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…
Earnings analysis · 10-Q
SWKS earnings analysis
Filed July 28, 2026 · Our reading of the company's report
The latest report
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…
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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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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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.
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.