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Can an Expanding Portfolio Help Skyworks' Shares Recover in 2026?

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Key Takeaways

  • SWKS unveiled its SKY66424-11 RF module for smart homes and cities at CES 2026.
  • Robust demand in mobile, IoT, and automotive is driving growth across Skyworks' broad markets.
  • FY26 earnings and sales are expected to decline by over 11%, but estimates remain unchanged.

Skyworks Solutions (SWKS - Free Report) shares have declined 32.8% in a year, underperforming the Zacks Computer & Technology sector’s return of 26.3%. The company is suffering from a challenging macroeconomic environment, ongoing inventory digestion in certain end markets and uncertainty over tariffs. However, an expanding portfolio bodes well for the company’s prospects.

At CES 2026, Skyworks introduced the industry’s first highly integrated Wi-SUN/LoRaWAN RF front-end modules (FEM) named SKY66424-11. The FEM is exclusively meant for smart home and smart city applications. The specialty of the SKY66424-11 is the combination of advanced SAW or acoustic filtering, amplification and switching, compared with other discrete solutions comprising an LNA, a switch, a filter and interstage matching. This combination helps the company to reduce loss in a single compact design, coupled with improved performance and simplified connectivity for next-generation infrastructure.

Skyworks' expanding portfolio of automotive-grade solutions includes V2X Front-end Modules and Notch Filters, and SKY5A2110, which is a GNSS L1 + L5 Dual-Frequency Automotive LNA FEM built for next-generation GNSS receiver applications.

Robust Mobile and Broad Markets to Boost SWKS’ Prospects

Skyworks is benefiting from robust demand in both Mobile and Broad Markets. Huge customer demand and new AI-driven Android products are driving the Mobile Markets, whereas the Broad Markets are witnessing remarkable growth across edge IoT, automotive and infrastructure, supported by WiFi 7 adoption, connected vehicles and AI-driven updates.

Skyworks offers the broadest portfolio of radio and analog solutions, from the transceiver to the antenna, as well as all required manufacturing process technologies. SWKS is a leader in passive devices and advanced integration, including proprietary shielding and 3-D die stacking, as well as SAW, TC-SAW and BAW filters. The company has roughly 5000 worldwide patents and intellectual property.

SWKS’s Earnings Estimate Revision Shows Steady Trend

The Zacks Consensus Estimate for first-quarter fiscal 2026 net sales is pegged at $998.1 million, indicating year-over-year decrease of 6.6%. The consensus mark for the fiscal first-quarter earnings is pegged at $1.41 per share, unchanged over the past 30 days, indicating year-over-year decrease of 11.9%.

The Zacks Consensus Estimate for fiscal 2026 net sales is pegged at $3.63 billion, indicating year-over-year decrease of 11.2%. The consensus mark for the fiscal 2026 earnings is pegged at $4.46 per share, unchanged over the past 30 days, indicating year-over-year decrease of 24.8%.

Zacks Rank & Stocks to Consider

Skyworks currently carries a Zacks Rank #3 (Hold).

Some top-ranked stocks in the broader sector are Micron Technology (MU - Free Report) , Ciena (CIEN - Free Report) and NVIDIA (NVDA - Free Report) , each of which currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rates for Micron Technology, Ciena and NVIDIA are currently pegged at 52.06%, 41.75% and 46.31%, respectively. Shares of Micron Technology, Ciena and NVIDIA have surged 241.6%, 215.3% and 35%, respectively, in a year.

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