Skyworks Solutions (SWKS) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 FY26 was $1.035B–$1.04B, surpassing expectations for the fourth consecutive quarter, with strong performance in both Mobile and Broad Markets, especially Wi-Fi 7 and data center/cloud infrastructure.

• Non-GAAP diluted EPS was $1.54, $0.14 above guidance midpoint; GAAP diluted EPS was $0.53.

• Net income was $79.2M, down from $162.0M year-over-year, reflecting lower revenue, higher expenses, and restructuring charges.

• Progressing with a pending $22B merger with Qorvo, expected to close in early 2027, with $500M+ in expected synergies and regulatory review ongoing.

• Maintained focus on operational execution, customer engagement, and disciplined investment in core technologies and broad markets.

Financial highlights

• Q1 revenue was $1.035B–$1.04B; GAAP gross profit $427.2M (41.3% margin); non-GAAP gross profit $482M (46.6% margin); GAAP operating income $103.8M–$104M (10% margin); non-GAAP operating income $252M (24.3% margin).

• Net income was $79.2M; diluted EPS was $0.53 (GAAP) and $1.54 (non-GAAP).

• Operating cash flow was $395.5M–$396M; free cash flow $339M (32.7%–33% margin).

• Ended quarter with $1.55B–$1.6B in cash/investments and $996.2M–$1B in debt.

• Paid $106M–$106.4M in dividends during the quarter.

Outlook and guidance

• Q2 FY26 revenue expected between $875M–$925M; midpoint $900M.

• Non-GAAP diluted EPS for Q2 projected at $1.04 at revenue midpoint.

• Mobile revenue projected to decline ~20% sequentially due to seasonality; Broad Markets to be flat sequentially but up high single digits year-over-year.

• Gross margin guidance: 44.5%–45.5%; operating expenses $230M–$240M.

• Management expects liquidity to remain strong, supported by cash, equivalents, and available credit.