Skyworks Q1 Earnings Top Estimates, Revenues Down Y/Y, Shares Rise

Skyworks Solutions SWKS reported first-quarter fiscal 2026 non-GAAP earnings of $1.54 per share, which beat the Zacks Consensus Estimate by 10.20% but decreased 3.8% year over year.

Revenues of $1.04 billion decreased 3.1% on a year-over-year basis but surpassed the consensus mark by 3.68%.

SWKS shares were up 0.46% in pre-market trading.

SWKS’ Q1 Top-Line Details

Mobile revenues contributed nearly 62% to total revenues. SWKS’s 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 4% sequentially and 11% year over year, driven by growth across edge IoT, automotive, and data center.

SWKS Operating Details

First-quarter fiscal 2026 non-GAAP gross margin was up 10 basis points (bps) on a year-over-year basis to 46.6%. 

Research & development expenses, as a percentage of revenues, increased 310 bps year over year to 19.6%.

Selling, general, and administrative expenses increased 270 bps to 10.5% in the reported quarter.

Non-GAAP operating margin contracted 230 bps on a year-over-year basis to 24.3% in the reported quarter.

SWKS Balance Sheet & Cash Flow

As of Jan. 2, 2026, cash & cash equivalents and marketable securities were $1.57 billion compared with $1.39 billion as of Oct. 3, 2025. As of the same date, long-term debt was $996.2 million, up slightly from the previous quarter.

Cash generated by operating activities was $395.5 million in the quarter under discussion compared with $200 million in the prior quarter.

Free cash flow was $339 million, with a 32.7% free cash flow margin.

SWKS Offers Positive 2Q26 Guidance

For the second quarter of fiscal 2026, the company expects revenues between $875 million and $925 million. SWKS expects approximately 20% sequential decline in Mobile. Broad markets are set to be approximately flat sequentially, representing 44% of revenue, and up high single-digits year over year.

Gross margin is expected to be approximately 44.5% to 45.5%. Skyworks expects operating expenses between $230 million and $240 million.

Non-GAAP shares are expected to be $1.04 per share at the mid-point of the revenue range.

SWKS’ Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the broader Zacks Computer and Technology sector include Arista Networks ANET, Advanced Energy AEIS, and Amkor Technology AMKR. While Amkor Technology sports a Zacks Rank #1 (Strong Buy), Arista Networks and Advanced Energy carry a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Arista Networks have gained 18% in the trailing six-month period. Arista Networks is set to report fourth-quarter 2025 results on Feb. 12

Shares of Advanced Energy have gained 88.4% in the trailing six-month period. Advanced Energy is slated to report third-quarter 2025 results on Feb. 10.

Amkor Technology shares have surged 108.5% in the trailing six-month period. Amkor Technology is set to report fourth-quarter 2025 results on Feb. 9.

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

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