Wolfspeed revenue flattens as AI data center growth slows
The silicon carbide supplier reported consolidated revenue of approximately $150 million for the fourth quarter of fiscal 2026.
Wolfspeed (WOLF), the silicon carbide technology provider, reported consolidated revenue of approximately $150 million for the fourth quarter of fiscal 2026, a figure that remained flat compared with the third quarter.
Growth in the AI data center segment decelerated during the period. Revenue from that sector rose approximately 20% in the fourth quarter, down from the 30% growth rate recorded in the previous quarter. To support this vertical, the company established a dedicated data center solutions team in Silicon Valley and launched its fifth-generation SiC MOSFET.
Margins showed slight improvement despite the stagnation in top-line growth. GAAP gross margin rose to negative 25% from negative 27% in the third quarter. Non-GAAP gross margin similarly improved to negative 20% from negative 21%. Adjusted EBITDA remained steady at negative $62 million.
The company's liquidity position shifted as it reduced debt and spent cash reserves. Cash, cash equivalents, and short-term investments decreased to $1.1 billion as of June 28, 2026, from $1.2 billion as of March 29, 2026. During the quarter, $46 million of convertible notes were voluntarily converted from debt to equity. Operating cash flow improved to negative $54 million from negative $84 million in the prior quarter.
Wolfspeed provided revenue guidance for the first quarter of fiscal 2027 between $140 million and $160 million, reiterating the range it provided for the fourth quarter of fiscal 2026. The company expects non-GAAP gross margin to remain negative for the first quarter, consistent with its previous outlook.