Qorvo’s Q2 results were received positively by the market, reflecting stronger-than-expected revenue and profitability. Management attributed the quarter’s performance to a combination of content growth with its largest customer, expanding demand in defense and aerospace, and disciplined cost controls through factory consolidation. CEO Robert Bruggeworth emphasized that Qorvo’s investments in high-value product categories and ongoing exit from lower-margin Android businesses are reshaping the company’s revenue mix. The team also highlighted progress in next-generation Wi-Fi and ultra-wideband solutions, with design wins across automotive and industrial customers supporting diversification beyond core smartphone markets.
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Qorvo (QRVO) Q2 CY2025 Highlights:
- Revenue: $818.8 million vs analyst estimates of $777.5 million (7.7% year-on-year decline, 5.3% beat)
- Adjusted EPS: $0.92 vs analyst estimates of $0.63 (46.2% beat)
- Adjusted EBITDA: $147.6 million vs analyst estimates of $127.7 million (18% margin, 15.6% beat)
- Revenue Guidance for Q3 CY2025 is $1.03 billion at the midpoint, above analyst estimates of $958.3 million
- Adjusted EPS guidance for Q3 CY2025 is $2 at the midpoint, above analyst estimates of $1.62
- Operating Margin: 3.7%, up from 0.5% in the same quarter last year
- Inventory Days Outstanding: 120, down from 122 in the previous quarter
- Market Capitalization: $8.06 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Qorvo’s Q2 Earnings Call
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Thomas James O'Malley (Barclays) asked about the disconnect between strong content growth at the largest customer and overall seasonality. CFO Grant Brown explained that while content is up over 10%, the overall segment outlook remains for a single-digit decline due to the Android business exit.
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Harsh V. Kumar (Piper Sandler) questioned which initiatives had the greatest impact on gross margin expansion. Brown attributed margin gains primarily to cost reductions from factory consolidation, business mix improvements, and exiting lower-margin segments.
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Christopher Adam Jackson Rolland (Susquehanna) inquired about the path to achieving 50% gross margin. Brown said future gains are expected from facility closures, higher utilization, and increased sales in high-margin defense and aerospace.
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James Edward Schneider (Goldman Sachs) asked about the outlook for the defense segment and potential M&A. President Philip Chesley pointed to a growing opportunity funnel and active exploration of margin-accretive acquisitions in defense.
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Joseph Lawrence Moore (Morgan Stanley) raised questions about the impact of tariffs and potential inventory buffering. Management responded that while some buffering was seen in China Android, pull-forward effects were modest and largely factored into guidance.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be watching (1) whether Qorvo sustains content gains with its largest customer and executes upcoming product launches, (2) the pace and effect of cost savings from facility closures and manufacturing consolidation on gross margins, and (3) progress in expanding defense and connectivity markets, including new design wins and program ramp-ups. The timing of delayed automotive and ultra-wideband projects will also be important for tracking diversification efforts.
Qorvo currently trades at $87.20, up from $84.54 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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