8-K: Skyworks Q1 FY26 Beats Estimates, Declares Dividend

Skyworks Solutions reported strong first fiscal quarter 2026 results, exceeding expectations with $1.035 billion in revenue and declaring a $0.71 per share cash dividend.

Summary

• Revenue for the first fiscal quarter of 2026 was $1.035 billion.
• GAAP diluted earnings per share (EPS) was $0.53, while non-GAAP diluted EPS was $1.54.
• Operating cash flow reached $396 million, and free cash flow was $339 million.
• Results exceeded expectations for the fourth consecutive quarter across revenue, gross margin, and non-GAAP earnings.
• The Mobile segment surpassed its outlook due to healthy sell-through and solid operational execution.
• The Broad Markets segment continued to scale with accelerating growth, primarily driven by Wi-Fi 7 and data center and cloud infrastructure programs.
• The board of directors declared a cash dividend of $0.71 per share, payable on March 17, 2026, to stockholders of record as of February 24, 2026.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive report, driven by strong Q1 performance exceeding expectations and robust growth in Broad Markets, despite a seasonally anticipated sequential decline in Mobile for Q2.

Positives

• Revenue of $1.035 billion for Q1 FY26 exceeded expectations.
• Non-GAAP diluted EPS of $1.54 outperformed outlook.
• Gross margin also outperformed expectations.
• Operating cash flow of $396 million and free cash flow of $339 million demonstrate strong cash generation.
• The Mobile segment exceeded its outlook with healthy sell-through and solid operational execution.
• The Broad Markets segment showed accelerating growth, particularly in Wi-Fi 7 and data center/cloud infrastructure programs.
• Secured advanced Wi-Fi 7 design wins supporting enterprise access points, networking, and home connectivity platforms with customers including Comcast, Verizon, and TP-Link.
• Expanded automotive connectivity programs, broadening in-vehicle infotainment and 5G module deployments with Volkswagen, BYD, and other leading OEMs.
• Strengthened 5G position in premium Android smartphones, including Samsung's Galaxy S26.
• Announced the industry's first highly integrated Wi-SUN/LoRaWAN RF front-end modules (FEM) for smart home and smart city applications.
• Unveiled next-generation isolation solutions for high-voltage AI server power supplies and advanced EV architectures.

Negatives

• GAAP diluted EPS of $0.53 is significantly lower than non-GAAP EPS of $1.54, indicating substantial non-GAAP adjustments.
• The Q2 FY26 revenue outlook of $875 million to $925 million represents a sequential decline from Q1 FY26 revenue of $1.035 billion.
• The Q2 FY26 non-GAAP diluted EPS outlook of $1.04 at the mid-point is a sequential decline from Q1 FY26 non-GAAP EPS of $1.54.
• The Mobile segment is anticipated to decline approximately 20% sequentially in Q2 FY26, consistent with historical seasonality.

Risks

• Risks of doing business internationally, including from trade war or trade protection measures, increased import/export restrictions and controls.
• Susceptibility of the semiconductor industry and its markets to economic cycles or changes in economic conditions, including inflation and recession.
• Reliance on a small number of key customers for a large percentage of sales.
• Decreased gross margins and loss of market share as a result of increased competition.
• Ability to obtain design wins from customers and market acceptance of products, including new, emerging technologies such as AI.
• The mix and volume of phone models sold by the largest customer.
• Potential impacts on business, reputation, relationships, results of operations, cash flows, and financial condition as a result of the proposed merger transactions with Qorvo, Inc.
• The possibility that expected benefits related to such transactions with Qorvo may not materialize as expected, or that transactions may not be timely completed, if completed at all.
• Regulatory approvals required for the Qorvo transaction not being timely obtained, if obtained at all, or being obtained subject to conditions.
• Business experiencing disruptions as a result of the Qorvo acquisition or due to transaction-related uncertainty or other factors making it more difficult to maintain relationships with employees, customers, other business partners, or governmental entities.
• Inability to successfully implement integration strategies or to achieve expected synergies and operating efficiencies within expected time-frames or at all with Qorvo.
• Costs, fees, expenses, and other charges related to the transactions with Qorvo, including with respect to any related litigation.
• Reduced flexibility in operating business as a result of indebtedness incurred in connection with the Silicon Laboratories Inc. transaction and the substantial amount of additional indebtedness expected to be incurred in connection with the Qorvo transaction.
• Delays in the deployment of commercial 5G networks or in consumer adoption of 5G-enabled devices.
• Volatility of stock price.
• Changes in laws, regulations, and/or policies that could adversely affect operations and financial results.
• Fluctuations in manufacturing yields due to complex and specialized manufacturing processes.
• Ability to develop, manufacture, and market innovative products, avoid product obsolescence, reduce costs in a timely manner, transition products to smaller geometry process technologies, and achieve higher levels of design integration.
• Quality of products and any defect remediation costs.
• Availability and pricing of third-party semiconductor foundry, assembly, and test capacity, raw materials (including rare earth and similar minerals), supplier components, equipment, and shipping and logistics services.
• Risks that the company may not be able to optimize its manufacturing footprint and achieve any financial and operational benefits from such efforts, including reducing fixed costs or improving utilization rates, and disruptions to manufacturing processes.
• Ability to successfully manage senior management transitions and retain, recruit, and hire key executives, technical personnel, and other employees.
• The timing, rescheduling, or cancellation of significant customer orders and the ability to manage inventory.
• Other economic, social, military, and geopolitical conditions in the countries of operation, including the conflicts in Ukraine and the Middle East, possible disruptions in transportation networks, and fluctuations in foreign currency exchange rates.
• The effects of global health crises on business conditions in the industry.
• Ability to prevent theft of intellectual property, disclosure of confidential information, or breaches of information technology systems.
• Uncertainties of litigation, including potential disputes over intellectual property infringement and rights.
• Ability to continue to grow and maintain an intellectual property portfolio and obtain needed licenses from third parties.
• Ability to make certain investments and acquisitions, integrate acquired companies, and/or enter into strategic alliances.

Future Outlook

For the second fiscal quarter of 2026 (March quarter), Skyworks anticipates revenue between $875 million and $925 million. Non-GAAP diluted earnings per share are projected to be $1.04 at the mid-point of the revenue range. The Mobile segment is expected to decline approximately 20% sequentially, consistent with historical seasonality. The Broad Markets segment is expected to be approximately flat sequentially, representing 44% of sales, and up high-single-digits year-over-year.

Management Comments

• "We delivered results above our expectations for the fourth consecutive quarter, with outperformance across revenue, gross margin, and non-GAAP earnings." Phil Brace, chief executive officer and president.
• "Mobile exceeded our outlook on the strength of continued healthy sell-through and solid operational execution, while Broad Markets continued to scale with accelerating growth led by Wi-Fi 7 and data center and cloud infrastructure programs." Phil Brace, chief executive officer and president.
• "For the March quarter, we anticipate revenue of $875 million to $925 million, with non-GAAP diluted earnings per share of $1.04 at the mid-point of the revenue range." Philip Carter, chief financial officer and senior vice president.
• "We anticipate Mobile to decline approximately 20% sequentially, consistent with historical seasonality. We expect Broad Markets to be approximately flat sequentially, representing 44% of sales, and up high-single-digits year-over-year." Philip Carter, chief financial officer and senior vice president.

Industry Context

StockSavvy.ai notes that Skyworks' strong performance in Wi-Fi 7 and data center/cloud infrastructure aligns with broader industry trends of increasing demand for high-speed connectivity and robust computing infrastructure. The expansion in automotive connectivity and 5G premium Android smartphones also reflects the ongoing digitalization and electrification trends across various sectors. The introduction of Wi-SUN/LoRaWAN FEMs and AI server power supply solutions positions Skyworks to capitalize on emerging IoT, smart city, AI, and EV markets.

Comparison to Industry Standards

• The filing does not provide specific comparable companies, projects, or results to global benchmarks for direct comparison.
• Skyworks' continued strength in Wi-Fi 7 and 5G design wins suggests it is maintaining a competitive edge in key semiconductor segments, particularly against broad market competitors in connectivity solutions.
• The anticipated sequential decline in the Mobile segment for Q2 FY26 is noted as 'consistent with historical seasonality,' implying it is within expected industry patterns for smartphone component suppliers.

Stakeholder Impact

• Shareholders: Positive impact due to strong Q1 financial performance exceeding expectations, continued dividend payment of $0.71 per share, and strategic design wins. Potential for short-term concern due to Q2 sequential decline in Mobile, but this is framed as seasonal.
• Employees: Continued operational execution and growth in Broad Markets suggest stable to growing business, potentially positive for job security and opportunities.
• Customers: Ongoing innovation with Wi-Fi 7, 5G, AI, and EV solutions provides advanced components for their products (e.g., Comcast, Verizon, TP-Link, Volkswagen, BYD, Samsung).
• Suppliers: Ongoing production and growth imply continued demand for raw materials and services.

Next Steps

• A conference call with analysts was hosted on February 3, 2026, at 4:30 p.m. EST to discuss Q1 FY26 results and the Q2 FY26 business outlook.
• A cash dividend of $0.71 per share is payable on March 17, 2026, to stockholders of record as of February 24, 2026.

Key Dates

Recommendation

Skyworks delivered strong Q1 FY26 results, exceeding expectations in revenue and non-GAAP EPS, driven by broad market growth and mobile outperformance. The declaration of a consistent dividend is also positive. However, the Q2 FY26 outlook anticipates a sequential decline in revenue and EPS, primarily due to expected seasonality in the Mobile segment. While the Broad Markets segment shows continued strength, the overall near-term guidance suggests a period of moderation. Given the mixed outlook with strong past performance but anticipated seasonal headwinds, a "hold" recommendation is appropriate for investors to observe the execution against Q2 guidance and further developments in the Broad Markets segment's growth trajectory. The ongoing Qorvo merger risks also warrant caution.

Keywords

Semiconductors, Analog, Mixed-signal, RF front-end modules, Wi-Fi 7, 5G, Automotive connectivity, Data center, Cloud infrastructure, Smart home, Smart city, AI server power supplies, EV architectures, Earnings, Dividend, Qorvo merger, SWKS