Qorvo (QRVO) Stock Forecast & Price Target

Qorvo's strategic diversification into high-performance analog, connectivity, and sensor end markets positions the company for improved profit margins and revenue growth, projected in the mid-to-high single digits. The company has reported strong financial metrics, achieving a September quarter gross margin of 49.7%, with expectations of further increases that support its potential to reach gross margins of 50%-55% over the long term. Additionally, the company's revenue guidance for the September period has been raised to $1.1 billion, alongside an increase in expected EPS to $2.22, reflecting a positive outlook driven by strong performance and seasonal sales dynamics.

Qorvo's recent financial performance indicates significant challenges, particularly within its Advanced Cellular Group, which experienced an 11% year-over-year revenue contraction to $571 million, largely due to a shift away from lower-tier Android handsets. The company's guidance suggests a continuing decline in this segment, projecting low single-digit growth for the current fiscal year compared to prior expectations of 10-12%. Furthermore, the decline in Android revenues is expected to contribute to a cumulative drop of $150 million to $200 million by the second half of fiscal 2026, highlighting ongoing operational weaknesses and reduced market demand.