Wolfspeed Plunges 12% as Q4 Revenue Misses by $75M, Guides Q1 Below Estimates
Summary
Wolfspeed shares are down 12.38% in Thursday's premarket after Q4 FY2026 revenue of $149.6 million missed the $224.48 million consensus by a wide margin, despite an adjusted loss of $2.26 per share beating the $2.45 loss estimate. The company guided Q1 revenue to $140–160 million, below the $150.4 million analyst estimate, and expects adjusted gross margin to remain negative. Factory underutilization continues to drag margins, though adjusted gross margin improved 70 basis points sequentially to negative 19.9%. AI data center demand is a bright spot—device revenue rose 6% sequentially to about $106 million, and AI data center revenue grew about 20% sequentially and more than doubled year-over-year. New design wins with Lite-On and Magmeet, a GE Aerospace agreement, and expanded Toyota partnership add to the data center and automotive pipeline. The company ended the quarter with about $1.1 billion in cash and roughly $600 million in net debt, with operating cash flow negative $54 million.
At the time of this announcement, WOLF was trading at $26.50 on NYSE in the Technology sector, with a market capitalization of approximately $1.5B. The 52-week trading range was $1.16 to $80.82. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Benzinga.