Skyworks Q4 Earnings Top Estimates, Revenues Grow Y/Y, Shares Rise

Skyworks Solutions SWKS reported fourth-quarter fiscal 2025 non-GAAP earnings of $1.76 per share, which beat the Zacks Consensus Estimate by 21.4% and increased 13.5% year over year.

Revenues of $1.1 billion increased 7.3% on a year-over-year basis and surpassed the consensus mark by 8.38%.

SWKS shares were up 2.8% in pre-market trading. Year to date, Skyworks shares have fallen 18.8%, underperforming the broader Zacks Computer and Technology sector’s return of 29.5%.

SWKS’ Q4 Top-Line Details

Mobile revenues contributed nearly 65% to total revenues. Revenues increased 21% sequentially and 7% year over year, driven by strong sell-through at the company’s top customer and continued growth in Android. SWKS’ largest customer accounted for roughly 67% of revenues in the reported quarter.
 

Skyworks Solutions, Inc. Price, Consensus and EPS Surprise

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

Broad Markets, which includes edge IoT, automotive, industrial, infrastructure and cloud, grew 3% sequentially and 7% year over year, driven by growth across edge IoT, automotive and data center.

SWKS Operating Details

Fourth-quarter fiscal 2025 non-GAAP gross margin was unchanged on a year-over-year basis at 46.5%. 

Research & development expenses, as a percentage of revenues, increased 430 bps year over year to 20.3%.

Selling, general and administrative expenses increased 290 bps to 10.2% in the reported quarter.

Non-GAAP operating margin contracted 270 bps on a year-over-year basis to 24% in the reported quarter.

SWKS Balance Sheet & Cash Flow

As of Oct. 3, 2025, cash & cash equivalents and marketable securities were $1.39 billion compared with $1.34 billion as of June 27. As of the same date, the long-term debt was $995.8 million, up slightly on a sequential basis.

Cash generated by operating activities was $200 million in the quarter under discussion compared with $314.1 million in the prior quarter.

Free cash flow was $144 million, with a 13.1% free cash flow margin.

SWKS Offers Positive 1Q26 Guidance

For the first quarter of fiscal 2026, the company expects revenues between $975 million and $1.025 billion. SWKS expects low- to mid-single-digit sequential decline in Mobile. Broad markets is set to grow again in the current quarter, with mid- to high-single digit growth on a year-over-year basis and accounting for 39% of revenues.

Gross margin is expected to be roughly 47%, +/- 50 bps. Skyworks expects operating expenses between $230 million and $240 million.

Non-GAAP shares are expected to be $1.40 per share at the mid-point of the revenue range.

Zacks Rank & Upcoming Earnings to Consider

Skyworks currently carries a Zacks Rank #3 (Hold).

Fair Isaac FICO, StoneCo STNE and Simulations Plus SLP are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.

Fair Isaac shares have dropped 19.3% year to date. This Zacks Rank #1 (Strong Buy) company is scheduled to release fourth-quarter fiscal 2025 results on Nov. 5. You can see the complete list of today’s Zacks #1 Rank stocks here.

StoneCo shares have returned 136.2% year to date. StoneCo is scheduled to release third-quarter 2025 results on Nov. 6. StoneCo sports a Zacks Rank #1.  
 
Simulations Plus shares have dropped 39% year to date. Simulations Plus is set to report its fourth-quarter fiscal 2025 results on Dec. 1. Simulations Plus currently flaunts a Zacks Rank #1. 

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

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