Qorvo (QRVO) Stock Forecast & Price Target

Qorvo's positive financial outlook is bolstered by its strategic diversification into high-performance analog, connectivity, and sensor markets, which are anticipated to yield higher profit margins compared to traditional cellular handsets. The company has reported strong performance metrics, including a gross margin of 49.7% for the September quarter, aligning well within its guidance range, and projecting a long-term gross margin target of 50%-55%. Additionally, Qorvo's revenue projections for the September period indicate an increase to $1.1 billion, surpassing prior guidance, along with an expected EPS of $2.22, both reflecting the positive impact of Apple’s seasonal sales and overall operational improvements.

Qorvo's Q1 results indicate a concerning trend, with a 11% year-over-year decline in Advanced Cellular Group (ACG) revenue, attributed to a strategic exit from lower-tier Android handsets, leading to expectations of continued single-digit revenue declines in FY26. Despite an improving gross margin of 44%, which is 300 basis points higher year-over-year, the company anticipates a significant revenue drop in the Android segment, contributing to a projected low-single-digit growth rate for its Cellular Solutions Group. Furthermore, growth in the High Power Amplifiers (HPA) segment appears stunted, as revenues are expected to remain flat compared to FY25, highlighting ongoing challenges across Qorvo's core business areas.