Company Reports

Skyworks Solutions reported fiscal third-quarter revenue of $935 million, down 3% year over year but above the midpoint of guidance. Skyworks expects September-quarter revenue of $1.035 billion, down 6% year over year but ahead of FactSet consensus estimates.

Skyworks Solutions is a leading supplier of a variety of radio frequency components to smartphone makers and a host of other electronics device makers. The company faces an intense competitive landscape, as evidenced by its share loss in Apple’s iPhone 17 series. However, we expect increasing complexity and a greater need for high-end RF content to drive faster and more reliable data connections while preserving battery lives in wireless devices.

Skyworks Solutions reported fiscal second-quarter revenue of $944 million, down only 1% year over year but well above the midpoint of guidance of $900 million. Skyworks expects June-quarter revenue of $925 million, down 4% year over year, but above the FactSet consensus estimate of $861 million.

Skyworks Solutions reported fiscal first-quarter revenue of $1.035 billion, down 6% sequentially and down 3% year over year, but above the high end of guidance. Skyworks’ March revenue forecast of $900 million was ahead of FactSet consensus estimates and would be down 7% year over year.

Skyworks Solutions reported fiscal fourth-quarter revenue in line with its preliminary results announced last week as part of its merger announcement with Qorvo. Skyworks’ revenue guidance for the December quarter of $1.0 billion was ahead of FactSet consensus estimates.

Skyworks Solutions and Qorvo have agreed to merge, receiving 63% and 37%, respectively, of the combined entity in a deal expected to close in calendar 2027. Skyworks and Qorvo also both announced preliminary earnings for the September quarter that were above their previous guidance.

Skyworks Solutions is a leading supplier of a variety of radio frequency components to smartphone makers and a host of other electronics device makers. The company faces an intense competitive landscape, as evidenced by its expectation for share loss in Apple’s iPhone 17 series. However, we expect increasing complexity and a greater need for high-end RF content to drive faster and more reliable data connections while preserving battery lives in wireless devices.

Skyworks reported fiscal third-quarter revenue of $965 million, up 1% sequentially, up 7% year over year, and above the high end of guidance. Skyworks forecasts September-quarter revenue of $1.015 billion, well ahead of FactSet consensus estimates of $882 million.

Skyworks Solutions is a leading supplier of a variety of radio frequency components to smartphone makers and a host of other electronics device makers. The company faces an intense competitive landscape, as evidenced by its expectation for share loss within Apple’s iPhone 17 series. However, we expect increasing complexity and a greater need for high end RF content to drive faster, and more reliable, data connections while preserving battery lives within wireless devices.

Skyworks Solutions reported fiscal second-quarter revenue that was down 9% year over year, but in line with guidance. June-quarter revenue is expected to be $940 million, up 4% year over year and ahead of FactSet consensus. Skyworks will also undergo a CFO transition.

Skyworks Solutions is a leading supplier of a variety of radio frequency components to smartphone makers and a host of other electronics device makers. The company faces an intense competitive landscape, as evidenced by its expectation for share loss within Apple’s iPhone 17 series. However, we expect increasing complexity and a greater need for high end RF content to drive faster, and more reliable, data connections while preserving battery lives within wireless devices.

We are downgrading our moat rating for Skyworks Solutions to none from narrow, based on our review of the company's looming radio frequency chip share loss within Apple's upcoming iPhone 17 series, along with our pessimism around potentially lucrative Android-based smartphone opportunities that will help Skyworks recover from such share loss. We are no longer confident that Skyworks will generate excess returns on capital over the next decade. We view a strong recovery of RF content at Apple as possible, but it is no longer our base-case assumption. We maintain our $70 fair value estimate, which we established on Feb. 5 upon the news of the socket loss at Apple, and our various model updates associated with our moat downgrade are relatively immaterial. We view shares as fairly valued.

Skyworks Solutions’ greatest risk partially came to fruition as the company expects a material 20%-25% reduction in radio frequency chip content per Apple iPhone within the iPhone 17 series arriving later this year. We observed Skyworks’ stock sell off as much as 24% on the news, and we think the reaction is justified. We will now model about $7 of RF content in the iPhone 17 for Skyworks in fiscal 2026 and beyond, down from $10-$11 of content earned in prior years and in our prior model. As such, we cut our fair value estimate to $70 per share from $95.

Skyworks Solutions is a leading supplier of a variety of radio frequency components to smartphone makers and a host of other electronics device makers. Although the company faces an intense competitive landscape, it should prosper from increasing complexity as more RF content is typically needed within wireless devices.

We met with Skyworks Solutions' management team at CES 2025 and retain our confidence in the firm's ability to remain a relevant radio frequency chip supplier into Apple over time, even as Apple transitions to its in-house modem chip for future iPhones. We retain our $95 fair value estimate for narrow-moat Skyworks but have revised our estimates as we are modestly more pessimistic about fiscal 2026, offset by modestly more optimism for fiscal 2027 versus our prior expectations. We still view shares as fairly valued.

We maintain our fair value estimates for wireless chipmakers under our coverage, given a Bloomberg report that Apple’s long-rumored development of an internal baseband chip, or modem, is imminent. Our fair value estimate for narrow-moat Qualcomm remains at $180, narrow-moat Skyworks Solutions at $95, and no-moat Qorvo at $85.

Narrow-moat Skyworks Solutions reported decent fiscal fourth-quarter earnings that aligned with our expectations but provided investors with a disappointing forecast, particularly on the profitability front. We are reducing our fair value estimate to $95 from $115 based on lower near-term revenue forecasts and long-term profitability assumptions. Shares still appear undervalued to us, although we now view the margin of safety for investors as slightly slimmer than what we previously signaled.

Skyworks Solutions is a leading supplier of a variety of radio frequency components to smartphone makers and a host of other electronics device makers. Although the company faces an intense competitive landscape, it should thrive as the handset industry focuses on 5G devices, which we expect to require higher radio frequency dollar content per phone.

Narrow-moat Skyworks Solutions reported solid fiscal third-quarter results and provided investors with a decent forecast for the September quarter. The company is optimistic that artificial intelligence will be a catalyst for a smartphone upgrade cycle, particularly at key customer Apple, which might bode well for future orders for radio frequency, or RF, chips made by Skyworks. A recovery in smartphones has been baked into our model for some time, and as such, we maintain our $115 fair value estimate. Shares appear fairly valued to us.

Skyworks Solutions is a leading supplier of a variety of radio frequency components to smartphone makers and a host of other electronics device makers. Although the company faces an intense competitive landscape, it should thrive as the handset industry focuses on 5G devices, which we expect to require higher radio frequency dollar content per phone.