Skyworks Solutions (SWKS) Stock Forecast & Price Target

Skyworks Solutions demonstrated a solid financial performance, with mobile revenue representing 67% of total sales at $716 million, reflecting a sequential growth of 6%, largely driven by multiple smartphone product launches. Additionally, the company's Broad Markets segment, which accounted for approximately 33% of revenue ($352 million), displayed a positive trajectory, showing a 0.3% growth quarter-over-quarter and a 2.4% year-over-year increase, fueled by momentum in automotive and IoT applications. With a non-GAAP gross margin of 46.5% aligning with market expectations and long-term growth projections positioned at double digits, Skyworks Solutions is well-positioned for sustained financial expansion across various sectors.

Skyworks Solutions faces a bleak financial outlook, with anticipated declines in revenue and adjusted earnings per share (adj-EPS) of -11.1% and -10.8% respectively through fiscal year 2026, due in part to a prolonged downturn in the smartphone market. The company's overall sales have experienced a significant contraction, declining 13% annually in both FY24 and FY23, further exacerbated by underutilization of production facilities and resulting margin pressures. As Skyworks expects its total corporate revenue to fall by another 8% in FY25 and 3% in FY26, the anticipated substantial decrease in its dollar content from major customer Apple signals ongoing financial challenges.