Wolfspeed (NYSE:WOLF) Releases Quarterly Earnings Results, Beats Expectations By $0.19 EPS

Wolfspeed (NYSE:WOLF) released its earnings results on Wednesday. The company reported ($2.26) earnings per share for the quarter, beating the consensus estimate of ($2.45) by $0.19, Briefing.com reports. The company had revenue of $149.60 million for the quarter, compared to the consensus estimate of $150.00 million. The business’s revenue for the quarter was down 24.1% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.77) EPS.

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

• AI data-center revenue more than doubled year over year in fiscal 2026 and rose about 20% sequentially in the fourth quarter. Wolfspeed cited design wins with Lite-On, Macрe and other power-supply companies supporting hyperscaler customers and emerging 800-volt architectures.
• Wolfspeed ended the quarter with approximately $1.1 billion in cash and short-term investments, while $46 million of convertible notes were converted to equity, reducing annual interest expense by about $1 million. Management also continues to pursue debt refinancing and cost-of-capital reductions.
• The company announced progress on its technology roadmap, including Gen 5 silicon carbide MOSFETs and commercially ready 10-kilovolt MOSFETs. It also highlighted new automotive business, a partnership with GE Aerospace, and initial engineering shipments of 200-millimeter substrates.
• Fourth-quarter non-GAAP gross margin remained deeply negative at -19.9%, and management expects gross margin to remain negative in fiscal Q1 2027. Executives said gross-margin break-even likely requires roughly an $800 million annual revenue run rate, subject to product mix.
• Fourth-quarter revenue was $150 million, at the midpoint of guidance, and fiscal Q1 2027 revenue is expected to range from $140 million to $160 million. Automotive and industrial demand showed traction, but management said end-market demand and customer product-mix changes remain difficult to predict.

Wolfspeed Stock Down 9.9%

Shares of NYSE:WOLF opened at $26.20 on Friday. The business’s 50 day moving average is $35.44 and its 200 day moving average is $32.77. The stock has a market cap of $1.36 billion and a P/E ratio of -1.66. Wolfspeed has a 52-week low of $8.05 and a 52-week high of $80.82.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on WOLF. TD Cowen reissued a “hold” rating and issued a $25.00 target price on shares of Wolfspeed in a research note on Thursday. Wall Street Zen lowered Wolfspeed from a “sell” rating to a “strong sell” rating in a research report on Saturday, August 1st. Susquehanna cut their target price on Wolfspeed from $40.00 to $30.00 and set a “neutral” rating on the stock in a research note on Tuesday, July 21st. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Wolfspeed in a report on Wednesday, June 24th. One analyst has rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Wolfspeed currently has a consensus rating of “Hold” and a consensus target price of $25.00.

Hedge Funds Weigh In On Wolfspeed

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

Wolfspeed News Roundup

Here are the key news stories impacting Wolfspeed this week:

• Positive Sentiment: AI data-center revenue more than doubled year over year in fiscal 2026 and rose about 20% sequentially in the fourth quarter. Wolfspeed also launched its fifth-generation SiC MOSFET, supporting the company’s long-term growth strategy. Wolfspeed Reports Financial Results for the Fourth Quarter of Fiscal 2026
• Neutral Sentiment: Wolfspeed forecast first-quarter fiscal 2027 revenue of $140 million to $160 million, broadly surrounding the roughly $150.4 million analyst consensus. The outlook suggests stabilization may be possible, but it does not yet indicate a strong near-term recovery. Wolfspeed targets Q1 FY2027 revenue while citing AI data-center growth
• Negative Sentiment: Fiscal fourth-quarter adjusted loss was $2.26 per share, an improvement over the $2.45 consensus estimate but substantially worse than the $0.77 loss a year earlier. Revenue of $149.6 million was essentially in line with estimates but fell 24.1% year over year, highlighting continued demand and execution pressure. Wolfspeed Sinks on Wider-Than-Expected Loss
• Negative Sentiment: Analysts said Wolfspeed’s data-center opportunity is growing but that the company faces a long path to profitability. Management also cited continued negative gross margins, reinforcing concerns about cash usage and the timing of a sustainable earnings recovery. Wolfspeed makes gains in data centers but faces long path to profitability
• Negative Sentiment: TD Cowen reaffirmed a “Hold” rating and assigned a $25 price target, signaling limited near-term upside from the stock’s current level. The reported departure of longtime Chief Technology Officer Elif Balkas adds an additional leadership and execution concern. Wolfspeed Receives a Hold from TD Cowen

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.