Operating margins remain constrained at 3.9% as of 2026Q4, struggling to scale effectively against high R&D and SG&A expenses during periods of revenue contraction.
| Metric | Mar'26 | Mar'25 | Mar'24 | Apr'23 | Apr'22 | Apr'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 |
|---|
| Sales/Revenue | 3.68B | 3.72B | 3.77B | 3.57B | 4.65B | 4.02B | 3.24B | 3.09B | 2.97B | 3.03B | 2.61B | 1.71B | 1.15B | 964.15M |
| Revenue Growth % | -1.09% | -1.34% | 5.61% | -23.17% | 15.7% | 23.96% | 4.82% | 3.93% | -1.95% | 16.16% | 52.59% | 49.01% | 19.09% | - |
| Cost of Goods Sold | 1.99B | 2.18B | 2.28B | 2.27B | 2.36B | 2.13B | 1.92B | 1.9B | 1.83B | 1.9B | 1.56B | 1.02B | 743.3M | 658.33M |
| COGS % of Revenue | 54.11% | 58.71% | 60.51% | 63.67% | 50.79% | 53.09% | 59.19% | 61.32% | 61.43% | 62.56% | 59.8% | 59.71% | 64.73% | 68.28% |
| Gross Profit | 1.69B | 1.54B | 1.49B | 1.3B | 2.29B | 1.88B | 1.32B | 1.2B | 1.15B | 1.14B | 1.05B | 689.31M | 404.93M | 305.81M |
| Gross Margin % | 45.89% | 41.29% | 39.49% | 36.34% | 49.21% | 46.91% | 40.81% | 38.67% | 38.57% | 37.44% | 40.2% | 40.29% | 35.27% | 31.72% |
| Gross Profit Growth % | 9.93% | 3.16% | 14.77% | -43.27% | 21.37% | 42.5% | 10.59% | 4.2% | 1.01% | 8.19% | 52.26% | 70.23% | 32.41% | - |
| Operating Expenses | 1.28B | 1.44B | 1.4B | 1.11B | 1.06B | 976.94M | 898.55M | 978.72M | 1.08B | 1.05B | 1.04B | 566.84M | 377.59M | 321.5M |
| OpEx % of Revenue | 34.71% | 38.72% | 37.06% | 31.2% | 22.82% | 24.33% | 27.74% | 31.67% | 36.21% | 34.54% | 39.74% | 33.13% | 32.88% | 33.34% |
| Selling, General & Admin | 380.67M | 403.62M | 389.14M | 358.79M | 349.72M | 367.24M | 343.57M | 476.07M | 527.75M | 545.59M | 534.1M | 249.89M | 151.4M | 132.92M |
| SG&A % of Revenue | 10.35% | 10.85% | 10.32% | 10.05% | 7.53% | 9.15% | 10.61% | 15.41% | 17.75% | 17.99% | 20.46% | 14.61% | 13.19% | 13.79% |
| Research & Development | 726.12M | 747.71M | 682.25M | 649.84M | 623.64M | 570.39M | 484.41M | 450.48M | 445.1M | 470.84M | 448.76M | 257.49M | 197.27M | 178.79M |
| R&D % of Revenue | 19.74% | 20.11% | 18.1% | 18.21% | 13.42% | 14.21% | 14.95% | 14.58% | 14.97% | 15.53% | 17.19% | 15.05% | 17.18% | 18.54% |
| Other Operating Expenses | 169.88M | 288.73M | 325.4M | 105.14M | 86.75M | 39.31M | 70.56M | 52.16M | 103.83M | -1.88M | 6.42M | -1.23M | 2.34M | -1.18M |
| Operating Income | 411.42M | 95.53M | 91.7M | 183.17M | 1.23B | 906.63M | 423.22M | 216.47M | -637.52M | 88.06M | 11.97M | 122.47M | 27.34M | -15.68M |
| Operating Margin % | 11.18% | 2.57% | 2.43% | 5.13% | 26.39% | 22.58% | 13.07% | 7% | -21.44% | 2.9% | 0.46% | 7.16% | 2.38% | -1.63% |
| Operating Income Growth % | 330.69% | 4.17% | -49.94% | -85.06% | 35.23% | 114.22% | 95.51% | 133.95% | -823.97% | 635.79% | -90.23% | 347.92% | 274.37% | - |
| EBITDA | 411.42M | 392.36M | 412.63M | 522.02M | 1.59B | 1.36B | 892.15M | 879.56M | 76.69M | 792.64M | 686.92M | 339.45M | 101.68M | 56.78M |
| EBITDA Margin % | 11.18% | 10.55% | 10.95% | 14.62% | 34.17% | 33.94% | 27.54% | 28.46% | 2.58% | 26.14% | 26.31% | 19.84% | 8.86% | 5.89% |
| EBITDA Growth % | 4.86% | -4.91% | -20.95% | -67.12% | 16.49% | 52.75% | 1.43% | 1046.86% | -90.32% | 15.39% | 102.36% | 233.86% | 79.06% | - |
| D&A (Non-Cash Add-back) | 0 | 296.84M | 320.93M | 338.85M | 361.42M | 456.1M | 468.93M | 663.1M | 714.22M | 704.58M | 674.95M | 216.99M | 74.34M | 72.46M |
| EBIT | 411.42M | 144.23M | 142.81M | 193.09M | 1.24B | 882.58M | 455.48M | 135.75M | 76.69M | 86.18M | 20.45M | 122.66M | 29.86M | -19.37M |
| Net Interest Income | -73.13M | -78.33M | -69.25M | -68.46M | -63.33M | -75.2M | -48.33M | -32.99M | -52.53M | -57.67M | -21.25M | -971K | -5.8M | -6.28M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 12.07M | 10.97M | 7.02M | 1.21M | 2.07M | 450K | 179K | 249K |
| Interest Expense | 73.13M | 78.33M | 69.25M | 68.46M | 63.33M | 75.2M | 60.39M | 43.96M | 59.55M | 58.88M | 23.32M | 1.42M | 5.98M | 6.53M |
| Other Income/Expense | -13.15M | -29.63M | -18.14M | -58.54M | -44.98M | -99.25M | -28.13M | -124.67M | -53.14M | -60.75M | -14.83M | -1.23M | -3.47M | -10.22M |
| Pretax Income | 398.27M | 65.9M | 73.56M | 124.63M | 1.18B | 807.38M | 395.09M | 91.79M | 17.14M | 27.3M | -2.86M | 121.24M | 23.87M | -25.9M |
| Pretax Margin % | 10.83% | 1.77% | 1.95% | 3.49% | 25.42% | 20.11% | 12.2% | 2.97% | 0.58% | 0.9% | -0.11% | 7.09% | 2.08% | -2.69% |
| Income Tax | 59.28M | 10.28M | 143.88M | 21.48M | 147.73M | 73.77M | 60.76M | -41.33M | 57.43M | 43.86M | 25.98M | -75.06M | 11.23M | 27.1M |
| Effective Tax Rate % | 14.89% | 15.61% | 195.6% | 17.23% | 12.51% | 9.14% | 15.38% | -45.03% | 334.98% | 160.64% | -907.86% | -61.91% | 47.04% | -104.64% |
| Net Income | 338.99M | 55.62M | -70.32M | 103.15M | 1.03B | 733.61M | 334.32M | 133.13M | -40.29M | -16.56M | -28.84M | 196.3M | 12.64M | -53M |
| Net Margin % | 9.22% | 1.5% | -1.87% | 2.89% | 22.24% | 18.27% | 10.32% | 4.31% | -1.35% | -0.55% | -1.1% | 11.47% | 1.1% | -5.5% |
| Net Income Growth % | 509.53% | 179.09% | -168.17% | -90.02% | 40.86% | 119.43% | 151.14% | 430.43% | -143.31% | 42.6% | -114.69% | 1452.78% | 123.85% | - |
| Net Income (Continuing) | 338.99M | 55.62M | -70.32M | 103.15M | 1.03B | 733.61M | 334.32M | 133.13M | -40.29M | -16.56M | -28.84M | 196.3M | 12.64M | -53M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 3.62 | 0.58 | -0.72 | 1.00 | 9.26 | 6.32 | 2.80 | 1.05 | -0.32 | -0.13 | -0.20 | 1.32 | 0.09 | -0.75 |
| EPS Growth % | 524.14% | 180.56% | -172% | -89.2% | 46.52% | 125.71% | 166.67% | 428.13% | -146.15% | 35% | -115.15% | 1451.12% | 111.35% | - |
| EPS (Basic) | 3.66 | 0.59 | -0.72 | 1.01 | 9.38 | 6.43 | 2.86 | 1.07 | -0.32 | -0.13 | -0.20 | 1.32 | 0.09 | -0.36 |
| Diluted Shares Outstanding | 93.55M | 95.45M | 97.56M | 103.02M | 111.55M | 116.02M | 119.29M | 127.36M | 126.95M | 127.12M | 141.94M | 149.06M | 148.47M | 70.84M |
| Basic Shares Outstanding | 92.59M | 94.59M | 97.56M | 102.21M | 111.55M | 114.03M | 117.01M | 124.53M | 126.32M | 126.46M | 141.94M | 149.06M | 148.47M | 148.47M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
High Customer Concentration Exposure
As reported in recent financial filings, Qorvo's revenue growth has decelerated significantly, shifting from a 48.7% year-over-year increase in 2024Q4 to a 7.0% contraction by 2026Q4, highlighting the company's sensitivity to the highly seasonal and cyclical nature of the global smartphone handset market.
The revenue trajectory suggests a heavy reliance on flagship product launch cycles, which creates lumpy performance rather than consistent secular growth. Investors should monitor whether the recent segment reorganization into HPA, CSG, and ACS can successfully decouple the top line from the volatile Android OEM inventory cycles.
Based on the company's reported income statements, gross margins have fluctuated between 36.1% and 48.9% over the last ten quarters, reflecting the inherent difficulty of maintaining profitability in a capital-intensive manufacturing environment where capacity utilization remains the primary driver of structural margin performance.
The high fixed-cost nature of Qorvo's internal fabrication facilities means that even minor volume declines lead to significant margin compression. The current gross margin of 48.9% in 2026Q4 appears to be an outlier relative to the recent trend, suggesting that sustained profitability requires higher utilization rates than the current demand environment supports.
According to the provided income statement data, operating income has struggled to scale with revenue, evidenced by a thin 3.9% operating margin in 2026Q4, which indicates that high R&D and SG&A expenses continue to absorb the majority of gross profit generated during periods of lower throughput.
The lack of meaningful operating leverage suggests that the company's cost structure is not sufficiently flexible to adapt to revenue downturns. This warrants further investigation into whether the current R&D spend is yielding sufficient design wins to justify the ongoing drag on operating profitability.
As detailed in the quarterly income statements, stock-based compensation remains a persistent expense, reaching $26.3 million in 2026Q4, which continues to dilute the quality of reported net income and complicates the assessment of true operational profitability for shareholders monitoring the bottom line.
The recurring nature of these non-cash charges suggests that investors should focus on adjusted metrics to understand the underlying earnings power of the business. The volatility in net income, which swung from a loss in 2025Q2 to a profit in 2026Q3, further underscores the difficulty in relying on GAAP earnings as a proxy for operational health.
Based on the provided financial data, the primary risk to the narrative is the potential for permanent margin erosion if major smartphone OEMs continue to internalize RF component production, thereby reducing Qorvo's addressable market and diminishing its pricing power in the competitive mobile handset segment.
Short-sellers would likely focus on the company's inability to maintain consistent operating margins above 10% during non-peak quarters. This suggests that the market may be correctly pricing the company as a cyclical hardware provider rather than a secular growth story, given the persistent vulnerability to customer concentration.
Quick answers to the most common questions about buying QRVO stock.
For fiscal year 2026, Qorvo, Inc. (QRVO) reported total revenue of $3.68B. This represents a 281.5% increase compared to $964.1M in 2013.
Qorvo, Inc. (QRVO) is profitable, generating $339.0M in net income for the fiscal year ending 2026 with a net profit margin of 9.2%.
Qorvo, Inc. (QRVO) reported an operating income of $411.4M, resulting in an operating profit margin of 11.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Qorvo, Inc. (QRVO) generated $1.69B in gross profit for the year, representing a gross profit margin of 45.9%. This demonstrates the company's core pricing power and production efficiency.