Qorvo, Inc. Q2 FY2026 earnings call

• Business Strategy: Sharply focused on highest-performing businesses, divesting/exiting non-strategic ones, restructuring CSG to focus on top opportunities, and optimizing factory network. - Restructuring: Expected to reduce operating expenses by ~$70M/year in fiscal 2027; consolidating CSG structure, narrowing ultra-wideband focus to specific markets, and optimizing factory footprint. - Quarterly Highlights: ACG supported seasonal ramp at largest customer with content growth; HPA supported D&A applications and expects defense/aerospace growth; CSG collaborating on ultra-wideband and WiFi 7 solutions.

ACG (Analog and Connectivity Group): Supported seasonal ramp at largest customer, with revenue decline in Android ecosystem; China-based Android OEM sales were ~$65M vs ~$100M prior quarter. HPA (High Performance Analog): Supported mission-critical D&A applications, expected double-digit year-over-year growth in defense and aerospace markets. CSG (Commercial Solutions Group): Collaborating with automotive Tier 1 on ultra-wideband, supplying to WiFi 7 network access points with ultra-wideband and related solutions. Revenue contributions and absolute figures were discussed in the context of these segments.

• Fiscal Q3 guidance reflects strong execution across end markets. - December quarter guidance: Revenue ~$985M ±$50M, non-GAAP gross margin 47%-49%, non-GAAP diluted EPS $1.85 ±$0.20. - Gross margin improvement due to product portfolio/pricing, D&A growth, divestitures, and factory cost management. - Projected non-GAAP operating expenses for December quarter $255M-$260M.

Q: It seems like you're now assuming a $200 million headwind from exiting the low end of the China Android market. Could you address why that is the case for this year and next year?

A: Dave Fullwood stated the $200M decline is more weighted to back half/next March due to timing of mass tier model ramping down and no new designs replacing them.

Q: How would you rank order the December quarter outlook across HPA, CSG and ACG?

A: Grant Brown and Philip Chesley mentioned D&A business expected to increase, HPA strong, infrastructure business strong including DOCSIS 4.0 and base station products, and CSG collaborating on ultra-wideband and WiFi 7.