Qorvo Inc (NASDAQ:QRVO), a semiconductor supplier with a market capitalization of about $7.1 billion and a share price of $77.56, delivered fiscal third-quarter results that outperformed expectations, yet management flagged pronounced softness in its Android business heading into the March quarter.
The period ending December saw demand skewed toward Apple-related products, with the company reporting a trailing twelve-month diluted earnings per share of $3.63. Despite the quarterly beat, Qorvo issued guidance for its fiscal fourth quarter ending March that was lower than many investors expected. Management attributed the softer outlook primarily to falling Android revenue driven by exits from lower-margin customers and the effects of memory pricing.
Qorvo has increased its estimate for the anticipated Android revenue decline in fiscal year 2027 to $300 million, up from the earlier range of $150 million to $200 million. That upward revision signals a deeper downturn in the company’s Android-facing business than previously forecast.
For Apple-related content in fiscal 2027, Qorvo expects overall content to be roughly flat. The company said anticipated reductions in share for the iPhone 18 ultra-high band power amplifier duplexer (UHB PAD) will be counterbalanced by increased content tied to the iPhone 18 internal modem that uses envelope tracking power management integrated circuits (ET PMICs), along with mid-high band (MHB) share gains in iPad devices.
KeyBanc analysts maintained a Sector Weight rating on Qorvo following the earnings release and guidance revision, adjusting their estimates to reflect the divergent trends: strength on iPhone demand but accelerating weakness in Android exposure. InvestingPro data referenced alongside the results shows a "Good" overall financial health score of 2.6 out of 5 for the company, and a price-to-earnings ratio of 36.24, which InvestingPro flags as undervalued relative to its Fair Value assessment.
Operationally, the company’s messaging highlights a mixed production and content picture. While Apple-related content is expected to hold steady overall, product-level shifts such as UHB PAD share losses and ET PMIC gains point to changes in mix that could affect unit economics and supplier revenue flow across device programs.
Recent quarter performance and near-term outlook
Qorvo’s third-quarter fiscal 2026 results exceeded Wall Street estimates. The company reported earnings per share of $2.17, vs. consensus of $1.86, and revenue of $993 million compared with expected revenue of $988.69 million. Despite that outperformance, management set a subdued revenue forecast for the March quarter, expecting revenue to decline 19% to $800 million - a figure below consensus estimates of $904 million.
The company’s weaker March quarter guidance and the larger-than-expected Android revenue hit prompted reactions across the analyst community. Mizuho reduced its price target to $70 from $85 and kept a Neutral rating. Morgan Stanley also lowered its price target, to $84 from $110, maintaining an Equalweight stance. Both firms cited the pressure in Qorvo’s mobile business - including share losses in upcoming iPhone models and a faster-than-expected exit from lower-tier Android devices - as reasons for their revisions.
What this means for markets and supply chains
The developments underscore a bifurcated demand environment within mobile end markets: resilient iPhone-related content versus accelerating contraction in lower-tier Android demand. For semiconductor suppliers and their multi-tier vendors, that divergence can affect production scheduling, mix decisions, and working capital needs as customers and suppliers recalibrate volumes and margins.
Key takeaways from Qorvo’s report and subsequent analyst actions reflect a company that beat near-term expectations but faces material headwinds in a portion of its end-market exposure. Investors and supply-chain stakeholders will likely focus on how content shifts translate into cash flow and whether further Android revenue deterioration emerges through fiscal 2027.