Skyworks Solutions (SWKS) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue was $1,068 million, up 4% sequentially but down 11.1% year-over-year, with non-GAAP EPS of $1.60 and GAAP EPS of $1.00; CEO succession announced with Philip Brace to become CEO and Christine King as Chairman.

• Operating cash flow reached $377 million, free cash flow was $338 million, and cash and investments totaled $1.75 billion.

• Mobile revenue grew 6% sequentially, while broad markets returned to year-over-year growth at 2%.

• Board approved a new $2 billion stock repurchase program and declared a $0.70 per share dividend.

• Net income was $258 million non-GAAP and $162 million GAAP.

Financial highlights

• Non-GAAP gross profit was $497 million (46.5% margin); GAAP gross profit was $441.9 million (41.4% margin).

• Non-GAAP operating income was $285 million (27% margin); GAAP operating income was $181 million (17% margin).

• Operating expenses increased to $260.8 million, mainly due to higher R&D and SG&A costs.

• Distributed $112 million in dividends during the quarter.

• Capital expenditures were $39 million.

Outlook and guidance

• Q2 FY2025 revenue expected between $935–$965 million, with non-GAAP diluted EPS forecasted at $1.20 at the midpoint.

• Mobile business anticipated to decline mid to high teens sequentially due to seasonality.

• Broad markets expected to see additional sequential and year-over-year growth.

• Gross margin projected at 45.5%–46%; operating expenses expected at $220–$228 million.

• Revenue expected to be negatively impacted in Q4 FY2025 by a decrease in market share at a significant customer.