SWKS Filings — Skyworks Solutions, Inc. - FilingSpy
SWKS
Skyworks Solutions, Inc.
A maker of radio-frequency chips that let phones, cars, and wireless gadgets send and receive signals—its parts help power Apple's iPhone and countless 5G and IoT devices. Born in 2002 when Alpha Industries merged with Conexant's wireless division, the company traces roots back to 1962. Fun fact: the name "Skyworks" nods to the radio signals that travel "through the sky" to connect our devices.
Operating income fell 56.7% to $42.1M as merger costs and R&D spending compressed margin to 4.5%.
The pending Qorvo merger is reshaping Skyworks' cost structure faster than the customer share loss is reshaping its . Revenue declined 1.0% to $943.7 million, but contracted to 4.5% from 10.1% as SG&A expense rose 36% on merger-related professional fees and R&D reached 22.5% of revenue. The company is now spending through the deal while its core mobile business erodes, and turned negative for the quarter.
Key takeaways
fell 56.7% to $42.1 million, and contracted 5.7 points to 4.5%, as a 36% increase in SG&A expense to $119.7 million — driven by professional services costs tied to the pending Qorvo merger — compounded the impact of lower .
declined 1.0% to $943.7 million, driven by a market share loss at a significant customer, partially offset by higher demand for Wi-Fi products.
contracted 30 to 40.8%, as unfavorable product mix outweighed the benefit of higher unit volumes.
Section summaries
Management's Discussion and Analysis
Revenue fell 3.1% YoY to $934.8M on share loss at a key customer, while gross margin contracted 150 bps to 40.1% on unfavorable mix.
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Net declined 3.1% to $934.8M, driven by lower market share at a significant customer, partially offset by higher demand in automotive and data center products.
decreased 6.5% to $375.0M, with compressing to 40.1% from 41.6% primarily due to unfavorable , partly offset by higher unit volumes.
R&D expense rose 13.9% to $212.4 million, or 22.5% of , on increased headcount and for new technology development.
fell 87.7% to $50.3 million, and turned negative at -$32.1 million, pressured by lower and a from .
Cash and equivalents rose 1.8% to $1,413.3 million, and was halved to $496.7 million, while the company holds a $750 million undrawn and a $1.5 billion for the Qorvo deal.
What changed
The major-customer share loss that management warned would begin in Q4 FY2025 is now flowing through results: fell 1.0% to $943.7 million, a shallower decline than the 3.1% drop in Q1 FY2026, but the cumulative two-quarter trend confirms the is materializing.
slipped to 40.8% from 41.3% in the prior quarter and 41.1% a year ago, edging closer to the 40% floor that earlier filings flagged as a key threshold — the unfavorable product mix cited this quarter suggests the customer loss is shifting toward lower-margin products.
Merger-related SG&A costs accelerated sharply: SG&A rose 36% to $119.7 million, up from a 31.2% increase in Q1 FY2026, pushing to 4.5% — well below the 10.0% reported last quarter and the single-digit territory earlier watch items warned about.
turned negative at -$32.1 million, a reversal from positive $339.0 million in Q1 FY2026, as the from that was flagged as a risk materialized alongside lower .
The for the Qorvo merger was reduced to $1.5 billion from the $3.05 billion disclosed in the FY2025 10-K, and the company now expects the deal to close within the calendar year rather than early 2027.
What to watch
Whether the major-customer share loss deepens further in Q3 FY2026, driving quarterly below $900 million for the first time since FY2021, and whether can hold above 40% as the full impact flows through.
The trajectory of merger-related SG&A costs and whether they push toward breakeven before the Qorvo deal closes, now expected within the calendar year.
Whether returns to positive territory in Q3 FY2026 or remains negative, and how the company balances cash preservation for the merger against its commitment.
Any update on the FTC review of the Qorvo merger and whether the reduced $1.5 billion is drawn or further adjusted.
Operating expenses rose to 34.9% of , driven by a 4.2% increase in R&D for new technology investments and a 10.5% increase in SG&A from Qorvo transaction professional services costs.
Restructuring, , and other charges surged to $19.8M from $1.5M, mainly due to facility consolidation and closure activities.
Cash, cash equivalents, and marketable securities fell to $813.8M, with declining to $70.4M in the quarter, as the company repaid $500.0M of 1.80% Senior Notes due 2026.
The pending Qorvo merger progressed with FTC review ongoing and a bridge loan commitment reduced to $1.5B; the company expects the deal to close within the calendar year.
Quantitative and Qualitative Disclosures About Market Risk
The company reports immaterial exposure to interest rate, investment, and foreign exchange risks, with no outstanding hedging contracts.
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Cash and cash equivalents total $790.0M, with short-term and long-term marketable securities of $9.2M and $14.6M respectively as of July 3, 2026.
A hypothetical 100-basis-point decline in interest rates would have an immaterial reduction in interest income and a de minimis impact on pre-tax income.
Credit risk is not material because the investment portfolio is diversified across high-credit-rating securities.
Substantially all sales and third-party manufacturing arrangements are denominated in U.S. dollars, reducing foreign exchange impact on results.
The company had no outstanding foreign currency forward or options contracts during the three and nine months ended July 3, 2026.
In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factors discussed in Part I, Item 1A Risk Factors in the 2025 10-K, which could materially affect our business, financial condition, or future results.
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In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factors discussed in Part I, Item 1A Risk Factors in the 2025 10-K, which could materially affect our business, financial condition, or future results.