Wolfspeed Q1 2027: First Revenue Beat Since Chapter 11 Exit
As seen on the 24/7 Wall St. homepage on November 4, 2026.
First revenue beat since the Chapter 11 exit, with sequential growth after four straight quarters of decline. The loss per share still missed on $40 million of post-emergence interest expense, and management is guiding Q2 revenue to $155 million to $175 million.
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Wolfspeed posted $155 million in revenue for its fiscal first quarter of 2027, beating the $150 million consensus estimate. More meaningfully, it was the company's first revenue beat since emerging from Chapter 11 reorganization, and it snapped four consecutive quarters of sequential decline, with revenue having bottomed at $149.6 million in Q4 2026.
The adjusted loss of $2.03 per share came in missing expectations against the $1.99 consensus estimate, with $40 million in post-emergence interest expense doing most of the damage. A supply contract renegotiation fee and idle facility costs added further pressure, underscoring that the restructuring's financial aftermath is still working its way through the income statement.
There were genuine operational bright spots beneath the headline numbers. Non-GAAP gross margin improved 710 basis points sequentially, and capital expenditures fell to $10.6 million from $104 million in the prior-year quarter, a dramatic reduction that reflects the company's post-bankruptcy focus on cash preservation. Power Products contributed $116.8 million of the quarter's revenue, with Materials Products accounting for the remaining $38.2 million.
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Looking ahead, management guided Q2 2027 revenue to a range of $155 million to $175 million, with non-GAAP gross margin approaching breakeven. The strategic backdrop includes a conditional 30-year, $1.5 billion loan commitment from the U.S. Department of War's Office of Strategic Capital, though that commitment remains subject to due diligence, definitive agreements, and government approvals. CEO Robert Feurle cited that commitment alongside new long-term supply agreements with Infineon Technologies and BorgWarner as evidence the company is advancing its path toward sustainable growth.
Management has explicitly labeled fiscal 2027 a turning point, but the year-over-year revenue picture remains sobering. The $155 million reported this quarter still represents a 21.2% decline from the $196.8 million recorded in Q1 2026. Investors will be watching whether the Q2 guidance range marks the beginning of a durable recovery.
Mentioned: WOLF