Qorvo (QRVO) Stock Forecast & Price Target

Qorvo's diversification into high-performance analog, connectivity, and sensor markets is anticipated to enhance profit margins compared to traditional cellular handset markets, with current gross margins reported at 49.7%, consistent with the higher end of its guidance range. The company's long-term financial targets indicate revenue growth in the mid-to-high single digits, with anticipated gross margins of 50%-55% and an operating profit target of 30%-35%, reflecting significant improvements from the pre-merger averages. Additionally, Qorvo expects a revenue increase to $1.1 billion for the September period, complemented by an upward revision in earnings per share to $2.22, highlighting strong performance driven by seasonal demand from major clients like Apple.

Qorvo's latest financial performance indicates a challenging outlook, with Q1 revenues for the Advanced Cellular Group (ACG) declining by approximately 11% year-over-year and showing a slight sequential decrease, reflecting a strategic exit from the lower-tier Android handset market. Despite a slight improvement in gross margin, the overall revenue growth expectations for the Cellular Solutions Group (CSG) have been revised downward from a previously anticipated 10-12% to low-single-digit growth, indicating ongoing pressures in their key smartphone segment. Additionally, the projected revenue decline expected from the Android segment for the second half of fiscal 2026 further compounds concerns regarding the company’s ability to sustain growth amid shifting market dynamics.