Wolfspeed shares tumble following significant earnings miss

Wolfspeed shares fell significantly following a fiscal Q4 2026 earnings report that missed analyst expectations. The company reported a loss of $2.26 per share, which was substantially higher than the anticipated $0.52 loss. Revenue for the quarter reached $149.6 million, falling short of the $223.6 million expected by analysts and representing a 24% year-over-year decline.

While Wolfspeed noted that AI data center revenue more than doubled year-over-year for fiscal 2026, management provided guidance for fiscal Q1 2027 revenue of approximately $150 million, suggesting a plateau in growth.

The company is currently undergoing a turnaround following a Chapter 11 restructuring at the end of 2025. Analysts suggest that while the company is targeting 800-VDC data center architecture for future growth, profitability may not be achieved before fiscal year 2029, with a required breakeven revenue of $800 million.