Qorvo (QRVO) Stock Forecast & Price Target

Qorvo's diversified product offerings in high-performance analog, connectivity, and sensor markets are projected to lead to higher profit margins compared to traditional cellular handsets, enhancing its overall financial performance. The company has reported a strong September quarter gross margin of 49.7%, indicating improved utilization rates and aligning with its guidance of 48%-50%. Additionally, Qorvo's revenue outlook has been raised to $1.1 billion for the September period, surpassing previous guidance and consensus estimates, while the expected EPS has also increased to $2.22, further underscoring the company's robust financial trajectory.

Qorvo's financial outlook presents several concerning factors, including a notable 11% year-over-year decline in Advanced Cellular Group (ACG) revenue, largely attributed to a strategic shift away from lower-tier Android handsets which is projected to continue through fiscal 2026. Additionally, although the company reports a gross margin of 44%, its sequential decline of 200 basis points combined with anticipated low single-digit growth in total revenues reflects underlying challenges in maintaining profitability amidst changing market dynamics. Furthermore, the planned reduction of $150 million to $200 million in Android revenue during the latter half of fiscal 2026 indicates significant reliance on a diminishing segment, heightening the uncertainty around long-term growth prospects.