Skyworks Q4 Earnings Top Estimates, Revenues Grow Y/Y, Shares Rise

Skyworks Solutions SWKS reported fourth-quarter fiscal 2025 non-GAAP earnings of $1.76 per share, which beat the Zacks Consensus Estimate by 21.4% and increased 13.5% year over year.Revenues of $1.1 billion increased 7.3% on a year-over-year basis and surpassed the consensus mark by 8.38%.SWKS shares were up 2.8% in pre-market trading. Year to date, Skyworks shares have fallen 18.8%, underperforming the broader Zacks Computer and Technology sector’s return of 29.5%.SWKS’ Q4 Top-Line DetailsMobile revenues contributed nearly 65% to total revenues. Revenues increased 21% sequentially and 7% year over year, driven by strong sell-through at the company’s top customer and continued growth in Android. SWKS’ largest customer accounted for roughly 67% of revenues in the reported quarter. Skyworks Solutions, Inc. Price, Consensus and EPS Surprise Skyworks Solutions, Inc. price-consensus-eps-surprise-chart | Skyworks Solutions, Inc. Quote Broad Markets, which includes edge IoT, automotive, industrial, infrastructure and cloud, grew 3% sequentially and 7% year over year, driven by growth across edge IoT, automotive and data center.SWKS Operating DetailsFourth-quarter fiscal 2025 non-GAAP gross margin was unchanged on a year-over-year basis at 46.5%. Research & development expenses, as a percentage of revenues, increased 430 bps year over year to 20.3%.Selling, general and administrative expenses increased 290 bps to 10.2% in the reported quarter.Non-GAAP operating margin contracted 270 bps on a year-over-year basis to 24% in the reported quarter.SWKS Balance Sheet & Cash FlowAs of Oct. 3, 2025, cash & cash equivalents and marketable securities were $1.39 billion compared with $1.34 billion as of June 27. As of the same date, the long-term debt was $995.8 million, up slightly on a sequential basis.Cash generated by operating activities was $200 million in the quarter under discussion compared with $314.1 million in the prior quarter.Free cash flow was $144 million, with a 13.1% free cash flow margin.SWKS Offers Positive 1Q26 GuidanceFor the first quarter of fiscal 2026, the company expects revenues between $975 million and $1.025 billion. SWKS expects low- to mid-single-digit sequential decline in Mobile. Broad markets is set to grow again in the current quarter, with mid- to high-single digit growth on a year-over-year basis and accounting for 39% of revenues.Gross margin is expected to be roughly 47%, +/- 50 bps. Skyworks expects operating expenses between $230 million and $240 million.Non-GAAP shares are expected to be $1.40 per share at the mid-point of the revenue range.Zacks Rank & Upcoming Earnings to ConsiderSkyworks currently carries a Zacks Rank #3 (Hold).Fair Isaac FICO, StoneCo STNE and Simulations Plus SLP are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.Fair Isaac shares have dropped 19.3% year to date. This Zacks Rank #1 (Strong Buy) company is scheduled to release fourth-quarter fiscal 2025 results on Nov. 5. You can see the complete list of today’s Zacks #1 Rank stocks here.StoneCo shares have returned 136.2% year to date. StoneCo is scheduled to release third-quarter 2025 results on Nov. 6. StoneCo sports a Zacks Rank #1.   Simulations Plus shares have dropped 39% year to date. Simulations Plus is set to report its fourth-quarter fiscal 2025 results on Dec. 1. Simulations Plus currently flaunts a Zacks Rank #1. Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Skyworks Solutions, Inc. (SWKS): Free Stock Analysis Report Simulations Plus, Inc. (SLP): Free Stock Analysis Report Fair Isaac Corporation (FICO): Free Stock Analysis Report StoneCo Ltd. (STNE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks