Qorvo (QRVO) Stock Forecast & Price Target

Qorvo's recent diversification into high-performance analog, connectivity, and sensor markets is expected to enhance profit margins and support revenue growth in the mid-to-high single digits over the long term. The company has demonstrated strong financial performance, with a September quarter gross margin of 49.7%, exceeding its guidance range and indicating efficient utilization rates. Additionally, Qorvo has revised its revenue expectations for the September period to $1.1 billion and its EPS to $2.22, showcasing robust operational performance and favorable seasonal sales from significant clients like Apple.

Qorvo's financial outlook is challenged by a significant year-over-year contraction of approximately 11% in its Advanced Cellular Group (ACG) revenue, driven by a strategic exit from lower-tier Android handsets, which is expected to result in low-single-digit revenue declines for the segment throughout fiscal 2026. Despite achieving a gross margin increase of 300 basis points year-over-year, the company faces headwinds as it anticipates a continued decline in Android revenue and has revised its revenue growth expectations downward from previously guided levels. Additionally, while the High-Power Amplifier (HPA) segment showed slight year-over-year growth, overall revenues are projected to remain flat against the previous fiscal year, further contributing to a negative outlook.