WOLF Falls 7.6% After Q4 Results, Q1 Revenue Outlook
Wolfspeed (NYSE: WOLF) reported fourth-quarter fiscal 2026 results and outlined its near-term outlook, and the stock fell 7.6% on Aug 19, 2026.
What Wolfspeed announced
Wolfspeed released its fiscal fourth-quarter 2026 results and highlighted progress in its device business, pointing to strong growth in AI data center applications and the launch of its fifth-generation SiC MOSFET.
Management also emphasized balance-sheet actions and financing efforts. The company said it is “aggressively targeting initiatives” to reduce debt and cost of capital and to improve its financial positioning.
As one concrete step, Wolfspeed said holders of $46 million of its convertible notes completed a voluntary conversion from debt to equity during the quarter.
Looking ahead, Wolfspeed guided for first-quarter fiscal 2027 revenue of $140 million to $160 million. It also said non-GAAP gross margin is expected to remain negative, while non-GAAP operating expenses are expected to be $62 million to $66 million.
What it means for Wolfspeed
The AI data center demand callout and the fifth-generation SiC MOSFET launch signal Wolfspeed is leaning into higher-performance power devices where it believes it has technology leadership. If those applications continue to scale, it could support the company’s longer-term growth narrative.
At the same time, the company’s comments around debt reduction and cost of capital underline that financing and balance-sheet flexibility remain key themes. The $46 million voluntary conversion reduces debt on the balance sheet, but it also increases equity, which can matter for existing shareholders.
The near-term outlook sets expectations for the next quarter: revenue of $140 million to $160 million, with negative non-GAAP gross margin and operating expenses of $62 million to $66 million. That combination suggests Wolfspeed is still working through profitability pressures even as it pushes new products and end-market growth.
How the stock reacted
Wolfspeed shares moved lower quickly after the announcement and stayed down on the day.
| Window | Move |
|---|---|
| 5 min | -3.5% |
| 10 min | -7.3% |
| 30 min | -8.5% |
| 1 hour | -9.8% |
| end of day | -7.6% |
On a market-adjusted basis, the stock’s same-day move was -7.5% versus SPY.