Qorvo (QRVO) Stock Forecast & Price Target

Qorvo's diversification efforts have successfully expanded its exposure to high-performance analog, connectivity, and sensor end markets, which are anticipated to yield higher profit margins compared to traditional cellular handsets. The company is achieving strong financial metrics, highlighted by a gross margin of 49.7% in its recent quarter, which is at the upper end of its guidance range, alongside a long-term target model with projected revenue growth in the mid-to-high single digits and an operational profit target of 30%-35%. Furthermore, Qorvo has revised its revenue expectation for the September period to $1.1 billion and is forecasting earnings per share of $2.22, both surpassing previous guidance and consensus estimates.

The analysis indicates that Qorvo is experiencing a significant downturn, particularly in its Advanced Cellular Group (ACG), which reported a revenue contraction of approximately 11% year-over-year and 1.6% sequentially, primarily due to a strategic shift away from lower-tier Android handsets. This decline is expected to continue, with management forecasting low single-digit revenue growth for the ACG segment throughout fiscal year 2026, a notable reduction from earlier projections of 10-12%. In addition, despite a marginal increase in gross margin, the overall revenue trajectory, especially within the Android-related product lines, raises concerns about Qorvo's future profitability and market position.