Skyworks Solutions, Inc.

What they do

Skyworks supplies analog and mixed-signal semiconductors into two primary demand areas: Mobile and Broad Markets. Mobile covers handset RF content and front-end modules, while Broad Markets spans automotive, data center, industrial, and IoT applications. The company reports a fiscal year ending on the Friday closest to September 30, with fiscal 2025 revenue of $4.09 billion.

Revenue drivers

• Mobile — Handset-oriented RF and mixed-signal content sold to smartphone OEMs and reference design partners; management expects Mobile to grow sequentially in the high-teens range in the September 2026 quarter on the seasonal ramp of new product launches at its largest customer.
• Broad Markets — Diversified end markets including automotive, data center, industrial, and IoT; the third quarter of fiscal 2026 saw year-over-year growth led by double-digit gains in automotive and data center, and management expects Broad Markets to be approximately 39% of sales in the September 2026 quarter.
• Automotive design wins — The company reported expanded automotive design win pipeline, securing telematics and in-vehicle infotainment engagements with leading global OEMs.
• AI data center design wins — The company reported an expanded AI data center pipeline including precision timing for a hyperscaler switch platform and isolation solutions for 800-volt HVDC power architectures.

Recent performance

For the quarter ended July 3, 2026, revenue was $934.8 million, down from $965.0 million in the prior-year quarter (June 27, 2025). GAAP operating income was $49 million and GAAP diluted EPS was $0.22, compared with $110.6 million and $0.70 a year earlier; non-GAAP operating income was $182 million with non-GAAP diluted EPS of $1.08. Nine-month fiscal 2026 revenue was $2,913.9 million versus $2,986.7 million a year earlier, with net income of $148.7 million versus $335.7 million. Third-quarter operating expenses included $19.8 million of restructuring, impairment, and other charges, up from $1.5 million a year earlier.

Strategy

Skyworks is advancing its pending combination with Qorvo, saying it is optimistic it can close within the calendar year and preparing to close as early as within the fiscal year. The company announced the expected leadership team for the combined company and anticipates raising approximately $2 billion of acquisition debt financing. It also adopted a new capital allocation framework for the combined company, replacing the repurchase program expiring in February 2027 with a new $2 billion stock repurchase authorization and deciding not to declare quarterly dividends going forward. The framework emphasizes share repurchases, de-levering, and opportunistic accretive M&A. Management continues to position the business around Broad Markets growth engines including automotive and AI data center design wins.

Risks

• Qorvo combination execution — The pending combination with Qorvo remains subject to regulatory approvals, and management's expectation to close within the calendar year may not be met.
• Customer concentration — Mobile demand is tied to the seasonal ramp of new product launches at the company's largest customer, so a change in that customer's product cycle would directly affect revenue.
• Declining profitability — GAAP net income fell to $148.7 million in the first nine months of fiscal 2026 from $335.7 million a year earlier, with third-quarter operating income down sharply despite only a modest revenue decline.
• Restructuring charges — Restructuring, impairment, and other charges rose to $42.2 million in the nine months ended July 3, 2026, from $22.6 million a year earlier, adding pressure to operating results.

Outlook

For the September 2026 quarter, management guided revenue of $1,010 million to $1,060 million and non-GAAP diluted EPS of $1.27 at the mid-point of the revenue range. Guidance includes approximately $5 million in incremental net interest expense, or about $0.03 per share, reflecting a partial quarter of financing costs associated with the pending Qorvo acquisition. Mobile is expected to grow sequentially in the high-teens range on the seasonal ramp at the largest customer, while Broad Markets is expected to grow about 5% year-over-year and represent approximately 39% of sales.