Skyworks Guidance Flags Near Term Weakness

Skyworks guidance, issued Nov. 3, 2026, signaled a near-term slowdown tied to weak smartphone demand while management highlighted the completed Qorvo combination and plans to expand revenue streams and pursue cost synergies to support margins.

Combined December Quarter Outlook and Standalone Fourth Quarter Results

Skyworks Solutions Inc. (SWKS) guided combined December-quarter revenue to $1.8 billion–$1.9 billion, with non-GAAP diluted earnings per share (EPS) around $1.25 at the midpoint, based on roughly 241 million diluted shares. The company set an initial combined gross-margin outlook of about 46%–48% [source:1][source:6][source:3].

Management estimated the revenue mix at the midpoint to be approximately $1.07 billion from legacy Skyworks and $780 million from legacy Qorvo. The midpoint is about 7% below combined September-quarter revenue of roughly $1.98 billion. This comparison includes an extra Qorvo week worth about $70 million, which narrows the implied sequential decline to about 3% excluding that week [source:1][source:6].

Skyworks reported standalone fiscal fourth-quarter revenue of $1.046 billion for the quarter ended Oct. 2, 2026. GAAP diluted EPS was $0.15, and non-GAAP diluted EPS was $1.28. Gross profit was approximately $465 million, representing a 44.4% gross margin. Operating expenses were about $237 million, producing operating income of roughly $227 million, or 21.7% of revenue, and net income of about $193 million [source:1][source:6].

For fiscal 2026, Skyworks reported revenue of $3.96 billion, GAAP diluted EPS of $1.14, and non-GAAP diluted EPS of $5.05 [source:1].

The Qorvo combination closed on Oct. 5, 2026, after the fiscal fourth quarter ended. Philip Carter, Skyworks’ chief financial officer, said, “Because our combination with Qorvo closed after the end of our fiscal fourth quarter, our reported September-quarter results are Skyworks standalone.” The first combined reporting period will be fiscal Q1 2027 [source:1][source:5].

Diversification, Synergies, and Capital Allocation

Pro forma fiscal 2026 revenue from Skyworks’ diversified growth markets—data center, Wi-Fi, automotive, and defense—was about $2.9 billion, up roughly 12% year over year. These markets accounted for more than 40% of combined sales. Management expects sequential growth in these segments in the low single digits and year-over-year gains in the high single digits to low double digits [source:6][source:7].

Skyworks targets at least $500 million of annual cost synergies within 24–36 months of closing. It expects about $150 million of operating-expense synergies in fiscal 2027, weighted toward the second half, and an exit-fiscal-2027 annualized run rate of roughly $250 million–$300 million. The company’s long-term model targets a 50%–55% gross margin and a 30%–35% operating margin [source:3][source:7].

During the September quarter, Skyworks repurchased $107 million of stock at an average price of $66.27 [source:6].

The December-quarter guidance marks the first full view of the post-deal revenue mix and early synergy realization. It will help assess whether diversification can offset the near-term weakness in smartphone demand implied by the guidance.