Skyworks Solutions, Inc. reported first‑quarter 2026 revenue of $1.035 billion, a 3.5% increase from the $1.004 billion reported in the same quarter last year. The year‑over‑year rise is modest compared with the $1.068 billion Q1 FY25 figure, but the company still beat consensus revenue estimates of $998.61 million by $36.4 million, or 3.7%. The beat was driven largely by a 4% sequential lift in the Broad Markets segment, which grew 11% year‑over‑year to $456 million, offsetting a 20% sequential decline in the Mobile segment that fell to $579 million.
Skyworks’ GAAP operating income rose to $104 million from $90 million in Q1 FY25, while non‑GAAP operating income climbed to $252 million from $210 million. Diluted earnings per share were $0.53 GAAP and $1.54 non‑GAAP, beating the consensus of $1.40 by $0.14, or 10%. The earnings beat was largely a result of disciplined cost management and a favorable product mix that shifted toward higher‑margin Broad Markets revenue, which helped offset the lower margin Mobile business.
The Mobile segment, which accounts for roughly 62% of total revenue, declined 20% sequentially as Apple reduced its content mix by an estimated 20‑25%. Apple’s share of Mobile revenue fell from $1.15 billion to $920 million, a 20% drop, but the company’s Broad Markets business grew 4% sequentially and 11% year‑over‑year, driven by Wi‑Fi 7, automotive connectivity, and data‑center and cloud infrastructure demand. Management noted that the Broad Markets mix is becoming increasingly profitable, with gross margins of 46.6% versus 42% in the Mobile segment.
Gross margin for the quarter was 46.6%, a slight compression from the 47.2% margin reported in Q1 FY25, reflecting the lower‑margin Mobile mix and modest cost inflation. Management guided for Q2 FY26 revenue of $875 million to $925 million, a 5‑10% sequential decline, and non‑GAAP diluted EPS of $1.04, a 5% increase from the $0.99 midpoint guidance issued in the prior quarter. The guidance signals confidence in maintaining profitability despite the seasonal Mobile slowdown, while acknowledging a modest margin squeeze in the near term.
Skyworks reiterated its long‑term strategy to strengthen its Broad Markets position and accelerate the pending merger with Qorvo, which management expects to close in early 2027. The combined company will target over $500 million in synergies and a combined gross margin of 50‑55%. CEO Phil Brace emphasized that the merger will reduce historical Mobile volatility and expand the company’s footprint in defense and aerospace, positioning Skyworks for sustained growth in high‑margin markets.
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