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Skyworks Q3 Earnings Top Estimates, Revenues Up Y/Y, Shares Rise
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Key Takeaways
{\"0\":\"SWKS posted fiscal Q3 earnings of $1.33 per share, up 9.9% Y/Y and beating estimates by 7.26%.\",\"1\":\"Revenues rose 6.6% Y/Y to $965M, led by Mobile strength and Android product launches.\",\"2\":\"SWKS expects fiscal Q4 revenues of $1B to $1.03B with mid-single-digit Mobile growth.\"}
Skyworks Solutions (SWKS - Free Report) reported third-quarter fiscal 2025 non-GAAP earnings of $1.33 per share, which beat the Zacks Consensus Estimate by 7.26% and increased 9.9% year over year.
Revenues of $965 million increased 6.6% on a year-over-year basis and surpassed the consensus mark by 2.66%.
SWKS shares were up 4.98% in pre-market trading. Year to date, Skyworks shares have dropped 16.2% underperforming the broader Zacks Computer and Technology sector’s return of 11.8%.
SWKS’ Q3 Top-Line Details
Mobile revenues contributed nearly 62% to total revenues. Revenues increased 1% sequentially and 8% year over year, driven by strong sell-through at the company’s top customer and new product launches in Android. SWKS’ largest customer accounted for roughly 63% of revenues in the reported quarter.
Broad Markets, which includes edge IoT, automotive, industrial, infrastructure and cloud, grew 2% sequentially and 5% year over year.
Skyworks Solutions, Inc. Price, Consensus and EPS Surprise
Third-quarter fiscal 2025 non-GAAP gross margin expanded 110 basis points (bps) on a year-over-year basis to 46.5%. The margin expansion benefited from product mix and ongoing cost discipline.
Research & development expenses, as a percentage of revenues, increased 290 bps year over year to 20.7%.
Selling, general and administrative expenses increased 140 bps to 9.3% in the reported quarter.
Non-GAAP operating margin contracted 90 bps on a year-over-year basis to 23.3% in the reported quarter.
SWKS Balance Sheet & Cash Flow
As of June 27, 2025, cash & cash equivalents and marketable securities were $1.34 billion compared with $1.53 billion as of March 28.
As of June 27, 2025, the long-term debt was $995.4 million, up slightly on a sequential basis.
Cash generated by operating activities was $314.1 million in the quarter under discussion compared with $409 million in the prior quarter. Free cash flow was $252.7 million, with a 26.2% free cash flow margin.
Skyworks paid dividends worth $104 million in the reported quarter. The company raised dividend payout by 1% to 71 cents per share payable on Sept. 16.
Skyworks bought shares worth $330 million in the reported quarter.
SWKS Offers 4Q25 Guidance
For the fourth quarter of fiscal 2025, the company expects revenues between $1 billion and $1.03 billion. SWKS expects mid-single-digit sequential growth in Mobile. Broad Markets is set to grow again in the current quarter, with year-over-year trends accelerating and continued strength in bookings, backlog and channel sell-through.
Gross margin is expected to be roughly 47%, +/- 50 bps. Skyworks expects operating expenses between $235 million and $245 million.
Non-GAAP shares are expected to be $1.40 per share at the mid-point of the revenue range.
Zacks Rank & Stocks to Consider
Skyworks currently carries a Zacks Rank #3 (Hold).
Image: Bigstock
Skyworks Q3 Earnings Top Estimates, Revenues Up Y/Y, Shares Rise
Key Takeaways
Skyworks Solutions (SWKS - Free Report) reported third-quarter fiscal 2025 non-GAAP earnings of $1.33 per share, which beat the Zacks Consensus Estimate by 7.26% and increased 9.9% year over year.
Revenues of $965 million increased 6.6% on a year-over-year basis and surpassed the consensus mark by 2.66%.
SWKS shares were up 4.98% in pre-market trading. Year to date, Skyworks shares have dropped 16.2% underperforming the broader Zacks Computer and Technology sector’s return of 11.8%.
SWKS’ Q3 Top-Line Details
Mobile revenues contributed nearly 62% to total revenues. Revenues increased 1% sequentially and 8% year over year, driven by strong sell-through at the company’s top customer and new product launches in Android. SWKS’ largest customer accounted for roughly 63% of revenues in the reported quarter.
Broad Markets, which includes edge IoT, automotive, industrial, infrastructure and cloud, grew 2% sequentially and 5% year over year.
Skyworks Solutions, Inc. Price, Consensus and EPS Surprise
Skyworks Solutions, Inc. price-consensus-eps-surprise-chart | Skyworks Solutions, Inc. Quote
SWKS Operating Details
Third-quarter fiscal 2025 non-GAAP gross margin expanded 110 basis points (bps) on a year-over-year basis to 46.5%. The margin expansion benefited from product mix and ongoing cost discipline.
Research & development expenses, as a percentage of revenues, increased 290 bps year over year to 20.7%.
Selling, general and administrative expenses increased 140 bps to 9.3% in the reported quarter.
Non-GAAP operating margin contracted 90 bps on a year-over-year basis to 23.3% in the reported quarter.
SWKS Balance Sheet & Cash Flow
As of June 27, 2025, cash & cash equivalents and marketable securities were $1.34 billion compared with $1.53 billion as of March 28.
As of June 27, 2025, the long-term debt was $995.4 million, up slightly on a sequential basis.
Cash generated by operating activities was $314.1 million in the quarter under discussion compared with $409 million in the prior quarter. Free cash flow was $252.7 million, with a 26.2% free cash flow margin.
Skyworks paid dividends worth $104 million in the reported quarter. The company raised dividend payout by 1% to 71 cents per share payable on Sept. 16.
Skyworks bought shares worth $330 million in the reported quarter.
SWKS Offers 4Q25 Guidance
For the fourth quarter of fiscal 2025, the company expects revenues between $1 billion and $1.03 billion. SWKS expects mid-single-digit sequential growth in Mobile. Broad Markets is set to grow again in the current quarter, with year-over-year trends accelerating and continued strength in bookings, backlog and channel sell-through.
Gross margin is expected to be roughly 47%, +/- 50 bps. Skyworks expects operating expenses between $235 million and $245 million.
Non-GAAP shares are expected to be $1.40 per share at the mid-point of the revenue range.
Zacks Rank & Stocks to Consider
Skyworks currently carries a Zacks Rank #3 (Hold).
MKS Inc. (MKSI - Free Report) , DoorDash (DASH - Free Report) and Lumentum (LITE - Free Report) are some better-ranked stocks in the broader Zacks Computer and Technology sector. Each of the three stocks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
MKS shares have declined 11.8% year to date. MKS is set to report its second-quarter 2025 results on Aug. 6.
DoorDash shares have appreciated 52.3% year to date. DASH is set to report its second-quarter 2025 results on Aug. 6.
Lumentum shares are up 28.8% year to date. LITE is set to report its fourth-quarter fiscal 2025 results on Aug. 12.