Wolfspeed (NYSE:WOLF) Announces Quarterly Earnings Results, Misses Estimates By $0.04 EPS

Wolfspeed (NYSE:WOLF) released its quarterly earnings data on Wednesday. The company reported ($2.03) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($1.99) by ($0.04), FiscalAI reports. The firm had revenue of $155.00 million for the quarter, compared to the consensus estimate of $149.86 million. Wolfspeed’s quarterly revenue was down 21.2% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.55) earnings per share.

Here are the key takeaways from Wolfspeed’s conference call:

• Revenue was $155 million, above the midpoint of guidance, while power revenue rose 10% sequentially. Wolfspeed expects fiscal Q2 revenue of $155 million–$175 million and gross margin to improve toward break-even.
• Non-GAAP gross margin remained negative at 12.8%, and operating cash flow was negative $84 million. About $60 million of working-capital changes supported cash in the quarter, but management said most working-capital optimization is now complete.
• Wolfspeed said AI data-center revenue more than doubled year over year on a trailing 12-month basis, with an accelerating order book. It cited growing hyperscaler engagement, demand tied to high-voltage DC architectures, and a strategic-partner award from Megmeet.
• The company announced a conditional $1.5 billion, 30-year government loan commitment; the initial $600 million tranche is intended to refinance higher-cost debt, with management expecting more than $50 million in annual interest savings. Closing remains subject to further due diligence, a credit agreement, and financial and balance-sheet milestones, with completion targeted before year-end.
• Wolfspeed highlighted a majority-share long-term supply agreement with BorgWarner for its next-generation 800-volt SiC inverter platform, an expanded 200-millimeter wafer supply agreement with Infineon, and plans to extend its portfolio into GaN.

Wolfspeed Stock Performance

NYSE:WOLF traded up $3.20 during mid-day trading on Friday, reaching $23.56. The stock had a trading volume of 2,598,312 shares, compared to its average volume of 4,259,107. The stock has a market capitalization of $1.25 billion, a P/E ratio of -1.65 and a beta of 8.67. The firm has a 50 day moving average price of $26.35 and a two-hundred day moving average price of $30.17. Wolfspeed has a one year low of $13.48 and a one year high of $80.82.

Trending Headlines about Wolfspeed

Here are the key news stories impacting Wolfspeed this week:

• Positive Sentiment: Wolfspeed announced a conditional $1.5 billion, 30-year U.S. Department of War loan commitment to support the domestic wide-bandgap semiconductor supply chain. It also expanded a silicon-carbide wafer supply agreement with Infineon to include 200mm wafers and announced a multiyear silicon-carbide device supply agreement. These developments could support funding and future demand, though the loan remains conditional. Wolfspeed fiscal 2027 first-quarter results
• Positive Sentiment: The company commercially introduced transparent silicon-carbide technology aimed at augmented-reality and quantum-computing applications. This broadens its potential markets, although the articles do not indicate material near-term revenue from the technology. Transparent silicon-carbide technology article
• Neutral Sentiment: Fiscal Q1 2027 revenue was $155 million, ahead of analyst expectations of $149.86 million, offering a modest bright spot. Quarterly earnings results
• Negative Sentiment: The quarterly loss of $2.03 per share was wider than the $1.99 consensus estimate, and revenue fell 21.2% year over year. The results underscore continuing operating challenges despite the revenue beat. Wolfspeed earnings reaction
• Negative Sentiment: TD Cowen lowered its price target from $25 to $23 and maintained a “hold” rating, signaling limited expected upside at the time of its assessment. TD Cowen price-target update

Analyst Ratings Changes

A number of research analysts have weighed in on the stock. TD Cowen dropped their price objective on shares of Wolfspeed from $25.00 to $23.00 and set a “hold” rating on the stock in a research note on Thursday. Wall Street Zen cut shares of Wolfspeed from a “sell” rating to a “strong sell” rating in a research note on Saturday, September 19th. Susquehanna lowered their price objective on Wolfspeed from $30.00 to $25.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 21st. Zacks Research raised Wolfspeed to a “hold” rating in a report on Friday, September 25th. Finally, Weiss Ratings downgraded shares of Wolfspeed from a “sell (d+)” rating to a “sell (d)” rating in a report on Friday, October 23rd. One analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $22.67.

Wolfspeed Company Profile

Wolfspeed, Inc is a semiconductor company focused on silicon carbide (SiC) technologies. Its products are designed to support the conversion and management of electrical power in applications that require high efficiency, high voltage, and operation at elevated temperatures.

The company develops and manufactures SiC power devices, including metal-oxide-semiconductor field-effect transistors, diodes, power modules, and related components. It also produces SiC materials such as wafers and epitaxial substrates used by semiconductor manufacturers.