Skyworks Solutions (SWKS) AI Stock Analysis

• Market Cap: $9.59B
• Dividend Yield: 4.37%
• Average Volume (3M): 2.70M
• Price to Earnings (P/E): 21.0
• Beta (1Y): 1.58
• 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: 148,679,760
• 10 Day Avg. Volume: 2,804,447
• 30 Day Avg. Volume: 2,695,641
• 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: 1.19
• Enterprise Value/Revenue: 1.10
• Enterprise Value/Gross Profit: 2.67
• Enterprise Value/Ebitda: 4.51
• 1Y Price Target: $82.79
• Price Target Upside: 28.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 17
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $76.00 ▲(18.36% Upside)

Skyworks Solutions' overall stock score is driven by strong earnings call performance and positive corporate events, including a strategic merger with Qorvo. However, challenges in financial performance, particularly declining revenue and profit margins, and technical indicators suggesting potential overbought conditions, weigh on the score. The attractive dividend yield provides some support, but the high P/E ratio indicates potential overvaluation.

Positive Factors

Strategic Merger with Qorvo

The merger with Qorvo is expected to enhance scale, diversify market presence, and achieve cost synergies, strengthening Skyworks' position in the semiconductor industry.

Strong Cash Flow Generation

Skyworks' ability to generate $1.1 billion in free cash flow with a 27% margin indicates strong cash generation, supporting long-term investments and financial stability.

Extension of Revolving Credit Agreement

The extension of the credit agreement enhances financial flexibility, allowing Skyworks to pursue strategic initiatives and manage liquidity effectively.

Negative Factors

Declining Revenue Growth

Consistent negative revenue growth indicates challenges in market expansion and product demand, potentially impacting long-term profitability.

Decreasing Profit Margins

Declining profit margins suggest challenges in cost management and pricing power, which could affect long-term financial health and competitiveness.

Expected Decline in Mobile Revenue

The anticipated decline in mobile revenue highlights potential market saturation or competitive pressures, impacting future revenue streams.

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: 64.21
• 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 64.21 is below the 20-day moving average (MA) of 66.78, below the 50-day MA of 69.00, and below the 200-day MA of 69.14, indicating a bearish trend. The MACD of -1.01 indicates Positive momentum. The RSI at 38.99 is Neutral, neither overbought nor oversold. The STOCH value of 11.60 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	$10.17B	44.66	19.66%	―	31.05%	30.35%
LSCC	71 Outperform	$10.47B	386.50	3.86%	―	-12.03%	-80.99%
QRVO	71 Outperform	$7.96B	37.19	6.30%	―	-7.22%	―
SWKS	70 Outperform	$9.59B	20.97	7.89%	4.37%	-2.18%	-16.84%
ENTG	66 Neutral	$12.96B	45.06	7.71%	0.47%	0.59%	25.65%
MTSI	64 Neutral	$13.17B	-215.93	-4.42%	―	32.58%	-173.04%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.

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.

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.

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.

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.