Skyworks Solutions (SWKS) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue was $1,068 million, up 4% sequentially but down 11.1% year-over-year, with non-GAAP EPS at $1.60 and GAAP EPS at $1.00; CEO succession announced with Philip Brace to become CEO and Christine King as Chairman.

• Free cash flow reached $338 million (32% margin), and cash and investments totaled ~$1.75 billion.

• Mobile revenue grew 6% sequentially, but overall mobile demand was lower year-over-year; broad markets and automotive segments returned to year-over-year growth.

• Secured 5G content wins in premium Android smartphones, expanded automotive design wins, and announced a $2 billion stock repurchase program.

• CEO transition and related charges of $20 million expected; leadership changes include Liam Griffin moving to advisory role.

Financial highlights

• Revenue: $1,068 million; GAAP gross profit: $441.9 million (41.4% margin); non-GAAP gross profit: $497 million (46.5% margin).

• GAAP operating income: $181 million (16.9% margin); non-GAAP operating income: $285 million (27%).

• GAAP net income: $162 million; non-GAAP net income: $258 million; diluted EPS: $1.00 (GAAP), $1.60 (non-GAAP).

• Free cash flow: $338 million (32% margin); operating cash flow: $377 million (35% margin).

• Distributed $112.5 million in dividends during the quarter; $0.70 per share dividend declared for March 17, 2025.

Outlook and guidance

• Q2 FY2025 revenue expected at $935–$965 million, with mobile business to decline mid to high teens sequentially due to seasonality.

• Broad markets anticipated to show additional sequential and year-over-year growth.

• Gross margin projected at 45.5%–46%; operating expenses expected at $220–$228 million.

• At $950 million revenue midpoint, non-GAAP diluted EPS expected to be $1.20.

• Revenue expected to be negatively impacted in Q4 FY2025 by a decrease in market share at a significant customer.