Executive Summary

Q2 FY26 revenue $1.06B grew 1% YoY and 29% QoQ, with non-GAAP gross margin expanding 270 bps YoY to 49.7% and non-GAAP EPS of $2.22; all exceeded guidance midpoints, aided by premium mobile content gains and margin mix shift away from low-tier Android .
Guidance for Q3 FY26: revenue ~$985M ± $50M, non-GAAP GM 47–49%, non-GAAP EPS $1.85 ± $0.20; OpEx guided down to $255–$260M on restructuring savings; tax rate ~15% .
Segment highlights: ACG up 36% QoQ on largest customer’s seasonal ramp and >10% YoY content growth; HPA up 18% QoQ and 18% YoY; CSG declined 3% QoQ and 27% YoY amid portfolio refocus and program timing .
Key catalyst and stock narrative: structural margin expansion (cost/productivity initiatives, factory consolidation, mix to HPA and premium Android/Apple), plus visibility to continued HPA momentum; partial offset from Android exit headwind (~$200M this year and >$200M next year) and seasonal step-down into March quarter .

What Went Well and What Went Wrong

What Went Well

Non-GAAP execution beats: Q2 revenue, non-GAAP GM (49.7%) and EPS ($2.22) all exceeded guidance midpoints; GM +270 bps YoY on mix and cost/productivity actions .
Mobile content and mix: Supported largest customer’s seasonal ramp with >10% YoY content growth on the ramping platform; disciplined exit from low-margin Android improving ACG profitability .
HPA strength: Double-digit YoY growth across defense & aerospace and infrastructure; bookings/backlog robust with tailwinds from defense spending and DOCSIS 4.0 broadband upgrades .

What Went Wrong

CSG softness: Revenue down 27% YoY on portfolio refocus and UWB program timing; organizational consolidation intended to prioritize higher-ROI verticals (auto/industrial/enterprise) .
Android exit headwind: Management now expects ~$200M decline this fiscal year and >$200M next year from exiting mass-tier Android, weighted to back half and March quarter .
Seasonal and utilization pressure near term: December/March seasonality at largest customer and Android exit will pressure revenue and utilization vs September; management emphasized YoY GM expansion still intact .

Financial Results

Core income statement metrics (GAAP and non-GAAP)

Metric	Q2 FY2025	Q1 FY2026	Q2 FY2026
Revenue ($M)	1,046.5	818.8	1,058.5
GAAP Gross Margin %	42.6%	40.5%	47.0%
Non-GAAP Gross Margin %	47.0%	44.0%	49.7%
GAAP Operating Income ($M)	9.7	30.1	157.7
Non-GAAP Operating Income ($M)	212.2	108.2	252.6
GAAP Diluted EPS ($)	(0.18)	0.27	1.28
Non-GAAP Diluted EPS ($)	1.88	0.92	2.22

Notes: Q2 FY26 non-GAAP EPS excluded $40.4M SBC, $21.4M intangibles amortization, $30.8M restructuring, and other items; tax adjustment of $(1.3)M; non-GAAP diluted shares 93.8M .

Q2 FY26 actuals vs S&P Global consensus

Metric	Consensus	Actual	Surprise
Revenue ($M)	1,036.6*	1,058.5	+21.9
Primary EPS ($)	2.1118*	2.22	+0.1082

Values with * retrieved from S&P Global.

Segment breakdown

Segment	Q2 FY2025 Revenue ($M)	Q1 FY2026 Revenue ($M)	Q2 FY2026 Revenue ($M)	Q2 FY2026 Op Inc ($M)	Q2 FY2026 Op Margin %
HPA	148.3	137.4	174.6	41.8	23.9%
CSG	146.8	110.2	106.9	(21.6)	(20.2%)
ACG	751.4	571.2	777.0	236.7	30.5%
Total	1,046.5	818.8	1,058.5	157.7	14.9%

KPIs and balance sheet/cash

KPI	Q2 FY2026
Cash & equivalents ($M)	1,103.3
Long-term debt ($M)	1,549.2
Inventories ($M)	605.3
Free Cash Flow ($M)	42.2
Largest customer as % of revenue	~55%

Guidance Changes

Q3 FY26 (December 2025 quarter) current guidance and operating model items

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q3 FY26	N/A	~$985M ± $50M	N/A
Non-GAAP Gross Margin %	Q3 FY26	N/A	47%–49%	N/A
Non-GAAP Diluted EPS	Q3 FY26	N/A	$1.85 ± $0.20	N/A
Non-GAAP OpEx ($M)	Q3 FY26	N/A	$255–$260	N/A
Non-operating expense ($M)	Q3 FY26	N/A	~10	N/A
Non-GAAP tax rate	FY26	Prior 18–19% (Q4 call)	~15%	Lowered

Q2 FY26 guidance progression (for context)

Item	Initial Guide (7/29)	Preliminary (10/28)	Actual
Revenue ($M)	~1,025 ± 50	1,058.5	1,058.5
Non-GAAP GM %	48–50%	49.7%	49.7%
Non-GAAP EPS ($)	2.00 ± 0.25	2.22	2.22

Earnings Call Themes & Trends

Topic	Q4 FY2025 (Q-2)	Q1 FY2026 (Q-1)	Q2 FY2026 (Current)	Trend
Premium mobile content at largest customer	Introduced ET PMIC on spring launch; >10% YoY fall content guided	>10% YoY fall content reiterated; spring ET content in place	Supported seasonal ramp; >10% YoY content growth on ramping platform	Strengthening mix/content
Android strategy	Exiting mass-tier Android; shift to premium/flagship	Android rev ~$240M with China just under $100M; exit ongoing	~$200M headwind FY26 and >$200M next year from exit; back-half weighted	Exit accelerates; back-half pressure
HPA (Defense & Aerospace)	Record D&A quarter; funnel >$5B; path to $1B annual longer-term	Continued strength; bookings/backlog; DOCSIS 4.0 infra tailwinds	YoY >25% growth cited; healthy channel, expedite requests; SSD PMIC tailwinds	Sustained momentum
Factory/footprint optimization	Costa Rica closure announced; SAW transfer to TX planned	TX SAW startup costs $10–$20M FY26; NC closure benefits beyond FY27	Utilization headwinds seasonally; no period underutilization charges; margin structurally improving	On track; structural GM tailwinds
Tariffs/supply chain	Direct tariff impact modeled high single-digit $M/qtr worst case	Modest buffering in China; 15–30M components buffer to unwind	Minimal anomalies; demand patterns normal; OpEx includes some FX effects	Manageable
Corporate/strategic	Margin expansion roadmap; portfolio exits (SiC, base station PAMs)	CSG UWB auto program pushout to FY27; CSG growth trimmed to low single digits	CSG org consolidation; ~$70M/yr OpEx reduction run-rate in FY27	Focused investments, cost down

Management Commentary

“Qorvo’s second quarter revenue, non-GAAP gross margin, and non-GAAP EPS exceeded the midpoint of guidance… We are improving the mix of revenue… and successfully executing on cost and productivity initiatives… to structurally enhance margins” — Grant Brown, CFO .
“In the September quarter, ACG supported our largest customer’s smartphone ramp… In HPA, we grew our D&A and infrastructure businesses… In CSG, we consolidated our organizational structure to improve profitability” — Bob Bruggeworth, CEO .
“We are reshaping Android exposure… anticipate lower margin Android revenue to decline by roughly $200 million this fiscal year and by more than $200 million next year” — Management on portfolio discipline .
“Non-GAAP gross margin increased approximately 270 basis points vs last fiscal year… Q3 non-GAAP gross margin is expected to increase 150 basis points vs last [year] at the midpoint” — CFO .

Q&A Highlights

Android exit cadence and magnitude: ~$200M headwind this year, >$200M next year; back-half weighted with March quarter impact due to timing of mass-tier ramps rolling off and lower content in spring flagship next year .
Gross margin drivers: Mix shift (premium mobile, HPA/D&A), factory consolidation (Costa Rica, SAW to TX, NC closure later), cost downs and yield; sequential GM variability mostly seasonal mix/utilization .
HPA scale and pipeline: Sized “mid-$400s and growing”; funnel grew another $2B in the quarter; breadth across EW, radar, SATCOM, drones; unique onshore tech stack (GaN/BAW/SAW/multi-chip modules) a differentiator .
Seasonality/utilization: Typical December/March seasonal decline at largest customer; no period underutilization charges; factories within normal variance bands .
Operating model guardrails: Q3 OpEx $255–$260M (lower incentives, restructuring savings), non-op expense ~$10M, non-GAAP tax ~15% .

Estimates Context

Q2 FY26 beat: Revenue $1,058.5M vs $1,036.6M*; EPS $2.22 vs $2.1118*; EBITDA below consensus (actual $254.1M vs $288.2M*) despite stronger gross margin, reflecting OpEx and adjustments mix .
Q3 FY26 setup: Company revenue guide midpoint (~$985M) aligns with consensus $984.1M*; EPS guide midpoint $1.85 vs consensus $1.8640*; room for YoY GM expansion continues, but seasonal step-down and Android exit weigh on sequential .