fourth fiscal quarter and fiscal year 2026
Filed Nov 3, 2026Skyworks Begins New Chapter Following Qorvo Combination; Reports Fourth Quarter and Fiscal 2026 Results
Fourth-quarter standalone revenue, GAAP operating income, GAAP net income, GAAP diluted EPS, non-GAAP diluted EPS and free cash flow were below the prior-year period, while the company completed the Qorvo combination and guided its first combined quarter to revenue of $1.80 billion to $1.90 billion.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenue, three months ended October 2, 2026GAAP | $1.05B | – | – |
| Net revenue, twelve months ended October 2, 2026GAAP | $3.96B | – | – |
| Cost of goods sold, three months ended October 2, 2026GAAP | 618.3M | – | – |
| Cost of goods sold, twelve months ended October 2, 2026GAAP | 2.34B | – | – |
| Gross profit, three months ended October 2, 2026GAAP | $427.4M | – | – |
| Gross profit, twelve months ended October 2, 2026GAAP | $1.61B | – | – |
| Gross margin, three months ended October 2, 2026GAAP | 40.9 % | – | – |
| Gross margin, twelve months ended October 2, 2026GAAP | 40.8 % | – | – |
| Non-GAAP gross profit, three months ended October 2, 2026non-GAAP | $464.6M | – | – |
| Non-GAAP gross profit, twelve months ended October 2, 2026non-GAAP | $1.79B | – | – |
| Non-GAAP gross margin, three months ended October 2, 2026non-GAAP | 44.4 % | – | – |
| Non-GAAP gross margin, twelve months ended October 2, 2026non-GAAP | 45.3 % | – | – |
| Research and development, three months ended October 2, 2026GAAP | 213.5M | – | – |
| Research and development, twelve months ended October 2, 2026GAAP | 837M | – | – |
| Selling, general, and administrative, three months ended October 2, 2026GAAP | 109.3M | – | – |
| Selling, general, and administrative, twelve months ended October 2, 2026GAAP | 436.1M | – | – |
| Amortization of intangibles, three months ended October 2, 2026GAAP | 200K | – | – |
| Amortization of intangibles, twelve months ended October 2, 2026GAAP | 900K | – | – |
| Restructuring, impairment, and other charges, three months ended October 2, 2026GAAP | 82.1M | – | – |
| Restructuring, impairment, and other charges, twelve months ended October 2, 2026GAAP | 124.2M | – | – |
| Total operating expenses, three months ended October 2, 2026GAAP | 405.1M | – | – |
| Total operating expenses, twelve months ended October 2, 2026GAAP | 1.40B | – | – |
| Operating income, three months ended October 2, 2026GAAP | $22.3M | – | – |
| Operating income, twelve months ended October 2, 2026GAAP | $216.7M | – | – |
| Operating margin, three months ended October 2, 2026GAAP | 2.1 % | – | – |
| Operating margin, twelve months ended October 2, 2026GAAP | 5.5 % | – | – |
| Non-GAAP operating income, three months ended October 2, 2026non-GAAP | $227.2M | – | – |
| Non-GAAP operating income, twelve months ended October 2, 2026non-GAAP | $849.8M | – | – |
| Non-GAAP operating margin, three months ended October 2, 2026non-GAAP | 21.7 % | – | – |
| Non-GAAP operating margin, twelve months ended October 2, 2026non-GAAP | 21.5 % | – | – |
| Interest expense, three months ended October 2, 2026GAAP | −21.5M | – | – |
| Interest expense, twelve months ended October 2, 2026GAAP | −41.3M | – | – |
| Other income, net, three months ended October 2, 2026GAAP | 9M | – | – |
| Other income, net, twelve months ended October 2, 2026GAAP | 38.3M | – | – |
| Income before income taxes, three months ended October 2, 2026GAAP | 9.8M | – | – |
| Income before income taxes, twelve months ended October 2, 2026GAAP | 213.7M | – | – |
| Provision (benefit) for income taxes, three months ended October 2, 2026GAAP | −13.6M | – | – |
| Provision (benefit) for income taxes, twelve months ended October 2, 2026GAAP | 41.6M | – | – |
| Net income, three months ended October 2, 2026GAAP | $23.4M | – | – |
| Net income, twelve months ended October 2, 2026GAAP | $172.1M | – | – |
| Non-GAAP net income, three months ended October 2, 2026non-GAAP | $193.3M | – | – |
| Non-GAAP net income, twelve months ended October 2, 2026non-GAAP | $762.1M | – | – |
| Diluted earnings per share, three months ended October 2, 2026GAAP | $ 0.15 | – | – |
| Diluted earnings per share, twelve months ended October 2, 2026GAAP | $ 1.14 | – | – |
| Non-GAAP net income per share, diluted, three months ended October 2, 2026non-GAAP | $ 1.28 | – | – |
| Non-GAAP net income per share, diluted, twelve months ended October 2, 2026non-GAAP | $ 5.05 | – | – |
| Net cash provided by operating activities, three months ended October 2, 2026GAAP | $33.7M | – | – |
| Net cash provided by operating activities, twelve months ended October 2, 2026GAAP | $549.9M | – | – |
| Capital expenditures, three months ended October 2, 2026other | −94.7M | – | – |
| Capital expenditures, twelve months ended October 2, 2026other | −320.6M | – | – |
| Non-GAAP free cash flow, three months ended October 2, 2026non-GAAP | −$61M | – | – |
| Non-GAAP free cash flow, twelve months ended October 2, 2026non-GAAP | $229.3M | – | – |
| Non-GAAP free cash flow margin, three months ended October 2, 2026non-GAAP | (5.8) % | – | – |
| Non-GAAP free cash flow margin, twelve months ended October 2, 2026non-GAAP | 5.8 % | – | – |
| Cash, cash equivalents, and marketable securities, as of October 2, 2026GAAP | $2.61B | – | – |
| Inventory, as of October 2, 2026GAAP | 1.07B | – | – |
| Debt, as of October 2, 2026GAAP | 2.47B | – | – |
first fiscal quarter of 2027 outlook
- Revenue$1.80 billion to $1.90 billion
- NoteNon-GAAP diluted earnings per share of $1.25
- Noteapproximately 241 million diluted shares
- Noteapproximately $50 million of other expense, primarily interest on the acquisition financing
- NoteAt the midpoint, approximately $1.07 billion from legacy Skyworks and approximately $780 million from legacy Qorvo
- NoteSmartphone revenue to decline in the low teens percent sequentially
- NoteDiversified Growth Markets revenue to grow in the low single digits sequentially and in the high single to low double digits year-over-year on a combined basis
- NoteDiversified Growth Markets representing more than 40 percent of sales
- Noteapproximately $150 million of synergies in operating expenses within fiscal 2027, weighted to the second half of the year
- Noteexit fiscal 2027 at an annualized run-rate of approximately $250 million to $300 million
- Note$500 million or more of annual cost synergies within 24 to 36 months of close
- Noteestimated share-based compensation expense of $0.40 to $0.60 per diluted share
- Noteestimated amortization of intangibles of $0.45 to $0.65 per diluted share
- Notecertain tax items of -$0.15 to $0.20 per diluted share
- Noteunknown items estimated to be in the range of $0.20 to $0.40 in quarterly earnings per diluted share on a GAAP basis
Capital returns
- Repurchase of common stock - stock repurchase program: (107.0) million for the three months ended October 2, 2026; (114.5) million for the twelve months ended October 2, 2026.
- Repurchase of common stock - payroll tax withholdings on equity awards: (1.3) million for the three months ended October 2, 2026; (42.9) million for the twelve months ended October 2, 2026.
- Dividends paid: (320.1) million for the twelve months ended October 2, 2026.
What drove it
- The Qorvo combination closed after the end of the fiscal fourth quarter, so reported September-quarter results are Skyworks standalone.
- Combined September-quarter revenue was approximately $1.98 billion, including an additional week in Qorvo's fiscal quarter.
- Qorvo's fiscal quarter ended October 3, 2026 and included an additional week of approximately $70 million.
- The company secured timing design wins across AI data center networking and began shipping high-performance clocks for leading AI hyperscalers' rackscale systems.
- The company cited automotive design wins including an EV traction inverter gate driver win with a German premium automaker and new infotainment programs with leading global OEMs.
- Diversified Growth Markets guidance is led by data center and defense.
Concerns
- The company expects Smartphone revenue to decline in the low teens percent sequentially, reflecting seasonality, well-known softness in the Android market, and the extra week in Qorvo's September quarter.
- Fourth-quarter GAAP operating income was $ 22.3 million, compared with $ 111.0 million in the prior-year period, while restructuring, impairment, and other charges were 82.1 million, compared with 1.6 million.
- Fourth-quarter non-GAAP free cash flow was $ (61.0) million, compared with $ 144.0 million in the prior-year period.
- Debt was 2,472.8 million as of October 2, 2026, compared with 995.8 million as of October 3, 2025.
- The December-quarter outlook reflects only the early stages of synergy realization.
What to watch
- Delivery of approximately $150 million of synergies in operating expenses within fiscal 2027, weighted to the second half of the year.
- Progress toward an annualized synergy run-rate of approximately $250 million to $300 million exiting fiscal 2027 and $500 million or more of annual cost synergies within 24 to 36 months of close.
- The first fully combined reporting period, when the company will report Smartphone and Diversified Growth Markets as revenue categories.
- Whether Diversified Growth Markets achieves the guided low single digits sequential growth despite the extra week in the prior quarter.
- The effect of approximately $50 million of other expense, primarily interest on acquisition financing, expected in the first fiscal quarter of 2027.
Balance sheet and cash flow
- Cash, cash equivalents, and marketable securities were $ 2,606.1 million as of October 2, 2026, versus $ 1,388.4 million as of October 3, 2025.
- Debt was 2,472.8 million as of October 2, 2026, versus 995.8 million as of October 3, 2025.
- Accounts receivable, net was 494.7 million as of October 2, 2026, versus 598.1 million as of October 3, 2025.
- Inventory was 1,070.0 million as of October 2, 2026, versus 754.7 million as of October 3, 2025.
- Proceeds from issuance of long-term debt, net were 1,979.9 million for the three and twelve months ended October 2, 2026.
- Payments of debt were (500.0) million for the twelve months ended October 2, 2026.
- Net cash provided by operating activities was $ 33.7 million for the three months ended October 2, 2026 and $ 549.9 million for the twelve months ended October 2, 2026.
- Non-GAAP free cash flow was $ (61.0) million for the three months ended October 2, 2026 and $ 229.3 million for the twelve months ended October 2, 2026.
Analysis
Skyworks reported standalone fourth-quarter revenue of $ 1,045.7 million, compared with $ 1,100.2 million in the prior-year period. Fiscal 2026 revenue was $ 3,959.6 million, compared with $ 4,086.9 million in fiscal 2025. The Qorvo combination closed after the fiscal fourth quarter, meaning the reported quarter does not include Qorvo. Management presented combined September-quarter revenue of $ 1,983 million, with Qorvo contributing $ 937 million, including an additional week of approximately $70 million.
Profitability was materially lower under GAAP. Fourth-quarter operating income was $ 22.3 million versus $ 111.0 million, and GAAP diluted EPS was $ 0.15 versus $ 0.94. Restructuring, impairment, and other charges were 82.1 million versus 1.6 million. Non-GAAP operating income was $ 227.2 million versus $ 264.0 million, while non-GAAP operating margin was 21.7 % versus 24.0 %. Fourth-quarter non-GAAP diluted EPS was $ 1.28 compared with $ 1.76.
Cash generation also weakened in the reported quarter. Net cash provided by operating activities was $ 33.7 million versus $ 200.0 million, capital expenditures were (94.7) million versus (56.0) million, and non-GAAP free cash flow was $ (61.0) million versus $ 144.0 million. The balance sheet reflected the acquisition financing: cash, cash equivalents, and marketable securities were $ 2,606.1 million, while debt was 2,472.8 million. The company repurchased (107.0) million of common stock under its stock repurchase program during the quarter.
The first-quarter fiscal 2027 outlook is the first combined-company guide, calling for revenue of $1.80 billion to $1.90 billion and non-GAAP diluted EPS of $1.25. At the revenue midpoint, management expects approximately $1.07 billion from legacy Skyworks and approximately $780 million from legacy Qorvo. Smartphone revenue is expected to decline in the low teens percent sequentially, while Diversified Growth Markets is expected to grow in the low single digits sequentially and represent more than 40 percent of sales.
The integration and synergy timetable is central to the outlook. Management expects approximately $150 million of operating-expense synergies within fiscal 2027, weighted to the second half, and an annualized run-rate of approximately $250 million to $300 million exiting the year. The stated long-term target remains $500 million or more of annual cost synergies within 24 to 36 months of close. Data center timing wins, hyperscaler clock shipments, defense, and automotive design wins are the cited growth vectors supporting the new Diversified Growth Markets category.
Management, verbatim
Today marks a new chapter for Skyworks. Combining with Qorvo gives us the scale and the technology breadth to lead the next era of wireless, as AI moves from the infrastructure to the devices, vehicles and machines around us.
Phil Brace, chief executive officer and president of Skyworks
Because our combination with Qorvo closed after the end of our fiscal fourth quarter, our reported September-quarter results are Skyworks standalone.
Philip Carter, chief financial officer and senior vice president of Skyworks
For the December quarter, our first as a combined company, we anticipate revenue of $1.80 billion to $1.90 billion.
Philip Carter, chief financial officer and senior vice president of Skyworks
Not in the filing
stated, not guessed- Prior-quarter actual results for fourth-quarter fiscal 2026 revenue, earnings, margins, operating cash flow, and free cash flow were not provided.
- Reported fiscal fourth-quarter 2026 revenue by Smartphone and Diversified Growth Markets was not provided because the reported quarter is Skyworks standalone and the new revenue categories begin with the first fiscal quarter of 2027.
- First-quarter fiscal 2027 guidance for gross margin, operating expenses, and GAAP diluted earnings per share was not provided.
- A first-quarter fiscal 2027 GAAP tax-rate outlook was not provided.
- Prior-period guidance was not provided, so no comparison of actual results with prior guidance is available.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.