Qorvo Inc Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Thomas O'Malley - Barclays Capital - Analyst : Hey, guys, thanks for taking my question and congrats on the nice results. I wanted to ask about the commentary on content with the largest smartphone customer. Obviously, that's a really nice forecast for the year. Could you talk about, things that are driving that obviously you have an ET chip that's coming into play, but also you would be concerned in like a broader environment that there may be pricing headwinds. Maybe just broadly, can you talk about your Largest customers and if you're facing any sort of pricing squeeze over the next couple of quarters or if you're able to offset that in any way, I just want to understand the context there?

Question: Thomas O'Malley - Barclays Capital - Analyst : Super helpful on the color. Just on the fiscal year you guys had kind of previously talked about a little bit of a decline. So one side of things, it sounds like, you're seeing some real strength and then on the Android side, you're obviously being more strategic in where you invest. If you look at like the cadence for the year. Which is something that I think, is a little difficult to kind of model and look at how fast should we be seeing Android fall off just because it looks like in the March quarter, you actually had a little bit of an uptick there. Is that, last time buys, and then how quickly is that going to fall off throughout the year?

Question: Thomas O'Malley - Barclays Capital - Analyst : Thank you guys.

Question: Harsh Kumar - Piper Sandler - Analyst : Yeah, hey guys, congratulations also on very nice quarter and resolve. Bob, maybe you could clarify something for us. You mentioned that you want an ET solution, on the internal base ban for a customer. Are you sharing this with somebody? And then secondly, you also talked about, sort of a nice double digit kind of content increase. So is the content increase coming because the base brand is moving to other models or is it coming because you're also, winning stuff across the Board and other categories as well? Just and then I will follow up.

Question: Harsh Kumar - Piper Sandler - Analyst : Appreciate it guys. Congrats again.

Question: Chris Caso - Wolfe Research - Analyst : Yes, thank you. Good evening. I guess the first question is regarding some of your comments about the direct tariff impact if if things aren't positive, you talked about high single digit millions. Can you detail a little bit more of what your assumptions are behind that? What do you mean by that? And just in general, there's a lot of uncertainty with tariffs in the US, there's some concern about, what tariffs may be charged and what might be paused going into China. Can you just kind of update us on your position and what your assumptions are right now?

Question: Chris Caso - Wolfe Research - Analyst : That's very helpful and thank you very much for the detailed answer. For my follow up, I guess I wanted to get to the fiscal '26 guidance, and you had mentioned, so, and I guess perhaps it wasn't guidance, but it was, some indication of, kind of flat revenue, 150 basis points, gross margin expansion in the current environment is that still, a good model for us to follow?

Question: Chris Caso - Wolfe Research - Analyst : Got it. Thank you.

Question: Karl Ackerman - BNP Paribas Securities Corp. North America - Analyst : Yes, thank you. I have two, please. First, is your content growth with the largest customer coming from, your attached rate on their own base band or you're also seeing content on third party base bands as well? I have a follow up.

Question: Karl Ackerman - BNP Paribas Securities Corp. North America - Analyst : Helpful, thank you. And then second, where are you on working through previously under absorbed inventory? And do you foresee tariffs, to impact your China-based demand, and I suppose if demand were to moderate, is the margin associated with, the China-based demand higher than corporate averages? So if you could just follow up on that'd be great.

Question: Karl Ackerman - BNP Paribas Securities Corp. North America - Analyst : Thank you.

Question: Srini Pajjuri - Raymond James - Analyst : Thank you. First, the clarification, and then I have a question on the clarification. You talked about the $150 million to $200 million headwind from exiting the Android, I think low end Android last quarter. Is that still on track? Are you track better or worse? If you can clarify that, then I have a question.

Question: Srini Pajjuri - Raymond James - Analyst : Okay, thank you. And then Bob, on the D&A, it looks like the business has been faring quite well, and some of the trends that you highlighted make a lot of sense. You also talked about, potentially getting to a $1 billion annual run rate. Could you give us maybe some color as to where the business is today in terms of run rate? And then also, in terms of, product categories and maybe, geographic exposure, if you could give us, because we don't get a lot of details on this business, so I think any color on the business would be helpful in terms of the growth drivers.

Question: Srini Pajjuri - Raymond James - Analyst : Thanks Phil. Very detailed. I appreciate it.

Question: Edward Snyder - Charter Equity Research - Analyst : Thanks a lot, Grant, based on the number you just gave for your largest customer in the fiscal year, it looks like you were flat year-over-year in total revenue, we can talk different unit volumes, et cetera, but it kind of speaks to maybe -- I know you've gotten some contract gains on the last fall's phone, but it doesn't seem like you got a lot of boost from the spring phone. So one, I want to get your feeling on will the content gains material in unit volume is just weak or why we seeing it kind of flat? And then secondarily, based on -- even our tear down, it looks like your content might have been a little bit light. Without the ET PIMIC, it would have been light on the spring fall, with ET PIMIC, it looks about even maybe still a little bit down. Is that a correct assessment? And is that the baseline we should expect from the internal modem phone for next -- for this year or next year? And then I have a follow-up.

Question: Edward Snyder - Charter Equity Research - Analyst : And then in terms of tariffs, you had several module houses, correct me if I'm wrong, but in your latest filings, you had module assembly in Costa Rica, Korea, Germany and China. You closed Costa Rica to consolidate. I understand that's an old facility. Does that mean most of this stuff will shift to Asia? Or are you going to try to distribute, how are you working that business? Because that seems to be a critical factor in determining where the tariffs are going to wind up in the end.

Question: Edward Snyder - Charter Equity Research - Analyst : I understand it's very difficult to predict because of the wackiness of this year and next year in terms of having two phones and that sort of thing too. But your 10% content increase year-over-year, can you just maybe give us a little bit of idea how that -- what assumption you're using in terms of split between internal versus, say, the Qualcomm in the fall that drives you that number?

Question: Edward Snyder - Charter Equity Research - Analyst : Okay, thanks guys.

Question: Gary Mobley - Loop Capital - Analyst : Hey guys, Most of the juicy topics have been addressed -- Do you still feel comfortable with the HPA and CSG businesses growing double-digit percent in fiscal year '26. And within those two segments, how much business would you characterize as maybe being classically cyclical or subject to ebbs and flows in the distribution of customer inventory and on that specific front, are you seeing any sort of green shoots in terms of order and backlog fill?

Question: Gary Mobley - Loop Capital - Analyst : You thank you for that and Grant, just a quick follow-up. Are you still expecting OpEx to hover at $250 million per quarter level for the balance of fiscal year '26.