Skyworks Solutions — Q4 2026 Earnings Summary

Financial Performance:

• Q4 2026 standalone revenue was $1.046 billion, down from $1.100 billion in Q4 2025.
• Fiscal 2026 standalone revenue was $3.96 billion, down from $4.09 billion in fiscal 2025.
• Q4 2026 GAAP diluted EPS was $0.15, compared to $0.94 in Q4 2025; Non-GAAP diluted EPS was $1.28, compared to $1.76.
• Fiscal 2026 GAAP diluted EPS was $1.14, compared to $3.08 in fiscal 2025; Non-GAAP diluted EPS was $5.05, compared to $5.93.
• Q4 2026 GAAP operating income was $22.3 million versus $111.0 million in Q4 2025; Non-GAAP operating income was $227.2 million versus $264.0 million.
• Fiscal 2026 GAAP operating income was $216.7 million versus $500.0 million in fiscal 2025; Non-GAAP operating income was $849.8 million versus $995.3 million.
• Q4 2026 GAAP gross margin was 40.9% versus 40.7% in Q4 2025; Non-GAAP gross margin was 44.4% versus 46.5%.
• Fiscal 2026 GAAP gross margin was 40.8% versus 41.2% in fiscal 2025; Non-GAAP gross margin was 45.3% versus 46.7%.
• Q4 2026 GAAP net cash provided by operating activities was $33.7 million versus $200.0 million; Non-GAAP free cash flow was $(61.0) million versus $144.0 million.
• Fiscal 2026 GAAP net cash provided by operating activities was $549.9 million versus $1,300.8 million; Non-GAAP free cash flow was $229.3 million versus $1,105.8 million.
• As of October 2, 2026, total debt was $2.47 billion, up from $995.8 million as of October 3, 2025.
• Cash, cash equivalents, and marketable securities totaled $2.61 billion as of October 2, 2026, up from $1.39 billion in the prior year.

Guidance and Future Outlook:

• Q1 2027 (December quarter) revenue guidance is $1.80 billion to $1.90 billion, with a midpoint down approximately 7% sequentially from combined September revenue (or 3% excluding an extra week in Qorvo's prior quarter).
• Q1 2027 Non-GAAP diluted EPS guidance is $1.25, based on approximately 241 million diluted shares and including approximately $50 million of other expense, primarily interest on acquisition financing.
• Smartphone revenue is expected to decline in the low teens percent sequentially due to seasonality and Android market softness.
• Diversified Growth Markets revenue is expected to grow in the low single digits sequentially and high single to low double digits year-over-year on a combined basis, representing more than 40% of sales.
• The company expects to realize approximately $150 million of synergies in operating expenses within fiscal 2027, weighted to the second half of the year.
• The company targets an annualized synergy run-rate of approximately $250 million to $300 million at the exit of fiscal 2027.
• The company remains committed to achieving $500 million or more of annual cost synergies within 24 to 36 months of the Qorvo combination close.
• Reporting will transition to a fully combined basis starting with the first fiscal quarter of 2027, utilizing Smartphone and Diversified Growth Markets as revenue categories.

Business Segments and Product Lines:

• The combination with Qorvo creates a full-stack RF front-end platform for next-generation smartphones, spanning from power management to the antenna.
• The portfolio now covers four secular growth markets: Physical AI, Defense, Infrastructure, and Automotive.
• Technology portfolio expansion includes RF GaN, low-voltage power, and wired broadband solutions.
• Timing design wins were secured across AI data center networking, including 1.6T scale-up, scale-out, and data center interconnect switches.
• The company began shipping high-performance clocks for leading AI hyperscalers' rackscale systems.
• Automotive design-win momentum continued with an EV traction inverter gate driver win with a German premium automaker and new infotainment programs with leading global OEMs.
• The combined entity completed the initial consolidation of its management team and HR systems integration.

Market and Competitive Landscape:

• The company received favorable credit rating actions following the Qorvo combination, including an upgrade to investment grade by Moody's (Baa3) and an outlook revision to Stable from Negative by Fitch (BBB+ affirmed).
• The company focuses on the premium tier of the smartphone market while navigating softness in the broader Android market.
• Data center and defense are identified as key leaders within the Diversified Growth Markets segment.

Risks and Challenges:

• Forward-looking statements are subject to risks including the failure to realize anticipated synergies, delays in business integration, and unforeseen liabilities or capital expenditures.
• Risks include trade war measures, import/export restrictions, reliance on a small number of key customers, and potential loss of market share due to competition.
• The company faces risks related to the availability and pricing of third-party foundry capacity, raw materials, and shipping logistics.
• Significant indebtedness incurred in connection with the Qorvo and Silicon Laboratories transactions may reduce financial flexibility.
• Potential adverse reactions from employees, customers, or partners, and uncertainty regarding the long-term value of common stock are noted.
• Risks include geopolitical conflicts, currency fluctuations, manufacturing yield fluctuations, and the ability to retain key personnel.

Management Commentary and Tone:

• CEO Phil Brace stated the combination "marks a new chapter" providing the scale and technology breadth to lead the next era of wireless as AI moves to devices and machines.
• Management emphasized a focus on execution, delivering for customers, and building a stronger, more diversified Skyworks.
• CFO Philip Carter noted that the September quarter results are standalone Skyworks, with combined revenue of approximately $1.98 billion serving as the starting point for the first quarter of the combined company.
• Management highlighted that the December quarter outlook reflects only the early stages of synergy realization.

Other Key Points:

• The Qorvo combination closed after the end of the fiscal fourth quarter, resulting in standalone reporting for the September quarter.
• Combined September-quarter revenue of approximately $1.98 billion includes an additional week in Qorvo's fiscal quarter, contributing approximately $70 million.
• The company incurred $1,979.9 million in proceeds from the issuance of long-term debt in the twelve months ended October 2, 2026.
• Capital expenditures were $94.7 million in Q4 2026 and $320.6 million for fiscal 2026.
• The company repurchased $107.0 million of common stock in Q4 2026 and $114.5 million for fiscal 2026.
• No dividends were paid in Q4 2026; $105.6 million was paid in Q4 2025.
• Restructuring, impairment, and other charges totaled $82.1 million in Q4 2026 and $124.2 million for fiscal 2026.
• Share-based compensation expense was $49.5 million in Q4 2026 and $218.4 million for fiscal 2026.