Wolfspeed (NYSE:WOLF) Posts Quarterly Earnings Results, Misses Estimates By $5.37 EPS

Wolfspeed (NYSE:WOLF) announced its quarterly earnings results on Wednesday. The company reported ($6.11) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.74) by ($5.37), Briefing.com reports. The company had revenue of $168.50 million for the quarter, compared to analysts’ expectations of $170.00 million. The business’s quarterly revenue was down 6.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.95) earnings per share.

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

• Wolfspeed reported strong momentum in AI/data-center power, with 50% quarter-over-quarter growth in AI data center revenue and a doubling of that revenue over the last three quarters.
• The company strengthened its balance sheet post-restructuring with ~$1.3 billion cash, receipt of ~$700 million in tax refunds, net debt around $600 million, and initial first‑lien debt paydowns that reduced annual interest costs.
• Q2 results showed continued losses—total revenue of $168 million but a non‑GAAP gross margin of -34% (impacted by Fresh Start adjustments, amortization, inventory reserves and ~$48 million of underutilization), adjusted EBITDA of -$82 million, and a Q3 revenue guide of $140–160 million with gross margin expected to remain negative.
• Operational and technology progress includes the ahead‑of‑schedule shutdown of 150mm production, full transition to higher‑efficiency 200mm manufacturing, and production of a single‑crystal 300mm SiC wafer as early validation for future opportunities.
• Management is shifting to a vertical go‑to‑market (auto, industrial & energy, aerospace & defense, materials) and winning strategic engagements—highlighted by a partnership with Toyota—to diversify revenue beyond EVs.

Wolfspeed Price Performance

NYSE WOLF opened at $13.63 on Thursday. Wolfspeed has a 1 year low of $8.05 and a 1 year high of $36.60. The business’s 50-day moving average is $19.02 and its 200 day moving average is $14.69. The stock has a market capitalization of $352.78 million and a PE ratio of -21.63.

Hedge Funds Weigh In On Wolfspeed

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Goldman Sachs Group Inc. increased its position in shares of Wolfspeed by 176.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,380,499 shares of the company’s stock valued at $4,224,000 after purchasing an additional 881,603 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in Wolfspeed by 94.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,868,741 shares of the company’s stock valued at $5,718,000 after acquiring an additional 906,968 shares during the last quarter. WINTON GROUP Ltd purchased a new stake in shares of Wolfspeed in the second quarter valued at $47,000. Ilex Capital Partners UK LLP lifted its holdings in shares of Wolfspeed by 499.1% in the 2nd quarter. Ilex Capital Partners UK LLP now owns 665,697 shares of the company’s stock worth $265,000 after acquiring an additional 554,587 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new position in shares of Wolfspeed during the 2nd quarter worth about $34,000.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on WOLF shares. Weiss Ratings reissued a “sell (d-)” rating on shares of Wolfspeed in a report on Monday, December 29th. Susquehanna lowered their price objective on shares of Wolfspeed from $30.00 to $20.00 and set a “neutral” rating on the stock in a research report on Thursday, January 22nd. Wall Street Zen lowered shares of Wolfspeed from a “hold” rating to a “sell” rating in a research note on Friday, January 23rd. Finally, Piper Sandler reiterated an “overweight” rating on shares of Wolfspeed in a research note on Thursday. Two analysts have rated the stock with a Buy rating, one has given a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, Wolfspeed has a consensus rating of “Reduce” and a consensus target price of $9.25.

More Wolfspeed News

Here are the key news stories impacting Wolfspeed this week:

• Positive Sentiment: Management set Q3 revenue guidance of $140M–$160M and said AI/data-center demand is offsetting soft EV demand, signaling demand mix improvement that could support near-term revenue stabilization. Wolfspeed outlines $140M–$160M Q3 revenue target as AI data center momentum offsets EV softness
• Neutral Sentiment: Full Q2 earnings-call transcript and highlights provide management commentary and Q&A that investors should review for details on margin drivers, cash flow, capex plans and the mix shift toward AI/data-center customers. Wolfspeed, Inc. (WOLF) Q2 2026 Earnings Call Transcript
• Negative Sentiment: Q2 results missed by a wide margin: EPS of ($6.11) vs. consensus ($0.74) and revenue $168.5M slightly under estimates; the big EPS shortfall is weighing on sentiment and reflects one-time/extraordinary items and ongoing operational pressures. Wolfspeed Q2 earnings summary and materials
• Negative Sentiment: Analyst reaction included a notable price-target cut (reported ~33% lower to $20.40), reflecting increased near-term downside risk and lower earnings visibility. That repricing pressures investor expectations. Wolfspeed (WOLF) price target decreased by 33.33% to 20.40
• Negative Sentiment: Market reaction: shares fell sharply in after-hours trading on the miss and cautious guidance as the company emerges from Chapter 11, highlighting lingering execution and recovery risks despite improving end-market signals. Wolfspeed shares tumble as Q2 results miss estimates, guidance disappoints

About Wolfspeed

Wolfspeed, Inc (NYSE: WOLF) is a leading developer and manufacturer of silicon carbide (SiC) and gallium nitride (GaN) semiconductor materials and devices. The company’s product portfolio addresses high-growth markets such as electric vehicles, renewable energy, fast-charging infrastructure, aerospace and defense, and telecommunications. By leveraging proprietary materials and device designs, Wolfspeed delivers solutions that offer improved energy efficiency, higher power density and greater thermal performance compared to conventional silicon-based semiconductors.

Founded as part of Cree, Inc and spun off to form an independent public company in October 2021, Wolfspeed traces its roots to the mid-1980s when it pioneered the commercial use of wide-bandgap semiconductor technology.