Skyworks Q4 Revenue Slips 5% to $1.05B as Qorvo Deal Closes and Smartphone Sales Are Seen Falling
The first combined quarter is guided to $1.80B-$1.90B with smartphone revenue down in the low teens sequentially, and the fiscal Q4 free cash flow was negative.
Skyworks Solutions (SWKS) reported fiscal fourth-quarter revenue of $1.05 billion, down about 5% from a year earlier, and non-GAAP earnings of $1.28 per share, down from $1.76. Revenue landed inside its guidance of $1.01 billion to $1.06 billion, and EPS was a cent above the $1.27 guided at the midpoint. The company completed its combination with Qorvo after the quarter closed and guided the first combined quarter to revenue of $1.80 billion to $1.90 billion. Shares were down about 14.9% in after-hours trading.
Fiscal fourth-quarter results
| Metric | Q4 FY2026 | Q4 FY2025 | Change |
|---|---|---|---|
| Revenue | $1,045.7M | $1,100.2M | -5.0% |
| Non-GAAP diluted EPS | $1.28 | $1.76 | -27% |
| GAAP diluted EPS | $0.15 | $0.94 | -84% |
| Non-GAAP gross margin | 44.4% | 46.5% | -2.1 pts |
| Non-GAAP operating income | $227.2M (21.7% margin) | n/a | n/a |
| Free cash flow | -$61.0M | n/a | Operating cash flow $33.7M, capex $94.7M |
For the full fiscal year, revenue was $3,959.6 million versus $4,086.9 million, and non-GAAP EPS was $5.05 versus $5.93. By our calculation, fiscal Q4 revenue was about 1% above the $1.035 billion midpoint of the guide.
Fiscal first-quarter outlook
| Item | Guidance |
|---|---|
| Revenue | $1.80B to $1.90B (combined with Qorvo) |
| Non-GAAP EPS | About $1.25 at the midpoint, on about 241M diluted shares |
| Legacy split at midpoint | About $1.07B Skyworks and about $780M Qorvo |
| Smartphone revenue | Down in the low teens percent sequentially |
| Diversified Growth Markets | Up in the low single digits sequentially; more than 40% of sales |
Skyworks said combined September-quarter revenue was about $1.98 billion, including roughly $70 million from an extra week in Qorvo's quarter. By our calculation, the $1.85 billion midpoint is about 6.6% below that combined figure, or about 3% below it after removing the extra week.
The Qorvo combination
- Synergies. About $150 million in fiscal 2027 operating expense savings, an exit run rate of $250 million to $300 million, and a target of $500 million or more a year within 24 to 36 months of close.
- Credit. Moody's upgraded Skyworks to investment grade (Baa3), and Fitch affirmed BBB+ with a stable outlook.
- Balance sheet. Cash and marketable securities were $2.61 billion and debt was $2.47 billion at the end of the quarter, before the deal closed.
- Buybacks. Skyworks repurchased $107.0 million of stock in the fourth quarter. No dividend was paid in the quarter.
What to watch
- Conference call. The pace of smartphone declines and when the combined company reaches its synergy targets.
- Reporting. From fiscal Q1 2027, results move to a fully combined basis with Smartphone and Diversified Growth Markets categories, so comparisons to prior quarters will change.
- Related coverage. See our reports on AMD, Fabrinet and the Nasdaq analysis.
Sources: Skyworks' fiscal fourth-quarter 2026 results and fiscal third-quarter release on SEC EDGAR, which contains the prior guidance. The after-hours move comes from market data and may differ by source. Items labeled by our calculation are our own arithmetic. This article is informational only and is not investment advice.
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