Skyworks Solutions (SWKS) AI Stock Analysis

• Market Cap: $8.76B
• Dividend Yield: 4.37%
• Average Volume (3M): 2.84M
• Price to Earnings (P/E): 19.0
• Beta (1Y): 1.54
• Revenue Growth: -2.18%
• EPS Growth: -16.84%
• Country: US
• Employees: 10,100
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 1.76
• Shares Outstanding: 149,930,240
• 10 Day Avg. Volume: 4,217,855
• 30 Day Avg. Volume: 2,835,232
• PEG Ratio: -1.47
• Price to Book (P/B): 2.07
• Price to Sales (P/S): 2.91
• P/FCF Ratio: 10.77
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 1.10
• Enterprise Value/Gross Profit: 2.67
• Enterprise Value/Ebitda: 4.51
• 1Y Price Target: $79.20
• Price Target Upside: 37.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 18
• EPS Forecast (FY): 4.43
• Revenue Forecast (FY): $3.64B

• Rating: 63 Neutral
• Price Target: $64.00 ▲(10.78% Upside)

The score is held back primarily by weakening multi-year fundamentals (declining revenue and margins) and a clearly bearish technical trend (below key moving averages with negative MACD). Offsetting factors include a strong dividend yield, a solid recent earnings print with still-positive margins, and positive strategic catalysts from the planned Qorvo combination and improved financing flexibility.

Positive Factors

Strategic Merger with Qorvo

The announced combination with Qorvo targets a $22B enterprise and is expected to add scale, diversify products, and be accretive to non‑GAAP EPS. This structural consolidation can strengthen competitive position, broaden customer exposure, and yield long‑term cost and R&D synergies.

Improved Leverage

A decline in debt-to-equity to ~0.21 from 0.42 represents materially lower leverage and better solvency. Sustained lower leverage enhances financial flexibility to fund R&D, capital spending, dividends or integration costs for strategic transactions without overreliance on expensive external financing.

Product Innovation and IoT Content

Launching an integrated RF front-end for Wi‑SUN/LoRaWAN at CES underscores engineering depth and focus on smart home/city IoT. Higher integration reduces BOM and improves performance per device, supporting durable content‑per‑device gains as edge connectivity and IoT adoption expand across verticals.

Negative Factors

Multi‑Year Revenue and Margin Decline

Persistent revenue contraction and falling gross/net margins erode operating leverage and pricing power. Over multiple years, shrinking sales and margin compression reduce internal funding for R&D and capex, increasing reliance on strategic deals or cost cuts to restore sustainable growth and profitability.

Weakening Free Cash Flow

A 17.16% drop in free cash flow in 2025 and guidance that FCF will be below fiscal ’25 point to weakening cash conversion. Lower sustainable FCF constrains capital allocation for dividends, R&D, and integration costs, and raises the chance of needing external funding for strategic initiatives.

Deteriorating Return on Equity

ROE collapsing from ~28% to ~8% signals a meaningful deterioration in returns on shareholder capital, reflecting margin decline and weaker net income. Sustained low ROE can pressure long‑term shareholder returns and suggests the company must improve operational efficiency or achieve scale benefits to restore profitability.

Skyworks Solutions Business Overview & Revenue Model

Company Description

Skyworks Solutions, Inc., together with its subsidiaries, designs, develops, manufactures, and markets proprietary semiconductor products, including intellectual property in the United States, China, South Korea, Taiwan, Europe, the Middle East, Africa, and rest of Asia-Pacific. Its product portfolio includes amplifiers, antenna tuners, attenuators, automotive tuners and digital radios, circulators/isolators, DC/DC converters, demodulators, detectors, diodes, wireless analog system on chip products, directional couplers, diversity receive modules, filters, front-end modules, hybrids, light emitting diode drivers, low noise amplifiers, mixers, modulators, optocouplers/optoisolators, phase locked loops, phase shifters, power dividers/combiners, receivers, switches, synthesizers, timing devices, technical ceramics, voltage controlled oscillators/synthesizers, and voltage regulators. The company provides its products for use in the aerospace, automotive, broadband, cellular infrastructure, connected home, entertainment and gaming, industrial, medical, military, smartphone, tablet, and wearable markets. It sells its products through direct sales force, electronic component distributors, and independent sales representatives. The company was incorporated in 1962 and is headquartered in Irvine, California.

How the Company Makes Money

Skyworks Solutions generates revenue primarily through the sale of its semiconductor products to original equipment manufacturers (OEMs) and other technology companies. The company has established key partnerships with industry leaders in the mobile and IoT sectors, which significantly contributes to its revenue. Major revenue streams include sales of RF front-end modules, power amplifiers, and filter products that are used in smartphones, tablets, and other connected devices. Additionally, Skyworks benefits from the ongoing demand for 5G technology and the increasing integration of wireless communication features in automotive and industrial applications, which further fuels its earnings.

Skyworks Solutions Financial Statement Overview

Summary

Skyworks Solutions faces challenges with declining revenue and profit margins, impacting its overall financial performance. While the company has improved its leverage position, profitability metrics such as ROE have weakened. Cash flow generation remains relatively strong, but recent declines in free cash flow growth highlight potential risks. Overall, the company needs to address revenue contraction and enhance profitability to improve its financial standing.

Income Statement

Skyworks Solutions shows a declining trend in revenue and profit margins over the past few years. The Gross Profit Margin has decreased from 49.18% in 2021 to 41.16% in 2025, and the Net Profit Margin has also declined from 29.33% to 11.67% over the same period. The Revenue Growth Rate has been negative for the last three years, indicating a contraction in sales. Despite these challenges, the company maintains a positive EBIT and EBITDA margin, reflecting some operational efficiency.

Balance Sheet

The company's Debt-to-Equity Ratio has improved from 0.42 in 2021 to 0.21 in 2025, indicating better leverage management. However, the Return on Equity has decreased from 28.29% in 2021 to 8.29% in 2025, suggesting reduced profitability for shareholders. The Equity Ratio remains stable, reflecting a solid capital structure.

Cash Flow

Skyworks Solutions has experienced fluctuations in Free Cash Flow Growth, with a significant decline of 17.16% in 2025. The Operating Cash Flow to Net Income Ratio remains strong, indicating efficient cash generation relative to net income. However, the Free Cash Flow to Net Income Ratio has slightly decreased, reflecting challenges in converting profits into free cash flow.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.09B	4.18B	4.77B	5.49B	5.11B
Gross Profit	1.68B	1.72B	2.12B	2.51B	2.49B
EBITDA	1.02B	1.12B	1.76B	2.21B	2.05B
Net Income	477.10M	596.00M	982.80M	1.28B	1.50B
Balance Sheet
Total Assets	7.92B	8.28B	8.43B	8.87B	8.59B
Cash, Cash Equivalents and Short-Term Investments	1.37B	1.56B	734.40M	586.30M	1.02B
Total Debt	1.20B	1.20B	1.51B	2.41B	2.41B
Total Liabilities	2.16B	1.95B	2.34B	3.40B	3.29B
Stockholders Equity	5.76B	6.34B	6.08B	5.47B	5.30B
Cash Flow
Free Cash Flow	1.11B	1.67B	1.62B	914.90M	1.12B
Operating Cash Flow	1.30B	1.82B	1.86B	1.42B	1.77B
Investing Cash Flow	-234.00M	-355.90M	-224.40M	-378.90M	-3.13B
Financing Cash Flow	-1.27B	-819.00M	-1.48B	-1.36B	1.68B

Skyworks Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 57.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWKS, the sentiment is Negative. The current price of 57.77 is below the 20-day moving average (MA) of 62.47, below the 50-day MA of 64.97, and below the 200-day MA of 68.85, indicating a bearish trend. The MACD of -2.17 indicates Positive momentum. The RSI at 31.71 is Neutral, neither overbought nor oversold. The STOCH value of 8.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SWKS.

Skyworks Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMBS	78 Outperform	$11.10B	51.25	19.66%	―	31.05%	30.35%
LSCC	71 Outperform	$11.66B	422.22	3.86%	―	-12.03%	-80.99%
ENTG	68 Neutral	$17.21B	59.84	7.71%	0.47%	0.59%	25.65%
SWKS	63 Neutral	$8.76B	19.00	7.89%	4.37%	-2.18%	-16.84%
QRVO	63 Neutral	$7.47B	34.59	6.30%	―	-7.22%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MTSI	55 Neutral	$16.41B	-272.28	-4.42%	―	32.58%	-173.04%

Skyworks Solutions Corporate Events

Skyworks Solutions Approves 2026 Executive Incentive Plan

On December 11, 2025, Skyworks Solutions‘ Compensation and Talent Committee approved the Fiscal Year 2026 Executive Incentive Plan. This plan outlines cash incentive awards for senior management based on achieving specific corporate performance metrics during the 2026 fiscal year. The plan sets minimum performance metrics and allows for awards up to twice the target amount if the company exceeds its goals. The plan impacts key executives, including the CEO and CFO, with potential awards tied to their base salaries. The committee also retains discretion to issue common stock instead of cash for these awards.

The most recent analyst rating on (SWKS) stock is a Hold with a $88.00 price target. To see the full list of analyst forecasts on Skyworks Solutions stock, see the SWKS Stock Forecast page.

Skyworks Solutions Extends Revolving Credit Agreement

On November 18, 2025, Skyworks Solutions, Inc. announced a Second Amendment to its Revolving Credit Agreement with JPMorgan Chase Bank, extending the maturity date to November 18, 2030. This amendment is expected to enhance the company’s financial flexibility and support its strategic initiatives, potentially impacting its market positioning and stakeholder interests positively.

The most recent analyst rating on (SWKS) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on Skyworks Solutions stock, see the SWKS Stock Forecast page.

Skyworks Solutions Adopts Executive Severance Plan

On November 11, 2025, Skyworks Solutions‘ Board of Directors adopted a Severance and Change in Control Benefits Plan for senior executives, excluding the CEO. This plan outlines severance benefits for executives terminated without cause or for good reason around a change in control event. The plan includes lump-sum payments, continuation of health benefits, and accelerated vesting of equity awards. It aims to provide financial security and retain key executives during transitions, potentially impacting the company’s stability and stakeholder confidence.

The most recent analyst rating on (SWKS) stock is a Hold with a $76.00 price target. To see the full list of analyst forecasts on Skyworks Solutions stock, see the SWKS Stock Forecast page.

Skyworks Solutions Announces Merger with Qorvo

On October 27, 2025, Skyworks Solutions, Inc. announced an Agreement and Plan of Merger with Qorvo, Inc., aiming to create a $22 billion enterprise. The merger, expected to close in early 2027, will see Qorvo shareholders receive cash and Skyworks stock, resulting in Skyworks owning 63% of the combined company. The merger is anticipated to enhance scale, diversify market presence, and achieve significant cost synergies, with a focus on innovation and expanded market reach in mobile and diversified broad markets. The transaction is expected to be immediately accretive to non-GAAP EPS and will strengthen the company’s domestic manufacturing position.

The most recent analyst rating on (SWKS) stock is a Buy with a $84.00 price target. To see the full list of analyst forecasts on Skyworks Solutions stock, see the SWKS Stock Forecast page.

Skyworks Solutions Announces Q4 Results and Merger Plan

On October 28, 2025, Skyworks Solutions announced preliminary financial results for the fourth quarter and full fiscal year 2025, reporting a Q4 revenue of $1.10 billion and a full-year revenue of $4.09 billion. The company also declared a quarterly cash dividend of $0.71 per share. Additionally, Skyworks revealed a definitive agreement to merge with Qorvo, aiming to establish a $22 billion U.S.-based leader in high-performance RF, analog, and mixed-signal solutions, with the transaction expected to close in early 2027.

The most recent analyst rating on (SWKS) stock is a Buy with a $84.00 price target. To see the full list of analyst forecasts on Skyworks Solutions stock, see the SWKS Stock Forecast page.