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Revenue: $1.1 billion for the fourth fiscal quarter, exceeding guidance.

Earnings Per Share (EPS): $1.76 for the quarter.

Free Cash Flow: $1.1 billion for the full fiscal year, representing a 27% free cash flow margin.

Mobile Revenue: Up 21% sequentially and 7% year-over-year, accounting for 65% of total revenue.

Broad Markets Revenue: Grew 3% sequentially and 7% year-over-year.

Gross Margin: 46.5% for the quarter.

Operating Expenses: $247 million, slightly above guidance due to higher employee incentive accruals.

Operating Income: $264 million, with an operating margin of 24%.

Net Income: $264 million for the quarter.

Operating Cash Flow: $1.3 billion for the full fiscal year.

Capital Expenditures: $195 million for the full fiscal year.

Cash and Investments: $1.4 billion at the end of the quarter.

Debt: $1 billion at the end of the quarter.

Revenue Outlook for Q1 Fiscal '26: Expected between $975 million to $1.025 billion.

Gross Margin Outlook for Q1 Fiscal '26: Projected to be approximately 46% to 47%.

Expected EPS for Q1 Fiscal '26: $1.40 at the midpoint of revenue outlook.

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Release Date: November 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Skyworks Solutions Inc (NASDAQ:SWKS) delivered strong financial results with revenue of $1.1 billion, exceeding the high end of their guidance range.

The company reported a significant upside in mobile revenue, up 21% sequentially and 7% year-over-year, driven by strong sell-through and a richer product mix.

Broad Markets segment showed solid growth, with demand across edge IoT, automotive, and data center, contributing to a 7% year-over-year increase.

Skyworks Solutions Inc (NASDAQ:SWKS) generated $1.1 billion of free cash flow for the fiscal year, representing a 27% free cash flow margin.

The company announced a transformative deal to combine with Qorvo, expected to add meaningful scale, diversification, and a broader technology portfolio.

The largest customer accounted for approximately 67% of revenue, indicating a high dependency on a single client.

Operating expenses were slightly above the high end of guidance due to higher employee incentive accruals tied to stronger quarterly revenue.

The company expects free cash flow to be lower in fiscal '26 compared to fiscal '25 due to a lower expected revenue base and normalized working capital trends.

Skyworks Solutions Inc (NASDAQ:SWKS) anticipates a decline in mobile revenue by low to mid-teens sequentially in the first quarter of fiscal '26.

The company faces a highly competitive environment, particularly in the mobile segment, which could impact future growth and market share.

Q: Phil Brace, what factors contributed to Skyworks' better-than-expected revenue performance, especially considering previous concerns about content loss at your largest customer? A: Philip Brace, President and CEO, explained that the stronger-than-expected mobile results were due to better unit sales and a favorable product mix. The latest phone models have seen positive uptake, benefiting Skyworks' content. The guidance going forward considers previous content loss comments, but the company has executed well despite these challenges.

Q: Can you elaborate on the changes made to streamline sales and how they are benefiting the business? A: Philip Brace noted that a new executive was recruited to bring fresh perspectives. Structurally, the company integrated traditional product marketing functions back into business units to align engineering and product roadmaps more closely, allowing the sales team to focus on revenue generation and customer acquisition.

Q: How does the Qorvo deal align with Skyworks' strategy, and are there plans for further mergers or divestitures? A: Philip Brace emphasized that the Qorvo deal provides scale and diversification, reducing customer concentration and focusing on wireless rather than just handsets. Both companies will operate independently until the deal closes, and no major transformational activities are expected during this period.

Q: What is the outlook for Skyworks' Broad Markets business, and what are the growth drivers? A: Philip Brace stated that Broad Markets is expected to grow in double digits long-term, driven by WiFi advancements, automotive connectivity, and infrastructure opportunities. The business is positioned in segments with higher growth potential and longer revenue cycles.

Q: How is Skyworks managing its exposure to the China market, and are there plans to change this focus? A: Philip Brace mentioned that Skyworks focuses on the premium segment in China, including automotive and other areas beyond handsets. The company is not participating in lower-end, economically unattractive handset markets and has no plans to change this focus.

Q: Can you discuss the dynamics in the Broad Markets business and its long-term growth potential? A: Philip Brace highlighted that Broad Markets is expected to grow in double digits, driven by WiFi 7 and 8, automotive connectivity, and infrastructure opportunities. The business is embedded in segments with higher growth potential and longer revenue cycles.

Q: What are the expectations for operating expenses and working capital management going forward? A: Philip Carter, CFO, indicated that operating expenses are expected to remain disciplined, with investments targeted at key areas. Inventory levels are low, and while there was a benefit from inventory reductions in fiscal '25, this is not expected to repeat in fiscal '26.

Q: How is Skyworks' Android business performing, and what are the expectations for growth? A: Rajvindra Gill, VP of Investor Relations, noted that the Android business, primarily driven by Google, was up sequentially and is expected to increase again in the December quarter.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.