8-K: Skyworks Solutions Reports Strong Q2 FY2026 Results

Skyworks Solutions announced robust second fiscal quarter 2026 results, exceeding revenue and EPS guidance, and secured a significant multi-generational Android OEM design win.

Summary

• Skyworks Solutions reported strong financial results for the second fiscal quarter ended April 3, 2026.
• Revenue for the quarter was $944 million.
• GAAP diluted earnings per share (EPS) was $0.24.
• Non-GAAP diluted EPS was $1.15, exceeding the high-end of guidance.
• The company secured a multi-generational design win with a leading Android OEM, projected to generate over $1 billion in revenue through 2030.
• Broad Markets segment showed double-digit year-over-year growth, driven by Wi-Fi, data center, and automotive sectors.
• The board of directors declared a cash dividend of $0.71 per share, payable on June 16, 2026.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive report due to exceeding guidance and securing a major design win, though GAAP results and free cash flow warrant attention.

Positives

• Exceeded revenue and non-GAAP EPS guidance for the second fiscal quarter.
• Secured a significant multi-generational Android OEM design win with expected revenue exceeding $1 billion through 2030.
• Broad Markets segment delivered double-digit year-over-year growth.
• Momentum in Wi-Fi 7 across enterprise and home connectivity platforms.
• New engagements in in-vehicle infotainment systems with BYD and a German Tier-1 supplier.
• Debut of FR3 frequency range RF front-end power amplifier for 6G innovation.
• Declaration of a $0.71 per share cash dividend.

Negatives

• GAAP diluted EPS of $0.24, significantly lower than non-GAAP diluted EPS of $1.15, indicating substantial non-GAAP adjustments.
• Net revenue decreased slightly year-over-year from $953.2 million in Q2 FY2025 to $944 million in Q2 FY2026.
• GAAP operating income decreased significantly year-over-year from $97.3 million to $42.1 million.
• Non-GAAP free cash flow was negative $(32.0) million for the three months ended April 3, 2026, compared to positive $371.0 million in the prior year period.

Risks

• Risks associated with international business, trade wars, import/export restrictions, and obtaining foreign-sourced raw materials.
• Susceptibility of the semiconductor industry to economic cycles, inflation, and recession.
• Reliance on a small number of key customers for a large percentage of sales.
• Increased competition leading to decreased gross margins and potential loss of market share.
• Market acceptance of new technologies, including AI.
• Potential impacts from the proposed merger with Qorvo, Inc., including integration challenges and transaction-related uncertainty.
• Incurrence of substantial indebtedness in connection with the Qorvo transaction.
• Delays in 5G network deployment or consumer adoption of 5G devices.

Future Outlook

For the third fiscal quarter of 2026, Skyworks anticipates revenue between $900 million and $950 million. Non-GAAP diluted EPS is expected to be $1.03 at the mid-point of the revenue range. Mobile revenue is projected to decline low-single digits sequentially, while Broad Markets is expected to grow modestly sequentially, representing approximately 43% of sales and up high-single digits year-over-year.

Management Comments

• "We delivered another strong quarter, reflecting consistent execution and improving momentum across our portfolio."
• "Mobile outperformed expectations on healthy demand, while Broad Markets continues to accelerate, delivering double-digit year-over-year growth driven by Wi-Fi, data center, and automotive."
• "We anticipate revenue of $900 million to $950 million, with non-GAAP diluted earnings per share of $1.03 at the mid-point of the revenue range."
• "We expect Mobile to follow typical seasonal patterns, declining low-single digits sequentially, while Broad Markets is expected to grow modestly sequentially, representing approximately 43% of sales, and up high-single digits year-over-year."

Industry Context

StockSavvy.ai notes that Skyworks' performance in the Broad Markets segment, particularly driven by Wi-Fi, data center, and automotive, aligns with broader industry trends of increasing connectivity and demand for advanced semiconductor solutions in these areas. The secured Android OEM design win, with projected revenue over $1 billion, highlights the company's strategic positioning in the high-growth mobile ecosystem.

Stakeholder Impact

• Shareholders: Benefit from a declared cash dividend of $0.71 per share.
• Investors: Provided with financial results, future outlook, and non-GAAP performance metrics.
• Customers: Continued supply of analog and mixed-signal semiconductors for various applications, including a significant new design win with an Android OEM.

Next Steps

• Continue execution on Mobile and Broad Markets growth strategies.
• Leverage Wi-Fi 7 momentum with OEM partners.
• Expand in-vehicle infotainment engagements.
• Advance 6G innovation with new product introductions.
• Manage sequential revenue and EPS expectations for Q3 FY2026.

Key Dates

Recommendation

The company exceeded its guidance and secured a significant long-term design win, which are positive indicators. However, the decrease in GAAP net revenue and operating income year-over-year, coupled with a substantial difference between GAAP and non-GAAP earnings, suggests a cautious approach. The ongoing risks related to competition, economic cycles, and the potential Qorvo merger warrant a 'hold' recommendation until further clarity emerges.

Keywords

Skyworks Solutions, SWKS, Semiconductors, Analog, Mixed-Signal, Mobile, Broad Markets, Earnings