Can These 5 Electronics Stocks Hit Earnings Targets This Season?

The electronics stocks market's quarterly releases are expected to reflect the continued expansion of artificial intelligence infrastructure and data centre buildouts globally. Accelerated deployment of generative AI applications and cloud computing services is expected to have driven demand for specialised semiconductors and advanced electronic components throughout the quarter under review.

Growing adoption of high-bandwidth memory solutions, with HBM shipments experiencing substantial growth due to extraordinary demand from AI training workloads, are likely to have aided industry participants' performances in the third quarter of 2025. The integration of AI capabilities into edge devices, including smartphones and personal computers, is expected to have contributed to quarterly results as manufacturers have been incorporating AI-enabled features into consumer electronics.

Increasing use of electronic components in electric vehicles and advanced driver assistance systems is likely to have benefited electronics stocks during the quarter, with the automotive electronics market experiencing steady growth driven by rising consumer demand for connected and safety-centric vehicles. The continued proliferation of Internet of Things devices, smart home systems and connected industrial equipment are expected to have supported demand for sensors and connectivity solutions.

However, these companies face headwinds from mixed demand patterns across end markets. Traditional automotive and industrial segments have experienced a slower recovery, with weakness in certain customer categories presenting margin pressures. Memory market dynamics have been complex, with oversupply concerns in traditional DRAM and NAND segments potentially offsetting strength in AI-specific memory products. Geopolitical uncertainties and evolving trade policies are anticipated to remain concerns for electronics market participants, as shifts in technology spending patterns and supply chain disruptions could influence near-term performance across the sector.

A few prominent electronics companies that have already announced their results are Lam Research LRCX (View Results here: Lam Research Q1 Earnings Surpass Expectations, Revenues Rise Y/Y) and FormFactor FORM, (View Results here: FORM's Q3 Earnings Surpass Estimates, Revenues Up Y/Y, Shares Rise).

Sneak Peek at a Few Upcoming Releases

Let us see how players like Alpha and Omega Semiconductor AOSL, ARM Holdings ARM, Qualcomm QCOM, SkyWater Technology SKYT and MKS Inc. MKSI are positioned ahead of their quarterly results, which are slated to be reported on Nov 5.

Alpha and Omega Semiconductor entered the first quarter of fiscal 2026 with sequential momentum following 7.2% revenue growth in the prior period. The company announced a strategic transaction in mid-July involving the sale of a portion of its Chongqing joint venture equity stake for $150 million, providing capital for technology investments. The quarter likely benefited from continued strength in computing and artificial intelligence applications, where AOSL had achieved record revenue levels previously. Communications revenue is expected to be impacted by seasonal patterns during the to be reported quarter, while personal computer demand is projected to remain relatively steady. The consumer segment is anticipated to experience softer conditions reflecting broader market dynamics and potential inventory adjustments, with overall results expected to reflect these contrasting trends.

Notably, AOSL has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the odds of an earnings beat.You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. 

For the first quarter of fiscal 2026, the Zacks Consensus Estimate for AOSL’s revenues is pegged at $183.05 million, indicating a 0.64% increase year over year.

The consensus estimate for earnings is pegged at 10 cents per share, implying a year-over-year decline of 52.38%. The estimate has been unchanged over the past 30 days.

Alpha and Omega Semiconductor Limited Price and EPS Surprise

Alpha and Omega Semiconductor Limited price-eps-surprise | Alpha and Omega Semiconductor Limited Quote

Arm Holdings entered its second quarter of fiscal 2026 with robust momentum following strong first-quarter results of $1.05 billion. The chip designer is expected to have seen continued strength in royalty revenue driven by data centre adoption, where Neoverse-based processors have been approaching 50% market share at leading hyperscalers through deployments with NVIDIA Grace Blackwell, AWS Graviton and Google Axion. ARM's Compute Subsystem platform is expected to have gained further traction with additional design wins across the data centre and PC segments. However, softer smartphone market conditions and reduced near-term visibility from macroeconomic uncertainties, including tariff concerns, are expected to have constrained sequential growth

Notably, Arm Holdings has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.

For the fiscal second quarter, the Zacks Consensus Estimate for ARM’s revenues is pegged at $1.07 billion, indicating a 26.2% increase year over year.

The consensus estimate for earnings is pegged at 33 cents per share, implying a year-over-year increase of 10%. The estimate has been unchanged over the past 30 days.

ARM Holdings PLC Sponsored ADR Price and EPS Surprise

ARM Holdings PLC Sponsored ADR price-eps-surprise | ARM Holdings PLC Sponsored ADR Quote

Qualcomm entered its fiscal fourth quarter 2025 with momentum from its diversification strategy following a strong previous quarter performance. QCOM is expected to have seen sequential handset revenue growth despite reduced Apple content, supported by flagship device preparations and demand from Chinese OEMs following the extended Xiaomi partnership announced in July. QCOM's automotive segment likely continued its growth trajectory during the quarter, reflecting ongoing adoption of its Snapdragon Digital Chassis solutions. The IoT business is expected to have remained relatively stable sequentially amid mixed market conditions. The company's edge networking products likely benefited from Wi-Fi 7 gateway platform demand across retail and carrier customers. While growing AI feature adoption in premium Android smartphones may have supported mix improvements, competitive dynamics and seasonal factors are expected to have influenced overall results during the quarter.

Notably, Qualcomm has an Earnings ESP of +1.43% and a Zacks Rank #3 at present.

For the fiscal fourth quarter, the Zacks Consensus Estimate for QCOM’s revenues is pegged at $10.77 billion, indicating a 5.16% increase year over year.

The consensus estimate for earnings is pegged at $2.87 per share, implying a year-over-year increase of 6.69%. The estimate has inched upward by a penny over the past 30 days.

QUALCOMM Incorporated Price and EPS Surprise

QUALCOMM Incorporated price-eps-surprise | QUALCOMM Incorporated Quote

SkyWater Technology entered third quarter 2025 with significant operational expansion following the completion of the Infineon Fab 25 acquisition on June 30, marking the first full quarter of consolidated operations. The Texas facility is expected to have contributed $75-80 million in wafer services revenue, substantially increasing SKYT’s scale and positioning it as the largest exclusively U.S.-based pure-play foundry for 200-millimetre capacity. Quantum computing revenues have likely maintained growth momentum during the period, while the July 29 Infineon IP license agreement for the S130 platform was announced. However, the integration of lower-margin wafer services from Fab 25 is expected to have compressed overall profitability metrics. Minnesota operations is expected to continue facing headwinds from Department of Defence program funding delays, pressuring the higher-margin Advanced Technology Services segment and potentially offsetting gains from increased revenue scale.

Notably, SkyWater Technology has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.

For the third quarter, the Zacks Consensus Estimate for SKYT’s revenues is pegged at $135.5 million, indicating a 44.43% increase year over year.

The consensus estimate for loss is pegged at 17 cents per share, implying a year-over-year decline of 312.5%. The estimate has been unchanged over the past 30 days.

SkyWater Technology, Inc. Price and EPS Surprise

SkyWater Technology, Inc. price-eps-surprise | SkyWater Technology, Inc. Quote

MKS Inc. entered the third quarter of 2025 with robust momentum following strong second-quarter results driven by NAND upgrade activity and AI-related demand. The semiconductor segment is expected to have moderated sequentially due to anticipated lumpiness in NAND conversions, while Electronics & Packaging likely benefited from seasonal chemistry strength and continued robust AI-driven equipment orders. Tariff mitigation strategies are expected to reduce gross margin pressure from the 115 basis points experienced in the previous quarter. MKSI made $200 million in debt prepayments during the period, demonstrating a continued commitment to deleveraging initiatives amid dynamic trade conditions.

Notably, MKSI has an Earnings ESP of 0.00% and a Zacks Rank #2 at present.

For the third quarter, the Zacks Consensus Estimate for MKSI’s revenues is pegged at $962.01 million, indicating a 7.37% increase year over year.

The consensus estimate for earnings is pegged at $1.80 per share, implying a year-over-year increase of 4.65%. The estimate has been unchanged over the past 30 days.

MKS Inc. Price and EPS Surprise

MKS Inc. price-eps-surprise | MKS Inc. Quote

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research