SWKS · Q4 2025 Earnings

Cautious

Skyworks Solutions

Reported October 28, 2025

30-second summary

Skyworks beat its own September guide with $1.10B revenue and $1.76 non-GAAP EPS (vs. $1.00–1.03B and $1.40 midpoint guided 90 days ago), driven by better-than-expected units and mix at the largest customer. But the December guide flips the script: mobile is now expected to decline low-to-mid teens sequentially — a sharp reversal from the "mid-single-digit sequential growth" framing exiting Q3 — and management telegraphed FCF will be "below fiscal 25" as the inventory tailwind ends. The Qorvo merger announcement reframes the entire diversification thesis.

Headline numbers

EPS

Q4 FY2025

$1.76

Revenue

Q4 FY2025

$1.10B

Free cash flow

Q4 FY2025

$0.14B

Operating margin

Q4 FY2025

24.0%

Key financials

Q4 FY2025

Metric	Q4 FY2025	YoY	Q3 FY2025	QoQ
Revenue	$1.10B	—	$0.96B	+14.0%
EPS	$1.76	—	$1.33	+32.3%
Operating margin	24.0%	—	11.5%	+1250bps
Free cash flow	$0.14B	—	$0.25B	-43.0%

Guidance

Q4 FY2025 beat both revenue and EPS guidance; Q1 FY2026 guidance implies a sharp deceleration in mobile (low–mid-teen sequential decline) offsetting modest Broad Markets growth.

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	Q4 FY2025	$1.00B to $1.03B	$1.10B	+$0.07B above high end of guide	Beat
Non-GAAP EPS	Q4 FY2025	$1.40 (midpoint)	$1.76	+$0.36 above guided midpoint	Beat

New guidance

Metric	Period	Guide	YoY
Revenue	Q1 FY2026	$0.975B to $1.025B	—
Non-GAAP EPS	Q1 FY2026	$1.40 (midpoint)	—
Gross Margin	Q1 FY2026	46% to 47%	—
Operating Expenses	Q1 FY2026	$230M to $240M	—
Mobile revenue change	Q1 FY2026	decline low to mid-teen sequentially	—
Broad Markets percentage of sales	Q1 FY2026	39% of sales	—
Broad Markets YoY growth	Q1 FY2026	up mid to high single digits year over year	mid to high single digits YoY

Profitability

Q4 FY2025

Segment	Q4 FY2025
Non-GAAP Operating Margin	24.0%
Free Cash Flow	$144 million
Free Cash Flow Margin	13.1%
Operating Cash Flow	$200 million

Management tone

The Q3 "mobile is healthy" narrative did not survive 90 days. Last quarter management guided mid-single-digit sequential mobile growth into Q4 and characterized mobile as healthy with solid order patterns. Q4 over-delivered on that — but the Q1 guide of "low to mid-teen sequential decline" represents a reversal. "We anticipate mobile to decline low to mid-teen sequentially" was the prepared-remarks language; it lands as the cleanest signal yet that the largest-customer content trajectory, which Phil has acknowledged has been "downward-sloping," has resolved in a direction Skyworks does not want to quantify.

Free cash flow language has shifted from tailwind to headwind. This quarter: "We do expect free cash flow to remain solid in fiscal 26, but below fiscal 25 given the lower expected revenue base and more normalized working capital trends, particularly as we no longer expect a tailwind from inventory reductions." The Q4 FCF margin of 13.1% is the leading edge of that normalization, not a one-quarter air pocket.

The Qorvo announcement reframes the diversification thesis. The Qorvo combination is RF-handset-heavy, not a broad-markets pivot — and management spent the Q&A defending against the "doubling down on wireless" characterization. Asked directly, Phil insisted the deal represents "concentration in wireless, not just handsets" — a framing that did not fully land with the analyst asking it.

Cost discipline language replaced growth-investment language. "We're keeping a disciplined approach to spending, investing where it matters most for future growth" is defensive posturing. With opex guided to $230–240M against a revenue base stepping down ~9% sequentially, the math forces it.

Recurring themes management leaned on this quarter:

Mobile customer concentration risk (67% of revenue from largest customer)Broad markets diversification narrative (Edge IoT, Automotive, Data Center)AI-driven RF content expansion in smartphonesCorvo merger as transformative scale and portfolio diversificationMargin sustainability amid lower revenue baseFree cash flow normalization post-inventory tailwinds

Risks management surfaced:

Customer concentration with largest customer at 67% of Q4 revenueLower expected revenue base in fiscal 26 pressuring free cash flowWorking capital normalization eliminating prior inventory reduction tailwindMobile sequential decline anticipated (low to mid-teen percent)Merger integration risks implicit in Corvo combination announcement

Q&A highlights

Harsh Kumar · Piper Sandler

How did Skyworks avoid the anticipated content loss at its largest customer despite earlier guidance for decline? Was outperformance driven by units, share gains, or other factors?

Management attributed outperformance to a combination of better-than-expected unit volumes from latest phone models and favorable product mix tilted toward content-rich offerings. Mobile results were stronger than expected. Management acknowledged difficulty in predicting these dynamics 3-4 quarters out and noted that current guidance reflects previously communicated content concerns.

Mobile results stronger than expectedUnit volumes better than expected from latest phone modelsMix benefit from phones geared toward company's contentCombination of unit and mix benefits driving outperformance

Jim Schneider · Goldman Sachs

What is the long-term structural growth rate expectation for the broad markets business? Can it achieve mid-teens growth or should it be modeled as lower?

Management guided for long-term double-digit growth in broad markets, with near-term modeling consistent with this. Key drivers include Wi-Fi 7 to Wi-Fi 8 transitions, automotive connectivity growth, in-vehicle entertainment, broadcast radio, and infrastructure/cloud opportunities with timing and power benefits.

Long-term broad markets growth: double-digitGrowth drivers: Wi-Fi 7/8 adoption, automotive connectivity, in-vehicle entertainment, infrastructure/cloudSegments characterized by longer revenue cyclesHigh growth opportunities in embedded markets

Edward Snyder · Charter Equity Research

How much of the strength at largest customer is from mix vs. units? Given earlier guidance for steep Q4 decline, is the current strength sustainable given the base model benefits and Pro/Pro Max discontinuation timing?

Management confirmed both mix and units are contributing. Emphasized difficulty in forecasting due to interplay between phone model mix and generational balance. Stated they cannot and should not attempt detailed forecasting, instead guiding one quarter at a time. On future performance, management noted content direction has been downward-sloping and goal is to change that slope, but deferred specific commentary on next year guidance.

Outperformance driven by both mix and unitsCannot forecast due to complexity of phone model mix and generational balanceContent trajectory has been downward-slopingGoal is to change slope of content decline

Peter Tang · JP Morgan

What is the breakdown of broad markets growth across the three buckets (automotive, infrastructure, consumer IoT)? Which segments are back to normal growth vs. still below trend?

Broad markets guiding up slightly sequentially, mid-to-high single digits year-over-year. Growth led by Wi-Fi 7 with strong adoption and backlog entering FY26. Automotive exiting FY25 at record ~$65M quarterly run rate. Data center/infrastructure rebounding after inventory digestion with design wins on 800 gig platforms. All three buckets growing, with expected seasonality as FY26 begins.

Broad markets YoY growth: mid-to-high single digitsAutomotive exit rate: ~$65M per quarter (record)Wi-Fi 7 adoption strong with strong backlogData center rebounding from inventory digestion

Christopher Roland · Sisquiana

Management previously spoke of diversifying away from single large customer and handsets, but the pending Corvo deal appears to double down on wireless/handsets. Are there M&A opportunities still being pursued? Will there be transformational activities pending the deal?

Management disagreed with characterization that deal represents doubling down. Argued Corvo deal provides both scale and diversification, with customer concentration actually declining as it represents concentration in wireless more broadly (not just handsets). Stated no major transformational activities expected during the pending deal period. Called this the biggest deal in company history and one of biggest in RF industry. On Android, confirmed strength with major Mountain View customer, focused on premium segment valuing integration and performance.

Corvo deal described as biggest in company historyDeal expected to reduce customer concentrationWireless concentration, not handset concentrationNo major transformational activities expected pending deal close

Answers to last quarter's watch list

Flagship content for the next Apple cycle — Partially resolved. Q4 strength came from units and mix on current models; forward-cycle content visibility was explicitly deferred to "coming weeks and months." Management acknowledged content direction has been "downward-sloping" and stated the goal is to change the slope — a tacit confirmation that the design-in cycle did not deliver a step-up. Status: Resolved negatively

Broad markets sequential growth rate — Q4 broad markets met the bar; Q1 FY26 guided to "up slightly sequentially" and mid-to-high single digits YoY. Slightly softer than the Q3 framing of "sequential growth and accelerating YoY" but the YoY accelerator remains intact. Status: Continue monitoring

Automotive trajectory — Exit run rate of ~$65M/quarter, characterized by management as a record surpassing the prior fiscal 23 high. Status: Continue monitoring

Non-GAAP gross margin trajectory — Q1 FY26 guide of 46–47% is roughly flat to +50bps versus Q4's 46.5% actual print. The upward trajectory already flattened in Q4 and management did not commit to re-expansion. Status: Resolved negatively

M&A signaling under the new CEO — Decisively resolved with the Qorvo merger announcement — but in a direction that contradicts a broad-markets-pivot expectation. Management argues it still reduces concentration via wireless breadth; the analyst pushback in Q&A suggests skepticism. Status: Resolved negatively

AI data center clock product traction — Data center cited as rebounding with 800G timing design wins; no specific revenue contribution disclosed. Status: Continue monitoring

What to watch into next quarter

Whether Q1 FY26 mobile lands at the low or mid end of "low-to-mid teens" sequential decline — a mid-teens print would signal the largest-customer content loss is steeper than telegraphed.

Forward content commentary for the next flagship cycle — management committed to clarity "in coming weeks and months." A Q1 call without a quantified content framing would confirm the downward slope is structural.

Qorvo deal accretion math and customer-concentration framing — first disclosure of pro-forma top-customer exposure and gross-margin accretion. The "wireless concentration, not handset concentration" defense needs numerical backing.

Gross margin floor at the 46% low end of the Q1 guide — a print below 46% would confirm broad markets mix is not offsetting mobile decline and would undercut the FY26 margin story.

FY26 FCF guidance specificity — management telegraphed "solid but below FY25 ($1.10B)." Watch whether they put a number on it.

Automotive step-up beyond the $65M Q4 exit rate — flat-lining at $65M through Q1 would stall the diversification narrative.

Sources

Skyworks Solutions Q4 FY2025 Earnings Release, filed with SEC (https://www.sec.gov/Archives/edgar/data/4127/000110465925102814/tm2529602d1_ex99-1.htm)
Skyworks Solutions Q4 FY2025 earnings call prepared remarks and Q&A

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