Wolfspeed financial performance and market volatility

Wolfspeed, a silicon-carbide semiconductor specialist, has experienced significant financial volatility and downward pressure on its stock. In early August, the company faced an analyst downgrade to ‘Strong Sell’ following a 19% revenue drop and a quarterly loss of $3.26 per share.

By late August, Wolfspeed reported fiscal Q4 2026 results that missed analyst expectations. The company reported a loss of $2.26 per share, significantly higher than the anticipated $0.52 loss, and revenue of approximately $150 million, which fell short of the $223.6 million expected by analysts. This represented a 24% year-over-year decline. Despite the miss, the $150 million revenue figure aligned with the midpoint of the company’s own guidance.

Financial reports indicated a GAAP net loss of $145 million and a non-GAAP adjusted EBITDA loss of $62 million for the quarter. As of June 28, 2026, Wolfspeed held $1.1 billion in cash, cash equivalents, and short-term investments.

While AI data center revenue more than doubled year-over-year for fiscal 2026 and increased approximately 20 percent sequentially in Q4, management issued guidance suggesting a revenue plateau. For fiscal Q1 2027, the company expects revenue between $140 million and $160 million and anticipates non-GAAP gross margins will remain negative.

Wolfspeed is currently navigating a turnaround following a Chapter 11 restructuring at the end of 2025. While the company is targeting 800-VDC data center architecture for growth, analysts suggest profitability may not be reached before fiscal year 2029, noting a required breakeven revenue of $800 million.