Chipmaker Wolfspeed misses Q3 revenue estimates

Wolfspeed (Pre-Reincorporation)

05/05/2026 21:27

Overview

U.S. silicon carbide chipmaker's fiscal Q3 revenue fell and missed analyst expectations

Company posted negative adjusted gross margin and significant net loss for the quarter

Wolfspeed completed debt refinancing, reducing total debt and annual interest expense

Outlook

Wolfspeed expects fiscal Q4 revenue between $140 mln and $160 mln

Company expects operating expenses to be approximately flat with fiscal Q3

Wolfspeed expects gross margins to remain negative in fiscal Q4

Result Drivers

AI DATA CENTER APPLICATIONS - Co said sequential quarterly growth in AI data center applications was approximately 30%, though this remains a moderate part of overall business

PRODUCT LAUNCHES - Co launched first commercially available 10 kV SiC power MOSFET and introduced next-gen TOLT portfolio to address AI data center demand

DEBT REFINANCING - Co reduced total debt by $97 mln and annual interest expense by an estimated $62 mln through refinancing

Company press release: ID:nBw2zQjPQa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$150.20 mln
$194.81 mln (3 Analysts)
Q3 Adjusted EPS
Miss
-$3.26
-$2.02 (2 Analysts)
Q3 Net Income
-$119.90 mln
Q3 Adjusted Gross Margin
-21%


Analyst Coverage

The current average analyst rating on the shares is "sell" and the breakdown of recommendations is no "strong buy" or "buy", 1 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the semiconductors peer group is "buy."

NOT AVAILABLE

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)