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WOLF
Earnings call · Jun 2026 (Q4 FY26)

WOLFSPEED Q4 FY26 earnings call WOLF

Aug 19, 2026 Source

Executive summary

Wolfspeed Q4 FY26 — AI Data Center Growth and Technology Leadership Drive Momentum

Wolfspeed delivered Q4 FY26 results at the midpoint of guidance, driven by strong growth in AI data center applications and advancements in its Gen 5 and 10kV SiC MOSFET technologies. The company is undergoing a transformation focused on leadership, capital structure, and sales strategy, aiming for profitable growth. While gross margins remain negative, operational excellence and volume expansion are key to achieving neutrality, with a significant focus on asset utilization in the Mohawk Valley fab.

Highlights

5

  • Q4 FY26 revenue of $150 million met the midpoint of guidance.

  • AI data center revenue more than doubled from FY25 to FY26, and increased approximately 20% from Q3 to Q4 FY26.

  • Adjusted non-GAAP gross margin improved by 70 basis points sequentially to -19.9%.

  • Operating cash flow for Q4 FY26 was negative $54 million, including a $41 million benefit from inventory reduction.

  • Successful launch of Gen 5 MOSFET technology and commercial readiness of 10-kilovolt MOSFET.

Concerns

4

  • Non-GAAP gross margin remained negative at -19.9% for the quarter.

  • Softer results in the automotive segment partially offset by AI data center strength.

  • Materials revenue was approximately $43 million, with customers digesting inventory and LTAs running out during the 6-inch to 8-inch transition.

  • Net debt remained approximately $600 million at quarter-end, with first lien debt carrying a ~16% interest rate.

Guidance & targets

CategoryTargetConfidence
Revenue
$140 million to $160 million
high materiality
High
Non-GAAP gross margin
remain negative
high materiality
High
Non-GAAP operating expenses
$62 million to $66 million
medium materiality
High
Gross margin neutrality
breakeven at $800 million annual run rate
high materiality
Medium

Segment performance

SegmentRevenueYoYQoQMargin
Materials
Revenue was approximately $43 million. The company is working with LTA customers on their 200-millimeter transition, providing engineering samples. Customers are digesting inventory levels, and some 150-millimeter LTAs are running out.
$43 million———
Power
Revenue was approximately $106 million, representing 6% sequential growth. This benefited from strength in AI data centers, which helped compensate for softer automotive results.
$106 million—6% sequential growth—
AI Data Centers (within Power)
Revenue in this business more than doubled versus fiscal 2025, including increasing approximately 20% from the fiscal third quarter to the fourth quarter. This segment is gaining momentum with new design wins ramping at leading power supply companies for hyperscaler customers.
—more than doubled versus fiscal 2025approximately 20% from Q3 to Q4—

Product announcements

ProductTypeDetails
Gen 5 MOSFET technologylaunch
10-kilovolt MOSFETmilestone

Deals & partnerships

Andy Mattes Appointment to Board of Directors

Appointed to the Board of Directors in late July. Former CEO of Coherent and Diebold Nixdorf with over 40 years of leadership in semiconductor and advanced technology industries, bringing strategic leadership, operational excellence, and industry relationships.

Dedicated data center solutions team Launch of new team and hiring of industry veterans

In early June, Wolfspeed announced the launch of a dedicated data center solutions team. Two industry veterans with extensive experience in high-voltage power architecture for AI and data center applications were appointed to lead this effort in the San Francisco Bay area.

LITEON Design win for power supply units (PSUs)

New design win ramping at LITEON for power supply units (PSUs) to support multiple hyperscaler customers.

MacMic Design win for power supply units (PSUs)

New design win ramping at MacMic for power supply units (PSUs) to support multiple hyperscaler customers.

Toyota Partnership for onboard charging systems

Previously announced partnership with Toyota for onboard charging systems, reflecting the continued importance of silicon carbide in next-generation EV platforms.

European Tier 1 supplier (supporting a large German OEM) First-time business for onboard charger

Awarded first-time business from a European Tier 1 supplier supporting the onboard charger for a large German OEM.

GE Aerospace Memorandum of Understanding (MOU) for high-voltage silicon carbide adoption

MOU to accelerate the adoption of high-voltage silicon carbide across the industrial, aerospace, and defense market. Includes supply of the industry's first commercially available 10-kilovolt SiC MOSFET from Wolfspeed and co-development of standard high-voltage power module formats.

Risks & headwinds

Softer automotive demand Q4 FY26

Softer results in automotive

Mitigation:Diversification efforts and new design wins in other segments (AI data center) helped compensate.

Unpredictable end-customer demand

Hard to predict overall demand development across end verticals

Mitigation:Focus on diversification of customer structure globally and technology leadership to capture available demand.

Customer inventory digestion in Materials Current year (FY27)

Some customers are digesting inventory levels

Mitigation:Working closely with customers on 200-millimeter transition and providing technical support; confident in long-term 8-inch demand.

What to watch in Q1 FY27

Q1 FY27 Revenue

Q1 FY27
Current $150 million (Q4 FY26)
Target Within $140 million to $160 million range

Why it matters

Verifies the company's ability to meet its near-term financial commitments and indicates demand stability.

We continue to see growth in our device business and are targeting revenue between $140 million and $160 million in the first quarter of fiscal year 2027.

Q&A highlights

What is the outlook for automotive and industrial markets for both materials and devices, and is June the bottom for this business?

Management noted that diversification efforts are paying off, with good traction in both I&E and auto. However, predicting overall demand development is difficult due to end-customer product mix changes, especially in automotive. They did not explicitly confirm June as the bottom.

“How the overall demand will develop across these end verticals it's hard to predict, quite frankly speaking here, as also some of our customers are going through product mix changes, especially on the auto side here.”

asked by Christopher Rolland · answered by Robert Feurle

2 min read 5 chapters

Detailed narrative

Leadership and Capital Structure Transformation

Wolfspeed has proactively recapitalized the company to strengthen its balance sheet and bolstered its leadership team and sales organization with industry veterans. These actions are part of an ongoing transformation to refocus on technology leadership and a customer-centric approach, aiming for a path to profitability. Recent appointments include Andy Mattes to the Board of Directors and two industry veterans to lead the dedicated data center solutions team.

AI Data Center Momentum and Strategy

The company is seeing significant momentum in AI data center applications, with revenue more than doubling in FY26 compared to FY25 and growing approximately 20% sequentially in Q4. New design wins are ramping at leading power supply companies like LITEON and MacMic, supporting multiple hyperscaler customers. Wolfspeed is well-positioned to capitalize on the transition to 800-volt architectures and emerging opportunities in battery backup units, super capacitors, e-fuses, and high-voltage DC to DC conversion, leveraging its SiC technology and 200-millimeter manufacturing.

Advancements in Technology Leadership

Wolfspeed announced two significant achievements at PCIM: the fifth-generation silicon carbide MOSFET technology (Gen 5) and the commercial readiness of its 10-kilovolt MOSFET. Gen 5 MOSFETs offer industry-leading specific on-state resistance and improved switching behavior, enabling greater power density and efficiency for automotive and industrial applications. The 10-kilovolt SiC MOSFET was recognized as a top innovation and is central to a technical partnership with GE Aerospace for high-voltage SiC adoption in industrial, aerospace, and defense markets.

Materials Business and 200-millimeter Transition

The Materials business continues to serve a broad range of power and RF-based customers, including 150-millimeter LTA customers. Wolfspeed is actively working with these customers on their 200-millimeter transition, providing engineering samples for internal evaluation. While currently a longer-term growth opportunity, the company is confident in its leading-edge 8-inch quality and technology to take full advantage of the silicon carbide market's growth and the eventual transition to 8-inch materials.

Operational Excellence and Financial Discipline

The company is making strides with operational excellence initiatives to increase earnings potential and differentiate itself. Efforts include focusing on producing the same revenue with less capacity consumed, which positions Wolfspeed to expand earnings potential per dollar of invested capital. Financial discipline is evident in the reduction of inventory levels, contributing $41 million to cash in Q4, and the ongoing efforts to reduce debt and cost of capital, including the voluntary conversion of $46 million of 2L convertible notes to equity.

AI-generated summary of the company's earnings call. Not investment advice.