Skyworks Solutions (NASDAQ:SWKS) Issues Quarterly Earnings Results

Skyworks Solutions (NASDAQ:SWKS) posted its earnings results on Tuesday. The semiconductor manufacturer reported $1.08 EPS for the quarter, topping the consensus estimate of $1.03 by $0.05, FiscalAI reports. The firm had revenue of $934.80 million during the quarter, compared to analysts’ expectations of $925.97 million. Skyworks Solutions had a net margin of 8.93% and a return on equity of 11.52%. The company’s quarterly revenue was down 3.1% compared to the same quarter last year. During the same period last year, the company posted $1.33 EPS. Skyworks Solutions updated its Q4 2026 guidance to 1.270-1.270 EPS.

Here are the key takeaways from Skyworks Solutions’ conference call:

• Qorvo transaction progress improved: Skyworks said China’s SAMR review has reached its final phase and that it is optimistic the deal can close within calendar 2026, potentially as early as the current fiscal year. The company expects to raise approximately $2 billion in debt and remains confident in achieving at least $500 million in synergies.
• Skyworks reported third-quarter revenue of $935 million and non-GAAP EPS of $1.08, both above the midpoint of guidance. Fourth-quarter guidance calls for revenue of $1.01 billion-$1.06 billion and EPS of $1.27 at the midpoint, supported by a high-teens sequential mobile ramp.
• Broad-market revenue grew 8% year over year to approximately $403 million, while Wi-Fi, data center, and automotive collectively grew 15%. AI data-center demand is tracking above the previously cited 50% annual growth rate, although supply constraints are limiting shipments.
• Rising input costs are pressuring gross margins, with fourth-quarter margin expected at 44%-45%; Skyworks is pursuing cost reductions and selective price increases to offset the impact. The company also ended its quarterly dividend and replaced it with a $2 billion share-repurchase authorization, prioritizing buybacks, debt reduction, and strategic M&A.

Skyworks Solutions Stock Up 2.0%

Shares of NASDAQ SWKS traded up $1.24 on Tuesday, reaching $64.68. 8,047,071 shares of the company’s stock traded hands, compared to its average volume of 4,820,014. The business’s 50 day simple moving average is $69.32 and its two-hundred day simple moving average is $62.80. Skyworks Solutions has a 12 month low of $51.93 and a 12 month high of $90.90. The company has a market cap of $9.73 billion, a price-to-earnings ratio of 14.42 and a beta of 1.50. The company has a quick ratio of 1.70, a current ratio of 2.38 and a debt-to-equity ratio of 0.09.

Skyworks Solutions Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, May 26th were paid a dividend of $0.71 per share. The ex-dividend date of this dividend was Tuesday, May 26th. This represents a $2.84 dividend on an annualized basis and a dividend yield of 4.4%. Skyworks Solutions’s dividend payout ratio (DPR) is currently 117.84%.

Key Headlines Impacting Skyworks Solutions

Here are the key news stories impacting Skyworks Solutions this week:

• Positive Sentiment: Skyworks reported fiscal Q3 non-GAAP EPS of $1.08, beating the $1.03 consensus estimate, while revenue of approximately $935 million also exceeded expectations. However, EPS declined from $1.33 a year earlier and revenue fell roughly 3% year over year. Skyworks Solutions Q3 earnings and revenues beat estimates
• Positive Sentiment: Management issued fiscal Q4 EPS guidance of $1.27, above the $1.23 analyst consensus, and forecast revenue of $1.0 billion to $1.1 billion. The company also cited continued momentum in automotive and data-center markets. Skyworks fiscal third-quarter results and Qorvo combination update
• Positive Sentiment: Skyworks announced a new $2 billion share-repurchase authorization and a capital-allocation framework for the combined company, which could support shareholder returns. Skyworks capital allocation announcement
• Neutral Sentiment: Skyworks and Qorvo announced the expected executive leadership team for their pending combination, signaling preparation for integration. Regulatory approvals are still in progress, so completion and execution risks remain. Skyworks and Qorvo expected leadership team
• Negative Sentiment: The company expects to raise approximately $2 billion in acquisition debt financing. Investors may view the additional leverage and integration costs as risks, despite Skyworks’ currently low debt-to-equity ratio. Its declining year-over-year revenue and EPS also indicate that near-term operating growth remains uneven.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the stock. UBS Group increased their price target on shares of Skyworks Solutions from $63.00 to $75.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 6th. BNP Paribas Exane lifted their price objective on Skyworks Solutions from $60.00 to $70.00 in a research report on Wednesday, May 6th. Benchmark reiterated a “hold” rating on shares of Skyworks Solutions in a report on Monday. KeyCorp cut Skyworks Solutions from an “overweight” rating to a “sector weight” rating in a research note on Tuesday, July 14th. Finally, Weiss Ratings restated a “sell (d+)” rating on shares of Skyworks Solutions in a research report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, sixteen have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Skyworks Solutions has an average rating of “Hold” and an average price target of $77.47.

Institutional Trading of Skyworks Solutions

Several hedge funds and other institutional investors have recently made changes to their positions in SWKS. CYBER HORNET ETFs LLC purchased a new stake in shares of Skyworks Solutions during the 2nd quarter valued at about $32,000. MUFG Securities EMEA plc bought a new stake in Skyworks Solutions in the 2nd quarter worth approximately $33,000. Brown Brothers Harriman & Co. grew its position in Skyworks Solutions by 70.7% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 560 shares of the semiconductor manufacturer’s stock worth $43,000 after purchasing an additional 232 shares during the period. Atlas Capital Advisors Inc. purchased a new stake in Skyworks Solutions during the fourth quarter valued at $48,000. Finally, Smartleaf Asset Management LLC increased its position in Skyworks Solutions by 46.2% during the second quarter. Smartleaf Asset Management LLC now owns 1,121 shares of the semiconductor manufacturer’s stock valued at $84,000 after acquiring an additional 354 shares during the last quarter. Hedge funds and other institutional investors own 85.43% of the company’s stock.

Skyworks Solutions Company Profile

Skyworks Solutions, Inc is a leading semiconductor company that designs and manufactures analog and mixed-signal semiconductors for use in radio frequency (RF) and mobile communications markets. The company’s portfolio includes power amplifiers, front-end modules, switches, filters, low-noise amplifiers, and other components that enable wireless connectivity in smartphones, tablets, wearables, automotive telematics, and broadband infrastructure. With a focus on energy efficiency and integration, Skyworks serves a broad range of customers in the mobile, Internet of Things (IoT), automotive, connected home, and industrial end markets.

Headquartered in Irvine, California, Skyworks operates a network of design, development, and manufacturing facilities across North America, Europe, and the Asia-Pacific region.