Earnings Recap — Q4 FY2026
CY Q3 2026 · Reported August 19, 2026 · Beat 5 of last 7 quarters
Wolfspeed Inc. reported Q4 FY2026 revenue of $150M, in line with consensus, and EPS of $-2.26, a beat of 7.8%.
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Wolfspeed's AI data center revenue more than doubled in FY2026, with design wins at LITEON and MacMic supporting multiple hyperscaler customers. The transition to 800-volt architectures and solid-state transformers is expanding silicon carbide content in AI infrastructure, positioning Wolfspeed's 200mm Mohawk Valley fab as a key supplier. However, the company remains far from profitability, with gross margin breakeven requiring roughly $800M annual revenue, highlighting the scale still needed to benefit from the AI buildout.
Wolfspeed reported Q4 FY2026 revenue of $150M, in line with guidance, with Power revenue of $106M (+6% QoQ) and Materials revenue of $43M. AI data center revenue grew ~20% QoQ and more than doubled from FY2025 to FY2026, helping offset softer automotive demand. Non-GAAP gross margin improved to -19.9%, and adjusted EBITDA was -$62M. The company continued to reduce debt, with $46M of convertible notes converted to equity, and ended the quarter with ~$1.1B in cash.
Management guided Q1 FY2027 revenue to $140M-$160M, with non-GAAP gross margin expected to remain negative. They expect non-GAAP operating expenses of $62M-$66M in Q1 FY2027. The path to gross margin breakeven is tied to volume growth and asset utilization; CFO Gregor Van Issum indicated that an $800M annual revenue run rate is the ballpark for breakeven gross margin. Management emphasized continued momentum in AI data center applications, with new design wins ramping at LITEON, MacMic and others, and highlighted the transition to 800-volt architectures as a key growth driver. They also noted ongoing diversification in automotive and industrial, with new design wins including a European Tier 1 onboard charger program for a large German OEM.
“In fiscal 2026, revenue in this business more than doubled versus fiscal 2025, including increasing approximately 20% from the fiscal third quarter to the fourth quarter.”
on AI data center growth
“We are pretty happy to see that some of the industrial markets having a lot of traction, including the data center side. But in a ballpark, we would say on an $800 million annual run rate, that's probably the ballpark where a breakeven gross margin point lies right now.”
on Gross margin breakeven
“We have absolutely no interest to break it in two. So whether that's allowed or not is quite irrelevant from our perspective. We believe that having a vertically integrated business drives really a performance differentiator when it comes to our device performance.”
on Vertical integration
When it comes to automotive and industrial, your primary customers, what are you seeing? What does the outlook look like both for materials and devices? And are you confident that June is the bottom for this business?
Robert Feurle said diversification efforts are paying off, with good traction in both I&E and auto, citing a new design win at a German OEM for onboard charging. However, he noted that overall demand is hard to predict as some customers go through product mix changes, especially on the auto side.
Any time line you're able to offer us on when you would expect data center revenue to become more meaningful? And how much of that is tied specifically to the 800-volt architecture versus broader compute and AI deployments?
Robert Feurle said the 800-volt deployment is a big milestone, and the company is working on qualifications across the ecosystem. He also highlighted solid-state transformers as a key driver, with 2.3kV and 3.3kV devices from Mohawk Valley positioning the company well.
Could you just take a minute and maybe come back and talk about what you could do in terms of cash management and specifically around the L1 and what that would save in terms of interest?
Gregor Van Issum said the first lien debt is the highest priority to refinance, with ~16% interest. He noted that refinancing the $630M outstanding would be a meaningful contribution to cash flow, but the exact savings depend on the method. He also stated the company has no interest in breaking the business into two.