Skyworks Solutions (NASDAQ:SWKS) reported fiscal first-quarter 2026 results that exceeded the high end of its guidance range, citing upside in both mobile and broad markets. Management also reiterated its expectations and timeline for the company’s previously announced combination with Qorvo, while emphasizing that the call’s focus would remain on quarterly performance and near-term outlook.
Q1 results topped guidance as mobile and broad markets outperformed
For the fiscal first quarter, Skyworks posted revenue of $1.035 billion to $1.04 billion, which management said exceeded the high end of the company’s guidance range. Non-GAAP diluted earnings per share were $1.54, which CFO Philip Carter said was $0.14 above the midpoint of guidance.
Skyworks generated $396 million in operating cash flow and spent $57 million on capital expenditures, resulting in free cash flow of $339 million, or a 33% free cash flow margin. The company paid $106 million in quarterly dividends and ended the quarter with approximately $1.6 billion in cash and investments and $1 billion in debt.
Customer concentration and segment mix
Management said the company’s largest customer accounted for approximately 67% of revenue during the quarter, consistent with the prior quarter. Mobile represented 62% of total revenue, coming in above expectations due to what Skyworks described as healthy sell-through at its top customer and strong execution on new product launches.
CEO Phil Brace said smartphone replacement cycles, while still lengthy, are “beginning to shorten,” which he tied to consumers upgrading more frequently as “AI-capable devices” and more integrated features reach the market. He added that the company had not seen demand impacts from broader industry discussions around component pricing and availability, and noted that channel inventory remains lean.
Looking ahead, Brace said Skyworks “successfully defended key mobile sockets” and gained content where architecture changes created opportunities, but also cautioned that product mix dynamics could moderate some of that progress. Based on current visibility, management expects blended mobile content to be “roughly flat year-over-year,” while reiterating that it would not comment on specific sockets, models, or launch timing.
Broad markets growth drivers: Wi‑Fi 7, automotive, and data center infrastructure
Broad markets delivered what management called its eighth consecutive quarter of growth, with revenue up double digits year-over-year. Carter said broad markets grew 4% sequentially and 11% year-over-year, driven by edge IoT, data center and cloud infrastructure, and automotive. Brace added that broad markets continues to deliver margins above the corporate average and benefits from “long cycle and multi-year” demand drivers.
In prepared remarks and during Q&A, management highlighted several areas of strength:
- Edge IoT and Wi‑Fi 7: Brace said Wi‑Fi 7 momentum continues to build due to higher throughput, lower latency, and reliability, and positioned it as an enabler as AI inference moves closer to the edge. He cited strong design win activity, a healthy backlog, and early engagement on Wi‑Fi 8 programs.
- Automotive: Management characterized demand as solid, driven by increased connectivity across telematics, infotainment, and software-defined vehicle architectures. Brace said the pipeline is broad and global, aligned with long-cycle platforms across multiple OEMs and tiers.
- Data center and networking: Brace said demand signals are improving, with increasing design win activity as the ecosystem transitions to next-generation 800G and emerging 1.6T architectures. He highlighted expansion in timing and power management content, including “jitter attenuating clocks” and power isolation products, and later said data center is growing faster than overall broad markets and delivering better-than-corporate-average margins.
Brace also noted longer-term interest in satellite communications, while saying it was not yet large enough to discuss in detail.
March-quarter (Q2) outlook: seasonal mobile decline, broad markets steady
For the fiscal second quarter of 2026, Skyworks guided revenue to a range of $875 million to $925 million. Carter said mobile is expected to decline approximately 20% sequentially, consistent with seasonality, while broad markets is expected to be flat sequentially. Broad markets is projected to represent 44% of sales in Q2 and be up high single digits year-over-year.
Gross margin is projected at approximately 44.5% to 45.5%, reflecting seasonally lower volume. Operating expenses are expected to be between $230 million and $240 million as the company continues funding key R&D initiatives while controlling discretionary spending. Below the line, Skyworks anticipates about $4 million in other income, a 10% effective tax rate, and a diluted share count of 151 million. At the midpoint of revenue guidance ($900 million), management said this equates to expected diluted EPS of $1.04.
In response to questions on gross margin drivers, Carter said the quarter-to-quarter decline is “mostly due to typical seasonality in mobile and lower volume” and also cited a slightly higher mix of Android. He added that after three consecutive quarters of exceeding the high end of guidance, the company has incurred higher input costs such as expedite fees to meet on-time delivery targets.
Qorvo combination: synergy target and timeline reiterated
Brace opened the call by reiterating Skyworks’ view that its announced combination with Qorvo is “highly strategic and transformative,” citing expected benefits including greater scale, deeper R&D, a broader technology portfolio, reduced historical mobile volatility, and an expanded total addressable market into defense and aerospace. He pointed to an expected path to more than $500 million of synergies over time and said the combined company is expected to achieve gross margins through cycles in the 50% to 55% range, supported by operating leverage and enhanced earnings power.
Management said it has completed initial regulatory filings, scheduled a shareholder vote, and begun integration planning, while expecting a comprehensive regulatory review. Skyworks reiterated its expectation that the transaction will close in early calendar year 2027, subject to regulatory approvals, approval by both companies’ shareholders, and other customary closing conditions.
During Q&A, Brace described the portfolios as complementary—highlighting Qorvo’s antenna-side capabilities—and said the combined company would have broader RF scale across the chain. Separately, Carter said Skyworks has “ample opportunity and cash” for capital deployment, but noted that during the pendency period there are requirements around buybacks and the company also expects to access debt markets in the next 12 months in anticipation of closing the transaction.
About Skyworks Solutions (NASDAQ:SWKS)
Skyworks Solutions, Inc is a leading semiconductor company that designs and manufactures analog and mixed-signal semiconductors for use in radio frequency (RF) and mobile communications markets. The company’s portfolio includes power amplifiers, front-end modules, switches, filters, low-noise amplifiers, and other components that enable wireless connectivity in smartphones, tablets, wearables, automotive telematics, and broadband infrastructure. With a focus on energy efficiency and integration, Skyworks serves a broad range of customers in the mobile, Internet of Things (IoT), automotive, connected home, and industrial end markets.
Headquartered in Irvine, California, Skyworks operates a network of design, development, and manufacturing facilities across North America, Europe, and the Asia-Pacific region.
