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SkyWater Technology
(NASDAQ:SKYT)
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Rating:65Neutral
Price Target:
$34.00
▲(11.04% Upside)
Action:Reiterated
Date:07/29/26
The score is driven primarily by improved financial performance and a much stronger balance sheet, but is held back by negative and inconsistent TTM operating/free cash flow. Technicals are mixed with weak short-term trend (below key shorter DMAs) but support above the 200-day average. Valuation is supportive with a modest P/E, and corporate events are a net positive due to the IonQ acquisition progress.
Positive Factors
U.S.-based specialty foundry position
SkyWater's status as a U.S.-based specialty foundry serving analog, mixed-signal and specialty processes underpins durable demand from defense, automotive and industrial customers that prioritize domestic supply and security. That structural market niche supports steadier long-term revenue and higher switching costs for customers.
Negative Factors
Negative and volatile cash generation
Negative and inconsistent operating and free cash flow raise structural concerns about SkyWater's ability to self‑fund growth, capex and working capital. Continued cash deficits increase reliance on external financing, which can constrain strategic flexibility and slow capacity investments crucial for foundry customers.
Read all positive and negative factors
Positive Factors
Negative Factors
U.S.-based specialty foundry position
SkyWater's status as a U.S.-based specialty foundry serving analog, mixed-signal and specialty processes underpins durable demand from defense, automotive and industrial customers that prioritize domestic supply and security. That structural market niche supports steadier long-term revenue and higher switching costs for customers.
Read all positive factors
SkyWater Technology (SKYT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.60B
Dividend YieldN/A
Average Volume (3M)714.76K
Price to Earnings (P/E)13.8
Beta (1Y)2.17
Revenue Growth67.18%
EPS GrowthN/A
CountryUS
Employees1,551
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)2.36
Shares Outstanding49,204,600
10 Day Avg. Volume691,607
30 Day Avg. Volume714,764
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.2
Revenue Forecast (FY)$617.14M
SkyWater Technology Business Overview & Revenue Model
Company Description
SkyWater Technology, Inc., alongside its subsidiaries, operates within the semiconductor sector, providing both development and fabrication services for microelectronic components. The company collaborates closely with clients, offering extensive ...
How the Company Makes Money
SkyWater makes money primarily by providing (1) semiconductor manufacturing services and (2) associated technology and engineering services.
1) Foundry/manufacturing revenue: The core revenue stream is fee-for-service wafer fabrication (and relat...
SkyWater Technology Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 12, 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
74
Positive
Balance Sheet
78
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 541.53M | 442.14M | 342.27M | 286.68M | 212.94M | 162.85M |
| Gross Profit | 106.23M | 88.33M | 69.63M | 59.29M | 25.97M | -7.47M |
| EBITDA | 140.15M | 144.84M | 25.25M | 14.14M | -2.68M | -23.28M |
| Net Income | 113.95M | 118.92M | -6.79M | -30.76M | -39.59M | -50.70M |
Balance Sheet | ||||||
| Total Assets | 732.90M | 733.78M | 313.77M | 316.76M | 305.76M | 263.60M |
| Cash, Cash Equivalents and Short-Term Investments | 22.23M | 23.22M | 18.84M | 18.38M | 30.02M | 12.92M |
| Total Debt | 238.32M | 250.34M | 76.76M | 72.86M | 103.04M | 61.84M |
| Total Liabilities | 545.05M | 537.96M | 250.28M | 256.06M | 251.79M | 203.67M |
| Stockholders Equity | 180.22M | 187.82M | 57.61M | 53.74M | 53.67M | 61.13M |
Cash Flow | ||||||
| Free Cash Flow | -76.50M | -53.20M | 7.20M | -408.00K | -31.75M | -87.66M |
| Operating Cash Flow | -52.22M | -24.15M | 18.46M | 10.08M | -14.30M | -55.68M |
| Investing Cash Flow | -112.91M | -118.00M | -11.21M | -10.49M | -17.45M | -29.82M |
| Financing Cash Flow | 136.13M | 146.52M | -6.79M | -11.23M | 48.86M | 90.98M |
SkyWater Technology Technical Analysis
Neutral
30.62
Price Trends
34.44
Negative
32.86
Negative
28.03
Positive
Market Momentum
-0.50
Negative
49.25
Neutral
92.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKYT, the sentiment is Neutral. The current price of 30.62 is below the 20-day moving average (MA) of 31.73, below the 50-day MA of 34.44, and above the 200-day MA of 28.03, indicating a neutral trend. The MACD of -0.50 indicates Negative momentum. The RSI at 49.25 is Neutral, neither overbought nor oversold. The STOCH value of 92.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $1.60B | 13.75 | 75.20% | ― | 67.18% | ― | |
62 Neutral | $2.62B | -50.81 | -5.61% | ― | 7.53% | -203.93% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $2.26B | -57.74 | -4.87% | ― | 32.66% | 55.60% | |
48 Neutral | $949.96M | -8.91 | -12.98% | ― | 0.60% | -359.56% | |
46 Neutral | $1.58B | 61.53 | 3.46% | 1.34% | 16.77% | -23.42% | |
45 Neutral | $732.90M | -4.19 | -42.36% | ― | 0.17% | -1.78% |
* Technology Sector Average
SKYT
SkyWater Technology
32.46
19.61
152.61%
AOSL
Alpha and Omega
33.33
8.64
34.99%
IMOS
ChipMOS Technologies
52.62
34.97
198.06%
COHU
Cohu
51.79
32.24
164.91%
ICHR
Ichor Holdings
65.33
48.67
292.14%
INDI
indie Semiconductor
3.43
-0.39
-10.21%
SkyWater Technology Corporate Events
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
SkyWater to Become IonQ Subsidiary After Merger Approval
Positive
Jul 28, 2026
On January 25, 2026, SkyWater Technology entered into a merger agreement that would see the company become a wholly owned subsidiary of quantum platform provider IonQ through a two‑step merger structure. The transaction culminated on July 28...
Executive/Board ChangesShareholder Meetings
SkyWater Shareholders Back Board Slate and Auditor Retention
Positive
Jun 16, 2026
At its annual meeting of stockholders held on June 10, 2026, SkyWater Technology, Inc. reported that shareholders elected nine directors to serve until the 2027 annual meeting, with each nominee receiving sufficient votes to remain on the board. S...
Business Operations and StrategyM&A TransactionsShareholder Meetings
SkyWater Shareholders Approve Acquisition by IonQ
Positive
May 8, 2026
On January 25, 2026, SkyWater Technology agreed to be acquired by IonQ through a two-step merger structure that will ultimately make SkyWater a wholly owned subsidiary of the quantum computing company. At a special meeting of stockholders held vir...
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.