Skyworks Solutions (SWKS) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 revenue was $953.2 million, with non-GAAP diluted EPS of $1.24 and GAAP diluted EPS of $0.43; revenue declined 8.9% year-over-year, mainly due to lower mobile demand, partially offset by growth in non-mobile products.

• Net income for the quarter was $68.7 million, a 62.5% decrease year-over-year; non-GAAP net income was $196.8 million.

• Free cash flow reached $371 million (39% margin), and operating cash flow was $410 million (43% margin).

• Over $600 million was returned to shareholders via $500 million in share repurchases and $110.6 million in dividends, a record quarterly return.

• Leadership transitions: Philip Brace appointed President and CEO effective February 17, 2025; Mark Dentinger to become CFO and Todd Lepinski to become SVP of Sales and Marketing, both effective June 2, 2025.

Financial highlights

• Revenue: $953.2 million for Q2 FY2025, down from $1,046.0 million year-over-year.

• Gross profit: $445 million non-GAAP (gross margin 46.7%); GAAP gross profit $391.6 million (gross margin 41.1%).

• Operating income: $222.2 million non-GAAP (18.1% margin); $97.3 million GAAP (10.2% margin).

• Net income: $197 million non-GAAP; $68.7 million GAAP; diluted EPS: $1.24 non-GAAP, $0.43 GAAP.

• Cash, cash equivalents, and marketable securities totaled $1.53 billion at quarter end; debt stood at $995 million.

Outlook and guidance

• Q3 FY2025 revenue expected between $920 million and $960 million.

• Non-GAAP diluted EPS forecasted at $1.24 at the midpoint; gross margin guidance: 46%-47%; operating expenses: $220-$230 million.

• Mobile business projected to decline low single digits sequentially; broad markets to grow sequentially with accelerating year-over-year trends.

• Management expects Q4 FY2025 revenues to be negatively impacted by a decrease in market share at a significant customer.

• Liquidity is expected to be sufficient for short- and long-term needs.