Skyworks Solutions (SWKS) Q2 2026 earnings summary

Executive summary

• Secured a multi-generational design win with a leading Android OEM, expected to generate over $1 billion in revenue through 2030, expanding presence in premium AI-enabled devices.

• Revenue for Q2 FY2026 was $944 million, with non-GAAP diluted EPS of $1.15 and GAAP diluted EPS of $0.24, both exceeding guidance high-end.

• Broad Markets segment delivered double-digit year-over-year growth, led by Wi-Fi, data center, and automotive.

• Regulatory reviews for the Qorvo merger are progressing, with all shareholder approvals obtained and closing expected between late 2026 and early 2027; anticipated synergies of $500 million or more.

• Strong quarterly execution with revenue and EPS above guidance, despite year-over-year declines in GAAP net income and operating income.

Financial highlights

• Revenue reached $944 million, exceeding the high end of guidance by $20 million.

• Non-GAAP diluted EPS was $1.15, $0.05 above the high end of guidance; GAAP diluted EPS was $0.24.

• Non-GAAP gross profit was $425 million (45% margin); GAAP gross profit was $385.3 million (40.8% margin).

• Non-GAAP operating income was $189 million (20% margin); GAAP operating income was $42 million (4.5% margin).

• Ended the quarter with $1.44 billion in cash/investments and $996.6 million in debt.

• Paid $107 million in quarterly dividends and declared a $0.71 per share dividend payable June 16, 2026.

Outlook and guidance

• Q3 FY2026 revenue expected between $900 million and $950 million; non-GAAP diluted EPS forecasted at $1.03 at the midpoint.

• Mobile revenue projected to decline low single digits sequentially; Broad Markets to rise modestly and up high single digits year-over-year, representing about 43% of sales.

• Gross margin expected at 44.5%-45.5%, flat sequentially.

• Operating expenses guided between $235 million and $245 million.

• Management focused on improving gross profit through higher unit volumes, manufacturing efficiencies, and new product introductions.