Skyworks Solutions (NASDAQ:SWKS) Stock Price Down 15% - Time to Sell?

Key Points

• Shares fell ~15% intraday even though Skyworks reported a Q2 EPS beat, raised near‑term guidance and secured a multi‑generational Android design win expected to generate $1B+ through 2030, suggesting the drop was driven by profit‑taking/rotation and underperformance vs. peers.
• There are signs of underlying weakness — revenue was roughly flat (down ~1% YoY) and management flagged inventory increases, which, along with margin concerns, contributed to after‑hours selling.
• Wall Street is mixed: consensus is a "Hold" with an average target of about $74.83 (versus the ~$61.6 share price), while Skyworks pays a 4.4% yield but has a high payout ratio (~109%), raising sustainability questions.

Skyworks Solutions, Inc. (NASDAQ:SWKS - Get Free Report)'s stock price was down 15% on Wednesday . The company traded as low as $62.63 and last traded at $61.64. Approximately 1,338,649 shares changed hands during mid-day trading, a decline of 63% from the average daily volume of 3,652,736 shares. The stock had previously closed at $72.56.

Trending Headlines about Skyworks Solutions

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

• Positive Sentiment: Q2 beat — Skyworks reported non‑GAAP EPS of $1.15 vs. $1.04 expected and revenue of ~$944M, topping estimates and beating guidance. SWKS' Q2 Earnings Beat Estimates, Revenues Up on Strong Broad Markets
• Positive Sentiment: Major Android OEM design win — Skyworks secured a multi‑generational Android design win expected to generate $1B+ through 2030, underpinning longer‑term revenue visibility. Skyworks Delivers Strong Second Quarter Fiscal Year 2026 Results
• Positive Sentiment: Raised near‑term guidance — SWKS set Q3 FY26 EPS at $1.03 and revenue guide $900–$950M, above Street estimates, signaling confidence in premium smartphone RF demand. Skyworks Solutions forecasts higher revenue on strong chip demand
• Positive Sentiment: Analyst support — Multiple firms raised price targets (examples: Morgan Stanley, JPMorgan, KeyCorp), showing institutional confidence in the recovery path. Morgan Stanley lifts price target on Skyworks
• Neutral Sentiment: Dividend maintained — Board declared a $0.71 quarterly dividend (ex‑div May 26), supporting income investors but largely priced in.
• Neutral Sentiment: Full context available — The company held an earnings call/transcript with management discussing end‑market mix (Broad Markets strength) and outlook. Skyworks Q2 2026 Earnings Call Transcript
• Negative Sentiment: Shares plunged amid a broad semiconductor rally — SWKS underperformed peers and saw heavy selling, suggesting profit‑taking and rotation drove much of the drop. Semi Stocks Are Flying. Why Skyworks Solutions Is Getting Crushed.
• Negative Sentiment: Underlying weakness flagged — revenue was roughly flat/down ~1% YoY and management noted inventory increases in the quarter, which may worry short‑term margin and working‑capital investors. Skyworks beats Q2 estimates but shares edge lower as revenue declines YoY
• Negative Sentiment: After‑hours weakness — SWKS dipped in after‑hours trading despite beats, indicating some investors were disappointed by margins, inventory or simply locking gains. Skyworks Solutions Stock Is Trending Overnight

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on SWKS shares. Argus raised shares of Skyworks Solutions to a "hold" rating in a research report on Friday, February 6th. Zacks Research cut shares of Skyworks Solutions from a "strong-buy" rating to a "hold" rating in a research report on Monday, February 16th. Craig Hallum decreased their price objective on shares of Skyworks Solutions from $85.00 to $75.00 and set a "buy" rating for the company in a research report on Wednesday, February 4th. JPMorgan Chase & Co. upped their price objective on shares of Skyworks Solutions from $65.00 to $70.00 and gave the company a "neutral" rating in a research report on Wednesday. Finally, Stifel Nicolaus upped their price objective on shares of Skyworks Solutions from $65.00 to $75.00 and gave the company a "hold" rating in a research report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, sixteen have given a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, Skyworks Solutions currently has a consensus rating of "Hold" and an average target price of $74.83.

Skyworks Solutions Stock Down 10.5%

The company has a debt-to-equity ratio of 0.09, a current ratio of 2.40 and a quick ratio of 1.80. The firm's 50-day moving average price is $57.60 and its 200 day moving average price is $62.57. The firm has a market cap of $9.77 billion, a P/E ratio of 24.98 and a beta of 1.48.

Skyworks Solutions (NASDAQ:SWKS - Get Free Report) last issued its earnings results on Tuesday, May 5th. The semiconductor manufacturer reported $1.15 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.04 by $0.11. Skyworks Solutions had a net margin of 9.73% and a return on equity of 11.72%. The firm had revenue of $943.70 million for the quarter, compared to analysts' expectations of $901.76 million. During the same quarter last year, the company posted $1.24 earnings per share. Skyworks Solutions's revenue was down 1.0% on a year-over-year basis. Skyworks Solutions has set its Q3 2026 guidance at 1.030-1.030 EPS. On average, equities research analysts expect that Skyworks Solutions, Inc. will post 3.25 earnings per share for the current fiscal year.

Skyworks Solutions Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 16th. Shareholders of record on Tuesday, May 26th will be issued a $0.71 dividend. The ex-dividend date of this dividend is Tuesday, May 26th. This represents a $2.84 dividend on an annualized basis and a yield of 4.4%. Skyworks Solutions's dividend payout ratio (DPR) is currently 109.23%.

Hedge Funds Weigh In On Skyworks Solutions

A number of large investors have recently bought and sold shares of the business. Gallacher Capital Management LLC bought a new position in Skyworks Solutions in the first quarter worth about $519,000. Financiere des Professionnels Fonds d investissement inc. lifted its holdings in Skyworks Solutions by 36.2% in the first quarter. Financiere des Professionnels Fonds d investissement inc. now owns 17,345 shares of the semiconductor manufacturer's stock worth $929,000 after acquiring an additional 4,607 shares during the last quarter. Illinois Municipal Retirement Fund lifted its holdings in Skyworks Solutions by 10.1% in the first quarter. Illinois Municipal Retirement Fund now owns 176,744 shares of the semiconductor manufacturer's stock worth $9,465,000 after acquiring an additional 16,263 shares during the last quarter. Sanctuary Advisors LLC lifted its holdings in Skyworks Solutions by 5.5% in the first quarter. Sanctuary Advisors LLC now owns 9,212 shares of the semiconductor manufacturer's stock worth $493,000 after acquiring an additional 484 shares during the last quarter. Finally, Empirical Financial Services LLC d.b.a. Empirical Wealth Management lifted its holdings in Skyworks Solutions by 86.5% in the first quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 7,931 shares of the semiconductor manufacturer's stock worth $425,000 after acquiring an additional 3,678 shares during the last quarter. 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.

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.