Key Highlights

  • Fiscal fourth quarter Revenue was USD 1,045.7 million, down 5% from USD 1,100.2 million a year earlier.
  • Non-GAAP diluted EPS was USD 1.28 compared with USD 1.76 a year earlier, a 27% decline.
  • December quarter revenue guidance is USD 1.80 billion to USD 1.90 billion on a combined basis.
  • Debt rose to USD 2,472.8 million from USD 995.8 million a year earlier.
  • Fiscal 2026 non-GAAP free Cash Flow was USD 229.3 million, compared with USD 1,105.8 million.

Skyworks Share Price Action Before the Open (down USD 13.90, 16.28%)

Skyworks Solutions (NASDAQ:SWKS) was down 16.28% at USD 71.50 in pre-market trading on November 4, 2026, a fall of USD 13.90 from an implied Tuesday close of about USD 85.40 (calculated). The move followed the company's fiscal fourth quarter Earnings release, issued after the close on November 3, 2026.

The figures showed lower sales, thinner margins and weaker cash generation, while the first outlook for the combined company pointed to a softer December quarter.

The Earnings and Guidance in Detail

For the quarter ended October 2, 2026, revenue was USD 1,045.7 million, down 5% from USD 1,100.2 million. Non-GAAP gross Margin slipped to 44.4% from 46.5%, and non-GAAP Operating Income fell 14% to USD 227.2 million. GAAP Net Income dropped to USD 23.4 million, or USD 0.15 per diluted share, from USD 141.4 million, or USD 0.94, with USD 82.1 million of restructuring, Impairment and other charges.

Operating cash flow was USD 33.7 million against USD 200.0 million, and Capital spending rose 69% to USD 94.7 million, leaving non-GAAP free cash flow at negative USD 61.0 million. For the December quarter, the company guided to combined revenue of USD 1.80 billion to USD 1.90 billion and non-GAAP EPS of about USD 1.25 at the midpoint on roughly 241 million diluted shares. It expects smartphone revenue to fall by a low-teens % rate sequentially.

Business Background and Full Year Results

Skyworks designs radio frequency and analog semiconductors used in smartphones, automotive, Data Center and defense products. The company said its combination with Qorvo closed after the fiscal quarter ended, so reporting moves to a combined basis from the December quarter, split between Smartphone and Diversified Growth Markets.

Fiscal 2026 revenue was USD 3,959.6 million, down 3% from USD 4,086.9 million. GAAP diluted EPS was USD 1.14 versus USD 3.08, and non-GAAP diluted EPS was USD 5.05 versus USD 5.93. The company said combined September quarter revenue was about USD 1.98 billion, including about USD 937 million from Qorvo, and it targets USD 500 million or more in annual cost synergies within 24 to 36 months of closing.

Balance Sheet and Risks

Cash and marketable securities were USD 2,606.1 million at October 2, 2026, against USD 1,388.4 million a year earlier, while Debt climbed to USD 2,472.8 million from USD 995.8 million, implying net cash of roughly USD 133 million (calculated).

The company said one Credit rating agency upgraded its rating to Investment grade and another revised its outlook to stable. Risks include integration execution, smartphone demand, customer concentration and the pace at which synergies arrive. The company said the December quarter outlook reflects only the early stages of synergy capture.

What to Watch Next

Commentary on the Earnings Call about smartphone Demand and data center design wins will shape expectations, as will the first combined quarterly report. Attention is likely to stay on synergy delivery, free cash flow recovery and any change to the Dividend or buyback pace.