Mizuho has reduced its price objective for Qorvo Inc. to $70 from $85 while retaining a Neutral rating, pointing to a revenue outlook that came in weaker than market expectations. Analyst targets for the company now span from $70 to $128, and a Fair Value assessment included in analyst data indicates the shares may be undervalued.
Qorvo reported December-quarter revenue of $993 million and earnings per share of $2.17, results that were in line with expectations. However, the company guided fiscal third-quarter (March quarter) revenue down about 19% sequentially to $800 million, beneath the consensus estimate of $904 million.
Management also lowered its fiscal 2027 revenue forecast by approximately $300 million. That reduction translates to a mid-single-digit percentage decline year-over-year versus consensus expectations of flat to positive growth. Despite the revenue trimming, Qorvo projected gross margins above 50% for fiscal 2027 and an earnings-per-share figure of about $7.
On margins, the company reported a December-quarter gross margin of 49.1%, down 60 basis points from the prior quarter but slightly ahead of the 48% consensus. For the March quarter, Qorvo guided to another 60 basis point decline in gross margin, a level that remains above the consensus estimate of 46.6%.
Balance-sheet metrics presented in the report indicate a moderate leverage profile, with total debt to capital at 0.17, and a healthy liquidity position, reflected in a current ratio of 3.67. Analyst data included in the coverage assigns Qorvo an overall financial health score of "GOOD."
Mizuho's fiscal 2027 segmentation outlook shows divergent trends across product groups. The high-performance analog (HPA) business is expected to deliver double-digit percentage growth, the connectivity and sensors group (CSG) is forecast to be flat year-over-year, and the advanced cellular group (ACG) is anticipated to decline compared with the prior year. Revenue from Apple is projected to remain approximately flat year-over-year under this outlook.
Additional analyst moves coincided with the company's reported results. Morgan Stanley trimmed its price target for Qorvo to $84.00 from $110.00 while maintaining an Equalweight rating. That adjustment was attributed to pressures within Qorvo's mobile business, including share losses in upcoming iPhone models and a faster-than-expected exit from lower-tier Android devices. Following the earnings release, Qorvo's shares rose about 0.61% in after-market trading.
The combination of in-line quarterly results, softer forward revenue guidance and persistent mobile-market headwinds produced a nuanced picture: solid profitability metrics and liquidity on one hand, and a reduced revenue trajectory and segment-specific weaknesses on the other. Market participants and sector observers will likely continue to dissect segment performance and customer dynamics as indicators of the durability of the firm's recovery and the sustainability of margins.
Summary of key metrics and guidance:
- December-quarter revenue: $993 million
- December-quarter EPS: $2.17
- March-quarter revenue guidance: $800 million (down ~19% quarter-over-quarter; consensus $904 million)
- Fiscal 2027 revenue trimmed by ~ $300 million (mid-single-digit % decline year-over-year vs. consensus flat to positive)
- Fiscal 2027 gross margin guidance: above 50%; EPS guidance: ~ $7
- December-quarter gross margin: 49.1% (down 60 bps quarter-over-quarter; consensus 48%)
- March-quarter gross margin guidance: down another 60 bps, still above the 46.6% consensus
- Balance sheet: total debt to capital 0.17; current ratio 3.67; overall financial health score noted as "GOOD"
The near-term outlook centers on demand and share dynamics in mobile end markets and the ability of higher-margin product lines to offset declines elsewhere. Investors and industry participants should monitor quarterly revenue execution, segment trends for HPA, CSG and ACG, and any updates on customer mix and content with major smartphone partners.