Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
SWKS reported Q1 FY2026 revenue of $1.04B (down 3.1% YoY), with net income falling 51.1% to $79.2M as surging R&D and SG&A expenses sharply compressed operating and net margins despite stable gross margins and solid operating cash flow of $395.5M.
Revenue
$1.04B
-3.10% YoY
EPS (Diluted)
$0.53
-47.00% YoY
Gross Margin
41.3%
-0.1 pts YoY
Operating Income
$103.8M
-42.68% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Source: SEC XBRL
Skyworks Solutions (SWKS) reported Q1 FY2026 revenue of $1.04B, down 3.1% year over year. Operating margin was 10.0%, down 6.9 points from 16.9% a year earlier. Operating cash flow was $395.5M, up 4.9% year over year. SWKS's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.08 | 1.04 | Beat +4.3% |
| Mar 2026 | 1.15 | 1.05 | Beat +9.1% |
| Dec 2025This filing | 1.54 | 1.43 | Beat +8.0% |
| Sep 2025 | 1.76 | 1.42 | Beat +23.6% |
Adjusted (non-GAAP) EPS of $1.54 versus the $1.43 analyst consensus — a +8.0% beat for Dec 2025. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.53.
Compiled by AI from this SEC filing
Revenue fell 3.1% YoY to $1.035B from $1.069B, reflecting continued headwinds in end markets. The decline was modest at the top line but amplified significantly at the profit level due to rising operating expenses.
Source: 10-Q Income Statement Data
Operating income dropped 42.7% YoY to $103.8M, with operating margin contracting from 16.9% to 10.0%. This was driven by R&D expense surging 15.3% to $203.4M and SG&A jumping 31.2% to $108.4M, reflecting increased investment in next-generation product development and go-to-market activities.
Source: 10-Q Income Statement Data
Gross margin held nearly flat at 41.3% (vs. 41.4% prior year), suggesting stable pricing power and manufacturing efficiency despite the revenue decline. Cost of revenue fell 2.9% in line with revenue, indicating disciplined cost management at the production level.
Source: 10-Q Income Statement & Ratio Data
Operating cash flow improved 4.9% YoY to $395.5M, meaningfully outpacing net income of $79.2M. This divergence highlights the non-cash nature of certain charges and the company's continued ability to convert earnings to cash effectively.
Source: 10-Q Cash Flow Statement Data
Current liabilities nearly doubled (+123.4%) to $1.295B, likely reflecting reclassification of near-term debt maturities, while long-term debt fell 50.1% to $496.6M. The current ratio remains healthy at 2.40, but investors should monitor upcoming debt obligations.
Source: 10-Q Balance Sheet Data
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
R&D and SG&A expenses grew 15.3% and 31.2% respectively while revenue declined 3.1%, causing operating income to collapse 42.7%. If revenue does not recover, the elevated fixed cost base will continue to disproportionately pressure profitability. This operating leverage dynamic poses a meaningful near-term earnings risk.
Source: 10-Q Income Statement Data
Current liabilities jumped 123.4% YoY to $1.295B, likely due to debt reclassified as current upon approaching maturity. While the current ratio of 2.40 and cash of $1.55B provide a buffer, a large near-term repayment obligation could constrain capital allocation flexibility. Investors should watch for refinancing activity or cash drawdowns.
Source: 10-Q Balance Sheet Data
Net income fell 51.1% on only a 3.1% revenue decline, illustrating extreme bottom-line sensitivity to top-line changes given the current cost structure. A further modest revenue decline could disproportionately erode profitability. This risk is particularly relevant given uncertain end-market demand conditions.
Source: 10-Q Income Statement Data
Total assets declined 5.6% to $7.87B and stockholders' equity fell 10.0% to $5.76B YoY, reflecting the combination of lower retained earnings and capital returns. Continued earnings pressure without revenue recovery could further erode the equity base over time.
Source: 10-Q Balance Sheet Data
As a semiconductor company, SWKS is exposed to cyclical demand swings in mobile, IoT, and automotive markets. The 3.1% revenue decline in Q1 FY2026 may reflect broader semiconductor cycle softness, and prolonged weakness in key end markets could further pressure results.
Source: 10-Q Income Statement Data
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.04 $B | 1.07 $B | -3.10% |
Cost of Revenue $M | 608.20 $M | 626.60 $M | -2.94% |
Gross Profit $M | 427.20 $M | 441.90 $M | -3.33% |
Operating Income $M | 103.80 $M | 181.10 $M | -42.68% |
Net Income $M | 79.20 $M | 162.00 $M | -51.11% |
EPS (Basic) $ | 0.53 $ | 1.01 $ | -47.52% |
EPS (Diluted) $ | 0.53 $ | 1.00 $ | -47.00% |
R&D Expense $M | 203.40 $M | 176.40 $M | +15.31% |
SG&A Expense $M | 108.40 $M | 82.60 $M | +31.23% |
Answers draw on this SEC filing and the data on this page
In fiscal Q3 2026 (quarter ended July 3, 2026), Skyworks reported net revenue of $934.8M, down 3.1% year-over-year, with net income margin compressing to 3.6% from 10.9% due to lower gross margin, higher R&D/SG&A spend, and elevated restructuring/transaction charges tied to the pending Qorvo merger.
SWKS reported a challenging Q2 FY2026 with declines in revenue, operating income, and net income, highlighting increased R&D and SG&A expenses impacting profitability.
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