Trading Analysis Report: QRVO
- Analysis date: 2026-06-01
- Processed decision: Hold
- Price Target: 105
I. Analyst Team Reports
Market Analyst
Market Report
Qorvo (QRVO) traded at $103.56 on May 29, 2026. yfinance showed a 52-week range of $74.77-$109.49, a 50-day average of $87.21, and a 200-day average of $86.62.
The stock is close to its 52-week high and has already moved above both major moving averages. The local yfinance history showed a 36.2% one-year return and 20.0% YTD return.
QRVO fits the semiconductor queue because it provides RF, connectivity, power, analog, and mixed-signal solutions. The AI relevance comes mainly from the pending Skyworks combination, which highlights a Broad Markets platform across defense and aerospace, edge IoT, AI data center, and automotive markets.
Market read: Hold with a $105 target because valuation is reasonable and merger optionality is real, but the stock is already above yfinance mean and median targets.
Sentiment Analyst
Sentiment Report
Sentiment is balanced between improved execution and merger uncertainty.
Q4 FY2026 revenue was $808.3 million. GAAP gross margin was 48.9%, operating income was $31.5 million, and diluted EPS was $0.32.
Non-GAAP gross margin was 52.6%, operating income was $190.2 million, and diluted EPS was $1.69.
Management said March-quarter non-GAAP gross margin expanded 670 basis points year over year and full-year fiscal 2026 non-GAAP gross margin expanded 370 basis points versus the prior fiscal year.
Sentiment read: Hold because profitability has improved, but revenue was down year over year and the pending Skyworks transaction limits independent catalysts.
News Analyst
News Report
The key current source is Qorvo's fiscal 2026 fourth quarter results release.
Q4 FY2026 revenue was $808.3 million, down from $993.0 million in Q3 FY2026 and $869.5 million in Q4 FY2025. GAAP diluted EPS was $0.32, and non-GAAP diluted EPS was $1.69.
Qorvo generated $255 million of free cash flow in Q4 and repurchased $400 million of shares, reducing common shares outstanding by approximately 5% versus the prior quarter. Cash balance was $1.2 billion.
Because of the pending Skyworks transaction, Qorvo discontinued conference calls and forward guidance. Management still said fiscal 2027 non-GAAP gross margin is expected above 50%, with non-GAAP diluted EPS approaching $7.00.
The Skyworks-Qorvo merger is a major catalyst. Qorvo holders are expected to receive $32.50 in cash and 0.960 Skyworks share for each Qorvo share at closing. The combined company is expected to have $7.7 billion of revenue, $2.1 billion of adjusted EBITDA, and more than $500 million of annual cost synergies within 24-36 months after closing.
News read: the merger provides strategic scale, but the stock now trades on deal spread, SWKS share price, regulatory approvals, and integration risk.
Fundamentals Analyst
Fundamentals Report
QRVO fundamentals are cash-generative, but growth is mixed.
yfinance showed market cap of approximately $9.11 billion, enterprise value of approximately $9.50 billion, total revenue of approximately $3.68 billion, operating cash flow of approximately $808.6 million, free cash flow of approximately $556.7 million, total cash of approximately $1.22 billion, and total debt of approximately $1.61 billion.
The same snapshot showed revenue growth of -7.0%, gross margin of 46.2%, operating margin of 16.0%, profit margin of 9.2%, trailing P/E of 28.61x, forward P/E of 13.24x, and price/sales of 2.48x.
Q4 FY2026 segment revenue was $202.7 million for HPA, $93.3 million for CSG, and $512.3 million for ACG. ACG remains the largest segment and is tied to handset cycles.
Fundamental read: Hold because free cash flow and buybacks are positive, but revenue contraction and transaction dependency cap standalone upside.
II. Research Team Decision
Bull Researcher
Bull Research
The bull case is that Qorvo is improving margin quality while participating in a strategic merger that could create a larger RF, analog, and mixed-signal platform.
Q4 non-GAAP gross margin reached 52.6%, and management expects fiscal 2027 non-GAAP gross margin above 50%. Fiscal 2027 non-GAAP diluted EPS is expected to approach $7.00.
The Skyworks combination would create a company with $7.7 billion of revenue and $2.1 billion of adjusted EBITDA. The Broad Markets platform would include defense and aerospace, edge IoT, AI data center, and automotive markets.
The company also generated $255 million of Q4 free cash flow and repurchased $400 million of shares.
Bull conclusion: QRVO can work if the merger closes on attractive terms, SWKS shares hold up, and synergy execution looks credible.
Bear Researcher
Bear Research
The bear case is revenue pressure, handset exposure, and merger execution risk.
Q4 FY2026 revenue declined 18.6% sequentially and 7.0% year over year. ACG revenue was down 25.8% sequentially and 11.7% year over year.
yfinance showed the current price of $103.56 above the mean analyst target of $94.47 and median target of $98.00. That leaves limited standalone valuation support if merger spreads widen.
The merger adds regulatory approval, shareholder approval, deal timing, SWKS share-price exposure, integration, cost synergy, customer retention, and management distraction risk.
Bear conclusion: QRVO could underperform if mobile demand weakens, if the transaction is delayed, or if the market discounts the combined company's synergy targets.
Research Manager
Research Manager Synthesis
The bull case is improved margin execution, strong free cash flow, buybacks, a lower forward P/E, and strategic value from the Skyworks combination.
The bear case is revenue decline, mobile cyclicality, dependence on deal completion, and limited upside versus analyst targets.
The correct conclusion is Hold. The $105 target is modestly above the latest price and reflects deal value and expected FY2027 EPS improvement, but it avoids over-crediting synergies before regulatory and integration risk clear.
Synthesis: assign Hold with a $105 target.
III. Trading Team Plan
Trader
Trader View
QRVO is above the $87.21 50-day average and $86.62 200-day average, and it is close to the $109.49 52-week high.
Upside trigger: SWKS share strength, progress on merger approvals, evidence that fiscal 2027 EPS can approach $7.00, gross margin staying above 50%, or stronger broad-market demand.
Downside trigger: SWKS share weakness, deal delays, regulatory conditions, ACG/mobile softness, gross margin deterioration, or widening merger spread.
Trading plan: Hold with a $105 6-12 month base-case target.
IV. Risk Management Team Decision
Aggressive Analyst
Aggressive Risk View
Aggressive investors may hold QRVO for merger optionality and improving non-GAAP margin structure.
The risk is that the stock is now largely a transaction-driven semiconductor position.
Aggressive conclusion: Hold.
Conservative Analyst
Conservative Risk View
Conservative investors should avoid chasing QRVO near its 52-week high.
Free cash flow and buybacks are attractive, but transaction risk and handset cyclicality remain material.
Conservative conclusion: Hold.
Neutral Analyst
Neutral Risk View
The neutral view is balanced.
QRVO has operational improvement and deal optionality, but limited standalone upside versus analyst targets and meaningful merger execution risk.
Neutral conclusion: Hold.
V. Portfolio Manager Decision
Portfolio Manager
Portfolio Manager Decision
Rating: Hold Price Target: 105
Horizon: 6-12 months Current Price Reference: $103.56 on 2026-05-29
Qorvo is rated Hold. QRVO is included in the web-researched semiconductor queue because it provides RF, connectivity, power, analog, and mixed-signal solutions across mobile, defense and aerospace, Wi-Fi, automotive, broadband, IoT, industrial, and power markets. The AI relevance is indirect but credible through the pending Skyworks-Qorvo Broad Markets platform, which includes AI data center, edge IoT, automotive, and defense and aerospace markets.
The latest major financial update is fiscal 2026 fourth quarter results. Revenue was $808.3 million, compared with $993.0 million in Q3 FY2026 and $869.5 million in Q4 FY2025. GAAP gross margin was 48.9%, GAAP operating income was $31.5 million, and GAAP diluted EPS was $0.32.
Non-GAAP gross margin was 52.6%, non-GAAP operating income was $190.2 million, and non-GAAP diluted EPS was $1.69. Management said March-quarter non-GAAP gross margin expanded 670 basis points year over year and full-year fiscal 2026 non-GAAP gross margin expanded 370 basis points versus the prior fiscal year.
Qorvo generated $255 million of free cash flow in Q4 and repurchased $400 million of shares, reducing common shares outstanding by approximately 5% versus the prior quarter. The company ended the quarter with a cash balance of $1.2 billion.
Because of the pending Skyworks transaction, Qorvo discontinued conference calls and forward guidance. Management still said fiscal 2027 non-GAAP gross margin is expected above 50%, and non-GAAP diluted EPS is expected to approach $7.00.
The Skyworks transaction is central to the thesis. Qorvo shareholders are expected to receive $32.50 in cash and 0.960 of a Skyworks common share for each Qorvo share held at closing. Skyworks shareholders are expected to own approximately 63% and Qorvo shareholders approximately 37% of the combined company.
The combined company is expected to have $7.7 billion of revenue, $2.1 billion of adjusted EBITDA, a $5.1 billion mobile business, and a $2.6 billion Broad Markets platform across defense and aerospace, edge IoT, AI data center, and automotive markets. The companies expect more than $500 million of annual cost synergies within 24-36 months after closing.
yfinance showed a latest price of $103.56, market cap of approximately $9.11 billion, enterprise value of approximately $9.50 billion, 52-week range of $74.77-$109.49, total revenue of approximately $3.68 billion, revenue growth of -7.0%, gross margin of 46.2%, operating margin of 16.0%, profit margin of 9.2%, operating cash flow of approximately $808.6 million, free cash flow of approximately $556.7 million, total cash of approximately $1.22 billion, total debt of approximately $1.61 billion, trailing P/E of 28.61x, forward P/E of 13.24x, price/sales of 2.48x, mean analyst target of $94.47, and median analyst target of $98.00.
The main risks are handset cyclicality, customer concentration, revenue decline, ACG/mobile exposure, tariffs and export controls, manufacturing utilization, debt service, SWKS share-price exposure, regulatory and shareholder approval risk, litigation risk, integration risk, synergy realization risk, customer retention risk, and management distraction while the merger is pending.
The $105 target reflects improved margin execution, free cash flow, buybacks, expected FY2027 EPS improvement, and merger optionality. Hold is appropriate because the latest price is already above yfinance analyst targets and close to the 52-week high.