Finance
Wolfspeed forecasts second-quarter revenue below estimate
Published by Global Banking & Finance Review®
Posted on October 29, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 29, 2025
2 min readLast updated: January 21, 2026
Wolfspeed forecasts lower second-quarter revenue due to market challenges and competition, impacting its recovery post-bankruptcy.
(Corrects headline and paragraph 1 in Oct. 29 story to say Wolfspeed forecast second-quarter revenue below estimates, not that it reported a lower profit; adds LSEG estimate in paragraph 10)
(Reuters) -Wolfspeed on Wednesday forecast second-quarter revenue below analyst estimate, highlighting the challenges facing the U.S. chipmaker as it recovers from bankruptcy and confronts subdued demand.
Shares of company plunged more than 18% in extended trading.
The company, a key supplier of silicon carbide semiconductors used in electric vehicles and renewable energy equipment, has faced slow orders from automakers and mounting competition from larger rivals such as STMicroelectronics and Infineon.
"In line with others in the industry, Wolfspeed has experienced ongoing softness in the market that it expects will continue through fiscal 2026," the company said.
Wolfspeed, which filed for Chapter 11 protection in June and emerged last month after slashing its debt by about 70%, is still contending with the aftereffects of overcapacity and uncertain automotive demand.
The Durham, North Carolina-based firm had bet heavily on silicon carbide materials to drive long-term growth, but those gains have been slower to materialize as automakers temper production and push out chip orders.
For the first quarter, the company posted revenue of $197 million, compared with $195 million, a year earlier.
The company said it sees near term headwinds while advancing into new, high-growth applications like AI data centers, aerospace and energy storage.
The company posted a loss of 55 cents per share on an adjusted basis, compared with a loss of 91 cents per share a year earlier.
Wolfspeed expects second-quarter revenue of between $150 million and $190 million, compared with estimates of $231.94 million, according to data compiled by LSEG.
(Reporting by Kritika Lamba in Bengaluru; Editing by Anil D'Silva)
Bankruptcy is a legal process through which individuals or businesses unable to repay their debts can seek relief from some or all of their obligations.
Silicon carbide semiconductors are materials used in electronic devices that can operate at high temperatures and voltages, making them ideal for applications in electric vehicles and renewable energy.
Competition in the market refers to the rivalry among businesses to attract customers and gain market share, which can influence pricing, product offerings, and innovation.
Demand in economics refers to the quantity of a product or service that consumers are willing and able to purchase at various prices during a given time period.
Explore more articles in the Finance category
