Qorvo announces executive stock awards under 2022 plan

GREENSBORO, NC—Qorvo, Inc. (NASDAQ:QRVO), a leading semiconductor company with a market capitalization of $7.2 billion and a perfect Piotroski Score of 9 according to InvestingPro, disclosed the approval of performance-based restricted stock units (PBRSUs) for its executive officers under the 2022 Stock Incentive Plan. The company, currently trading below its Fair Value based on comprehensive analysis, has demonstrated strong financial health with a current ratio of 2.77 and moderate debt levels. On May 15, 2025, the Compensation Committee of the Board of Directors sanctioned the awards for the fiscal year 2026, with the fair market value set at $78.42 per share, based on the closing price on the Nasdaq Global Select Market on the award date.

The PBRSUs, subject to performance and service conditions, are designed to incentivize the achievement of specific company objectives that could enhance long-term shareholder value. Around 75% of the PBRSUs are tied to key company initiatives, termed Performance Objective PBRSUs, while the remaining 25% are linked to the company’s gross margin targets for fiscal years 2026 to 2028, known as Gross Margin PBRSUs. The company currently maintains a healthy gross profit margin of 42%, and InvestingPro analysis reveals 13 analysts have recently revised their earnings expectations upward for the upcoming period.

The Performance Objective PBRSUs will be earned if the company attains certain goals by specified dates, ranging from the first quarter of fiscal year 2026 to the first quarter of fiscal year 2027. These goals include securing customer design wins, developing productivity-boosting artificial intelligence tools, achieving design and manufacturing milestones, and meeting efficiency and cost-saving targets. Additionally, the objectives encompass technological advancements, customer satisfaction improvements, revenue diversification through technology growth, and meeting environmental targets.

Officers can earn up to 200% of the target number of PBRSUs if all objectives are fully met. Earned PBRSUs will vest over three years, with half vesting upon the Committee’s certification of achievement and the remainder in equal annual installments thereafter.

The Gross Margin PBRSUs are contingent on meeting non-GAAP gross margin objectives for each fiscal year through 2028. Like the Performance Objective PBRSUs, officers can earn up to 200% of the target number based on the achievement level certified by the Committee, with vesting upon certification.

The target number of shares for PBRSUs varies among the named executive officers, with the President and CEO, Robert A. Bruggeworth, allocated 61,974 Performance Objective PBRSUs and 20,658 Gross Margin PBRSUs at the target performance level.

This announcement is based on a press release statement and provides a transparent view of Qorvo’s compensation strategy for its executive team, aligning their interests with the company’s performance and shareholder value. With an EBITDA of $673 million in the last twelve months and management actively buying back shares, the company shows strong commitment to shareholder returns. For deeper insights into Qorvo’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes additional metrics and expert analysis among the platform’s 10+ exclusive ProTips for this stock.

In other recent news, Qorvo, Inc. reported its fiscal fourth quarter 2025 results, with revenues of $869.5 million and adjusted earnings per share (EPS) of $1.42, surpassing consensus estimates. This performance was driven by strong demand in the Defense & Aerospace sector and a significant content win with Apple (NASDAQ:AAPL). For the upcoming June quarter, Qorvo has set revenue and adjusted EPS guidance above market expectations, projecting midpoints at $775.0 million and $0.68, respectively. The company also amended its corporate bylaws to allow shareholders owning at least 25% of its common stock to call special meetings, a move aimed at enhancing shareholder influence.

In terms of analyst ratings, KeyBanc Capital Markets maintained a Sector Weight rating with a $80 price target, highlighting potential gains with Apple and a return to 50% gross margins by fiscal year 2027. Stifel analysts maintained a Hold rating with a $75 target, noting the positive results but highlighting macroeconomic uncertainties. Meanwhile, Loop Capital reduced its price target from $90 to $75, maintaining a Hold rating, and cited expectations for a 2% revenue decline in fiscal year 2026.

Needham maintained a Buy rating but lowered the price target from $100 to $90, citing strong performance and growth potential from the ET PMIC win and the Aerospace & Defense segment. Despite the price target adjustments, analysts see potential for Qorvo’s continued success through its strategic partnerships and market position.

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