Wolfspeed Reports Post-Bankruptcy Revenue Surge Amid Profit Decline

Wolfspeed reported stronger-than-expected revenue of $197 million for Q1 fiscal 2026 after emerging from Chapter 11 bankruptcy, but forecasted a revenue decline to between $150 million and $190 million for the next quarter amid ongoing industry softness. Despite the revenue beat, the company posted a weaker profit, with a loss of 55 cents per share, reflecting challenges from slow automotive demand and increased competition in the silicon carbide semiconductor market. Wolfspeed's restructuring significantly reduced its $6.6 billion debt by approximately 70%, extended debt maturities, and cut interest payments by about 60%, but previous shareholders were largely diluted in favor of creditors. The company has a renewed strategic focus on its core silicon carbide technology, including the launch of a 200mm wafer product line and a fully vertical manufacturing process in the U.S., positioning it to benefit from CHIPS Act funding and geopolitical trade advantages. Recent leadership changes, including the appointment of Matthias Buchner as global head of sales and marketing, aim to strengthen Wolfspeed's commercial position and accelerate growth in key sectors like electric vehicles and renewable energy. However, ongoing market headwinds and profitability challenges continue to test the company's turnaround efforts and investor confidence.