Skyworks Solutions (NASDAQ:SWKS) Issues Quarterly Earnings Results, Beats Estimates By $0.05 EPS

Skyworks Solutions (NASDAQ:SWKS) announced its quarterly earnings data on Tuesday. The semiconductor manufacturer reported $1.08 earnings per share for the quarter, beating analysts’ consensus estimates of $1.03 by $0.05, FiscalAI reports. The company had revenue of $934.80 million during the quarter, compared to analyst estimates of $925.97 million. Skyworks Solutions had a net margin of 7.23% and a return on equity of 10.73%. The firm’s revenue for the quarter was down 3.1% on a year-over-year basis. During the same quarter last year, the business 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 Performance

Shares of SWKS stock traded up $0.16 during mid-day trading on Thursday, reaching $61.35. The stock had a trading volume of 1,254,236 shares, compared to its average volume of 4,477,392. Skyworks Solutions has a 1-year low of $51.93 and a 1-year high of $90.90. The firm has a market cap of $9.23 billion, a price-to-earnings ratio of 31.86 and a beta of 1.50. The company has a current ratio of 2.38, a quick ratio of 1.70 and a debt-to-equity ratio of 0.09. The business’s fifty day moving average is $68.95 and its 200-day moving average is $62.84.

Skyworks Solutions Announces Dividend

The company also recently declared 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. This represents a $2.84 annualized dividend and a yield of 4.6%. The ex-dividend date was Tuesday, May 26th. Skyworks Solutions’s payout ratio is presently 117.84%.

Institutional Trading of Skyworks Solutions

Large investors have recently made changes to their positions in the business. FIL Ltd raised its holdings in shares of Skyworks Solutions by 50.5% during the fourth quarter. FIL Ltd now owns 5,190,211 shares of the semiconductor manufacturer’s stock worth $329,111,000 after purchasing an additional 1,742,338 shares during the last quarter. Marshall Wace LLP lifted its holdings in shares of Skyworks Solutions by 391.3% in the 3rd quarter. Marshall Wace LLP now owns 537,814 shares of the semiconductor manufacturer’s stock valued at $41,401,000 after buying an additional 722,414 shares during the period. Dimensional Fund Advisors LP boosted its stake in shares of Skyworks Solutions by 22.8% in the fourth quarter. Dimensional Fund Advisors LP now owns 3,859,197 shares of the semiconductor manufacturer’s stock worth $244,720,000 after buying an additional 717,724 shares during the last quarter. Rafferty Asset Management LLC raised its position in Skyworks Solutions by 52.1% during the second quarter. Rafferty Asset Management LLC now owns 2,024,243 shares of the semiconductor manufacturer’s stock valued at $150,847,000 after acquiring an additional 693,379 shares in the last quarter. Finally, Two Sigma Investments LP lifted its holdings in Skyworks Solutions by 92.4% in the third quarter. Two Sigma Investments LP now owns 1,358,259 shares of the semiconductor manufacturer’s stock valued at $104,559,000 after acquiring an additional 652,406 shares during the period. 85.43% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Skyworks Solutions

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

• Positive Sentiment: Fiscal third-quarter results exceeded expectations. Skyworks reported non-GAAP EPS of $1.08 versus the $1.03 consensus and revenue of approximately $935 million versus expectations of $926 million. Growth in Broad Markets, particularly automotive and AI data-center applications, helped offset weakness elsewhere. Skyworks fiscal third-quarter results
• Positive Sentiment: Qorvo combination preparations are advancing. Skyworks and Qorvo announced the expected leadership team, while regulatory approvals continue to progress. Management also authorized a new $2 billion stock-repurchase program, which could support per-share value if executed. Skyworks and Qorvo leadership announcement
• Neutral Sentiment: Valuation appears broadly balanced. A recent discounted-cash-flow analysis places SWKS near fair value, but other valuation measures do not identify the shares as an obvious bargain. Brokerages collectively maintain an average “Hold” recommendation. Skyworks valuation analysis
• Negative Sentiment: Underlying performance remains mixed. Third-quarter revenue declined 3.1% year over year, while EPS fell from $1.33 in the prior-year quarter to $1.08. Investors are also focused on weaker expected fourth-quarter earnings, margin pressure and mixed end-market demand.
• Negative Sentiment: Analysts largely reduced their targets after the report. JPMorgan, Morgan Stanley, Stifel, TD Cowen, Citi and RBC lowered price targets, generally retaining neutral or hold-equivalent ratings. Mizuho cut its target to $52 and maintained an “underperform” rating. The Qorvo transaction’s expected approximately $2 billion of acquisition debt financing adds execution and leverage risk, despite its potential strategic benefits.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on SWKS. Citigroup reduced their target price on shares of Skyworks Solutions from $77.00 to $64.00 and set a “neutral” rating on the stock in a research report on Wednesday. Benchmark reissued a “hold” rating on shares of Skyworks Solutions in a research note on Monday. Weiss Ratings restated a “sell (d+)” rating on shares of Skyworks Solutions in a report on Wednesday, May 6th. BNP Paribas Exane lifted their target price on Skyworks Solutions from $60.00 to $70.00 in a research report on Wednesday, May 6th. Finally, KeyCorp downgraded Skyworks Solutions from an “overweight” rating to a “sector weight” rating in a research report on Tuesday, July 14th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, sixteen have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, Skyworks Solutions presently has an average rating of “Hold” and a consensus price target of $74.22.

About Skyworks Solutions

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.