Abstract

Skyworks Solutions will report fiscal second-quarter results on May 5, 2026 Post Market, and the upcoming print will be evaluated against company guidance calling for revenue of 875.00 million to 925.00 million US dollars and non‑GAAP EPS of 1.04, with consensus pointing to softer year‑over‑year comparisons.

Market Forecast

Consensus currently anticipates fiscal Q2 revenue of 899.31 million US dollars, reflecting a 5.48% year‑over‑year decline, with estimated EPS at about 1.03 (down 14.01% year‑over‑year) and estimated EBIT of 166.93 million US dollars (down 21.07% year‑over‑year). Skyworks Solutions’ own outlook, issued with its last report, guides revenue to a range of 875.00 million to 925.00 million US dollars and non‑GAAP EPS of 1.04; the company did not provide a gross margin or net margin forecast in the collected materials.

Management commentary highlights a 20% sequential decline expected in the Mobile business for the fiscal second quarter and continued momentum in Wi‑Fi 7 and data‑center programs within Broad Markets. The most promising near‑term growth vector centers on Broad Markets, including Wi‑Fi 7 upgrades, data‑center interconnect, and automotive connectivity, where the company has indicated accelerating activity, though revenue and year‑over‑year contribution figures were not disclosed in the collected materials.

Last Quarter Review

Skyworks Solutions delivered fiscal Q1 results that topped expectations: revenue was 1.04 billion US dollars (down 3.10% year‑over‑year), gross profit margin was 41.26%, GAAP net profit attributable to shareholders was 79.20 million US dollars with a 7.65% net profit margin, and adjusted EPS was 1.54 (down 3.75% year‑over‑year). Adjusted operating performance was solid relative to consensus, with EBIT of 252.10 million US dollars outperforming prior estimates, and the company maintained its quarterly dividend at 0.71 US dollars per share.

On the business side, management noted the Mobile segment exceeded internal expectations due to better sell‑through and disciplined execution, while Broad Markets saw accelerating growth driven by Wi‑Fi 7 and data‑center programs. From a revenue‑channel perspective, sales were led by distributors at 915.60 million US dollars (approximately 88.43% of total), with 119.80 million US dollars from direct customers; year‑over‑year channel comparisons were not disclosed in the dataset.

Current Quarter Outlook

Main business: Mobile revenue reset and margin mix

The company’s guidance calls for approximately a 20% sequential decline in the Mobile segment for fiscal Q2, which is consistent with seasonal patterns and the early‑year digestion phase at key smartphone customers. That sequential step‑down is embedded in the midpoint of management’s revenue range of 875.00 million to 925.00 million US dollars and underpins the consensus revenue estimate of 899.31 million US dollars. Against that volume backdrop, mix and utilization are the key margin swing factors; Mobile carries meaningful scale, and a lower unit run‑rate typically exerts pressure on utilization‑linked cost absorption, which can constrain gross margin if offsetting cost actions or richer dollar content do not materialize. The prior quarter’s 41.26% gross profit margin provides a useful reference, but absent explicit gross‑margin guidance, investors will look to unit mix, premium‑tier smartphone content, and any pricing normalization to infer the Q2 trajectory. Adjusted EPS consensus of about 1.03 and company guidance of 1.04 imply a modest contraction in profitability year‑over‑year (−14.01% on estimates), largely because the revenue base is smaller and operating expense leverage is tighter in the seasonal trough. The cadence beyond Q2 becomes critical: if the Mobile correction proves contained and premium device builds stabilize into the back half, mix could gradually recover, supporting both top line and margins.

Most promising business: Broad Markets momentum in Wi‑Fi 7, data center, and auto connectivity

While Mobile normalizes, management has called out a constructive setup in Broad Markets, led by Wi‑Fi 7 adoption and activity in data‑center programs. Wi‑Fi 7 upgrades can lift average content per system and favor suppliers positioned for high‑band, low‑loss RF and mixed‑signal architectures; that dynamic can offer better dollar‑content and support margins even at moderate volumes. In data centers, connectivity and power‑related analog/mixed‑signal content is expanding with new architectures, giving the company a path to diversify revenue while targeting premium performance sockets. Automotive connectivity programs—highlighted with leading OEMs—add another vector with multi‑year visibility, though the revenue cadence is typically slower and subject to qualification cycles. Taken together, these drivers help cushion the seasonal Mobile air‑pocket and furnish a route to year‑over‑year growth reacceleration as deployments scale. The key watch‑items for investors this quarter are design‑win updates, initial revenue traction in Wi‑Fi 7 and data‑center wins, and any early signals that automotive connectivity ramps are moving from sampling to volume.

What will drive the stock this quarter: guidance quality, demand signals, and merger process

Three variables are likely to set the tone for the stock around the print. First, the quality of Q2 guidance relative to actual bookings and backlog conversion: with consensus already modeling a 5.48% year‑over‑year revenue decline and double‑digit EPS contraction, any upward skew in the revenue range or commentary pointing to a firmer second‑half setup could be well received. Second, demand signals at top smartphone customers and the timing of unit stabilization: confirmation that channel inventories are under control and that premium device builds are steady into mid‑year would help derisk the Mobile trajectory. Third, progress and regulatory milestones tied to the proposed combination with Qorvo: the collection includes disclosures that the US Federal Trade Commission issued a request for additional information on February 6, 2026, which extends the review timeline; investors will watch for updates on regulatory clearance, synergy plans, and potential integration contours. On margins, the prior quarter’s 41.26% gross margin and 7.65% net margin offer a baseline; any sign of resilience despite the Mobile reset—via richer Broad Markets mix, disciplined OpEx, and productivity—could support the adjusted EPS outlook around 1.04. Conversely, a deeper Mobile pullback or a slower than expected Broad Markets ramp would skew EBIT toward the consensus 166.93 million US dollars (down 21.07% year‑over‑year). Finally, the quarterly dividend of 0.71 US dollars supplies some support to total return, though the near‑term reaction will be driven by revenue/EPS prints and forward commentary.

Analyst Opinions

Across recent coverage within the period, the directional skew of institutional views is bullish. A February update cited a breakdown of 6 buy/strong‑buy recommendations versus 1 sell/strong‑sell, with the remainder holds, and a median 12‑month price target of 73.00 US dollars, implying upside from early‑February trading levels. Since then, notable updates have trended supportive: on April 22, 2026, Barclays upgraded Skyworks Solutions to Overweight and lifted its price target to 70.00 US dollars, citing a more constructive outlook; Morgan Stanley maintained an Equalweight in early February but raised its price target to 69.00 US dollars while acknowledging execution that exceeded conservative expectations and guidance “better than feared.” The bullish camp’s case centers on three points. First, management’s guidance framework appears balanced against conservative demand assumptions, and recent beats on revenue and adjusted EPS (1.54 versus about 1.40 expected in fiscal Q1) suggest operational discipline. Second, the mix shift toward Broad Markets—Wi‑Fi 7, data‑center connectivity, and automotive programs—offers incremental growth vectors that are less tied to a single device cycle and can improve dollar‑content and profitability as deployments scale. Third, the proposed combination with Qorvo, while still subject to regulatory review, is seen by supportive analysts as a potential catalyst for cost synergies and an expanded portfolio, with the prospect of earnings accretion post‑close according to deal commentary filed previously. Barclays’ upgrade underscores the idea that the worst of the smartphone demand reset may be passing, with seasonal trough dynamics embedded in the quarter and multi‑segment contributions providing a path to steadier results. Morgan Stanley’s stance, while neutral in rating, reinforces that execution risk is manageable and that consensus may be reachable given the revenue range and EPS guardrails the company has provided. Even as one house moved to Underperform on April 20, 2026, at 46.00 US dollars price target, the weight of buy‑side recommendations and constructive target revisions skews the directional balance positive. In sum, the majority view tilts bullish: investors favor management’s guidance discipline, the improving visibility in Broad Markets, and the potential for second‑half stabilization. The quarter will hinge on whether reported revenue lands toward the upper half of the 875.00 million to 925.00 million US‑dollar range and whether adjusted EPS converges with the 1.04 guide, while qualitative updates on Wi‑Fi 7, data center, automotive wins, and merger review milestones will shape the post‑print narrative. If the company can hold margins near the prior quarter’s level despite the Mobile reset and provide confident commentary about mix and demand normalization, the bullish thesis outlined by upgrading and supportive institutions would gain traction.