Skyworks Solutions Q1 Results Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy SWKS?
Source: seekingalpha
- Strong Earnings Beat: Skyworks Solutions reported an adjusted earnings per share of $1.54 for Q1, surpassing Wall Street's expectation of $1.40, despite a 3.1% year-over-year revenue decline to $1.04 billion, indicating robust profitability amid challenges.
- Mobile Business Resilience: CEO Phil Brace noted that the mobile segment exceeded expectations due to healthy sell-through and solid operational execution, highlighting the company's sustained competitiveness in the smartphone market, particularly during new product launches.
- Optimistic Future Guidance: Skyworks anticipates an adjusted earnings per share of $1.04 for Q2, with revenue projected between $875 million and $925 million, both exceeding analyst expectations of $0.96 and $867.79 million, reflecting confidence in future growth.
- Positive Market Reaction: Following the earnings report, Skyworks shares rose over 3% in after-hours trading, demonstrating investor recognition of the company's continued outperformance, which may further drive stock price appreciation.
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Analyst Views on SWKS
Wall Street analysts forecast SWKS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SWKS is 82.21 USD with a low forecast of 65.00 USD and a high forecast of 140.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
3 Buy
13 Hold
1 Sell
Hold
Current: 60.920
Low
65.00
Averages
82.21
High
140.00
Current: 60.920
Low
65.00
Averages
82.21
High
140.00
About SWKS
Skyworks Solutions, Inc. provides wireless networking services. The Company’s analog and mixed-signal semiconductors are connecting people, places, and things, spanning a number of new applications within the aerospace, automotive, broadband, cellular infrastructure, connected home, defense, entertainment and gaming, industrial, medical, smartphone, tablet, and wearable markets. It operates engineering, manufacturing, sales, and service facilities throughout Asia, Europe, and North America. The Company offers a range of products, such as Amplifiers, Attenuators, Diodes, Audio And Radio, Clocks And Timing, Front-End Modules, Isolation, Modems And DAAs, Optocouplers, Power Management, Power Over Ethernet, RF Passives, Television (TV) And Video, Switches, and Voice. Its engineering, marketing, operations, sales, and support facilities are located throughout Asia, Europe, and North America.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Skyworks and Qorvo Merger Update: FTC Requests Additional Information
- Regulatory Review Extension: Skyworks (SWKS) and Qorvo (QRVO) received a second request for information from the U.S. Federal Trade Commission on Thursday, extending the waiting period under the HSR Act until 30 days after both companies substantially comply, potentially delaying the merger process.
- Positive Cooperation Stance: Both companies have stated they will work cooperatively with the FTC, which not only aids in expediting the review process but may also enhance the regulatory body's confidence in the merger.
- Transaction Scale and Value: The merger between Skyworks and Qorvo is valued at approximately $22 billion, with expectations to close by early 2027 pending regulatory approval, significantly strengthening their competitive position in the RF chip market.
- Synergy Target: Skyworks has set a $500 million synergy target from the merger and projects Q2 revenue could reach $925 million, indicating strong potential for business integration and robust market demand post-merger.
See More
Skyworks Price Target Cut to $75 by Craig-Hallum, Maintains Buy Rating
- Price Target Adjustment: Craig-Hallum has lowered Skyworks' price target from $85 to $75 while maintaining a Buy rating, indicating confidence in the company's future performance despite the reduction.
- Execution Improvement: Skyworks is experiencing stronger smartphone unit volumes and a shift in content mix, which is driving higher results and demonstrating the company's increasing competitiveness in the market.
- Sustained Market Demand: The company exceeded quarterly expectations and raised its guidance, with the Broad Markets segment continuing to see demand across all end markets, highlighting the broad applicability of its products.
- Content Dynamics Impact: Management expects blended mobile content for 2026 to remain flat year-over-year, and while they have defended key mobile sockets and regained some architectural changes, overall content dynamics may still be affected.
See More
Skyworks Solutions Beats Q1 Estimates, Shares Rise
- Strong Earnings Beat: Skyworks Solutions reported fiscal Q1 results that exceeded market expectations, leading to a nearly 3% rise in premarket shares, reflecting robust iPhone demand and continued growth in the Broad Markets segment.
- Strong Apple Demand: Analysts noted that Skyworks is experiencing positive iPhone shipment trends, with a projected 6% quarter-over-quarter revenue decline being better than feared, despite a 20% decline in mobile business, indicating stable content growth from Apple.
- Optimistic Market Outlook: While concerns about higher memory prices potentially impacting smartphone demand exist, Skyworks has not yet seen any negative effects, and the Android business is expected to grow double digits quarter-over-quarter in the upcoming quarter, indicating signs of market recovery.
- Positive Impact of Qorvo Acquisition: The acquisition of Qorvo is expected to provide scale and diversification benefits, with analysts viewing this favorably, suggesting it will further enhance the company's growth and competitive position in the market.
See More
Skyworks Solutions Exceeds Q1 2026 Earnings Expectations
- Strong Financial Performance: Skyworks reported $1.04 billion in revenue and $1.54 EPS for Q1 2026, exceeding expectations and demonstrating robust performance in both mobile and broad markets, particularly in edge computing and automotive sectors.
- Merger Strategy Progress: CEO Brace emphasized that the combination with Qorvo is expected to yield over $500 million in synergies, enhancing competitive positioning and expanding market opportunities in defense and aerospace, with integration on track for completion in early 2027.
- Cautious Future Outlook: CFO Carter provided Q2 2026 revenue guidance of $875 million to $925 million, anticipating a 20% sequential decline in mobile markets while broad markets remain flat, reflecting a focus on cost control and key R&D investments.
- Market Dynamics Analysis: While management maintains an optimistic view on long-term growth opportunities, they express caution regarding content and pricing pressures from major customers, highlighting supply chain tightness and uncertainty, which reflects a cautious stance on future demand.
See More
Skyworks SWKS Q1 2026 Earnings Call Transcript
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Skyworks Solutions Q1 Earnings Beat Expectations
- Strong Earnings Performance: Skyworks Solutions reported a Q1 non-GAAP EPS of $1.54, beating expectations by $0.14, indicating robust profitability that is likely to positively impact stock prices.
- Slight Revenue Decline: The revenue of $1.04 billion, down 2.8% year-over-year, still exceeded market expectations by $40 million, demonstrating the company's resilience in a competitive market.
- Positive Stock Reaction: Following the earnings report, Skyworks Solutions shares rose by 2%, reflecting increased investor confidence in the company's financial health, which may attract more investor interest.
- Market Concentration Risk: While the company faces significant reliance on Apple, analysts expect this situation to improve, potentially providing new growth opportunities in the future.
See More
Skyworks and Qorvo Merger Update: FTC Requests Additional Information
- Regulatory Review Extension: Skyworks (SWKS) and Qorvo (QRVO) received a second request for information from the U.S. Federal Trade Commission on Thursday, extending the waiting period under the HSR Act until 30 days after both companies substantially comply, potentially delaying the merger process.
- Positive Cooperation Stance: Both companies have stated they will work cooperatively with the FTC, which not only aids in expediting the review process but may also enhance the regulatory body's confidence in the merger.
- Transaction Scale and Value: The merger between Skyworks and Qorvo is valued at approximately $22 billion, with expectations to close by early 2027 pending regulatory approval, significantly strengthening their competitive position in the RF chip market.
- Synergy Target: Skyworks has set a $500 million synergy target from the merger and projects Q2 revenue could reach $925 million, indicating strong potential for business integration and robust market demand post-merger.
See More
Skyworks Price Target Cut to $75 by Craig-Hallum, Maintains Buy Rating
- Price Target Adjustment: Craig-Hallum has lowered Skyworks' price target from $85 to $75 while maintaining a Buy rating, indicating confidence in the company's future performance despite the reduction.
- Execution Improvement: Skyworks is experiencing stronger smartphone unit volumes and a shift in content mix, which is driving higher results and demonstrating the company's increasing competitiveness in the market.
- Sustained Market Demand: The company exceeded quarterly expectations and raised its guidance, with the Broad Markets segment continuing to see demand across all end markets, highlighting the broad applicability of its products.
- Content Dynamics Impact: Management expects blended mobile content for 2026 to remain flat year-over-year, and while they have defended key mobile sockets and regained some architectural changes, overall content dynamics may still be affected.
See More
Skyworks Solutions Beats Q1 Estimates, Shares Rise
- Strong Earnings Beat: Skyworks Solutions reported fiscal Q1 results that exceeded market expectations, leading to a nearly 3% rise in premarket shares, reflecting robust iPhone demand and continued growth in the Broad Markets segment.
- Strong Apple Demand: Analysts noted that Skyworks is experiencing positive iPhone shipment trends, with a projected 6% quarter-over-quarter revenue decline being better than feared, despite a 20% decline in mobile business, indicating stable content growth from Apple.
- Optimistic Market Outlook: While concerns about higher memory prices potentially impacting smartphone demand exist, Skyworks has not yet seen any negative effects, and the Android business is expected to grow double digits quarter-over-quarter in the upcoming quarter, indicating signs of market recovery.
- Positive Impact of Qorvo Acquisition: The acquisition of Qorvo is expected to provide scale and diversification benefits, with analysts viewing this favorably, suggesting it will further enhance the company's growth and competitive position in the market.
See More
Skyworks Solutions Exceeds Q1 2026 Earnings Expectations
- Strong Financial Performance: Skyworks reported $1.04 billion in revenue and $1.54 EPS for Q1 2026, exceeding expectations and demonstrating robust performance in both mobile and broad markets, particularly in edge computing and automotive sectors.
- Merger Strategy Progress: CEO Brace emphasized that the combination with Qorvo is expected to yield over $500 million in synergies, enhancing competitive positioning and expanding market opportunities in defense and aerospace, with integration on track for completion in early 2027.
- Cautious Future Outlook: CFO Carter provided Q2 2026 revenue guidance of $875 million to $925 million, anticipating a 20% sequential decline in mobile markets while broad markets remain flat, reflecting a focus on cost control and key R&D investments.
- Market Dynamics Analysis: While management maintains an optimistic view on long-term growth opportunities, they express caution regarding content and pricing pressures from major customers, highlighting supply chain tightness and uncertainty, which reflects a cautious stance on future demand.
See More
Skyworks SWKS Q1 2026 Earnings Call Transcript
See More
Skyworks Solutions Q1 Earnings Beat Expectations
- Strong Earnings Performance: Skyworks Solutions reported a Q1 non-GAAP EPS of $1.54, beating expectations by $0.14, indicating robust profitability that is likely to positively impact stock prices.
- Slight Revenue Decline: The revenue of $1.04 billion, down 2.8% year-over-year, still exceeded market expectations by $40 million, demonstrating the company's resilience in a competitive market.
- Positive Stock Reaction: Following the earnings report, Skyworks Solutions shares rose by 2%, reflecting increased investor confidence in the company's financial health, which may attract more investor interest.
- Market Concentration Risk: While the company faces significant reliance on Apple, analysts expect this situation to improve, potentially providing new growth opportunities in the future.
See More
