Wolfspeed reported a fourth-quarter fiscal 2026 loss of $2.26 per share, missing analysts' expectations of a 52-cent loss. The company's revenue of $149.6 million also fell short of forecasts, coming in at $73.95 million below the consensus estimate.
The earnings miss was driven by weak factory utilization and a high fixed-cost base, despite progress in the company's turnaround efforts. Wolfspeed's AI data center business continued to grow, and the company completed its 6-inch to 8-inch transition, which is expected to support future design wins and improve manufacturing flexibility.
Q4 Results
The company's adjusted loss of $2.26 per share was $1.74 worse than the consensus estimate, and revenue missed forecasts by 33.1%. The revenue result was especially weak relative to the Street's estimate, although management said sales were in line with the midpoint of its own guidance range.
Market Reaction
Wolfspeed shares fell 7.5% in regular trading to $29.10 and dropped another 10.5% after hours to $26.03, leaving the stock down about 17.3% from the prior close. The selling suggests investors were disappointed by the earnings miss and the large revenue gap versus forecasts.
Guidance
For the first quarter of fiscal 2027, Wolfspeed guided for revenue of $140 million to $160 million, with a midpoint of $150 million. The company said non-GAAP gross margin is expected to remain negative and operating expenses should be $62 million to $66 million. Management noted that gross margin neutrality is the next major milestone, and revenue growth is the main path to better margins due to the company's high fixed-cost structure.
