Qorvo (QRVO) Stock Forecast & Price Target

Qorvo's High Performance Analog (HPA) segment has demonstrated impressive growth, with a year-over-year increase of 11.2% and a quarter-over-quarter rise of 9.3%, supported by expanding applications in defense, aerospace, and data centers. The company is forecasted to achieve double-digit revenue growth in FY27, driven by significant contributions from its D&A business, which is anticipated to surpass total Android revenue, bolstered by rising RF dollar content and increased defense spending. Furthermore, Qorvo's strategic shift toward higher-margin premium smartphone models and the exit from low-margin businesses has resulted in a notable improvement in gross margin, enhancing profitability prospects for FY27 and FY28.

Qorvo's stock outlook is negatively impacted by a significant forecast miss for the March quarter, with expected revenue about $100 million below consensus and an EPS guide indicating a $0.17 shortfall, largely due to declines in the low-end mass market Android segment and typical seasonal impacts from Apple. The anticipated revenue decline in FY27 has escalated to as much as $300 million instead of the previously expected $200 million, leading to an overall expected decline of approximately $380 million, or 15%, in Qorvo's Cellular business. Additionally, despite guidance of mid-single-digit revenue decline and solid gross margins, the projected risks, including slow inventory corrections and technology market challenges, further compound the adverse outlook for the company.