Wolfspeed Inc. – Q2 2026 Earnings and Market Impact
Executive Summary
Wolfspeed Inc. (NYSE: WOLF) released its second‑quarter fiscal 2026 results on February 4, 2026. The company reported a per‑share loss of US $6.11, far exceeding analysts’ consensus estimate of US $0.63 per share. Revenue totaled US $168.5 million, short of the expected US $167 million by approximately US $1.5 million. The earnings miss triggered a steep sell‑off, with the stock falling to a two‑digit decline shortly after the announcement.
Financial Performance
| Item | Q2 2026 | Consensus | Variance |
|---|---|---|---|
| Net income / loss per share | –$6.11 | –$0.63 | –$5.48 |
| Revenue | $168.5 M | $167 M | –$1.5 M |
| Guidance | Not disclosed for Q3 | – | – |
The loss represents a significant deterioration compared to the US $2.88 per‑share loss recorded in the same quarter of the previous fiscal year. Operating metrics were not provided in detail, but the earnings call highlighted continued challenges in the silicon carbide (SiC) market, compounded by a softer electric‑vehicle (EV) demand environment.
Market Reaction
- Stock Price: The share price fell to US $17.20 on the trading day of the release, reflecting a downturn of more than 10 % from the close of US $19.45 on February 3, 2026.
- Market Capitalisation: Remains at US $766.97 million.
- Trading Volume: Elevated volatility and increased turnover were observed in the after‑hours session.
Investors cited the unexpected loss, the narrow revenue miss, and the company’s recent emergence from Chapter 11 restructuring as key contributors to the negative market sentiment.
Strategic Outlook
During the earnings call, Wolfspeed’s management outlined a Q3 revenue target of US $140 – $160 million, emphasizing a pivot toward artificial‑intelligence data‑center applications to offset the softness in the EV segment. The company also highlighted ongoing strategic partnerships and a robust cash position, although specific figures were not disclosed.
Conclusion
Wolfspeed Inc.’s Q2 fiscal 2026 results fell markedly short of market expectations, resulting in a sharp decline in share price. While the company is positioning itself to capitalize on AI data‑center demand, the recent loss and revenue miss underscore the continued pressure in the silicon carbide market and the broader semiconductor industry. Investors will closely monitor the company’s ability to meet its Q3 revenue target and to manage the legacy impacts of its recent financial restructuring.
