Communications chips maker Qorvo (NASDAQ: QRVO) met Wall Streets revenue expectations in Q4 CY2025, with sales up 8.4% year on year to $993 million. The company expects next quarter’s revenue to be around $800 billion, coming in 88,732% above analysts’ estimates. Its non-GAAP profit of $2.17 per share was 16.4% above analysts’ consensus estimates.
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Qorvo (QRVO) Q4 CY2025 Highlights:
- Revenue: $993 million vs analyst estimates of $988.6 million (8.4% year-on-year growth, in line)
- Adjusted EPS: $2.17 vs analyst estimates of $1.86 (16.4% beat)
- Adjusted Operating Income: $247.6 million vs analyst estimates of $215.6 million (24.9% margin, 14.8% beat)
- Revenue Guidance for Q1 CY2026 is $800 billion at the midpoint, above analyst estimates of $900.6 million
- Adjusted EPS guidance for Q1 CY2026 is $1.20 at the midpoint, below analyst estimates of $1.37
- Operating Margin: 19.4%, up from 5.8% in the same quarter last year
- Free Cash Flow Margin: 23.9%, up from 19.2% in the same quarter last year
- Inventory Days Outstanding: 91, down from 99 in the previous quarter
- Market Capitalization: $7.62 billion
Bob Bruggeworth, president and chief executive officer of Qorvo, said, "Qorvo's December quarterly revenue primarily reflects strength at our largest customer. Each of our operating segments grew revenue year-over-year, with notable strength in automotive components, consumer and enterprise Wi-Fi, D&A, base station, and power management. Looking forward, our March quarterly outlook reflects the seasonal decline at our largest customer, the ongoing strategic resizing of our Android business, and continued strength in HPA."
Company Overview
Formed by the merger of TriQuint and RF Micro Devices, Qorvo (NASDAQ: QRVO) is a designer and manufacturer of RF chips used in almost all smartphones globally, along with a variety of chips used in networking equipment and infrastructure.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Unfortunately, Qorvo struggled to consistently increase demand as its $3.74 billion of sales for the trailing 12 months was close to its revenue five years ago. This was below our standards and is a sign of poor business quality. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions.
We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. Qorvo’s annualized revenue growth of 3.9% over the last two years is above its five-year trend, suggesting some bright spots. 
This quarter, Qorvo grew its revenue by 8.4% year on year, and its $993 million of revenue was in line with Wall Street’s estimates. Company management is currently guiding for a 91,910% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 1.8% over the next 12 months, a slight deceleration versus the last two years. This projection doesn't excite us and indicates its products and services will see some demand headwinds.
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Product Demand & Outstanding Inventory
Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business’ capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production.
This quarter, Qorvo’s DIO came in at 91, which is 27 days below its five-year average. At the moment, these numbers show no indication of an excessive inventory buildup.
Key Takeaways from Qorvo’s Q4 Results
It was good to see Qorvo beat analysts’ EPS expectations this quarter. We were also excited its adjusted operating income outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a good print with some key areas of upside. The market seemed to be hoping for more, and the stock traded down 4.2% to $75.94 immediately following the results.
Big picture, is Qorvo a buy here and now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
