SkyWater Technology (SKYT)
NASDAQ:SKYT
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SkyWater Technology
(NASDAQ:SKYT)
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Rating:68Neutral
Price Target:
$36.00
▲(9.46% Upside)
Action:ReiteratedDate:04/25/26
The score is driven primarily by mixed financial performance (strong growth and a much improved balance sheet, but uneven profitability and weak/volatile recent cash flow). Technicals are supportive with strong momentum, while valuation benefits from a low P/E. Corporate-event risk remains elevated due to the FTC Second Request, partially offset by the strategic upside of the pending IonQ deal.
Positive Factors
Specialty U.S. foundry and trusted supply chain
SkyWater’s focus as a specialty U.S. foundry serving aerospace, defense, medical and automotive creates durable demand from customers prioritizing domestic, trusted manufacturing and specialized processes. This niche reduces direct exposure to commodity wafer competition and supports long-term contract and program revenue.
Negative Factors
Inconsistent operating profitability
Volatile operating margins indicate that core manufacturing economics and fixed-cost absorption are uneven across periods. Without steadier operating profitability, returns on capital and the ability to self-fund strategic investments will remain uncertain over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Specialty U.S. foundry and trusted supply chain
SkyWater’s focus as a specialty U.S. foundry serving aerospace, defense, medical and automotive creates durable demand from customers prioritizing domestic, trusted manufacturing and specialized processes. This niche reduces direct exposure to commodity wafer competition and supports long-term contract and program revenue.
Read all positive factors
SkyWater Technology (SKYT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.58B
Dividend YieldN/A
Average Volume (3M)1.10M
Price to Earnings (P/E)―
Beta (1Y)2.06
Revenue Growth29.18%
EPS GrowthN/A
CountryUS
Employees702
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)2.46
Shares Outstanding49,156,853
10 Day Avg. Volume1,362,502
30 Day Avg. Volume1,098,498
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)4.73
Price to Sales (P/S)2.01
P/FCF Ratio-16.70
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue4.23
Enterprise Value/Gross Profit21.17
Enterprise Value/Ebitda12.96
Forecast
1Y Price Target
$35.00Price Target Upside6.42% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)-0.3
Revenue Forecast (FY)$609.54M
SkyWater Technology Business Overview & Revenue Model
Company Description
SkyWater Technology, Inc., together with its subsidiaries, provides semiconductor development and manufacturing services. The company offers engineering and process development support services to co-create technologies with customers; and semicon...
How the Company Makes Money
SkyWater makes money primarily by providing foundry and technology services to customers that design chips but outsource manufacturing. Its core revenue model is contract-based: customers pay for wafer fabrication (running customer designs through...
SkyWater Technology Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
SkyWater had a strong quarter with record revenues and significant growth in the Quantum computing segment. The acquisition of Fab 25 has been successfully integrated and is contributing positively. However, challenges in A&D revenues and potential additional costs in Q4 pose some risks.Positive Updates
Record Q3 Revenues
SkyWater reported record Q3 revenues of nearly $151 million, which exceeded expectations by more than $9 million.
Negative Updates
Challenges in Aerospace and Defense (A&D) Revenue
A&D-related ATS revenues are expected to decline in Q4 due to government budget dynamics and a shutdown of the U.S. government.
Read all updates
Q3-2025 Updates
Positive
Negative
Record Q3 Revenues
SkyWater reported record Q3 revenues of nearly $151 million, which exceeded expectations by more than $9 million.
Read all positive updates
Company Guidance
During the third quarter of 2025, SkyWater Technology reported exceptional financial results, surpassing expectations across all metrics. The company achieved record Q3 revenues of nearly $151 million, exceeding the forecast by over $9 million, driven largely by the revenue from Fab 25 in Texas and higher-than-anticipated ATS revenues which reached over $54 million. The company also saw its strongest quarter for quantum computing-related revenue, positioning it to exceed 30% revenue growth in this segment for fiscal 2025. The gross margin for Q3 stood at 24.6%, facilitated by an $8 million benefit expected to continue into Q4. For the fourth quarter, SkyWater anticipates revenues between $155 million and $165 million, with a gross margin of 17% to 20% and adjusted EBITDA projected between $16 million and $22 million. The upcoming year is expected to see revenue and adjusted EBITDA performance exceeding prior conservative estimates of at least $600 million and $60 million, respectively, as the company continues to leverage its strategic investments and customer engagements.SkyWater Technology Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
78
Positive
Cash Flow
44
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 442.14M | 342.27M | 286.68M | 212.94M | 162.85M |
| Gross Profit | 88.33M | 69.63M | 59.29M | 25.97M | -7.47M |
| EBITDA | 34.50M | 25.25M | 14.14M | -2.68M | -23.28M |
| Net Income | 118.92M | -6.79M | -30.76M | -39.59M | -50.70M |
Balance Sheet | |||||
| Total Assets | 733.78M | 313.77M | 316.76M | 305.76M | 263.60M |
| Cash, Cash Equivalents and Short-Term Investments | 23.22M | 18.84M | 18.38M | 30.02M | 12.92M |
| Total Debt | 250.34M | 76.76M | 72.86M | 103.04M | 61.84M |
| Total Liabilities | 537.96M | 250.28M | 256.06M | 251.79M | 203.67M |
| Stockholders Equity | 187.82M | 57.61M | 53.74M | 53.67M | 61.13M |
Cash Flow | |||||
| Free Cash Flow | -53.20M | 7.20M | -408.00K | -31.75M | -87.66M |
| Operating Cash Flow | -24.15M | 18.46M | 10.08M | -14.30M | -55.68M |
| Investing Cash Flow | -118.00M | -11.21M | -10.49M | -17.45M | -29.82M |
| Financing Cash Flow | 146.52M | -6.79M | -11.23M | 48.86M | 90.98M |
SkyWater Technology Technical Analysis
Positive
32.89
Price Trends
28.87
Positive
26.12
Positive
19.96
Positive
Market Momentum
0.93
Negative
71.10
Negative
92.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKYT, the sentiment is Positive. The current price of 32.89 is above the 20-day moving average (MA) of 28.98, above the 50-day MA of 28.87, and above the 200-day MA of 19.96, indicating a bullish trend. The MACD of 0.93 indicates Negative momentum. The RSI at 71.10 is Negative, neither overbought nor oversold. The STOCH value of 92.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKYT.
SkyWater Technology Risk Analysis
SkyWater Technology disclosed 62 risk factors in its most recent earnings report. SkyWater Technology reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SkyWater Technology Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.58B | -28.80 | 99.25% | ― | 29.18% | ― | |
67 Neutral | $2.20B | -29.19 | -9.07% | ― | 23.10% | 35.49% | |
62 Neutral | $2.42B | -158.49 | -7.72% | ― | 7.53% | -203.93% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $1.70B | 16.34 | 2.07% | 2.25% | 8.86% | -62.89% | |
53 Neutral | $1.26B | -11.11 | -12.29% | ― | 2.92% | -331.23% | |
51 Neutral | $990.60M | -5.48 | -37.84% | ― | 0.33% | 3.17% |
* Technology Sector Average
SKYT
SkyWater Technology
32.19
24.95
344.61%
AOSL
Alpha and Omega
42.18
22.43
113.57%
IMOS
ChipMOS Technologies
48.14
31.39
187.39%
COHU
Cohu
46.69
31.08
199.10%
ICHR
Ichor Holdings
69.72
53.72
335.75%
INDI
indie Semiconductor
4.36
2.29
110.63%
SkyWater Technology Corporate Events
M&A TransactionsRegulatory Filings and Compliance
SkyWater Technology merger faces extended FTC review period
Negative
Apr 24, 2026
On January 25, 2026, SkyWater Technology agreed to be acquired by IonQ through a two-step merger structure that will leave SkyWater as a wholly owned subsidiary of IonQ. The deal remains subject to customary closing conditions, including antitrust...
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
SkyWater Approves Retention Awards Amid IonQ Merger Plans
Positive
Mar 26, 2026
On March 20, 2026, SkyWater Technology’s board compensation committee approved a cash retention program for key employees, granting awards of $579,145 to CEO Thomas Sonderman, $347,975 to executive John Sakamoto, and $337,840 to executive St...
Delistings and Listing ChangesM&A Transactions
SkyWater Technology to Be Acquired by IonQ in Merger
Positive
Jan 26, 2026
On January 25, 2026, SkyWater Technology, Inc. entered into a merger agreement with quantum computing company IonQ, Inc. under which SkyWater will be acquired in a two-step merger and become an indirect, wholly owned subsidiary of IonQ. Under the ...
Business Operations and StrategyM&A Transactions
SkyWater Technology to Be Acquired by IonQ
Positive
Jan 26, 2026
On January 25, 2026, SkyWater Technology entered into a definitive agreement to be acquired by quantum computing company IonQ in a cash-and-stock transaction valued at approximately $1.8 billion, offering SkyWater shareholders $35.00 per share, a ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.