Qorvo’s Shares Plunge After Warning of Flat Sales to Largest Customer
Qorvo, a semiconductor supplier, saw its shares plunge in extended trading after the company warned of potentially flat sales to its largest customer, a key contributor to its revenue. Despite reporting better-than-expected quarterly earnings, the company’s stock took a hit after CEO Bob Bruggeworth revealed during an earnings call that sales to its top customer, which accounts for around 46% of its revenue, are expected to show little to no growth in the fiscal year ending March 2026.
The warning offset the initial excitement caused by the company’s strong quarterly performance, which saw earnings per share of $1.61, above the expected $1.20, and revenue of $916 million, surpassing the predicted $902 million. Qorvo’s largest customer accounted for over half of the company’s revenue in the December quarter, according to the company’s filing.
The revelation has sparked concern among analysts, who have forecast a revenue growth of just over 4% to $3.85 billion in fiscal 2026. Moreover, the company expects a significant decline in revenue from its Android business, with a drop of about $150 million to $200 million in fiscal 2026 and a similar decline the following year, largely due to the Chinese market.
This news comes as a surprise to some, considering Qorvo’s strong performance in the quarter, and may indicate a potential challenge for the company’s growth moving forward. The company also faces increased competition from other players in the market, which could further exacerbate the issue.