Executive Summary

Qorvo delivered Q4 FY25 revenue of $869.5M and non-GAAP EPS of $1.42, beating S&P Global consensus by ~$19M on revenue and ~$0.42 on EPS; non-GAAP gross margin expanded 340 bps YoY to 45.9% while GAAP EPS was $0.33 due to non-GAAP adjustments including a $79.5M impairment . Q4 FY25 consensus: Revenue $850.5M*, EPS $1.00*.
HPA (defense & power) was the standout: record D&A revenue and HPA operating margin of 31.1%; ACG declined sequentially and YoY as Android exposure was reduced; CSG down YoY amid product mix and market softness .
Q1 FY26 (June) guidance: revenue ~~$775M ±$25M, non-GAAP GM 42–44%, non-GAAP EPS $0.50–$0.75; management noted direct tariff impact <~~$1M in June, with potential high single‑digit millions per quarter thereafter if exemptions expire .
Strategic narrative: content gains at the largest customer (envelope tracking PMIC ramp, >10% YoY content growth targeted for fall launch), defense funnel >$5B with path to $1B annual revenue, UWB automotive funnel >$2B; strong FCF of $170.7M in the quarter and $485M for FY25 underpin capital returns and deleveraging .

What Went Well and What Went Wrong

What Went Well

Record defense & aerospace quarter and fiscal year; sales funnel >$5B and a stated path to scale to $1B annually, supported by broad applications (airborne radar, SATCOM, EW, missile defense) and onshoring tailwinds .
Largest customer momentum: “We have been awarded design wins supporting greater than 10% year-over-year content growth” for the 2025 fall launch; spring launch ramp included sole‑sourced envelope tracking PMIC content tied to the customer’s internal baseband .
Margin/FCF execution: non-GAAP GM 45.9% (+340 bps YoY), non-GAAP operating margin 17.5%, and free cash flow $170.7M in Q4; FY25 FCF totaled $485M amid cost focus and portfolio optimization .

What Went Wrong

Top-line deceleration: revenue declined 5.1% sequentially and 7.6% YoY; ACG revenue fell 8.6% sequentially and 11.2% YoY as the company de-emphasized lower-margin Android exposure; segment operating margin in ACG compressed sequentially (25.4% → 18.9%) .
GAAP charges: Q4 included $79.5M of goodwill/intangible impairment within other operating expense, part of significant GAAP-to-non-GAAP adjustments; GAAP EPS was $0.33 vs non-GAAP $1.42 .
Tariff/macro uncertainties: June guide embeds <~$1M direct tariff impact, but if pauses/exemptions lapse and retaliatory tariffs persist, direct impact could rise to high single‑digit millions per quarter across COGS/OpEx/CapEx; management is mitigating via footprint flexibility and bonded free-trade flows .

Financial Results

Recent quarterly comparison (oldest → newest):

Metric	Q4 FY2024	Q3 FY2025	Q4 FY2025
Revenue ($M)	$941.0	$916.3	$869.5
GAAP Gross Margin	40.6%	42.7%	42.2%
Non-GAAP Gross Margin	42.5%	46.5%	45.9%
GAAP Operating Income ($M)	$30.0	$53.0	$28.2
Non-GAAP Operating Income ($M)	$147.2	$177.9	$151.8
GAAP Diluted EPS	$0.03	$0.43	$0.33
Non-GAAP Diluted EPS	$1.39	$1.61	$1.42

Segment performance (oldest → newest):

Segment ($M)	Q4 FY2024	Q3 FY2025	Q4 FY2025
HPA Revenue	$164.6	$171.7	$187.9
CSG Revenue	$122.8	$109.5	$101.3
ACG Revenue	$653.6	$635.1	$580.3
HPA Op Income	$31.5	$32.6	$58.4
CSG Op Income (Loss)	$(15.2)	$(11.7)	$(15.6)
ACG Op Income	$134.3	$161.2	$109.7

KPI snapshot (Q4 FY2025):

KPI	Q4 FY2025
Free Cash Flow ($M)	$170.7
Cash & Equivalents ($M)	$1,021.2
Inventories ($M)	$641.0
Long-term Debt ($M)	$1,549.2
Weighted-Average Diluted Shares (M)	94.1

Comparison vs S&P Global consensus:

Metric	Consensus	Actual	Beat/(Miss)
Revenue (Q4 FY25)	$850.5M*	$869.5M	+$19.0M
Primary EPS (Q4 FY25)	$1.00*	$1.42	+$0.42

Values marked with * were retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current/Actual	Change
Revenue	Q4 FY25 (Mar qtr)	~$850M ±$25M (guided 1/28/25)	$869.5M (actual)	Beat
Non-GAAP GM	Q4 FY25 (Mar qtr)	43–44% (guided 1/28/25)	45.9% (actual)	Beat
Non-GAAP EPS	Q4 FY25 (Mar qtr)	$0.90–$1.10 (guided 1/28/25)	$1.42 (actual)	Beat
Revenue	Q1 FY26 (June qtr)	n/a	~$775M ±$25M	New
Non-GAAP GM	Q1 FY26 (June qtr)	n/a	42–44%	New
Non-GAAP EPS	Q1 FY26 (June qtr)	n/a	$0.50–$0.75	New
Non-GAAP OpEx	Q1 FY26 (June qtr)	n/a	~$250M	New
Non-operating expense	Q1 FY26 (June qtr)	n/a	$10–$12M	New
Non-GAAP tax rate	FY26	~18–19% (raised from ~11% FY25)	~18–19%	Maintained qualitative outlook
Direct tariff impact	Q1 FY26 (June qtr)	n/a	<~$1M baseline; potential high single-digit $M/quarter if exemptions lapse	Risk framed

Earnings Call Themes & Trends

Topic	Q2 FY25 (Oct)	Q3 FY25 (Jan)	Q4 FY25 (Apr)	Trend
Largest customer content	Investing to grow; mix/margins impacted by Android entry-tier shift	FY26 at largest customer flat to modestly up; content weighted to Pro models	>10% YoY content growth for fall; ET PMIC ramp; spring launch support	Improving content trajectory
Android strategy	Entry-tier shift reduces TAM; pricing discipline; de-emphasize low-margin mid/entry tiers	Exit $150–$200M/yr low-margin Android over FY26–27	ACG down; June quarter Android typically up seasonally; exit still “on track”	Intentional exposure reduction
Defense & aerospace	Strong design activity; secular AESA/NTN tailwinds	Record growth; ~$400M business; seasonal strength in Mar, down in Jun	Record quarter/year; funnel >$5B; path to $1B	Structural growth
UWB/Auto & IoT	Building SoC portfolio; Matter/BLE traction	Strong auto interest; UWB anchors up to ~$20/car	Auto UWB funnel >$2B; sampling integrated automotive UWB SoC	Expanding funnel
Manufacturing/footprint	GaAs move NC→OR; 8-inch BAW; consolidation	Cost actions; outsourcing where efficient	Closing Costa Rica; >2/3 production costs external; factory consolidation ongoing	Margin accretive actions
Tariffs/macro	No material impact disclosed	FY26 GM +150 bps on flat revenue despite Android headwinds	June direct tariff impact <~$1M; scenario high single‑digit $M/quarter; mitigation via supply chain flexibility	Managed risk

Management Commentary

“Qorvo achieved stronger than seasonal sequential revenue while surpassing the midpoint of EPS guidance by 42 cents and expanding gross margin year-over-year.” – Bob Bruggeworth, CEO .
“Our Ultra-Wideband sales funnel for automotive has grown more than $500 million over the last 12 months and now exceeds $2 billion.” – CEO .
“We achieved a record quarter and record fiscal year in D&A revenue… The sales funnel for our defense and aerospace business currently exceeds $5 billion… we see a path to scale this business… to $1 billion annually.” – Management .
“We generated $171 million of free cash flow in the fourth quarter and $485 million during fiscal 2025.” – Grant Brown, CFO .
“June quarter: revenue approximately $775 million ±$25 million; non-GAAP gross margin 42–44%; non-GAAP EPS $0.50–$0.75.” – CFO .
“If the 90-day pause is not extended… direct tariff impact could rise to high single-digit millions per quarter.” – CFO .

Q&A Highlights

Pricing/content at largest customer: Management emphasized performance-led competition in premium/flagship tiers; regained multiple dollars of content at Samsung second-half models; remain sole-sourced for ET PMIC on the internal baseband .
Android cadence and exit: Android may tick up seasonally in June but remains on track to decline $150–$200M per year as low-margin exposure is reduced; pivot to premium/flagship tiers continues .
Tariffs: Direct impact modest in June; detailed mitigation includes multiple qualified flows, bonded FTZ assembly, and substantial transformation rules limiting direct exposure; scenario analysis frames high single‑digit $M/quarter if exemptions lapse .
D&A scale and drivers: Business ~ $400M run-rate with broad platform exposure (radar, comms, EW, SATCOM) and international demand; secular upgrades (AESA, defense budgets, FMS) underpin multi-year growth .
Cost and footprint: Non-GAAP OpEx expected ~ $250M in June; closure of Costa Rica part of footprint consolidation; >2/3 production costs external via foundries/OSATs .

Estimates Context

Q4 FY25 vs S&P Global consensus: Revenue $869.5M vs $850.5M*, EPS $1.42 vs $1.00* – both beats. Values marked with * were retrieved from S&P Global.
Q1 FY26 (June) guidance vs S&P Global consensus: Revenue guide midpoint ~$775M vs $776.5M* (in line); EPS guide midpoint ~$0.625 vs $0.629* (in line). Values marked with * were retrieved from S&P Global.

Key Takeaways for Investors

Quality of beat: broad-based non-GAAP upside (revenue, GM, EPS) with strong FCF; GAAP impacted by impairment, but operating execution improving margins and cash generation .
Mix shift is working: ACG is being reshaped away from low-margin Android toward premium/flagship and the largest customer, where content is set to rise >10% YoY at the fall launch; supports medium-term margin durability .
Structural growth vectors: HPA (defense/SATCOM/power) and CSG (UWB/Matter/WiFi 7) provide diversification; defense funnel and auto UWB pipeline are sizeable .
Near-term setup: June guide is seasonally softer but broadly in line with Street; tariff exposure appears manageable near term, though scenario risk persists into 2H if exemptions expire .
Margin roadmap: FY26 gross margin expansion supported by portfolio optimization, factory consolidation (including Costa Rica closure), outsourcing leverage, and mix toward HPA/CSG; OpEx discipline sustained at ~ $250M/quarter .
Capital and liquidity: ~$1.0B cash, long-term debt ~$1.55B, consistent deleveraging and buybacks supported by FCF ($170.7M in Q4; $485M in FY25) .
Governance catalyst: Starboard’s Peter Feld nominated to the Board post-quarter, potentially adding pressure/discipline around execution and capital allocation .

Additional references:

Full Q4 FY25 8‑K and Exhibit 99.1 (press release): results, segment detail, reconciliations, balance sheet, and FCF .
Q4 FY25 earnings call transcript: segment color, customer content, tariff mitigation, and FY26 cost/margin actions .
Prior quarters’ calls for trend analysis and prior guidance context .