Skyworks’ Mobile revenue drop offset by automotive and data
Skyworks Solutions reported fiscal Q3 2026 revenue of $934.8m, down 1% sequentially and 3.1% year over year, but above guidance midpoint. Mobile revenue fell to about $541m, while Broad Markets rose 8% to about $403m. Gross margin fell to 44.9%. For Q4, revenue guidance is $1.01–$1.06bn and EPS $1.27, with a pending Qorvo acquisition.
How this was made
The 30-second read
Why it matters
The quarter shows mobile softness partially offset by unit-volume, while Broad Markets growth and data-center demand are outpacing prior guidance despite supply constraints. Management also updates Q4 guidance and capital allocation tied to the Qorvo deal, including incremental net interest expense and a new $2bn buyback program.
Market read
Fresh earnings and forward guidance, plus Qorvo-related financing and buyback/dividend policy changes, create actionable near-term positioning signals for SWKS.
What to watch
Free cash flow remains negative and cash fell sharply due to debt retirement; traders may underweight balance-sheet liquidity and working-capital/inventory build risk into the September ramp.
Background
Skyworks is transitioning mix away from mobile toward Broad Markets growth engines (data center, automotive, Wi-Fi) while pursuing a pending Qorvo acquisition.
Ticker impact
Skyworks reported fiscal Q3 revenue of $934.8m and guided fiscal Q4 revenue to $1010–1060m, with margin and cash flow details.
Likely supports a modest upside bias on revenue growth expectations, offset by free-cash-flow weakness and margin pressure.
The article contains fresh, decision-relevant guidance (Q4 revenue, gross margin, opex, EPS) plus specific balance-sheet and FCF deterioration, which can drive both valuation and risk repricing.
Market effects
Analog/mixed-signal peers may see read-through on demand durability in data center, automotive, and Wi-Fi versus consumer-exposed IoT softness.
Limited direct regional impact; primarily US-listed semiconductor sentiment and supply-chain expectations.
Potential global read-through for RF/analog demand tied to iPhone ramp timing and hyperscaler power/timing buildouts.
Counterpoint
The “offset” narrative may be fragile if Apple content allocation losses persist, and supply constraints could cap data-center upside longer than management implies.
Key entities
- companySkyworks Solutions Inc
Analog and mixed-signal semiconductor supplier reporting fiscal Q3 results and issuing fiscal Q4 guidance, plus Qorvo merger financing and capital allocation updates.
- companyQorvo
Pending acquisition target referenced for incremental net interest expense and financing plan.
- companyApple
Largest customer cited as driving mobile content allocation changes and influencing mobile revenue trajectory.
