Skyworks Solutions (SWKS) Q3 2026 earnings summary

Executive summary

• Reported Q3 FY2026 revenue of $935 million, with non-GAAP EPS of $1.08 and GAAP EPS of $0.22, exceeding expectations despite a year-over-year decline due to market share loss at a key customer; Broad Markets growth was led by automotive and data center.

• Progressed on the Qorvo merger, valued at approximately $22 billion, with regulatory reviews advancing to phase III in China and anticipated closing within the calendar year.

• Announced new leadership team and capital allocation framework for the combined company.

• Demand remains steady across mobile and broad markets, with lean channel inventories.

Financial highlights

• Q3 FY2026 revenue: $935 million; mobile accounted for 57% and broad markets 43% of total revenue.

• Gross profit: $420 million (non-GAAP), $375 million (GAAP); gross margin: 45% (non-GAAP), 40.1% (GAAP).

• Operating income: $182 million (non-GAAP), $48.5 million (GAAP); operating margin: 19.4% (non-GAAP), 5.2% (GAAP).

• Net income: $164 million (non-GAAP), $33.9 million (GAAP); non-GAAP diluted EPS: $1.08, GAAP diluted EPS: $0.22.

• Ended quarter with $814 million in cash/investments and $497 million in debt after retiring $500 million in notes.

Outlook and guidance

• Q4 FY2026 revenue expected between $1.01 billion and $1.06 billion; non-GAAP diluted EPS projected at $1.27 at midpoint.

• Mobile expected to grow sequentially in the high teens; broad markets to grow ~5% year-over-year.

• Gross margin guidance: 44%-45%; operating expenses: $235-$245 million.

• Guidance includes $5 million in incremental net interest expense due to Qorvo acquisition financing.

• Anticipates $2 billion in new debt financing for the Qorvo transaction.