Did Skyworks beat earnings in Q1 FY26?

Yes, Skyworks beat both revenue and EPS estimates. Revenue of $1.035B beat consensus of $999M by 3.7%, while non-GAAP EPS of $1.54 beat estimates of $1.40 by 10%. This marks the fourth consecutive quarter of outperformance.

What did Skyworks say about guidance?

Skyworks guided Q2 FY26 revenue of $875M-$925M with non-GAAP EPS of $1.04 at midpoint. Mobile is expected to decline ~20% sequentially (seasonal), while Broad Markets should be flat QoQ at 44% of sales.

How did Skyworks stock react to earnings?

SWKS stock jumped 3.7% in after-hours trading to $58.00 following the earnings beat, recovering from a -1.6% decline during regular trading hours.

What is driving Skyworks growth?

Wi-Fi 7 design wins, data center/cloud infrastructure programs, and automotive connectivity expansion are the key growth drivers. Broad Markets grew high-single-digits YoY while Mobile benefited from strong sell-through.

When will the Skyworks Qorvo merger close?

Management expects the Qorvo merger to close in early calendar 2027, subject to regulatory approvals. The combined company targets 50-55% gross margins and $500M+ in synergies over time, with net leverage of approximately 1x at close.

SKYWORKS SOLUTIONS (SWKS)·Q1 2026 Earnings Summary

Skyworks Beats on EPS and Revenue, Stock Jumps 4% After Hours

February 3, 2026 · by Fintool AI Agent

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Skyworks Solutions (NASDAQ: SWKS) delivered its fourth consecutive quarter of outperformance, beating both revenue and EPS estimates for Q1 FY26. The semiconductor company reported revenue of $1.035 billion (up 3.7% vs. consensus) and non-GAAP EPS of $1.54 (up 10% vs. estimates), driven by stronger-than-expected mobile demand and accelerating growth in Broad Markets.

The stock responded positively, jumping 3.7% in after-hours trading to $58.00 after closing the regular session down 1.6% at $55.93.

Did Skyworks Beat Earnings?

Skyworks beat on all key metrics:

Metric	Actual	Consensus	Surprise
Revenue	$1.035B	$999M	+3.7%
Non-GAAP EPS	$1.54	$1.40	+10.0%
GAAP EPS	$0.53	N/A	N/A
Non-GAAP Gross Margin	46.6%	47.1%	-50bps
Non-GAAP Operating Margin	24.3%	N/A	N/A
Free Cash Flow	$339M	N/A	N/A

From the earnings call, CEO Phil Brace emphasized the strong demand environment: "We stayed focused on what we can control, operational execution, customer engagement, and disciplined investment in our product roadmap."

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What Changed From Last Quarter?

Key shifts from Q4 FY25 to Q1 FY26:

Metric	Q4 FY25	Q1 FY26	Change
Revenue	$1.10B	$1.035B	-5.9% QoQ
Non-GAAP EPS	$1.76*	$1.54	-12.5% QoQ
Non-GAAP Gross Margin	46.5%*	46.6%	+10bps
Non-GAAP Op Margin	26.7%*	24.3%	-240bps

*Values retrieved from S&P Global

Year-over-year comparison (vs. Q1 FY25):

Metric	Q1 FY25	Q1 FY26	YoY Change
Revenue	$1.069B	$1.035B	-3.1%
Non-GAAP EPS	$1.60	$1.54	-3.8%
Non-GAAP Op Income	$284.8M	$252.1M	-11.5%

The sequential decline reflects typical post-holiday seasonality in the mobile segment. However, Broad Markets momentum accelerated with Wi-Fi 7 and data center programs scaling.

What Did Management Guide?

CFO Philip Carter provided Q2 FY26 guidance:

Metric	Q2 FY26 Guidance
Revenue	$875M - $925M (midpoint $900M)
Non-GAAP EPS	$1.04 at midpoint
Gross Margin	44.5% - 45.5%
Operating Expenses	$230M - $240M
Other Income	~$4M
Tax Rate	10%
Diluted Shares	151M

Segment outlook:

Mobile: Expected to decline ~20% sequentially, "consistent with seasonality"
Broad Markets: Approximately flat QoQ, representing 44% of sales (up from ~40% mix), and up high-single-digits YoY
Broad Markets YoY Streak: 8th consecutive quarter of sequential growth, now delivering double-digit year-over-year expansion

The guidance implies Q2 revenue will be down ~13% QoQ from Q1's $1.035B, with Mobile absorbing most of the seasonal decline while Broad Markets holds steady.

Guidance Bridge

How Did the Stock React?

Time Period	Price	Change
Regular Close (Feb 3)	$55.93	-1.6%
After-Hours	$58.00	+3.7% from close
52-Week High	$90.90	-36.1% from high
52-Week Low	$47.93	+21.0% from low

The positive after-hours move suggests the market appreciated the beat-and-raise narrative, particularly the strength in Broad Markets which is diversifying Skyworks away from mobile concentration risk.

Beat/miss streak: This marks Skyworks' 8th consecutive quarter of beating EPS estimates, with an average surprise of 8.5% over the trailing four quarters.

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Key Business Highlights

CEO Phil Brace highlighted three structural growth drivers in Broad Markets:

1. Wi-Fi 7 / Wi-Fi 8 Momentum

"Wi-Fi 7 adoption continues to be very strong" — driven by bandwidth and security needs as AI moves to the edge
Already engaged with customers on early Wi-Fi 8 programs
Strong design win activity, healthy backlog
Customers include Comcast, Verizon, TP-Link

2. Automotive Connectivity

Focus areas: vehicle-to-vehicle connectivity, infotainment, power isolation products
"Independent of what kind of combustion engine you use" — growth secular across ICE and EV
Broad-based wins globally across multiple OEMs and tiers
Good visibility into fiscal 2026 on long-cycle platforms

3. Data Center Power & Timing

Timing products: Jitter attenuating clocks critical for 800G and 1.6T architectures
Power isolation: Protects low-voltage chips from 400-800V DC power rails in AI servers
"We're getting lots of demand in that space... growing definitely faster than the corporate average"
Cloud and networking customers require tighter timing accuracy and better synchronization

Emerging: Satellite Communications

Not yet material revenue, but management "excited about what we're doing"
"The world is connected wirelessly. We're in a very good spot for that."

5G Android Position

Strengthened presence in premium smartphones
Content in Samsung Galaxy S26

Capital Allocation

Metric	Q1 FY26	Q1 FY25
Operating Cash Flow	$395.5M	$377.2M
Capital Expenditures	$56.5M	$39.0M
Free Cash Flow	$339.0M	$338.2M
FCF Margin	32.7%	31.7%
Dividends Paid	$106.4M	$112.5M

Dividend: Board declared $0.71 per share, payable March 17, 2026 to shareholders of record February 24, 2026.

Balance Sheet Strength:

Cash & Marketable Securities: $1.57B (up from $1.39B QoQ)
Total Debt: $996M
Net Cash Position: ~$570M

Qorvo Merger Update

CEO Phil Brace provided substantial color on the proposed Qorvo combination:

Strategic Rationale:

"We believe this transaction is highly strategic and transformative, bringing greater scale, deeper R&D, and a broader technology portfolio."
Complementary portfolios: "Qorvo does a lot of the antenna side of the house, which we don't really have at all"
Combined company will have the broadest RF portfolio in the industry

Financial Targets:

Metric	Combined Company Target
Gross Margins	50%-55% through cycles
Synergies	$500M+ over time
Net Leverage at Close	~1.0x

Timeline & Status:

Initial regulatory filings completed
Shareholder vote scheduled
Integration planning underway
Expected close: Early calendar 2027 (subject to regulatory approvals)

Brace emphasized commitment: "We are committed to closing the transaction and believe in the long-term value creation opportunity that the deal unlocks for our customers and shareholders."

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Q&A Highlights

On Mobile Content at Largest Customer:

"We successfully defended key mobile sockets and gained content where architecture changes created opportunities"
Blended mobile content expected roughly flat year-over-year
Mix dynamics could moderate some gains depending on which models sell
Management noted they compete for business every year: "I'm not satisfied that we did, but I'm happy we defended the sockets"

On Supply/Demand Dynamics:

"We are hand to mouth. We are scrambling for every part we can build at this point"
Demand exceeds supply in key product areas
No pricing pressure despite largest customer's comments on memory costs: "There's simply no way for any company like Skyworks to be able to gamble on that kind of volatility"

On Unit Demand Outlook:

Seeing very strong unit demand, above typical seasonality
"We do expect to see stronger unit demand than perhaps you've seen publicly talked about before"
Smartphone replacement cycles beginning to shorten as AI-capable devices drive upgrades

On Android Revenue:

Double-digit growth expected Q1 to Q2 (Galaxy S26 contribution)
Expected to moderate through the year
Selective approach: "We're very selective on the devices that we choose to play in"

On Gross Margin Outlook:

Q2 GM down 160bps due to: (1) seasonal mobile volume decline, (2) higher Android mix, (3) expedite fees from outperformance
No unusual pricing or structural headwinds

On Stock Buybacks:

$1.2B remaining on buyback authorization
Management balancing capital deployment with upcoming debt market access for Qorvo deal
"We do want to maintain some level of financial prudence"

Key Risks Flagged

From the forward-looking statements section:

Trade policy uncertainty: Tariffs, export controls, and ability to obtain foreign-sourced raw materials (including from China)
Customer concentration: Reliance on a small number of key customers (Apple exposure)
Merger execution risk: Integration challenges with Qorvo
Macro headwinds: Ongoing inventory digestion in certain end markets
5G deployment delays: Could impact consumer adoption of 5G-enabled devices

The Bottom Line

Skyworks delivered a clean beat across revenue, EPS, and gross margin — its fourth consecutive quarter of outperformance. The real story is the mix shift: Broad Markets is now approaching 44% of revenue and growing high-single-digits YoY, reducing dependence on cyclical mobile. Wi-Fi 7 (with Wi-Fi 8 already in design), data center timing/power isolation, and automotive connectivity are scaling nicely.

Most notably, management sounds bullish on demand: "We are hand to mouth. We are scrambling for every part we can build." Unit demand is running ahead of expectations despite macro noise, and channel inventory remains lean.

Q2 guidance embeds typical seasonal weakness in Mobile (-20% QoQ) but shows confidence in Broad Markets holding steady. The after-hours pop suggests investors are buying the diversification thesis and consistent execution.

Key debates heading into Q2:

Can Broad Markets growth offset mobile cyclicality longer-term?
Qorvo deal on track for early 2027 close — $500M+ synergies achievable?
Mobile content defended at largest customer, but will mix dynamics dilute gains?
How will tariff policy impact China-sourced materials?