Skyworks Solutions NASDAQ: SWKS reported fiscal second-quarter 2026 results that came in above its guidance, citing strength in both its mobile business and broad markets portfolio. Management also highlighted a “significant multi-generational design win” with a leading Android OEM, new product introductions tied to future wireless standards, and progress on its planned combination with Qorvo.
Quarterly results topped guidance
Chief Financial Officer Philip Carter said Skyworks delivered revenue of $944 million, which exceeded the high end of the company’s guidance range. Diluted earnings per share were $1.15, also above guidance, as Skyworks posted net income of $173 million.
Carter said Skyworks’ largest customer represented approximately 60% of revenue in the quarter. Mobile made up 58% of total revenue and came in ahead of expectations “driven by healthy sell-through at our top customer and product execution.” Broad markets represented 42% of sales, grew 10% year-over-year, and outperformed management’s expectations due to growth “across Wi-Fi, data center, and automotive.”
Gross profit was $425 million, with gross margin of 45%, which Carter said was in line with the midpoint of guidance. He noted that input costs remained “a modest headwind” to gross margin, though the company has used cost controls and “selective price adjustments” to offset pressures. Operating income was $189 million, or a 20% operating margin, with operating expenses of $236 million.
Skyworks ended the quarter with about $1.4 billion in cash and investments and $1 billion in debt, Carter said, adding that the company maintained “a strong balance sheet and ample flexibility.” CEO Philip Brace also noted the company paid $107 million in quarterly dividends.
Android design win and content positioning
Brace said Skyworks secured a “significant multi-generational design win with a leading Android OEM expected to generate over a billion dollars in revenue through 2030.” He framed the win as an expansion of the company’s presence in premium AI-enabled devices and said it validates Skyworks’ RF content platform and differentiation.
Pressed for additional detail, Brace said the program is with a customer Skyworks has worked with previously and “represents incremental business for us going forward.” He added that it is in the premium part of the market and that Skyworks expects gross margins to “reflect that.”
JPMorgan analyst Peter Peng asked how the revenue should be modeled over time. Brace responded that Skyworks expects the opportunity to be “rising year-over-year,” calling it “a tailwind to growth from now through 2030.”
On content trends at the company’s largest customer, Brace reiterated that Skyworks “feel[s] good about our content position” and said the company has not seen anything unusual in demand patterns. In response to questions about the next year, he said Skyworks expects blended content to be “roughly flat,” while also pointing to “some potential for some tailwinds” as the customer migrates “towards the internal modem,” which he said could open new opportunities.
Broad markets: nine straight quarters of growth
Brace said Skyworks’ broad markets business recorded its ninth consecutive quarter of growth, reaching approximately $400 million in quarterly revenue and delivering double-digit year-over-year growth. He said the company’s “three growth engines”—Wi-Fi, data center, and automotive—represented nearly two-thirds of broad markets revenue and “collectively grew 30% year-over-year.”
- Wi-Fi: Brace said Wi-Fi 7 adoption is accelerating as AI workloads move toward the endpoint. He added that Skyworks is actively engaged with customers in early Wi-Fi 8 programs.
- Automotive: Brace said connected car and infotainment demand are driving growth, with power and connectivity expected to expand Skyworks’ footprint further into fiscal 2027. He said the company is engaged with global OEMs and tier-one suppliers on multi-year vehicle programs.
- AI data center: Brace said the segment remains modest in absolute terms but is expected to grow nearly 50% this year, supported by demand for precision timing and advanced power delivery. He said Skyworks is positioned across 800 gigahertz and 1.6 terabit platforms as the industry transitions to 400-volt and 800-volt HVDC architectures.
During Q&A, TD Cowen analyst Krish Sankar asked about the size of Skyworks’ data center and automotive businesses. Brace said prior estimates were “about right,” adding that data center is growing faster than automotive and that Skyworks is seeing “good bookings” in both areas.
New products and early 6G focus
Brace pointed to several product initiatives, including new bulk acoustic wave (BAW) filters “targeting early 6G FR3 spectrum” and next-generation RF front-end solutions supporting frequencies above 7 gigahertz. He also said the company expanded its timing portfolio with new clock buffers aimed at data center, wireless infrastructure, and PCIe Gen 7 applications.
He described longer-term growth drivers for RF content as “four converging forces”: more devices, more RF content per device driven by standards such as 6G and Wi-Fi 7 and beyond, AI-driven workloads that raise demands on uplink and latency, and new form factors such as robotics and autonomous platforms.
Q3 outlook and margin commentary
For the third quarter of fiscal 2026, Carter guided revenue to a range of $900 million to $950 million. He said mobile revenue is expected to decline low single digits sequentially due to normal seasonality, while broad markets should rise modestly sequentially and represent 43% of sales, up high single digits year-over-year.
Gross margin is expected to be approximately 44.5% to 45.5%, which Carter said would be flat sequentially, reflecting seasonally lower volume and higher input costs. Operating expenses are projected between $235 million and $245 million, as the company funds R&D while controlling discretionary spending. At the midpoint of the outlook, Carter said Skyworks expects diluted EPS of $1.03.
Asked about gross margin direction beyond the near-term quarter, Carter noted that gross margin typically declines from the second to third fiscal quarter by about 70 basis points on average over the last five years, but Skyworks guided to flat margins. He cited higher input costs including expedite fees and gold prices, while pointing to cost reduction efforts such as fab optimization and utilization improvements, as well as the benefit of a modest broad markets mix increase.
On pricing, Brace said the company is seeing input price increases “pretty much across the board” and is taking a targeted approach to sharing certain cost increases with customers. Carter added that for some “long life products” Skyworks has been able to increase price and pass costs through.
Brace also addressed geographic exposure during Q&A, stating that Skyworks’ China business is “annually less than $200 million,” and that China handset revenue is “less than $20 million.”
Separately, Brace said regulatory review of the planned Qorvo combination is progressing as expected, including entry into Phase 2 of China’s SAMR process. He said Skyworks’ formal guidance remains for an early calendar 2027 close, though management is “increasingly hopeful” it could close in late 2026. Brace also said Skyworks supported Qorvo’s $400 million share repurchase during the quarter in accordance with operating covenants in the merger agreement, and reiterated confidence in achieving anticipated synergies of “$500 million or more.”
About Skyworks Solutions NASDAQ: SWKS
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.
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