Investment Thesis
Skyworks demonstrates solid financial health with strong liquidity metrics (2.4x current ratio), excellent free cash flow generation (32.7% FCF margin, $339M annually), and conservative leverage (0.09x debt-to-equity). However, the company faces significant headwinds with flat revenue growth and declining profitability (net income down 19.9% YoY, EPS down 16.5%), coupled with weak return metrics (1.4% ROE, 1.0% ROA), suggesting operational challenges despite operational cash generation capability.
SWKS Strengths
- Strong free cash flow generation ($339M) with excellent 32.7% FCF margin demonstrates operational efficiency
- Excellent liquidity position (2.4x current ratio, 1.8x quick ratio) with $1.6B cash and minimal leverage (0.09x debt-to-equity)
- Robust interest coverage (16.5x) provides substantial financial flexibility and debt servicing capability
SWKS Risks
- Revenue stagnation (0% YoY growth) signals potential market share losses or industry headwinds in semiconductor segment
- Profitability deterioration with net income down 19.9% YoY and net margin at only 7.6%, indicating margin compression or elevated costs
- Weak capital returns (1.4% ROE, 1.0% ROA) despite $5.8B equity base suggests inefficient asset utilization or operational underperformance
Key Metrics to Watch
- Revenue growth trajectory - must return to positive YoY growth to demonstrate market recovery
- Gross margin sustainability - monitor whether 41.3% level can be maintained amid cost pressures
- Operating leverage recovery - track if operating income can grow despite flat revenues through cost management
- Return on equity trend - ROE must improve above 1.4% to validate effective capital deployment
SWKS Financial Metrics
SWKS Profitability Ratios
SWKS Balance Sheet & Liquidity
SWKS 5-Year Financial Trend
5-Year Trend Summary: SKYWORKS SOLUTIONS, INC.'s revenue has remained relatively flat over the 5-year period, with a 7% decline. The most recent EPS of $6.13 reflects profitable operations.
SWKS Growth Metrics (YoY)
SWKS Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.0B | $79.2M | $0.53 |
| Q3 2025 | $905.5M | $68.7M | $0.70 |
| Q2 2025 | $953.2M | $68.7M | $0.43 |
| Q1 2025 | $1.1B | $162.0M | $1.00 |
| Q3 2024 | $905.5M | $120.9M | $0.75 |
| Q2 2024 | $1.0B | $183.3M | $1.14 |
| Q1 2024 | $1.2B | $231.3M | $1.44 |
| Q3 2023 | $1.1B | $195.8M | $1.22 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
SWKS Capital Allocation
SWKS SEC Filings
Access official SEC EDGAR filings for SKYWORKS SOLUTIONS, INC. (CIK: 0000004127)