Qorvo: Improving Profitability Offset by Weak Long-Term Revenue Outlook Supports Hold Rating

Krish Sankar, an analyst from TD Cowen, maintained the Hold rating on Qorvo. The associated price target was lowered to $80.00.

Krish Sankar has given his Hold rating due to a combination of factors that balance improving profitability with weaker long‑term revenue prospects. He notes that Qorvo’s latest quarterly results exceeded expectations on revenue, gross margin, and earnings, and he expects margins to improve further as the product mix shifts toward higher-margin High Performance Analog (HPA) and as operations and manufacturing become more efficient. Demand from defense and aerospace customers and reduced exposure to low-end Android devices are also seen as supportive of better profitability over time.

At the same time, Sankar is cautious because the company’s fiscal 2027 revenue outlook implies a high single-digit percentage decline year over year. He highlights a sharper than anticipated drop in China Android revenue, driven both by Qorvo exiting lower-margin business and by weaker build plans tied to memory cost pressures. Additionally, he expects Qorvo’s content at its largest customer, Apple, to be roughly flat as share losses in ultra high band RF for the next iPhone offset gains in other Apple sockets, and he notes there is no incremental merger update to serve as a catalyst. These mixed drivers lead him to lower his price target and support a neutral, or Hold, stance rather than a more positive recommendation.

According to TipRanks, Sankar is a top 100 analyst with an average return of 36.3% and a 65.78% success rate. Sankar covers the Technology sector, focusing on stocks such as Micron, Applied Materials, and KLA.