SWKS earnings analysis
What we found in SWKS's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Skyworks' fiscal Q3 revenue declined 3.1% year over year to $934.8 million, although it increased from $944.0 million in the preceding quarter. Gross margin fell 150 basis points year over year to 40.1%, while operating margin improved sequentially but remained well below the 11.5% prior-year level at 5.2%. Liquidity fell to $813.8 million after debt repayment, dividends and capex, and the Qorvo transaction remains the principal strategic and financing uncertainty.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue recovered sequentially but fell year over year
- Revenue was $934.8 million, down 3.1% from $965.0 million a year earlier, but up sequentially from $944.0 million in fiscal Q2 2026. Management attributed the year-over-year decline primarily to market-share loss at a significant customer, partly offset by automotive and data-center demand.
- Product mix pressured gross margin
- GAAP gross margin was 40.1%, down 150 basis points from 41.6% a year ago, as unfavorable product mix more than offset higher unit volumes. Gross profit declined 6.5% to $375.0 million.
- Sequential operating rebound remains below prior year
- GAAP operating margin improved sequentially to 5.2% from 4.5% in fiscal Q2 2026, but declined 630 basis points from 11.5% a year earlier. R&D increased 4.2% to $207.8 million, SG&A rose 10.5% to $98.7 million, and restructuring charges rose to $19.8 million from $1.5 million.
- Cash conversion weakened and quarterly FCF was negative
- Nine-month operating cash flow was $516.2 million, down $584.6 million from $1.10 billion in the prior-year period. For the quarter, $70.4 million of operating cash flow was below $87.1 million of capex, implying negative free cash flow of $16.7 million.
- Debt repayment reduced standalone debt
- The company retired $500.0 million of 1.80% notes due 2026, leaving $500.0 million of 3.00% senior notes due 2031 and no borrowings under its $750.0 million revolver. It also has a $1.5 billion bridge commitment available for the pending Qorvo transaction.
- Liquidity declined materially during the year
- Cash, cash equivalents and marketable securities were $813.8 million at July 3, 2026, down $574.6 million from October 3, 2025. The decline reflected $500.0 million of debt repayment, $106.9 million of dividends and $87.1 million of capex during the quarter, partly offset by $70.4 million of operating cash flow.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Qorvo closing remains subject to regulatory review
- The pending Qorvo merger remains subject to FTC and other regulatory approvals; the FTC Second Request extends the HSR waiting period until 30 days after both parties substantially comply. If specified regulatory approvals are not received, Skyworks could owe Qorvo a $100.0 million termination fee.
- Acquisition financing and termination-fee exposure
- The proposed transaction could add substantial financing obligations: Skyworks has up to $1.5 billion of bridge-loan commitments, and after closing may assume or exchange Qorvo notes. A separate termination scenario can require a $298.7 million fee.
- Margin compression and negative quarterly free cash flow
- Profitability and cash generation remain pressured: gross margin was 40.1% versus 41.6% a year ago, operating margin was 5.2% versus 11.5%, and quarterly free cash flow was negative $16.7 million.
- No formal risk-factor update; customer-share loss persists
- No new or revised risk factors were disclosed in Item 1A; the filing refers investors back to the fiscal 2025 10-K. Nonetheless, revenue declined 3.1% to $934.8 million, primarily due to lower share at a significant customer.
What they reported.
What the company itself reported, taken out of the document.
- Gross margin
- 40.1%
- Operating margin
- 5.2%
What they said about what is next.
The 10-Q does not provide quantitative revenue or EPS guidance. Management says it is increasingly hopeful the Qorvo transaction will close within calendar 2026, but notes there can be no assurance of that timing.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 5, 2026
- Skyworks Solutions reported solid Q2 fiscal 2026 results, with revenues of $944 million and adjusted EPS of $1.15, both significantly surpassing estimates. The company experienced a notable growth of 30% in non-GAAP EPS…
- 10-Q · February 5, 2026
- Skyworks reported net revenue of $1,035.4 million for the quarter, down 3.1% year-over-year, while gross margin was largely unchanged at 41.3% (vs. 41.4% LY). Operating profitability compressed materially (operating…
- 10-K · November 7, 2025
- Skyworks reported fiscal 2025 revenue of $4,086.9 million (down 2.2% year-over-year) with diluted EPS of $3.08 and stable gross margin of 41.2%. Management is increasing R&D (up 24.3% to $785.5 million) while executing…
- 10-K · November 15, 2024
- Skyworks Solutions experienced significant declines in net revenue and profitability in fiscal 2024, with net revenue down 12.5% to $4.18 billion due to decreased demand for mobile products. Despite this decline,…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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