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    SWKS
    Earnings call· Apr 2026(Q2 FY26)

    SKYWORKS SOLUTIONS Q2 FY26 earnings call SWKS

    May 5, 2026 Source

    Executive summary

    Skyworks Q2 FY26 — Strong Mobile and Broad Markets Performance, Significant Android Win

    Skyworks delivered strong Q2 FY26 results, driven by outperformance in both mobile and broad markets, with a significant multi-generational Android design win bolstering future growth. The company is actively managing input cost pressures and progressing with the Qorvo merger, while maintaining a disciplined approach to profitable growth opportunities in a dynamic supply environment.

    Highlights

    5

    • Secured a significant multigenerational design win with a leading Android OEM, expected to generate over $1 billion in revenue through 2030.

    • Q2 FY26 revenue of $944 million, exceeding the high end of guidance by $20 million.

    • Q2 FY26 diluted earnings per share of $1.15, $0.05 above the high end of guidance.

    • Broad Markets revenue grew 10% year-over-year, marking 9 consecutive quarters of growth, with WiFi, data center, and automotive collectively growing 30% year-over-year.

    • Regulatory reviews for the Qorvo combination are progressing, with increasing hope for a late 2026 close.

    Concerns

    3

    • Input costs remain a modest headwind to gross margin, leading to selective price adjustments and expedite fees.

    • Q3 FY26 gross margin projected to be 44.5% to 45.5%, flat sequentially, reflecting seasonally lower volume and higher input costs.

    • Q3 FY26 mobile revenue expected to decline low single digits sequentially, consistent with normal seasonality.

    Guidance & targets

    15
    CategoryTargetConfidence
    Qorvo Combination Closing
    late 2026
    high materiality
    Medium
    Qorvo Combination Synergies
    $500 million or more
    high materiality
    High
    AI Data Center Segment Growth
    nearly 50%
    medium materiality
    High
    Revenue
    $900 million to $950 million
    high materiality
    High
    Mobile Revenue Growth
    decline approximately low single digits sequentially
    medium materiality
    High
    Broad Markets Revenue Growth (Sequential)
    up modestly sequentially
    medium materiality
    High
    Broad Markets Revenue Growth (YoY)
    up high single digits year-over-year
    medium materiality
    High
    Broad Markets % of Sales
    43%
    low materiality
    High
    Gross Margin
    44.5% to 45.5%
    high materiality
    High
    Operating Expenses
    $235 million and $245 million
    medium materiality
    High
    Other Expenses
    $4 million
    low materiality
    High
    Effective Tax Rate
    10%
    low materiality
    High
    Diluted Share Count
    151 million shares
    low materiality
    High
    Diluted Earnings Per Share
    $1.03
    high materiality
    High
    Android OEM Design Win Revenue
    over $1 billion
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Mobile
    Outperformed expectations, driven by healthy sell-through at the top customer and product execution.
    		58% of total revenue———
    Broad Markets
    Outperformed expectations, driven by growth across WiFi, data center, and automotive. Achieved 9 consecutive quarters of growth.
    WiFi, data center, automotive collectively grew 30% year-over-year
    		42% of sales10% year-over-year——

    Operational metrics

    12
    Non-GAAP Gross Margin
    45%in line with the midpoint guidance
    Q2 FY26

    Gross profit was $425 million.

    Non-GAAP Operating Margin
    20%
    Q2 FY26

    Operating income was $189 million.

    Cash and investments balance
    $1.4 billion
    Q2 FY26 end

    Ended the quarter with approximately $1.4 billion in cash and investments.

    Total Debt
    $1 billion
    Q2 FY26 end

    Ended the quarter with $1 billion in debt.

    Non-GAAP EPS
    $1.15$0.05 above the high end of our guidance range
    Q2 FY26

    Resulted in diluted earnings per share of $1.15.

    Quarterly Dividends Paid
    $107 million
    Q2 FY26

    Paid $107 million in quarterly dividends.

    Largest Customer Revenue Share
    60%
    Q2 FY26

    During the quarter, our largest customer accounted for approximately 60% of revenue.

    China Total Revenue
    less than $200 million
    annually

    Our overall business in China annually would be less than $200 million.

    China Handset Revenue
    less than $20 million
    annually

    The handset revenue in China would be less than $20 million annually.

    Data Center Revenue (approx)
    under $100 million
    annually

    Our data center revenue is still under $100 million annually.

    Automotive Revenue (approx)
    $250 million
    annually

    Our auto revenues are probably like $250 million a year.

    Gross Margin (long-term model)
    50%, 55%
    long-term

    We are sticking with our long-term model of 50%, 55% post combination of the merger with Qorvo in terms of gross margin.

    Industry KPIs

    7
    MetricValueDetails
    Lead timesquite long
    Book to bill ratioabove 1
    Ai data center revenuenearly 50%%
    Fab capacity utilizationoptimization
    Design wins socket pipelinesignificant multigenerational design win
    Inventory channel inventorylean
    End market segment revenue mixMobile: 58% of total revenue; Broad Markets: 42% of sales%

    Product announcements

    3
    ProductTypeDetails
    BAW filterslaunch
    Next-generation RF front-end solutionlaunch
    Timing portfolio (new clock buffers)expansion

    Deals & partnerships

    2
    QorvoCombination of two semiconductor companies.

    Regulatory reviews are progressing as expected, with the company having entered Phase 2 of the China SAMR review. Skyworks supported Qorvo's $400 million share repurchase during the quarter.

    a leading Android OEMSignificant multigenerational design win for RF content in premium AI-enabled devices.over $1 billionthrough 2030

    This win reflects Skyworks' expanding footprint in premium AI-enabled devices, validating its RF content platform and technology differentiation. It is expected to be a tailwind to growth, rising year-over-year.

    Risks & headwinds

    3
    Input costscurrent quarter

    modest headwind to gross margin

    Mitigation: cost controls and selective price adjustments; fab optimization, utilization rates

    Memory supply and pricingcurrent

    not seen an impact on our business to date

    Mitigation: monitor the environment closely; portfolio weighted towards premium, high complexity solutions

    Seasonally lower volumeQ3 FY26

    reflecting seasonally lower volume

    Mitigation: pursuing cost reductions and selective price adjustments

    What to watch in Q3 FY26

    5

    Qorvo Merger Closing

    late 2026
    CurrentPhase 2 of the China same review
    Targetclose in late 2026

    Why it matters

    Successful completion of the merger is key to realizing significant synergies and strategic expansion.

    We have entered Phase 2 of the China same review and are maintaining constructive dialogue with the relevant antitrust authorities. While our formal guidance remains an expected closing early in calendar 2027, we are increasingly hopeful that we could close in late 2026.

    Q&A highlights

    6

    How does the company feel about content at its largest customer looking into next year, especially with the new Android win, and are there any deviations from usual seasonality for the third calendar quarter?

    Management feels good about its content position at the largest customer, expecting it to generally hold serve. The Android win emphasizes their technology and value. They do not see anything unusual with respect to seasonality for the back half of the year, despite industry chatter.

    “I think that we're not seeing any -- there have been some industry chatter around different seasonality and things. We're not seeing anything unusual with respect to that. We feel good about our content and I think the win at the premium Android segment really emphasizes our technology play and the value proposition we can offer.”

    asked by Timothy Arcuri · answered by Philip Brace

    2 min read6 chapters

    Detailed Narrative

    01

    Qorvo Combination Update

    The merger with Qorvo is progressing, with regulatory reviews in Phase 2 of China's SAMR. While formal guidance remains early calendar 2027, the company is increasingly hopeful for a late 2026 close. Integration planning is on track, with anticipated synergies of $500 million or more. Skyworks supported Qorvo's $400 million share repurchase during the quarter, reflecting a prudent deployment of capital.

    02

    Strategic Android Design Win

    Skyworks secured a significant multi-generational design win with a leading Android OEM, projected to generate over $1 billion in revenue through 2030. This win is in the premium segment, reflects technology differentiation, and is expected to be incremental business with favorable gross margins. Management emphasized the stickiness of the win, which is unrelated to the Qorvo merger.

    03

    Product Innovation and Technology Leadership

    The company introduced new BAW filters for early 6G FR3 spectrum and next-generation RF front-end solutions supporting frequencies above 7 GHz. Skyworks also expanded its timing portfolio with new clock buffers addressing data center, wireless infrastructure, and PCIe Gen 7 applications. Early collaboration with customers in WiFi 8 programs positions the company for continued growth in the next cycle.

    04

    Broad Markets Growth Engines

    Broad Markets achieved 9 consecutive quarters of growth, with revenue reaching approximately $400 million and 10% YoY growth. Three key engines—WiFi, data center, and automotive—collectively grew 30% YoY. WiFi 7 adoption is accelerating, automotive is expanding into power and connectivity, and the AI data center segment is expected to grow nearly 50% this year, driven by demand for precision timing and advanced power delivery.

    05

    Mobile Performance and RF Content

    Mobile outperformed expectations due to healthy sell-through and strong execution at key customers. The company remains bullish on long-term RF content opportunities, driven by an expanding wireless device installed base, increasing RF complexity from next-gen standards (6G, WiFi 7, satellite), AI-driven workloads demanding higher wireless performance, and new form factors like robotics and edge AI devices. Content at the largest customer is expected to remain roughly flat on a blended basis.

    06

    China Strategy and Profitability Discipline

    Skyworks maintains a disciplined approach to market engagement, focusing on profitable growth opportunities. The company's China revenue is less than $200 million annually, with handset revenue less than $20 million. This reflects a strategic decision to avoid dilutive designs and prioritize value proposition, ensuring resources are allocated to maximize returns for customers and shareholders.

    AI-generated summary of the company’s earnings call. Not investment advice.