Qorvo (QRVO) Stock Forecast & Price Target

Qorvo’s diversified product portfolio and strategic expansion into high-performance analog and connectivity markets are expected to enhance profitability beyond traditional cellular handset margins, positioning the company for favorable financial growth. The company's gross margin reached 49.7% in the September quarter, indicating strong operational efficiency and higher utilization rates, while long-term targets suggest an increase in gross margins to 50%-55% and operating profit targeting 30%-35%. Additionally, Qorvo's upgraded revenue guidance for the September period reflects strong demand, projecting revenue of $1.1 billion and an EPS of $2.22, both exceeding prior expectations, which underscores a positive financial trajectory.

Qorvo's financial outlook exhibits concerning trends, particularly within its Advanced Cellular Group (ACG), which saw an 11% year-over-year revenue decline and is expected to continue facing challenges due to a strategic exit from lower-tier Android handsets. Despite a marginal improvement in gross margin and a favorable adjustment to the non-GAAP tax rate, the company anticipates low-single-digit year-over-year growth for its Cellular Solutions Group (CSG), down from prior expectations of 10-12% growth. Furthermore, expected revenue declines in Android products, projected at $150 million to $200 million for the latter half of fiscal 2026, overshadow marginal growth in other segments such as High Power Amplifiers (HPA), which experienced a significant quarter-over-quarter sales drop attributed to divestitures.