If mix or utilization worsens, the cheap multiple can get cheaper.
The current 16.0% net margin leaves room to fall if revenue weakens again.
med
Low predictability remains the story
Earnings predictability is just 30 / 100. In human terms: this is not the kind of semiconductor name where estimates feel settled.
That uncertainty helps explain why 14.0x earnings has not been enough to attract a premium valuation.
A lot of the upside case rests on one thing: revenue recovering from $3.7B toward the $5B longer-range estimate while margins stay healthy.
source: institutional data · regulatory filings · risk analysis
Pay attention to
valuation
14.0x earnings is the hook
You do not usually get a profitable semiconductor stock at this kind of multiple unless the market thinks something is off. That discount is the opportunity and the warning label.
growth
The revenue line has to turn
Revenue fell 1.3% from last year. Until that changes, every valuation argument is doing work that operating results are not.
forecast
$5B by FY2028 is the scoreboard
That forecast is about 35% above today's $3.7B base. You do not need perfection. You do need a credible path.
consistency
30 / 100 predictability changes how you size conviction
Low predictability means estimate risk is part of the package. If you own QRVO, you are owning a setup that still needs proof, not a finished compounding story.
Analyst rankings
earnings predictability
30 / 100
in human-speak, analysts do not view Qorvo's earnings stream as especially steady.
risk rank
3
That puts it around the middle of the pack on overall stock risk. Not a bunker. Not chaos.
price stability
35 / 100
The stock has not been especially smooth. The three-year underperformance already told you that, but the stability score confirms it.
source: institutional data
Institutional activity
270 buyers vs. 205 sellers in 3q2025. total institutional holdings: 86.7M shares.
source: institutional data
Price targets
3-5 year target range
$63
$159
$89
current price
$111
target midpoint · +24% from current · 3-5yr high: $185 (+105% · 20% ann'l return)
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