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

Key Points

• Skyworks beat quarterly estimates: Fiscal Q3 EPS came in at $1.08 versus the $1.03 consensus, while revenue reached approximately $935 million. However, EPS fell from $1.33 and revenue declined 3.1% year over year.
• Q4 guidance was strong: Management expects EPS of $1.27 and revenue of roughly $1.01 billion to $1.06 billion, supported by a high-teens sequential increase in mobile demand and continued growth in automotive and data-center markets.
• The Qorvo combination advanced: China’s regulatory review is in its final phase, with Skyworks targeting completion in 2026. The company plans to raise about $2 billion in acquisition debt and authorized a $2 billion share repurchase, while margin pressure and integration risks remain concerns.

Skyworks Solutions (NASDAQ:SWKS - Get Free Report) posted its quarterly earnings results on Tuesday. The semiconductor manufacturer reported $1.08 earnings per share for the quarter, topping the consensus estimate of $1.03 by $0.05, FiscalAI reports. The business had revenue of $934.80 million during the quarter, compared to the consensus estimate of $925.97 million. Skyworks Solutions had a return on equity of 11.52% and a net margin of 8.93%.The firm's revenue for the quarter was down 3.1% compared to the same quarter last year. During the same period in the prior 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 Trading Up 2.0%

NASDAQ:SWKS traded up $1.24 during midday trading on Tuesday, hitting $64.68. 8,047,071 shares of the company traded hands, compared to its average volume of 4,416,680. The firm has a market capitalization of $9.73 billion, a P/E ratio of 26.84 and a beta of 1.50. The firm's fifty day moving average is $69.32 and its 200-day 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 current ratio of 2.38, a quick ratio of 1.70 and a debt-to-equity ratio of 0.09.

Skyworks Solutions Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Investors 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%.

Institutional Investors Weigh In On 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 position in shares of Skyworks Solutions during the 2nd quarter worth about $32,000. MUFG Securities EMEA plc purchased a new stake in Skyworks Solutions in the 2nd quarter worth about $33,000. Brown Brothers Harriman & Co. lifted its stake in Skyworks Solutions by 70.7% in the third 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 last quarter. Atlas Capital Advisors Inc. purchased a new position in shares of Skyworks Solutions during the fourth quarter valued at approximately $48,000. Finally, Smartleaf Asset Management LLC grew its stake in shares of 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 buying an additional 354 shares during the last quarter. Hedge funds and other institutional investors own 85.43% of the company's stock.

Trending Headlines about 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

SWKS has been the subject of a number of research reports. Barclays upgraded shares of Skyworks Solutions from an "equal weight" rating to an "overweight" rating and upped their target price for the stock from $60.00 to $70.00 in a research report on Wednesday, April 22nd. UBS Group boosted 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. TD Cowen increased 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. Mizuho restated an "underperform" rating and set a $46.00 price objective (down from $60.00) on shares of Skyworks Solutions in a research report on Monday, April 20th. Finally, KeyCorp downgraded Skyworks Solutions from an "overweight" rating to a "sector weight" rating in a research report on Tuesday, July 14th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, sixteen have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Skyworks Solutions has a consensus rating of "Hold" and an average price target of $77.47.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.