Qorvo (QRVO) Stock Forecast & Price Target

Qorvo's stock outlook remains positive due to its successful diversification into high-performance analog, connectivity, and sensor markets, which are expected to yield higher profit margins compared to traditional cellular handset markets. The company's adjusted gross margin has improved to 46.5%, reflecting operational enhancements amid a reduction of non-strategic revenue streams, and future growth in automotive applications tied to ultra-wideband (UWB) technology is anticipated to further enhance revenue and margins. Looking ahead, management expects gross margins to expand by approximately 150 basis points year-over-year in FY26, alongside projected growth in key peer Skyworks, which could also benefit Qorvo's overall performance as efficiency improvements take effect.

The outlook for Qorvo's stock is negatively influenced by anticipated revenue declines in its Advanced Cellular Group (ACG) segment, projected at 5-10% sequentially for F4Q and flat to down single digits in FY26 due to medium-term challenges in the smartphone market, particularly in mid-to-low-tier Android products. Furthermore, Qorvo has experienced poor stock performance over the past five years, with a decline exceeding 20% while key competitors have seen significant gains, indicating ineffective management execution and ongoing operational inefficiencies. Additionally, Qorvo's operating margins have consistently lagged behind its closest competitor, Skyworks Solutions (SWKS), by an average of 8% annually since 2018, contributing to overall stagnant revenue expectations for FY26.