Skyworks Solutions (NASDAQ:SWKS) Posts Earnings Results, Beats Expectations By $0.05 EPS

Skyworks Solutions (NASDAQ:SWKS) issued its earnings results on Tuesday. The semiconductor manufacturer reported $1.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.03 by $0.05, FiscalAI reports. The firm had revenue of $934.80 million during the quarter, compared to analyst estimates of $925.97 million. Skyworks Solutions had a net margin of 8.93% and a return on equity of 11.52%. The business’s revenue was down 3.1% on a year-over-year basis. During the same period in the previous year, the firm earned $1.33 earnings per share. 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%

Skyworks Solutions stock traded up $1.24 during midday trading on Tuesday, hitting $64.68. 8,047,071 shares of the company’s stock were exchanged, compared to its average volume of 4,416,680. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.70 and a current ratio of 2.38. The company has a market cap of $9.73 billion, a PE ratio of 26.84 and a beta of 1.50. The firm has a 50-day moving average of $69.32 and a two-hundred day moving average of $62.80. Skyworks Solutions has a 12 month low of $51.93 and a 12 month high of $90.90.

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 issued a dividend of $0.71 per share. This represents a $2.84 annualized dividend and a yield of 4.4%. The ex-dividend date was Tuesday, May 26th. Skyworks Solutions’s dividend payout ratio is presently 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.

Analysts Set New Price Targets

A number of brokerages recently weighed in on SWKS. Stifel Nicolaus lifted their price objective on shares of Skyworks Solutions from $65.00 to $75.00 and gave the company a “hold” rating in a report on Wednesday, May 6th. Benchmark reaffirmed a “hold” rating on shares of Skyworks Solutions in a research report on Monday. Barclays raised shares of Skyworks Solutions from an “equal weight” rating to an “overweight” rating and lifted their price target for the company from $60.00 to $70.00 in a research note on Wednesday, April 22nd. Craig Hallum boosted their price target on Skyworks Solutions from $75.00 to $85.00 in a report on Wednesday, May 6th. Finally, Loop Capital increased their price objective on Skyworks Solutions from $60.00 to $70.00 in a research note on Wednesday, May 6th. One equities research 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’s stock. Based on data from MarketBeat, Skyworks Solutions currently has an average rating of “Hold” and a consensus price target of $77.47.

Institutional Investors Weigh In On Skyworks Solutions

Several hedge funds have recently modified their holdings of the business. Compound Planning Inc. bought a new position in Skyworks Solutions in the fourth quarter worth approximately $226,000. Invesco Ltd. boosted its position in Skyworks Solutions by 7.0% during the 4th quarter. Invesco Ltd. now owns 4,686,686 shares of the semiconductor manufacturer’s stock valued at $297,183,000 after acquiring an additional 305,126 shares in the last quarter. Corient Private Wealth LLC boosted its position in Skyworks Solutions by 484.8% during the 4th quarter. Corient Private Wealth LLC now owns 210,979 shares of the semiconductor manufacturer’s stock valued at $13,378,000 after acquiring an additional 174,904 shares in the last quarter. Mercer Global Advisors Inc. ADV increased its holdings in shares of Skyworks Solutions by 13.6% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 26,551 shares of the semiconductor manufacturer’s stock valued at $1,684,000 after acquiring an additional 3,181 shares during the period. Finally, Vident Advisory LLC increased its holdings in shares of Skyworks Solutions by 5.9% in the 4th quarter. Vident Advisory LLC now owns 44,306 shares of the semiconductor manufacturer’s stock valued at $2,809,000 after acquiring an additional 2,479 shares during the period. 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.