Skyworks to Report Q3 Earnings: What's in Store for the Stock?

Skyworks Solutions SWKS is slated to release third-quarter fiscal 2025 results on Aug. 5, 2025.

For the third quarter of fiscal 2025, the company expects a non-GAAP diluted share of $1.24 per share.

The Zacks Consensus Estimate for earnings has remained steady at $1.24 per share in the past 30 days. The projection indicates a 2.48% increase from that reported in the year-ago quarter. 

For the third quarter of fiscal 2025, Skyworks expects revenues between $920 million and $960 million.

Skyworks Solutions, Inc. Price and EPS Surprise

Skyworks Solutions, Inc. price-eps-surprise | Skyworks Solutions, Inc. Quote

The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $939.54 million, indicating a 3.76% year-over-year increase.

Skyworks’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 1.80%. 

Let’s see how things have shaped up prior to the announcement.

Factors Likely to Have Influenced Q3 Performance

SWKS’ fiscal third-quarter 2025 performance is likely to have benefited from its diversified portfolio and growth in edge IoT and automotive sectors.

SWKS expects sequential growth in the broad markets segment, with year-over-year growth accelerating in the to-be-reported quarter. Specifically, there is strong demand for edge IoT, including Wi-Fi 6e and Wi-Fi 7 systems, which is likely to lead to a multiyear upgrade cycle in the to-be-reported quarter due to faster data transfer speeds and lower latency.

The rising adoption of generative AI and 5G technologies is expected to have driven continued demand for high-performance RF solutions in the to-be-reported quarter. Skyworks is positioned to benefit from the growing need for fast RF connectivity and power management in AI applications, next-generation smartphones, and autonomous vehicles.

Skyworks sees long-term growth opportunities in its automotive business. The increasing focus on software-defined vehicles, connected cars, and in-cabin user experiences is expected to have generated higher levels of radio complexity, creating demand for Skyworks’ advanced RF solutions in the to-be-reported quarter.

However, Mobile revenue is expected to decline in the third quarter of 2025 by low single digits sequentially due to historical seasonality. Macroeconomic conditions, ongoing inventory digestion in certain end markets, and tariff complexities are also expected to have hurt top-line growth in the to-be-reported quarter.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the exact case here.

Skyworks has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these, too, have the right combination of elements to beat earnings in their upcoming releases:

Arista Networks ANET currently has an Earnings ESP of +0.96% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

ANET shares have returned 5.5% in the year-to-date period. It is set to report its second-quarter 2025 results on Aug. 5.

Wayfair W currently has an Earnings ESP of +19.74% and carries a Zacks Rank #2.

W shares have jumped 47.5% in the year-to-date period. It is set to report its second-quarter 2025 results on Aug. 4.

Yum Brands YUM currently has an Earnings ESP of +1.34% and carries a Zacks Rank #2.

YUM shares have gained 9.4% in the year-to-date period. It is set to report its second-quarter 2025 results on Aug. 5.

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This article originally published on Zacks Investment Research (zacks.com).

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