Skyworks (SWKS) Down 4.6% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Skyworks Solutions (SWKS). Shares have lost about 4.6% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Skyworks due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Skyworks Q1 Earnings Top Estimates, Revenues Down Y/Y

Skyworks Solutions reported first-quarter fiscal 2026 non-GAAP earnings of $1.54 per share, which beat the Zacks Consensus Estimate by 10.20% but decreased 3.8% year over year. 

Revenues of $1.04 billion decreased 3.1% on a year-over-year basis but surpassed the consensus mark by 3.68%.

SWKS’ Q1 Top-Line Details

Mobile revenues contributed nearly 62% to total revenues. SWKS’s largest customer accounted for roughly 67% of revenues in the reported quarter.

Broad Markets, which includes edge IoT, automotive, industrial, infrastructure, and cloud, grew 4% sequentially and 11% year over year, driven by growth across edge IoT, automotive, and data center.

SWKS Operating Details

First-quarter fiscal 2026 non-GAAP gross margin was up 10 basis points (bps) on a year-over-year basis to 46.6%. 

Research & development expenses, as a percentage of revenues, increased 310 bps year over year to 19.6%.

Selling, general, and administrative expenses increased 270 bps to 10.5% in the reported quarter.

Non-GAAP operating margin contracted 230 bps on a year-over-year basis to 24.3% in the reported quarter.

SWKS Balance Sheet & Cash Flow

As of Jan. 2, 2026, cash & cash equivalents and marketable securities were $1.57 billion compared with $1.39 billion as of Oct. 3, 2025. As of the same date, long-term debt was $996.2 million, up slightly from the previous quarter.

Cash generated by operating activities was $395.5 million in the quarter under discussion compared with $200 million in the prior quarter.

Free cash flow was $339 million, with a 32.7% free cash flow margin.

SWKS Offers Positive 2Q26 Guidance

For the second quarter of fiscal 2026, the company expects revenues between $875 million and $925 million. SWKS expects approximately 20% sequential decline in Mobile. Broad markets are set to be approximately flat sequentially, representing 44% of revenue, and up high single-digits year over year.

Gross margin is expected to be approximately 44.5% to 45.5%. Skyworks expects operating expenses between $230 million and $240 million.

Non-GAAP earnings are expected to be $1.04 per share at the mid-point of the revenue range.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 12.49% due to these changes.

VGM Scores

At this time, Skyworks has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Skyworks has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.