Skyworks Solutions (SWKS) Financials

Skyworks Solutions (NASDAQ: SWKS) entered fiscal Q2 2026 with a much weaker revenue and profit profile than it showed a year ago, even though the balance sheet remains solid and the company still generates positive operating cash flow. The key trend is a sharp year-over-year slowdown in sales and earnings, alongside heavy inventory and capital-return activity.

• Cash balance remains strong. Skyworks ended Q2 2026 with $1.41 billion in cash and equivalents, plus $8.5 million in short-term investments, giving it a sizable liquidity cushion.
• Equity remains well above liabilities. Total equity was $5.77 billion versus $2.13 billion in liabilities, indicating a conservative capital structure.
• The company is still cash-flow positive from operations. Q2 2026 operating cash flow was $50.3 million, showing the business still generates cash even in a softer demand environment.
• Skyworks continues to return cash to shareholders. The company paid $106.8 million in dividends during Q2 2026 and also issued $21.2 million in common equity, reflecting an ongoing shareholder-return framework.
• Debt levels appear manageable. Long-term debt was $496.7 million, which is modest relative to the company’s cash position and equity base.
• Quarterly net income was still positive. Skyworks earned $35.6 million in Q2 2026, so the company did not slip into a loss despite the weaker sales backdrop.
• Depreciation and amortization remain meaningful non-cash add-backs. In Q2 2026, depreciation was $69.4 million and amortization was $43.6 million, which helps support reported operating cash flow.
• The quarter showed a very large working-capital outflow. Changes in operating assets and liabilities used $156.3 million, which offset much of the cash generated by earnings and non-cash items.
• Revenue fell sharply year over year. Q2 2026 revenue was $943.7 million, down from $1.05 billion in Q1 2026 and well below the $1.10 billion posted in Q4 2025.
• Profitability compressed materially from last year. Q2 2026 net income of $35.6 million and EPS of $0.24 were far below Q2 2025’s $68.7 million net income and $0.43 EPS, and even further below Q2 2024’s $183.3 million net income and $1.14 EPS.

Looking at the last four years, Skyworks has clearly moved from a much stronger profit cycle in 2022–2024 to a more challenging phase in 2025–2026. Revenue has trended lower, and operating income has fallen sharply from prior peaks. For example, Q1 2024 revenue was $1.33 billion with operating income of $367.0 million, while Q2 2026 revenue was only $943.7 million with operating income of $42.1 million.

Margins have also weakened. In Q2 2026, gross profit was $385.3 million on $943.7 million of revenue, and operating expenses consumed most of that gross profit. R&D and SG&A remain substantial, which is not unusual for a semiconductor company, but they are now being supported by a much smaller revenue base.

The balance sheet is still a positive, but there are a few items investors should watch. Inventory increased to $885.6 million in Q2 2026 from $767.5 million in Q1 2026, suggesting either demand uncertainty or slower inventory turnover. At the same time, total assets were slightly lower than in Q1 2026, while total liabilities edged higher.

From a cash-flow perspective, Skyworks is still able to fund dividends and investments, but financing cash outflows were heavy due to dividend payments and share repurchases over time. That is manageable as long as operating cash flow remains positive, but it becomes more important if revenue weakness persists.

Bottom line: Skyworks still has a strong balance sheet and positive cash generation, but the last several quarters show clear pressure on revenue, margins, and earnings. For retail investors, the stock’s appeal likely depends on whether management can stabilize sales and restore operating leverage in the coming quarters.