Skyworks Solutions, Inc. (SWKS) | The Buildout — AI Infrastructure

——Mkt cap — · 52-wk —–— · YTD — · delayed
Updated Aug 12, 2026Q3 FY2026 reviewed
Skyworks makes analog and mixed-signal semiconductors that connect and time signals in smartphones, WiFi, data centers, and automotive.
Broad Markets +10%
Ninth consecutive growth quarter; ~$400M quarterly revenue.
$1B+ Android win
Multigenerational premium Android design win through 2030, rising YoY.
Data center ~50%
AI data center revenue expected to grow nearly 50% in FY2026.
Share loss disclosed
10-Q cites market share loss at significant customer.
The Buildout Takeaway
The story is broadening: Broad Markets keeps growing, Android adds a second mobile stream, and merger timing may be pulling forward. But one customer is still roughly 60% of revenue and the 10-Q attributes the latest decline to share loss, so diversification is mixed.
Analyst coverage
60 analysts·35 Buy23 Hold2 Sell
Median target$70  Range $52–$85 · 7 estimates
Management guidance
FQ3 FY2026 guidance (issued May 5, 2026): revenue $900M–$950M · non-GAAP gross margin 44.5%–45.5% · diluted EPS $1.03 at midpoint.
Important: The Buildout is a data analytics platform. Content is generated by algorithms and AI agents using public filings, earnings transcripts, and market data. This is not personalized investment advice.
Our View

The Verdict

Skyworks designs and manufactures analog and mixed-signal semiconductor products — amplifiers, antenna tuners, filters, front-end modules, digital power isolators, and timing devices. It supplies RF signal-path content and timing/power devices into smartphones, WiFi, data centers, automotive, aerospace, and cellular infrastructure. In the AI buildout, it is an enabler rather than a compute provider: its precision timing and power isolation devices sit inside high-speed data-center platforms and HVDC power architectures.

Market Cap—
Revenue (TTM)$4.0B
Revenue Growth+0.1%
EBITDA Margin (TTM)19.4%
Net Cash$118M
Earnings Beats7 of 7
P/E (TTM)—
EV/EBITDA (TTM)—

What We Like

  • Broad Markets has grown for nine consecutive quarters, reaching roughly $400M in quarterly revenue and +10% YoY.
  • WiFi, data center, and automotive were nearly two-thirds of Broad Markets revenue and collectively grew 30% YoY.
  • The multigenerational Android OEM design win is expected to generate over $1B through 2030, rising year-over-year.
  • AI data center timing/power is expected to grow nearly 50% in FY2026.
  • The Qorvo combination targets $500M+ synergies and a post-close gross margin of 50%–55%.

What We’re Watching

  • Qorvo close remains formal early calendar 2027; late 2026 is only described as 'increasingly hopeful.'
  • The FQ2 FY2026 10-Q attributes the YoY revenue decline to a decrease in market share at a significant customer.
  • Input costs — gold and expedite fees — are pressing near-term gross margin; the FQ3 guide was 44.5%–45.5% flat sequentially.
  • FQ2 FY2026 free cash flow was -$32M while the quarterly dividend was $106.8M.
Bottom Line

The diversification-and-merger thesis is strengthening on disclosure — a quantified Android win, Broad Markets compounding, and a possibly earlier Qorvo close — but weakening on the core mobile franchise, where the latest 10-Q documents share loss at the largest customer. The open question is whether the Android ramp and Broad Markets growth can offset that share loss, or whether total revenue keeps drifting lower until the merger closes.

Next upThe next major catalyst is the Qorvo closing path: management has entered Phase 2 of the China SAMR review, with formal close expected early calendar 2027 and a hopeful late 2026 case. That tests whether synergies and the post-close margin model can begin as planned.
Last Quarter — Q3 FY2026

Earnings Beat

FQ3 FY2026 (ended July 3, 2026) delivered revenue of $934.8M, reported gross margin of 40.1%, and free cash flow of -$254.7M. Detailed management commentary for the quarter was not in the supplied source set.

MetricQ3 FY2026Q2 FY2026Q3 FY2025YoY
Revenue$935M$944M$965M−3.1%
Gross margin40.1%40.8%41.6%-150bps
EBITDA$165M$154M$226M−27.1%
EPS$0.22$0.24$0.70−67.8%
Free cash flow-$254.7M-$32.0M$246.0M—

Management tone: No earnings call on record for the latest period.

Management Guidance

No guidance was issued for FQ4 FY2026 in the supplied source set.

Business Trajectory

Trajectory

Reported revenue stepped down across the supplied quarters — from $1,100.2M in Q4 FY2025 to $1,035.4M, $943.7M, and $934.8M in Q3 FY2026. Reported gross margin was 40.8% in FQ2 FY2026 and 40.1% in FQ3 FY2026, while the 10-Q attributes the decline to market-share loss at a significant customer, partially offset by WiFi demand. Management has pointed to book-to-bill above 1 and lean channel inventories as signs the softness is supply-seasonal rather than a demand collapse.

Revenue & Margin Trajectory
RevenueGross margin$0$1.0B$835M$914M$852M$901M$985M$1.1B$913M$894M$1.0B$972M$810M$767M$827M$896M$766M$737M$957M$1.5B$1.2B$1.1B$1.3B$1.5B$1.3B$1.2B$1.4B$1.3B$1.2B$1.1B$1.2B$1.2B$1.0B$906M$1.0B$1.1B$953M$965M$1.1B$1.0B$944M$935M51%40%Q4'16Q1'17Q2Q3Q4Q1'18Q2Q3Q4Q1'19Q2Q3Q4Q1'20Q2Q3Q4Q1'21Q2Q3Q4Q1'22Q2Q3Q4Q1'23Q2Q3Q4Q1'24Q2Q3Q4Q1'25Q2Q3Q4Q1'26Q2Q3
RevenueGross margin$0$1.0B$835M$914M$852M$901M$985M$1.1B$913M$894M$1.0B$972M$810M$767M$827M$896M$766M$737M$957M$1.5B$1.2B$1.1B$1.3B$1.5B$1.3B$1.2B$1.4B$1.3B$1.2B$1.1B$1.2B$1.2B$1.0B$906M$1.0B$1.1B$953M$965M$1.1B$1.0B$944M$935M51%40%Q4'16Q1'17Q2Q3Q4Q1'18Q2Q3Q4Q1'19Q2Q3Q4Q1'20Q2Q3Q4Q1'21Q2Q3Q4Q1'22Q2Q3Q4Q1'23Q2Q3Q4Q1'24Q2Q3Q4Q1'25Q2Q3Q4Q1'26Q2Q3
Gross margin as reported.
Share Price — 12 Months
$25$50$75$052-wk high $83Aug '25NovFeb '26MayAug '26
52-week range $54–$83.
Share Price — 12 Months
$25$50$75$052-wk high $83Aug '25NovFeb '26MayAug '26
52-week range $54–$83.
The Numbers

The Model

The model projects FY+1 revenue of $3,975M with EBITDA of $894M (22.5% margin), and FY+2 revenue of $4,250M with EBITDA of $982M (23.1% margin). The near-term anchor is a large-customer share-loss drag against Broad Markets momentum; FY+2 assumes the Android ramp, Broad Markets growth, and Qorvo-related margin expansion path continue.

Revenue & EBITDA Projections
REVENUE$4.1B$4.0B$4.2BFY25FY+1 (E)FY+2 (E)EBITDA & MARGIN$963M$894M$982M23.1%FY25FY+1 (E)FY+2 (E)
REVENUE$4.1B$4.0B$4.2BFY25FY+1 (E)FY+2 (E)EBITDA & MARGIN$963M$894M$982M23.1%FY25FY+1 (E)FY+2 (E)
Solid bars are reported actuals; outlined bars are model projections — not company guidance.
MetricFY2025Next FY (E)Following FY (E)
Revenue$4.1B$4.0B$4.2B
YoY Growth—−2.7%+6.9%
EBITDA$963M$894M$982M
EBITDA Margin23.6%22.5%23.1%

Projections are the median of 5 independent model runs. The model’s revenue sits 5.6% above analyst consensus.

No guidance was issued for FQ4 FY2026 in the supplied source set.

What Could Go Right — and Wrong

What good looks like
  • Android design win ramps year-over-year through 2030 and reaches over $1B in cumulative revenue.
  • Qorvo transaction closes by late 2026 or early 2027, unlocking $500M+ synergies.
  • Broad Markets continues its nine-quarter growth streak and builds beyond ~$400M quarterly revenue.
  • AI data center revenue compounds at nearly 50% growth from a sub-$100M base.
  • Largest-customer blended mobile content stays roughly flat and the internal-modem migration becomes a tailwind.
What could go wrong
  • Share loss at the significant customer continues or accelerates; the 10-Q already attributes the latest decline to it.
  • Qorvo merger slips to early 2027 or later; China SAMR Phase 2 stalls.
  • Input cost inflation — gold, expedite fees — outruns selective price increases and gross margin compresses below 44.5%–45.5%.
  • Data center timing remains sub-$100M and loses design wins to aggressive precision-timing competitors such as SiTime.
  • Negative free cash flow persists as inventory and capex build while dividends continue at roughly $107M quarterly.
What’s Next

Looking Ahead

The next twelve months turn on the Qorvo closing path — completion of China SAMR Phase 2, remaining antitrust and shareholder approvals, and the debt financing steps already underway — while the Android win, WiFi 8/6G FR3 qualifications, and automotive footprint expansion begin converting to revenue.

Catalysts
  • FY2026Data center growth test — AI data center expected to grow nearly 50% this year.
  • Late 2026Qorvo close hopeful — Management 'increasingly hopeful' for late 2026; formal close remains early 2027.
  • Early calendar 2027Qorvo formal close — Subject to SAMR Phase 2, antitrust, and shareholder approvals.
  • FY2027Automotive footprint expansion — Connected car/infotainment and EV gate driver extend footprint.
  • Through 2030Android design win ramp — Rising year-over-year.
  • Next upgrade cycleWiFi 8 / 6G FR3 — Early customer collaboration; BAW filters for early 6G FR3.
Numbers

Financials

Annual Summary

MetricFY2024FY2025TTMYoY
Revenue$4.2B$4.1B$4.0B-2.2%
Gross Margin41.1%41.2%40.7%+8bps
EBITDA$1.1B$963M$14.7B-11.5%
EBITDA Margin26.1%23.6%19.4%249bps
Net Income$596M$477M$290M-19.9%
Free Cash Flow$1.6B$1.1B$10.6B—
Net Cash————

Key Ratios (Trailing)

Valuation
  • P/E TTM—
  • EV/EBITDA TTM—
  • EV/Revenue TTM—
  • Price/FCF TTM—
Profitability
  • Gross Margin (TTM)40.7%
  • EBITDA Margin (TTM)19.4%
  • Net Margin (TTM)7.2%
  • ROIC4.5%
  • FCF Conversion25.2%
  • SBC / Revenue5.8%
Reference

The Company

Skyworks Solutions, Inc. designs, manufactures, and supplies analog and mixed-signal semiconductor products — amplifiers, antenna tuners, SAW/TC-SAW/BAW filters, front-end modules, digital power isolators, and timing devices. Its RF front-end content sits in premium smartphones, while timing and power devices feed optical networking, data centers, wireless base stations, industrial, and automotive systems. The FY2025 10-K describes the company as 'a leading developer, manufacturer and provider of analog and mixed-signal semiconductor products for numerous applications including aerospace, automotive, cellular infrastructure, and smartphones.'

Manufacturing spans nine primary sites totaling approximately 2.27 million square feet, including filter manufacturing in Singapore and Osaka, manufacturing and offices in Mexicali, and design centers in California, Massachusetts, and Texas. The 10-K discloses dependence on a limited number of sole-source suppliers, and the 10-Q shows foundry capacity reservation deposits more than doubled to $57.0M in six months.

Business Segments

Mobile
58% of FQ2 FY2026 revenue
RF front-end content for premium smartphones; largest customer ~60% of revenue.
Growth driver: Android design win; possible internal-modem tailwind.
Broad Markets
42% of FQ2 FY2026 revenue
Grew 10% YoY; ninth consecutive growth quarter.
Growth driver: WiFi, data center, automotive grew 30% YoY.
Data center (within Broad Markets)
Under $100M annually
Precision timing, clock buffers, and power for 800G/1.6T and HVDC.
Growth driver: Expected to grow nearly 50% in FY2026.

Competitive Landscape

The 10-K lists competitors as Analog Devices, Broadcom, Cirrus Logic, Murata Manufacturing, NXP Semiconductors, Qorvo, Qualcomm, and Texas Instruments. Qorvo appears as both a competitor and the pending merger partner; the combination would remove a direct RF competitor. The 10-K also notes dependence on sole-source suppliers and states that ASP erosion of established products is typical of the semiconductor industry.

  • Qorvo
    Named competitor and pending merger partner; expected $500M+ synergies and post-close gross margin 50%–55%.
  • Qualcomm
    Named in the 10-K competitor list; not specifically discussed in supplied SWKS filings.
  • Broadcom
    Named in the 10-K competitor list; not specifically discussed in supplied SWKS filings.
  • Analog Devices
    Named in the 10-K competitor list; not specifically discussed in supplied SWKS filings.
  • SiTime
    Intel file describes SiTime as executing aggressively in precision timing and flags it as a direct precision-timing competitor.
From the FY2025 10-K competitor list (which also includes Cirrus Logic, Murata Manufacturing, NXP Semiconductors, and Texas Instruments) and the intel file on SiTime.

Supply Chain

Skyworks sits between unnamed foundry/material suppliers and end markets: it designs and manufactures analog/RF/timing content across nine sites, then sells through distributors and direct customers into smartphones, automotive, data-center, and industrial systems. No neighbor transcript in the supplied set named Skyworks directly.

Sole Source
Sole-source suppliers (unnamed)
Raw materials and components — 10-K says limited number of sole-source suppliers.
Supplier
Foundries (unnamed)
Wafers under long-term capacity reservation agreements; $57.0M deposits.
→
RF filters, modules, timing, power.
SWKS
Designs and manufactures analog/RF/timing content across nine sites totaling 2.27M sq ft.
→
Apple
67% of FY2025 revenue
Named over-10% customer; largest customer ~60% in FQ2 FY2026.
Leading Android OEM (unnamed)
>$1B through 2030
Multigenerational premium Android design win.
BYD
In-vehicle infotainment engagement.
Leading German Tier-1 supplier
In-vehicle infotainment engagement.
Hyperscalers, ODMs, infrastructure OEMs
Data center timing and power for 800G/1.6T.

Analysis updated Aug 12, 2026, reviewing Q3 FY2026. Prices delayed. Built with The Buildout’s published methodology. Not investment advice. No positions held. © The Buildout 2026.