Business Description
Qorvo, Inc. is a global technology company focused on developing and bringing to market a diverse range of products and innovations for the wireless, wired, and power sectors. Its operations are organized into two primary divisions: Mobile Products, and Infrastructure and Defense Products. Within its Mobile Products segment, Qorvo supplies critical components for a wide array of consumer electronics, including smartphones, wearables, laptops, and tablets. These offerings encompass radio frequency (RF) power management integrated circuits (PMICs), ultra-wideband (UWB) system-on-a-chip (SoC) and system-in-package (SiP) solutions, MEMS sensors, antenna tuners and antennaplexers, along with various discrete components like multiplexers, duplexers, filters, and switches. The Infrastructure and Defense Products segment addresses a broad spectrum of industries: For cellular base stations, Qorvo provides components such as switch-low noise amplifier (LNA) modules, variable gain amplifiers (VGAs), integrated power amplifier (PA) Doherty modules, discrete LNAs, and high-power GaN amplifiers. It also manufactures Silicon Carbide (SiC) products, including Schottky diodes and transistors, vital for applications in the automotive, industrial, IT infrastructure, and renewable energy sectors. The company delivers smart home solutions through SoC hardware, firmware, and application software. Power management offerings include programmable PMICs and power application controllers. For defense and aerospace clients, particularly defense primes, Qorvo supplies RF products and specialized compound semiconductor foundry services. In automotive connectivity, it offers RF and UWB SoC solutions. Lastly, Wi-Fi products feature PAs, switches, LNAs, bulk acoustic wave (BAW) filters, and integrated front-end modules (FEMs). Qorvo distributes its products through a dual approach: direct sales to original equipment manufacturers (OEMs) and original design manufacturers (ODMs), and indirectly via a network of sales representatives and authorized distributors. Established in 1957, the company maintains its headquarters in Greensboro, North Carolina.
Business History
Generated: Jun 13, 2026 3:02amPrice Overview
Last updated: Jun 13, 2026 3:00am (14d ago)Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 3.66
Total Equity: $3.34B
Shares: 93,547,000
Total Debt: $1.55B
Cash: $1.22B
EBITDA: $471.41M
Total Debt: $1.55B
Cash: $1.22B
Revenue: $3.68B
Revenue: $3.68B
Revenue: $3.68B
Total Equity: $3.34B
Tax Rate: 14.9%
Equity: $3.34B
Total Debt: $1.55B
Cash: $1.22B
Current Liabilities: $712.76M
Long-Term Debt: $1.55B
Total Debt: $1.55B
Total Equity: $3.34B
Shares: 93,547,000
Shares: 93,547,000
CapEx: -$129.07M
Shares: 93,547,000
Stock Price: $98.59
Net Income: $338.99M
Industry Benchmarks
Advanced Analysis Forensic deep-dive · three lenses
Qorvo is a mature semiconductor business that still throws off real cash — $679.6M FCF in FY26 on $3.68B revenue (~18% FCF margin) with OCF/NI of 2.18x and accruals at -8.5% of assets, consistent with high earnings quality (Beneish -2.91, Altman Z 3.3). Capital allocation on dilution is genuinely good: diluted shares fell from 111.5M (2022) to 93.5M (2026), a -4.3% CAGR, with buybacks running 567% of SBC. That's a real per-share value protector.
But the operating trajectory tells a harder story. Revenue collapsed from $4.65B (2022) to $3.57B (2023) and has stagnated in the $3.68–3.77B band for three years. Gross margin fell from 49.2% to a trough of 36.3% and has only partially recovered to 45.9%. Operating margin went from 26.4% → 5.1% → 2.4% → 2.6% → 11.2% — FY26 is a rebound, not a return to former earnings power. Net income of $339M in FY26 is still roughly a third of FY22's $1.03B. Net debt of ~$330M is manageable against $1.22B cash and $679M FCF, but it's a constraint not a cushion.
The insider tape is the loudest signal: zero open-market buys, $205.7M in sales over 12 months, dominated by activist Starboard's Peter Feld dumping $192.2M in a single day (June 2, 2026), plus the CEO Bruggeworth selling ~$5.7M and other officers trimming. Heavy, concentrated distribution, not routine compensation churn.
Verify before trusting this (6)
- Customer concentration disclosure (Apple/Samsung % of revenue) in latest 10-K
- Segment-level margins — is the margin recovery from mix shift (Defense/HPA) or core mobile?
- Whether Feld's June 2026 sale represents Starboard's full exit or partial trim
- Inventory and channel inventory commentary — does the GM recovery to 45.9% reflect normalized utilization or a temporary mix?
- Debt maturity schedule and refinancing needs against the $330M net debt position
- R&D as % of revenue trajectory — is the company under-investing to protect margins?
The e2e synthesis tags QRVO as a 'Reasonable Premium,' which I read as fair-to-slightly-full at $98.59. The business throws off real cash and management is shrinking the float, but revenue sits ~20% below the prior peak and the FY26 margin reset suggests the 26% peak operating margin was a cycle high, not a baseline. That means the deserved multiple should be built off mid-teens, not mid-20s, operating margins — and on that math today's ~$8.7B market cap is in the zip code of fair, not a bargain.
What's priced in: a stabilization of the smartphone RF franchise, continued buyback-driven EPS support, and modest D&A/defense growth — basically the steady-compounder bull case minus the heroic parts. There is no obvious margin of safety here: you're not paying for perfection, but you're also not being handed a discount for the very real Apple concentration, Chinese RF encroachment, and the activist-driven management churn. Earnings quality is high (no haircut needed), which supports the deserved value but doesn't create cheapness on its own. I'd want a visible double-digit discount to today's price before calling it mispriced to the upside.
Verify before trusting this (5)
- FY26 operating margin trajectory vs the 11% guide — is that the trough or the new normal?
- Apple/largest-customer revenue concentration disclosure in latest 10-K/10-Q
- D&A and Connectivity/Sensors segment growth rates — the non-mobile offset thesis
- Buyback pace and remaining authorization vs FCF generation
- Any commentary on Chinese RF competitive pricing pressure in mobile
The macro tape is roughly neutral (VIX 17, S&P just 1.8% off highs), but QRVO carries a 1.43 beta into a market where rates at 4.48% still penalize cyclical semis. The narrative here is a moderate-intensity, low-cult 'steady RF compounder' story that has lost its edge: smartphone saturation, Apple concentration, and Chinese RF competition dominate the bear case, and there is no live AI or defense story powerful enough to re-rate the name the way peers in compute or HBM are being re-rated. In a market obsessed with AI winners, QRVO is in the unloved bucket of analog/RF semis that get sold on any risk-off twitch and ignored on rallies. Analyst tone confirms the drag: 28 Holds vs 12 Buys, only 2 Sells but a consensus target of $88.86 sits about 10% BELOW the $98.93 print, with zero upward revisions this month. That is a classic stale, skeptical sell-side posture - the Street has not chased the move and is implicitly calling the stock ahead of itself. Momentum has been positive over three years but the trailing CAGR is slightly negative, suggesting the recent narrative tailwind is fading rather than building. Net: not a crash setup, but a name where the tape, the macro rate backdrop, and a quietly negative analyst gap all press the same direction, with no cult or catalyst to push back.
Verify before trusting this (4)
- Whether any sell-side analyst lifts target above spot (would crack the stale-Street headwind)
- Apple iPhone unit/ASP data points and any China RF share-loss headlines
- Whether a defense/5G infra contract gives the narrative a fresh hook
- Rotation signal: if AI semis cool and capital rotates into analog/RF laggards
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
Income Statement (Annual)
Last updated: Jun 13, 2026 3:06am (14d ago)| Metric | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|
| Revenue | $4.6B | $3.6B | $3.8B | $3.7B | $3.7B |
| Cost of Revenue | $2.4B | $2.3B | $2.3B | $2.2B | $2.0B |
| Gross Profit | $2.3B | $1.3B | $1.5B | $1.5B | $1.7B |
| Operating Expenses | $1.1B | $1.1B | $1.4B | $1.4B | $1.3B |
| Operating Income | $1.2B | $183.2M | $91.7M | $95.5M | $411.4M |
| Net Income | $1.0B | $103.2M | -$70.3M | $55.6M | $339.0M |
| EBITDA | $1.6B | $531.9M | $463.7M | $441.1M | $471.4M |
| EPS | $9.38 | $1.01 | $-0.72 | $0.59 | $3.66 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 13, 2026 3:00am (14d ago)| Metric | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|
| Cash & Equivalents | $972.6M | $808.8M | $1.0B | $1.0B | $1.2B |
| Total Current Assets | $2.4B | $2.0B | $2.4B | $2.2B | $2.3B |
| Total Assets | $7.5B | $6.7B | $6.6B | $5.9B | $5.8B |
| Current Liabilities | $675.1M | $555.8M | $1.2B | $783.2M | $712.8M |
| Long-Term Debt | $2.0B | $2.0B | $1.5B | $1.5B | $1.5B |
| Total Liabilities | $3.0B | $2.8B | $3.0B | $2.5B | $2.5B |
| Total Equity | $4.6B | $3.9B | $3.6B | $3.4B | $3.3B |
| Retained Earnings | $512.1M | $84.5M | -$89.6M | -$34.0M | $38.8M |
Cash Flow (Annual)
Last updated: Jun 13, 2026 3:06am (14d ago)| Metric | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|
| Operating Cash Flow | $1.0B | $843.2M | $833.2M | $622.2M | $808.6M |
| Capital Expenditure | -$213.5M | -$159.0M | -$127.2M | -$137.6M | -$129.1M |
| Free Cash Flow | $835.8M | $684.3M | $706.0M | $484.6M | $679.6M |
| Acquisitions (net) | -$389.1M | $-95,000 | -$63.0M | $0 | $0 |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | -$1.2B | -$861.8M | -$400.1M | -$356.3M | -$532.6M |
| Net Change in Cash | -$425.5M | -$163.9M | $240.3M | -$28.1M | $197.8M |
Analyst Estimates (Annual)
Last updated: Jun 13, 2026 3:00am (14d ago)| Metric | 2026 | 2027 | 2028 | 2029 |
|---|---|---|---|---|
| Revenue |
$3.7B $3.5B – $3.7B
|
$3.4B $3.4B – $3.6B
|
$3.6B $3.4B – $3.8B
|
$3.9B $3.9B – $3.9B
|
| EBITDA |
$622.7M $592.1M – $627.8M
|
$584.4M $569.3M – $616.2M
|
$617.7M $571.1M – $638.4M
|
$663.2M $658.7M – $667.8M
|
| Net Income |
$610.2M $607.4M – $613.0M
|
$639.2M $621.4M – $657.1M
|
$728.9M $694.0M – $763.8M
|
$825.0M $809.9M – $840.1M
|
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 13, 2026 3:06am (14d ago)| Metric | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|
| Revenue Growth | -23.2% | +5.6% | -1.3% | -1.1% |
| Gross Profit Growth | -43.3% | +14.8% | +3.2% | +9.9% |
| Operating Income Growth | -85.1% | -49.9% | +4.2% | +330.7% |
| Net Income Growth | -90.0% | -168.2% | +179.1% | +509.5% |
| EBITDA Growth | -66.9% | -12.8% | -4.9% | +6.9% |
Insider Trading (Recent)
Last updated: Jun 13, 2026 3:05am (14d ago)All SEC Form 4 codes
- P Purchase
- Open-market or private purchase of shares.
- S Sale
- Open-market or private sale of shares.
- A Award / grant
- Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
- D Return to issuer
- Securities disposed back to the company under Rule 16b-3.
- F In-kind (tax)
- Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
- I Discretionary
- Discretionary transaction under an employee plan — Rule 16b-3(f).
- M Option exercise
- Exercise or conversion of a derivative (option/RSU) into shares — exempt.
- C Conversion
- Conversion of a derivative security into the underlying shares.
- E Short expiration
- Expiration of a short derivative position.
- H Long expiration
- Expiration or cancellation of a long derivative position with value received.
- O OTM exercise
- Exercise of an out-of-the-money derivative.
- X ITM exercise
- Exercise of an in-the-money or at-the-money derivative.
- G Gift
- Bona fide gift of securities.
- L Small acquisition
- Small acquisition under Rule 16a-6.
- W Inheritance
- Acquisition or disposition by will or the laws of descent.
- Z Voting trust
- Deposit into or withdrawal from a voting trust.
- J Other
- Other acquisition or disposition (explained in a Form 4 footnote).
- K Equity swap
- Transaction in an equity swap or similar instrument.
- U Tender / buyout
- Disposition via tender of shares in a change-of-control transaction.
Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.
| Date | Insider | Type | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-06-04 | Chesley Philip | A-Award | 9,618.00 | $0.00 | $0 |
| 2026-06-02 | Feld Peter A | S-Sale | 1,328,094.00 | $100.25 | $133.1M |
| 2026-06-02 | Feld Peter A | S-Sale | 571,906.00 | $103.41 | $59.1M |
| 2026-06-01 | BRUGGEWORTH ROBERT A | S-Sale | 28,500.00 | $99.73 | $2.8M |
| 2026-06-01 | BRUGGEWORTH ROBERT A | S-Sale | 13,221.00 | $100.56 | $1.3M |
| 2026-06-01 | BRUGGEWORTH ROBERT A | S-Sale | 12,985.00 | $101.22 | $1.3M |
| 2026-06-01 | BRUGGEWORTH ROBERT A | S-Sale | 3,251.00 | $102.40 | $332,902 |
| 2026-05-22 | Harrison Gina | S-Sale | 4,714.00 | $100.00 | $471,400 |
| 2026-05-22 | FEGO PAUL J | S-Sale | 2,500.00 | $100.00 | $250,000 |
| 2026-05-19 | Harrison Gina | S-Sale | 956.00 | $95.00 | $90,820 |
| 2026-05-15 | Chesley Philip | S-Sale | 13,352.00 | $88.78 | $1.2M |
| 2026-05-18 | Chesley Philip | S-Sale | 1,288.00 | $93.00 | $119,784 |
| 2026-05-15 | Brown Grant | S-Sale | 14,195.00 | $88.78 | $1.3M |
| 2026-05-18 | Brown Grant | S-Sale | 1,544.00 | $93.00 | $143,592 |
| 2026-05-12 | Stewart Frank P. | A-Award | 16,047.00 | $0.00 | $0 |
| 2026-05-12 | Stewart Frank P. | F-InKind | 2,808.00 | $93.41 | $262,295 |
| 2026-05-12 | Harrison Gina | A-Award | 4,739.00 | $0.00 | $0 |
| 2026-05-12 | Harrison Gina | F-InKind | 803.00 | $93.41 | $75,008 |
| 2026-05-12 | FEGO PAUL J | A-Award | 26,406.00 | $0.00 | $0 |
| 2026-05-12 | FEGO PAUL J | F-InKind | 4,899.00 | $93.41 | $457,616 |
Narrative Economics
market-narrative step).
Delvantic AI Findings
The raw numbers tell a more uncomfortable story than the "Reasonable Premium" verdict suggests. Revenue went $4.65B (FY22) → $3.57B → $3.77B → $3.72B → $3.68B — four years of flatlining 20%+ below peak. The headline FY26 net income of $339M looks like a recovery, but it's entirely back-half loaded: Q1 FY26 (Jun '25) was $25.6M, Q4 FY26 (Mar '26) was $29.7M at a 3.7% margin. The two middle quarters (Sep/Dec 2025) generated $283.7M of the $339M — that's classic iPhone-cycle seasonality, not a reset margin structure. Annualizing the bookend quarters gets you closer to ~$110M of run-rate NI, not $339M. So the "26x P/E" is really more like 50–80x on normalized non-seasonal earnings, and the "13.5x EV/EBITDA" is flattered by the same TTM artifact the anomaly tags warn about.
The prior models are split and I side with Market Forces over Synthesis. The Synthesis layer leans on the $680M FCF and 46% gross margin to justify a "Reasonable Premium," but FCF at $680M against a $8.68B market cap is a 7.8% yield — that sounds attractive only if you believe FY26 is the new floor. It isn't: capex was just $129M (3.5% of revenue) versus historical 5–7% for an RF fab-light-but-still-capital-intensive business. That's underinvestment masquerading as cash generation, and it's exactly the pattern you see before a competitive position erodes. Insider activity corroborates: ~1.96M shares dumped on June 2, 2026 — that's not routine 10b5-1 trickle, that's coordinated exit at $98 right after the FY26 print. Pre-Flight's "cyclical-recovery-restructuring" framing is the most honest of the lot.
The contrarian case — and I'll steelman it because every signal here points bearish — is that QRVO is a legitimate Apple/Samsung RF socket holder with defense exposure (~15% of revenue, growing), $1.22B cash cushion, and that the FY26 H2 strength reflects design wins in higher-content 5G modules that persist into FY27. If the iPhone 17/18 cycle delivers content gains and the defense segment compounds at 15%+, you could see $4B revenue and 15% operating margins by FY28 — that's ~$450M net income, putting today's price at 19x forward. Not cheap, not crazy. The problem: this requires believing Qorvo wins the RF content war against Skyworks and Broadcom simultaneously, when revenue has gone backward for four years and Chinese RF competition (Maxscend, Vanchip) is gaining share in mid-tier handsets. The Market Narrative layer's "moderate durability" rating is generous.
I dissent from Synthesis. Fair value here is closer to $70–75, not $98. The math: normalize FY26 NI to ~$200M (split between seasonal peak earnings and structural run-rate), apply a 15x multiple appropriate for a cyclical semi with declining revenue CAGR (-1.2%) and ROIC of 6.8% (below cost of capital), and you get a $3B equity value pre-cash, ~$4.2B with the $1.22B net cash — call it $48/share on earnings. The FCF approach is more generous: $500M normalized FCF (haircutting FY26's underinvested $680M) at a 7% yield gets $7.1B equity, ~$80/share. Blend them and $65–75 is defensible. At $98, you're paying for a recovery that insiders are actively selling into, in a sector where peers are outperforming, with capex starvation flattering the cash flow line. The setup screams "wait."
GPT Critique
Qorvo, Inc. presents a mixed financial picture, with several key elements standing out from the raw data. Over the past few years, revenue has shown a slight decline from $4.65 billion in FY22 to $3.68 billion in FY26, marking a 20% reduction from the peak. This decline suggests a struggle to regain previous highs, despite the recent uptick in net income to $339 million in FY26, which is largely driven by mid-year strong quarters rather than a consistent recovery. The gross margin recovery to 45.89% points to some operational improvements, yet the net income margins remain volatile, fluctuating between 3.1% and 16.5% in the quarterly breakdowns. The cash flow is robust, with a free cash flow of $679.6 million, but the low capex of $129.1 million raises concerns about underinvestment in future growth and competitiveness.
Opus argues that Qorvo is overvalued at its current price of $98.59, suggesting a fair value range of $65–75 based on normalized earnings and free cash flow. I find myself in agreement with Opus on the overvaluation stance, particularly given the insider selling activity, which signals a lack of confidence in maintaining high earnings and suggests potential headwinds. I also concur with the observation that the FY26 income is misleadingly buoyed by seasonal factors rather than a fundamental turnaround, making the current P/E ratio seem artificially low. Opus's emphasis on the capex underinvestment as a red flag for future competitiveness is a point well taken, as it suggests potential erosion of Qorvo's market position in a highly competitive semiconductor landscape.
However, I diverge from Opus’s assessment when it comes to the narrative around Qorvo's position in the RF market. While Opus casts doubt on Qorvo's ability to maintain its RF content advantage against competitors like Skyworks and Broadcom, I see potential in Qorvo's strategic positioning with defense and 5G infrastructure components, which could sustain its revenue base longer than Opus anticipates. The $1.22 billion cash cushion provides some buffer and flexibility to navigate upcoming challenges, although it's not a panacea for structural issues.
A careful skeptic of both Opus’s and my views might argue that the perspective on Qorvo's underinvestment could be overly pessimistic and that the company might be optimizing capex in response to shifting market dynamics, rather than outright neglecting future growth. They might also suggest that the insider selling could be routine profit-taking following a period of stock price recovery, rather than a harbinger of doom.