Qorvo 1Q26 results beat expectations; FY27 guidance reiterated

Overview

This report is Goldman Sachs's review of Qorvo Inc.'s 1Q26 results. The key takeaway is that the company's revenue, gross margin, and non-GAAP EPS all came in above GSe and consensus expectations, with the primary highlight being gross margin materially above expectations. Management also reiterated its targets of FY27 non-GAAP gross margin above 50% and EPS near $7.00.

Core views

The report takes a generally positive view: 1Q26 earnings quality was strong, particularly with gross margin and EPS outperforming market expectations, supporting Goldman Sachs's average 4% upward revision to its 2026-2028 EPS forecasts. However, because QRVO is Not Rated, the report does not constitute a clear buy, hold, or sell recommendation, nor does it provide a target price.

Analysis framework

The report mainly compares actual results with GSe and consensus expectations, focusing on deviations in revenue, gross margin, and non-GAAP EPS, and combines management's FY27 guidance with valuation/risk disclosures to assess subsequent changes in earnings expectations.

Methodology notes

• Earnings comparisonVariance Summary

  Deviation of actual results versus expectations

  The report compares Qorvo's 1Q26 revenue, gross margin, and non-GAAP EPS with GS forecasts and market consensus expectations to assess quarterly performance strength.

• Factor frameworkGS Factor Profile

  Growth, financial returns, valuation multiples, and composite percentile

  Goldman Sachs Factor Profile compares individual stocks with the market and industry peers across growth, financial returns, valuation multiples, and composite indicators; this report discloses the methodology but does not provide QRVO's specific factor values.

• M&A frameworkM&A Rank

  Probability ranking of becoming an acquisition target

  Goldman Sachs uses an M&A rank from 1 to 3 to assess the likelihood of a company becoming an acquisition target; this report discloses the framework definition but does not provide QRVO's specific M&A rank.

• Research databaseQuantum

  Financial history, forecasts, and ratios database

  Quantum is Goldman Sachs's proprietary database used for in-depth single-company analysis and cross-company comparisons; this report includes a description of the tool.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Qorvo Inc. (QRVO.US)

  Subject of the report

  Strengths

  1Q26 revenue, gross margin, and non-GAAP EPS all exceeded expectations, and management reiterated its targets of FY27 gross margin above 50% and EPS near $7.00.

  Weaknesses

  Goldman Sachs rates QRVO as Not Rated, lacking a target price, expected upside, and explicit investment rating; the report body provides limited detail on business segments.

  Comparison

  1Q26 total revenue of $808 mn was above GSe and consensus expectations of $801 mn; gross margin of 52.6% was significantly above GS's forecast of 48.9% and market expectations of 48.4%; non-GAAP EPS of $1.69 was above GS's forecast of $1.19 and market expectations of $1.21.

  Risks

  Risks to delivering FY27 guidance, risk of gross margin pullback, volatility in semiconductor demand, as well as disclosure risk related to potential conflicts of interest arising from Goldman Sachs's investment banking business and advisory relationship with Qorvo.

Key data

• 1Q26 total revenue$808 mnSlightly above GSe and consensus expectations of $801 mn, a beat of about 1%.
• 1Q26 gross margin52.6%Above GS's forecast of 48.9% and market expectations of 48.4%.
• 1Q26 non-GAAP EPS$1.69Above GS's forecast of $1.19 and market expectations of $1.21.
• FY27 non-GAAP gross margin guidance>50%Management continues to maintain this target.
• FY27 EPS guidancenear $7.00Management continues to maintain this target.
• 2026-2028 EPS forecast revisionaverage increase of 4%Goldman Sachs said it raised forecasts to reflect better-than-expected 1Q performance.
• Investment ratingNot RatedThe report did not provide a target price or expected upside.

Impact & implications

Better-than-expected gross margin and EPS performance increased market confidence in Qorvo's earnings resilience and the achievability of its FY27 targets, and also prompted Goldman Sachs to raise its EPS forecasts for the next three years. Because the company is Not Rated, investors should view this report more as an earnings update and earnings expectation revision rather than a clear investment recommendation.

Risks

• If the FY27 targets of non-GAAP gross margin above 50% and EPS near $7.00 are not achieved, the logic for upward earnings revisions may weaken.
• 1Q26 gross margin significantly exceeded expectations, but whether this can continue in subsequent quarters remains to be seen.
• Volatility in semiconductor industry demand and customer order cycles may affect revenue growth and profit margins.
• Goldman Sachs disclosed its investment banking client relationship with Qorvo, potential future compensation for investment banking services, and matters related to financial advisory services; investors should read the report alongside these conflict disclosures.
• QRVO is Not Rated, lacking a target price and a total return assessment under a rating framework.

What to watch

• Whether revenue continues to exceed market expectations in subsequent quarters.
• Whether gross margin can remain above 50% and support FY27 targets.
• Whether the path to FY27 EPS near $7.00 becomes clearer.
• Whether Goldman Sachs resumes rating, target price, or earnings forecast coverage.
• Progress in strategic transactions or advisory matters related to Qorvo.