| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 168.50 | 14.4% | 6.7% |
| Total Income | 168.50 | 14.4% | 6.7% |
| Expenditure | 326.90 | 8.7% | 35.1% |
| PBT | -149.40 | 76.8% | 59.9% |
| Net Profit | -150.60 | 76.6% | 59.5% |
| OPM | -94.01% | 11.99pp | |
| NPM | -89.38% | ||
| EPS | -5.78 | 40.3% | 100.7% |
Wolfspeed Reports Q2 FY2026 Results; AI Datacenter Revenue Up 50% QoQ
04 May 2026 · 4 May, 1:30 am
Summary
Wolfspeed reported its financial results for the second quarter of fiscal 2026, highlighting a 50% sequential increase in AI datacenter revenue. The company received approximately $700 million in Section 48D cash tax refunds and used $175 million to retire long-term debt. Wolfspeed ended the quarter with $1.3 billion in cash, cash equivalents, and short-term investments. The company expects revenue between $140 million and $160 million for its fiscal third quarter.
Key Highlights
- 1
Wolfspeed's AI datacenter revenue increased by approximately 50% sequentially.
- 2
The company received approximately $700 million in Section 48D cash tax refunds and applied $175 million toward the retirement of long-term debt.
- 3
Wolfspeed ended the quarter with $1.3 billion in cash, cash equivalents, and short-term investments.
- 4
Operating expenses were reduced by approximately $200 million on an annualized basis compared to Q2 FY2025.
- 5
Capital expenditures decreased by 90% year-over-year compared to the second quarter of fiscal 2025.
- 6
Consolidated revenue was approximately $168 million, including $76 million from the Mohawk Valley Fab.
- 7
GAAP gross margin was (46)%, which includes the impacts of $48 million of underutilization costs and $23 million of inventory fair value step-ups.
Management Comments
Robert Feurle
With a stronger capital structure following our financial restructuring, we are operating with discipline to maintain balance sheet strength while upholding our commitment to disruptive innovation. We completed the shutdown of our Durham 150mm device fab roughly one month ahead of schedule and have shifted production to our 200mm device fab in Mohawk Valley, while also continuing to diversify our end-markets, particularly in mid and high-voltage verticals like AI data centers, where we generated 50% sequential quarterly revenue growth. In materials, we demonstrated our capabilities in 300mm silicon carbide wafer production, a critical step towards entering emerging markets beyond power devices. I am very excited that we now have the team and structure in place to navigate near-term demand dynamics and execute with discipline as we scale for long-term growth.”
Gregor van Issum
During the quarter, we took decisive actions to strengthen our balance sheet. First, we maximized the value of our 48D Advanced Manufacturing Tax Credit, receiving approximately $700 million ahead of schedule. We used some of the proceeds to retire approximately $175 million of outstanding debt, an important step to reduce our leverage and interest expense. Next, we drove strong working capital improvements by proactively aligning production with the current demand environment leading to a reduction in inventory and improving our receivables position. Lastly, we significantly improved operating cash flow performance by reducing operating expenses by $200 million on an annualized basis and capital expenditures by more than 90% compared to the same quarter last year. Going forward, we will continue to execute operational improvements centered on quality, cost and speed.”
Informational and educational content only. Not investment advice.