A month has gone by since the last earnings report for Skyworks Solutions (SWKS Quick QuoteSWKS - Free Report) . Shares have added about 24.2% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Skyworks due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Skyworks Solutions, Inc. before we dive into how investors and analysts have reacted as of late.

SWKS' Q2 Earnings Beat Estimates, Revenues Up on Strong Broad Markets

Skyworks Solutions 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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted 6.08% due to these changes.

VGM Scores

At this time, Skyworks has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Skyworks has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.