Skyworks Solutions (SWKS Quick QuoteSWKS - Free Report) reported second-quarter fiscal 2026 earnings of $1.15 per share, which beat the Zacks Consensus Estimate by 10.6% but declined 7.3% year over year. 

Revenues came in at $943.7 million, down 1% from the year-ago quarter and beat the consensus mark by 4.8%. Broad Markets stood out again, representing 42% of sales and rising 10% year over year, supported by momentum across WiFi, data center and automotive.

SWKS Shows Upside Across Mobile and Broad Markets

SWKS said results landed above the high end of its outlook, citing upside in both mobile and broad markets. Management pointed to solid demand signals, lean channel inventories and strength in premium, high-complexity solutions as supportive factors during the reported quarter. 

On the call, the company also highlighted nine consecutive quarters of growth in Broad Markets, with roughly $400 million of quarterly revenues in that business. WiFi, data center and automotive together made up nearly two-thirds of Broad Markets and collectively grew 30% year over year, reinforcing the company’s diversification push.

Skyworks’ Mobile Mix Reflects Customer Concentration

Mobile represented 58% of total revenues in the reported quarter, and Skyworks said performance ran ahead of its expectations on healthy sell-through at its top customer and product execution. Customer concentration remained elevated, with the largest customer accounting for approximately 60% of revenue.

Management reiterated its view that long-term RF content opportunity remains intact, citing a stronger unit backdrop and the potential for rising RF complexity. The company also said it has not seen an impact from broader industry discussion around memory supply and pricing so far, while noting it is monitoring the environment closely.

Skyworks Details Design Win and Technology Road Map

Skyworks emphasized a multi-generational design win with a leading Android OEM that is expected to generate over $1 billion in revenues through 2030. Management characterized the award as incremental business in the premium segment and said it reflects technology differentiation and collaboration with the customer across multiple product generations.

The company also outlined product momentum across several fronts, including BAW filters targeting early 6G FR3 spectrum and next-generation RF front-end solutions supporting frequencies above 7 gigahertz. It additionally cited expansion in timing products, including new clock buffers aimed at data center, wireless infrastructure and PCIe Gen 7 applications and said it is engaged with customers on early WiFi 8 programs.

SWKS Margins Hold as Input Costs Stay a Headwind

Profitability was steady despite cost pressures. Gross profit was $425 million, translating to a gross margin of 45%, which management said aligned with the midpoint of guidance. However, on a year-over-year basis, gross margin contracted 160 basis points (bps).

Operating expenses on a GAAP basis were $343.2 million, up 16.6% year over year. Research & development expenses increased 13.9% year over year, while selling, general and administrative expenses jumped 36%. 

Operating income on a non-GAAP basis was $189 million, down 15% year over year. Operating margin of 20% contracted 330 bps year over year. The company said higher input costs remained a modest headwind, but it has been working to contain those pressures through cost controls and selective price adjustments.

SWKS Balance Sheet Stays Flexible, Dividend Continues

Skyworks ended the quarter with approximately $1.4 billion in cash and investments and $1 billion in debt, maintaining what management described as a strong balance sheet with flexibility to support strategic priorities.

The company paid $107 million in quarterly dividends and declared a cash dividend of 71 cents per share, payable June 16, 2026, to stockholders of record as of May 26, 2026. 

Management also noted that, under operating covenants tied to its merger agreement, it supported Qorvo’s $400 million share repurchase during the quarter.

Skyworks Guides for Seasonal Mobile and Steady Broad Markets

For the third quarter of fiscal 2026, Skyworks expects revenues in the range of $900 million to $950 million. Management anticipates mobile to decline low single digits sequentially, consistent with typical seasonality, while Broad Markets is expected to rise modestly sequentially and represent about 43% of sales, up high single digits year over year.

Gross margin is projected to be approximately 44.5% to 45.5%, with operating expenses expected between $235 million and $245 million. Below the line, Skyworks guided about $4 million in other expenses, a 10% effective tax rate and a diluted share count of 151 million shares, with expected earnings of $1.03 per share at the midpoint of the revenue range.

Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the broader Zacks Computer and Technology sector that are set to report their quarterly results are Docebo (DCBO Quick QuoteDCBO - Free Report) , Diodes (DIOD Quick QuoteDIOD - Free Report) and Keysight Technologies (KEYS Quick QuoteKEYS - Free Report) . Each of the three stocks sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Diodes, Docebo and Keysight Technologies are set to report their quarterly results on May 7, 8 and 19, respectively. Year to date, shares of Diodes and Keysight Technologies have jumped 128% and 75.2%, respectively, while Docebo has dropped 8.4%.