TLDR
- WOLF stock fell 11% in after-hours trading after reporting Q4 results
- EPS loss of $2.26 beat one estimate but badly missed another analyst consensus of $0.52 loss
- Q4 revenue came in at $149.6 million, below some Wall Street forecasts of $223.55 million
- AI data center revenue more than doubled year-over-year and grew 20% quarter-over-quarter
- Q1 guidance set at $140 million to $160 million revenue, with gross margins still under pressure
Wolfspeed stock dropped 11% in after-hours trading on Tuesday after the silicon carbide chipmaker posted its fourth-quarter results. The stock had already closed regular trading down 7.5%, settling at $26.00 before the report hit.
Wolfspeed Inc., WOLF
The company reported a Q4 EPS loss of $2.26. That beat one set of analyst estimates pegging the loss at $2.45, but badly missed another consensus figure of a $0.52 loss, depending on the source. Revenue came in at $149.6 million, which was in line with some forecasts but well below others that had expected $223.55 million.
WOLFSPEED $WOLF Q4’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $149.6M (Est. $224M) 🔴
🔹 Adj. EPS: -$2.26 (Est. -$2.45) 🟢
🔹 Gross Margin: -25%
🔹 Free Cash Flow: -$60.9M (Est. -$108M) 🟢Q1 Guide:
🔹 Revenue: $140M-$160M (Est. $150M) 🟡
🔹 Non-GAAP Gross Margin: Negative
🔹 Non-GAAP… pic.twitter.com/rVhlGkPI3j— Wall St Engine (@wallstengine) August 19, 2026
Gross margin landed at 25%, which management attributed to factory underutilization. That underutilization is expected to continue weighing on margins into the next quarter.
AI Bright Spot
The one standout was AI. Wolfspeed said revenue from AI data center applications more than doubled year-over-year in Q4, and grew 20% compared to Q3. Management flagged that as a meaningful shift in where demand is coming from.
That momentum has partially offset a sharp pullback in EV-related demand. Sales to the electric vehicle industry have fallen across both of Wolfspeed’s main segments: its materials division, which makes silicon carbide wafers, and its power products division.
The materials division had a rough quarter. Sales fell 44% year-over-year and dropped nearly 14% from Q3. That weakness is seen as a key reason the stock sold off despite the partial earnings beat.
Balance Sheet and Debt
Wolfspeed ended the quarter with $1.1 billion of cash on hand. Total debt currently stands at $1.7 billion. Management said progress was made in reducing that debt load during the quarter.
The company filed for Chapter 11 bankruptcy on June 30, 2025, and emerged from it last September. Since then, WOLF stock had climbed as much as 80% year-to-date before Tuesday’s drop.
For Q1 guidance, Wolfspeed projected revenue of $140 million to $160 million. The midpoint of $150 million was roughly in line with Wall Street’s consensus of $150.4 million. Operating expenses are forecast between $62 million and $66 million.
Gross margins are expected to stay under pressure due to ongoing factory underutilization.
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