Qorvo (QRVO) Stock Forecast & Price Target

Qorvo is demonstrating a strong performance in its High Performance Analog (HPA) segment, which saw year-over-year growth of 11.2% and quarter-over-quarter growth of 9.3%, indicating robust demand in applications such as defense, aerospace, and data centers. The company is successfully diversifying its revenue mix by transitioning from low-margin Android products to higher-margin premium smartphone models, leading to a notable increase in gross margin, which rose by 260 basis points year-over-year in the last quarter. Looking ahead, Qorvo anticipates double-digit revenue growth in fiscal year 2027, with significant contributions from its D&A segment expected to exceed total Android revenues, pointing to a sustained positive financial trajectory.

Qorvo's stock outlook remains negative primarily due to a significant revenue forecast miss for the March quarter, with expectations falling about $100 million short of consensus, and an EPS guidance that is $0.17 below estimates. The company anticipates a dramatic decline of up to $300 million in its low-end mass market Android business for FY27, exacerbated by a stagnant guidance from its primary customer, Apple, which has also contributed to an overall projected decline of approximately 15% in its Cellular business. Additionally, Qorvo is confronting risks tied to slower inventory correction in mobile handsets and potential challenges in the development and marketing of wide-band gap technologies, further clouding its revenue prospects.