SWKS · Q3 2026 Earnings

Cautious

Skyworks Solutions

Reported July 28, 2026

30-second summary

Skyworks beat its June guide with $934.8M revenue (top of the $900–950M range, -3.1% YoY vs. Q3 FY2025's $965.0M) and $1.08 non-GAAP EPS ($0.05 above the $1.03 midpoint, +4.9% vs. $1.03 consensus), with gross margin at 44.9% (midpoint of the 44.5–45.5% guide). The Q4 guide is the harder read: $1.01–1.06B revenue (midpoint $1.035B), EPS of $1.27 midpoint absorbs a fresh ~$0.03/share hit from Qorvo financing costs, and the pending close has been pulled forward to "within the calendar year" — with preparation "to close as early as within the fiscal year." Mobile is set to snap back +high-teens sequentially on the seasonal ramp, while Broad Markets is guided to only ~5% YoY at ~39% of sales, versus a prior "high-single-digits" YoY framing for Q3 at ~43% of sales. Alongside the print, the board authorized a new $2B stock repurchase program (replacing the February 2027 program) and eliminated the quarterly dividend, and management flagged plans to raise ~$2B of Qorvo acquisition debt financing.

Headline numbers

EPS

Q3 FY2026

$1.08

+4.9% vs est.

Revenue

Q3 FY2026

$0.93B

-3.1% YoY

+1.0% vs est.

Gross margin

Q3 FY2026

40.1%

Free cash flow

Q3 FY2026

$-0.02B

Operating margin

Q3 FY2026

5.2%

Key financials

Q3 FY2026

Metric	Q3 FY2026	Q3 FY2025	YoY	Q2 FY2026	QoQ
Revenue	$0.93B	$0.96B	-3.1%	$0.94B	-1.0%
EPS	$1.08	$1.33	-18.8%	$1.15	-6.1%
Gross margin	40.1%	41.6%	-150bps	40.8%	-70bps
Operating margin	5.2%	11.5%	-630bps	4.5%	+70bps
Free cash flow	$-0.02B	$0.25B	-106.6%	$-0.03B	+47.8%

Guidance

Q3 beat on revenue and EPS; Q4 guidance implies high-teens Mobile growth but YoY revenue decline driven by pending Qorvo acquisition financing costs and Broad Markets moderation.

Guidance is issued for both next quarter and the full year. Both may appear below.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q3 FY2026	$900M–$950M	$934.8M	+1.7% above midpoint guidance	Beat
Non-GAAP EPS	Q3 FY2026	$1.03	$1.08	+$0.05 above guidance	Beat
Non-GAAP Gross Margin	Q3 FY2026	44.5%–45.5%	44.9%	in-line (midpoint of prior range)	Beat
Operating Expenses	Q3 FY2026	$235M–$245M	Not disclosed	—	Met

New guidance

Metric	Period	Guide	YoY
Revenue	Q4 FY2026	$1,010M–$1,060M	-8.2% to -3.6% YoY
Non-GAAP EPS	Q4 FY2026	$1.27 (midpoint)	—
Mobile Sequential Growth	Q4 FY2026	high-teens range	—
Broad Markets YoY Growth	Q4 FY2026	approximately 5%	—
Incremental Net Interest Expense	Q4 FY2026	approximately $5M (~$0.03/share)	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Broad Markets YoY Growth	Q3 FY2026	high-single-digits	Withdrawn — no replacement	—	Withdrawn

Capacity & utilization

Q3 FY2026

Segment	Q3 FY2026	Q3 FY2025	YoY
Automotive Design Win Expansion	Telematics and IVI engagements with leading global OEMs	—	—
AI Data Center Design Wins	Precision timing for hyperscaler switch platform and 800V HVDC isolation solutions	—	—

Profitability

Q3 FY2026

Segment	Q3 FY2026	Q3 FY2025	YoY
Non-GAAP Gross Margin	44.9%	47.1%	—
Non-GAAP Operating Margin	19.4%	23.3%	—

Management tone

Tone analysis is limited this quarter — the press release is the only management commentary available; no transcript of prepared remarks was in the source materials.

Qorvo close timing shifted from directional to numerical. The press release explicitly ties the deal to a fiscal-year-end-possible close and includes ~$5M of Q4 net interest expense from acquisition financing in the guide. The accounting for the deal is now embedded in the forward P&L, not a footnote — the cleanest signal yet that close is proximate.

Broad Markets framing quietly stepped down. The Q4 guide of "approximately 5% year-over-year" at ~39% of sales is a step down from the "high-single-digits" YoY framing at ~43% of sales that anchored last quarter's Q3 guide. Management still leans on automotive and data center double-digit gains within the segment, but the aggregate segment growth rate is decelerating.

Higher-margin adjacencies emphasized to offset the setup. The press release leans into two specific design-win categories — AI data center precision timing for a hyperscaler switch platform plus 800V HVDC isolation, and automotive telematics/IVI at leading global OEMs. The choice to highlight these two vectors in a release where the guide implies a YoY revenue decline is a pivot from near-term print toward multi-year content stories.

Capital allocation reframed around the combined company. Killing the dividend, launching a fresh $2B buyback, and pre-committing to ~$2B of acquisition debt are the clearest signals yet that management is running Skyworks as a pre-close bridge to the combined entity rather than optimizing standalone shareholder returns.

Answers to last quarter's watch list

Whether Q3 FY2026 mobile lands at low-single-digit sequential decline or deeper — Segment-level Q3 mobile numbers were not broken out. Total revenue was $934.8M, a Q3 beat vs. the $925M guide midpoint, and the Q4 +high-teens sequential mobile guide is the forward-looking signal that Q3 was the trough. Status: Resolved positively

Gross margin path beyond Q3 FY2026 — Q3 printed at 44.9%, midpoint of the 44.5–45.5% guide. No Q4 gross margin guide was disclosed. Nine-month non-GAAP gross margin at 45.6% vs. 46.7% a year ago suggests the 44.5–45.5% band is the current operating range. Status: Resolved negatively

Operating expense trajectory — Q3 opex was not called out against the prior $235–245M non-GAAP opex guide. GAAP total opex was $326.5M, up from $290.4M a year ago, driven by higher R&D and SG&A. Status: Not resolved

Data center revenue contribution — Precision timing wins for a hyperscaler switch platform and 800V HVDC isolation solutions were flagged as design wins. No revenue line disclosed. Status: Not resolved

Qorvo regulatory timeline confirmation — Yes — meaningfully pulled forward. Management now "optimistic that we can close within the calendar year" and "preparing to close as early as within the fiscal year," and Q4 guidance already includes ~$5M of partial-quarter financing costs. Status: Resolved positively

FY2026 FCF anchor — No FY2026 FCF dollar guidance disclosed. Nine-month FCF at $290.2M vs. $961.8M a year ago points to a materially lower full-year outcome. Status: Not resolved (framing) / Resolved negatively (trajectory)

Capital allocation disclosure during pendency — Fully disclosed: new $2B repurchase authorization, dividend eliminated, ~$2B acquisition debt financing anticipated, ~$5M Q4 partial-quarter interest expense embedded. Status: Resolved

What to watch into next quarter

Whether Q4 FY2026 revenue lands at the low or high end of $1.01–1.06B — a midpoint or below print alongside the +high-teens sequential mobile guide would imply Broad Markets came in below the ~5% YoY framing.

Qorvo close confirmation — whether "within the calendar year" or the more aggressive "within the fiscal year" converts to a firm close date, and disclosure of the full financing structure (final debt issued vs. the ~$2B anticipated, blended cost, pro-forma net leverage). The $5M partial-quarter interest expense implies an annualized run-rate well above what a single quarter's disclosure conveys.

Broad Markets exit rate — whether the ~5% YoY guide is the trough or a step to a new lower growth band. Any first-quantified data center or automotive revenue disclosure would materially reframe the segment's growth composition.

Gross margin trajectory for the first post-close quarter — the first standalone Q4 gross margin print (currently unguided) will set the baseline for how much lift the Qorvo mix delivers.

FY2026 FCF final print — with three quarters totaling $290.2M and a $268M nine-month inventory build overhanging, Q4 FCF trajectory will indicate whether working-capital normalization plus close-related outflows have reset FCF to a new base.

Buyback pace under the new $2B authorization — with the dividend eliminated and $500M of debt already repaid this fiscal year, the cadence of repurchases against the new program is the cleanest read on how management is prioritizing de-leveraging vs. share count reduction ahead of the Qorvo close.

Sources

Skyworks Solutions Q3 FY2026 Earnings Release, filed with SEC (https://www.sec.gov/Archives/edgar/data/4127/000000412726000047/q3268-kex991earningsrelease.htm)

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