The Zhitong Finance App learned that in the early morning of November 4, Beijing time, RF chip leader SWKS.US (SWKS.US) announced results for the fourth quarter and full year of fiscal year 2026 on November 3 EST (fiscal season ends October 2). Since the merger deal with Qorvo was completed only after the end of the fiscal quarter, the financial report for this quarter is still Sijiaxun's independent caliber. This is also the last “separate report card” before the merger is settled. The company also provided guidance for the first quarter after the merger and stated that it aims to achieve an annual cost synergy of more than 500 million US dollars within 24 to 36 months after delivery.
Q4 independent performance: revenue of US$1.05 billion, profit is pressured by restructuring and merger expenses
According to financial reports, Sijiaxun's independent revenue for the fourth fiscal quarter was US$1,046 billion, down about 5% from US$1.1 billion in the same period last year; annual revenue was US$3.96 billion, compared to US$4.09 billion in the same period last year. GAAP diluted earnings per share for the quarter were $0.15, a sharp decrease from $0.94 in the same period last year, mainly hampered by one-time items such as restructuring, impairment and other expenses (US$82.1 million), and expenses related to mergers and acquisitions; after exclusion, non-GAAP diluted earnings per share were US$1.28, compared to US$1.76 for the same period last year. Non-GAAP gross profit margin 44.4% (same period last year: 46.5%), non-GAAP operating margin 21.7% (same period last year: 24.0%). Free cash flow for the quarter was -61 million US dollars, mainly due to capital expenditure rising to 94.7 million US dollars; however, the company held 2.6 billion US dollars in cash and had an abundant balance sheet.
Consolidated first-quarter guidance: revenue of $1.8 billion to $1.9 billion
Qorvo's guidance for the first fiscal quarter (the first quarter of fiscal year 2027) is: consolidated revenue of 1.8 billion to 1.9 billion US dollars — median value of about 1.85 billion US dollars, of which the original Sijiaxun contributed about 1.07 billion US dollars, and the original Qorvo contributed about 780 million US dollars (this will be the last time the company disclosed the two business calibers separately); the decline narrowed to about 7% month-on-month from the two companies' total revenue of about 1.98 billion US dollars. Under the median value, the non-GAAP diluted earnings per share guideline is $1.25 (based on a diluted share capital of approximately 241 million shares, including approximately $50 million in merger and acquisition financing costs).
By business, the smartphone business is expected to drop by double-digit percentage month-on-month, reflecting seasonal factors, the weakness of the Android market (the company will continue to focus on high-end models), and Qorvo's additional week in the previous quarter; while diversified growth markets (diversified growth markets) are expected to grow by one digit month-on-month after excluding the impact of an additional week, and the year-on-year growth rate under the consolidated caliber is high to low double digits, accounting for more than 40% of sales, led by the data center and defense business.
“New chapter”: full-stack RF platforms+four major growth markets
CEO Phil Brace (Phil Brace) announced: “Today marks the beginning of a new chapter for Cisco. “The combination with Qorvo brings us the scale and technological breadth to lead the next era of wireless — as AI moves from infrastructure to the devices, vehicles, and machines around us.” He pointed out that after the merger, the company's product portfolio covers for the first time a complete RF front end, from power management to antennas, and will benefit from a new cycle of RF complexity with 5G-Advanced and 6G drivers; in diversified markets, complementary RF GaN, power supply, and clock technology will extend its reach to the four long-term growth markets of physical AI and edge connectivity, defense and aerospace, infrastructure, and automotive.
In terms of synergy, CFO Philip Carter (Philip Carter) said that the company expects to achieve a synergy effect of about 150 million US dollars in operating expenses within fiscal year 2027 (concentrated in the second half of the year) and reach an annualized operating rate of 250 million to 300 million US dollars by the end of fiscal year 2027; the company insists on achieving an annual cost coordination target of more than 500 million US dollars within 24 to 36 months after delivery.
The financial report also revealed several positive developments after the merger: Moody's upgraded the company's credit rating to investment grade (Baa3), Fitch confirmed the BBB+ rating and adjusted the outlook from “negative” to “stable”; management team integration and human resources system merger have been completed. At the business level, the company won an AI data center network clock design order (covering 1.6T switches, etc.) and began shipping high-performance clock chips to rack systems from leading AI cloud manufacturers; in terms of automotive electronics, it received electric vehicle traction inverter gate driver orders from German luxury car companies and several new infotainment projects.
It is worth mentioning that although the Philadelphia Semiconductor Index surged 2.64% and chip stocks generally rose on the night the earnings report was released, Sijiaxun's stock price bucked the trend and fell sharply by 16% in post-market trading — this contrast shows that the target of the market vote was not the company itself, but the “time gap” revealed in this financial report: the merger story belongs to the future, but the reality of the report is currently under pressure. The three points that investors are most uneasy about are clearly visible: First, the median value of $1.25 per share of the consolidated non-GAAP earnings guide for the first quarter was lower than the $1.28 of Sijiaxun's independent Q4. The diluted share capital was expanded to about 241 million shares, and the dilution effect of “increasing revenue without increasing profit” was realized first; second, interest on merger and acquisition financing was about 50 million US dollars per quarter, gross margin fell by more than 2 percentage points year on year. The profit side was uneasy to breathe in the short term; the synergy effect of $300 million and $500 million was difficult to breathe in the short term; the synergy effect of $300 to $500 million had to be realized after 24 to 24 percent delivery It takes 36 months to pay the full amount, and you can only see an appointment on the FY2027 book At 150 million US dollars, it's hard to quench your thirst from far away water.