Skyworks Solutions (SWKS) Q1 2026 earnings summary

Executive summary

• Announced a strategic combination with Qorvo, targeting over $500 million in synergies and expanding TAM into defense and aerospace, with the $22 billion merger expected to close in early 2027 pending regulatory and shareholder approvals.

• Revenue for the quarter reached $1.035 billion, surpassing expectations for the fourth consecutive quarter, though down 3.1% year-over-year due to decreased market share at a significant customer, partially offset by increased Wi-Fi product demand.

• Net income was $79.2 million, down from $162.0 million year-over-year, reflecting lower revenue, higher R&D and SG&A expenses, and increased restructuring charges.

• Focused on operational execution, customer engagement, and disciplined investment in product roadmap, with strong performance in both Mobile and Broad Markets, led by Wi-Fi 7 and data center/cloud infrastructure.

Financial highlights

• Gross profit was $427.2 million (41.3% of revenue); non-GAAP gross margin was 41.4%.

• GAAP operating income was $104 million (10.0% margin); non-GAAP operating income was $252 million (16.9% margin).

• Diluted EPS was $0.53 (GAAP) and $1.54 (non-GAAP); free cash flow was $339 million (32.7% margin).

• Operating cash flow totaled $396 million; cash and equivalents at quarter end were $1.55 billion, with $1 billion in long-term debt.

• Paid $106.4 million in quarterly dividends.

Outlook and guidance

• Q2 revenue expected between $875 million and $925 million; non-GAAP diluted EPS projected at $1.04 at the midpoint.

• Mobile revenue projected to decline ~20% sequentially due to seasonality; Broad Markets to be flat sequentially but up high single digits year-over-year.

• Gross margin guidance: 44.5%-45.5%; operating expenses $230-$240 million.

• Management expects liquidity to remain strong, supported by cash, equivalents, and available credit.