01—Abstract
Summary
Summary of the 10-Q filed February 5, 2026. Cited figures are marked; the original filing is the authoritative source.
Skyworks Solutions, Inc. reported net revenue of $1,035.4 milliona for the three months ended January 2, 2026, down from $1,068.5 million in the prior-year quarter, which the company attributed primarily to a decrease in market share at a significant customer, partially offset by higher demand for Wi-Fi products.
Net income was $79.2 millionb, or $0.53 per diluted share, compared with $162.0 million, or $1.00 per diluted share, a year earlier. Operating income fell to $103.8 million from $181.1 million, reflecting higher research and development expense of $203.4 million, higher selling, general and administrative expense of $108.4 million that includes $37.1 million of transaction costs tied to the pending Qorvo merger, and restructuring, impairment and other charges of $11.4 million. Operating cash flow was $395.5 million, and cash, cash equivalents and marketable securities totaled $1,568.6 million at quarter end.
The pending cash-and-stock merger with Qorvo, announced October 27, 2025, values the combined company at approximately $22.0 billionc. Qorvo stockholders would receive 0.960 of a Skyworks share and $32.50 in cash per share, and Skyworks and Qorvo each received a Second Request from the U.S. Federal Trade Commission on February 5, 2026, which extends the HSR Act waiting period. The transaction is expected to close early in calendar 2027.
Skyworks also declared a quarterly dividend of $0.71d per share payable March 17, 2026, and did not repurchase any shares during the quarter, with approximately $1.2 billion remaining under its repurchase authorization. The filing also discloses a patent infringement suit filed by Denso Corporation in the U.S. and Japan, which the company says it intends to vigorously oppose.
Total debt under senior notes was $996.2 million carrying value, and the company had no borrowings outstanding under its $750.0 million revolving credit facility. Committed bridge financing from Goldman Sachs Bank USA was reduced to $1,500.0 million from $3,050.0 million after the Qorvo notes tranche was permanently reduced to zero.
02—Key points
Key Highlights
- Net revenue declined 3.1% to $1,035.4 million, driven primarily by a decrease in market share at a significant customer, partially offset by Wi-Fi product demand.
- Net income fell to $79.2 million ($0.53 diluted EPS) from $162.0 million ($1.00 diluted EPS) in the prior-year quarter; operating income dropped to $103.8 million from $181.1 million.
- Selling, general and administrative expense rose to $108.4 million, including $37.1 million of transaction costs related to the pending Qorvo merger.
- Operating cash flow was $395.5 million, and cash, cash equivalents and marketable securities rose to $1,568.6 million at January 2, 2026.
- The Qorvo merger (approximately $22.0 billion combined enterprise value) received an FTC Second Request on February 5, 2026, and is expected to close early in calendar 2027.
- Bridge financing commitment from Goldman Sachs Bank USA was reduced to $1,500.0 million after the Qorvo notes tranche was permanently reduced to $0.00.
- Quarterly dividend of $0.71 per share declared February 3, 2026; no shares were repurchased during the quarter.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Skyworks Solutions kept $0.08.
- Revenue$1.04B100.0%
- Cost of revenue−$608.2M58.7%
- Gross profit$427.2M41.3%
- Operating costs−$323.4M31.2%
- Operating income$103.8M10.0%
- Interest, other & tax−$24.6M2.4%
- Net income$79.2M7.6%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed February 5, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.04B$1.07B | −3.1% |
| Cost of Revenue | $608.20M$626.60M | −2.9% |
| Gross Profit | $427.20M$441.90M | −3.3% |
| R&D Expenses | $203.40M$176.40M | +15.3% |
| SG&A Expenses | $108.40M$82.60M | +31.2% |
| Operating Expenses | $323.40M$260.80M | +24.0% |
| Operating Income | $103.80M$181.10M | −42.7% |
| Interest Expense | $6.30M$6.80M | −7.4% |
| Net Income | $79.20M$162.00M | −51.1% |
| EPS (Basic) | $0.53$1.01 | −47.5% |
| EPS (Diluted) | $0.53$1.00 | −47.0% |
| Shares Outstanding (Basic) | 149.50M160.40M | −6.8% |
| Shares Outstanding (Diluted) | 150.50M161.40M | −6.8% |
05—Questions
Frequently Asked Questions
Why did Skyworks' revenue and earnings decline in the quarter?
Net revenue decreased to $1,035.4 million from $1,068.5 million, driven primarily by a decrease in market share at a significant customer, partially offset by increased demand for Wi-Fi products. Gross profit decreased on unfavorable product mix, partially offset by higher unit volumes. Operating expenses rose, with research and development up to $203.4 million and SG&A up to $108.4 million, the latter including $37.1 million of Qorvo transaction costs.
What are the terms of the pending Qorvo merger?
Qorvo stockholders will receive 0.960 of a share of Skyworks common stock and $32.50 in cash per share. The combined company enterprise value is approximately $22.0 billion based on the October 27, 2025 market close. Qorvo equityholders and Skyworks equityholders are expected to own approximately 37% and 63%, respectively, of the combined company. The transaction is expected to close early in calendar 2027, subject to regulatory approvals and shareholder approvals.
What regulatory step has occurred on the Qorvo transaction?
On February 5, 2026, Skyworks and Qorvo each received a Second Request from the U.S. Federal Trade Commission under the HSR Act. The Second Request extends the waiting period until 30 days after the parties have substantially complied with the request, unless the period is voluntarily extended or terminated sooner by the FTC.
What is the company's liquidity position and debt profile?
Cash, cash equivalents and marketable securities totaled $1,568.6 million as of January 2, 2026, and operating cash flow was $395.5 million for the quarter. Senior notes carry a combined $996.2 million carrying amount, including $499.6 million due 2026 and $496.6 million due 2031. The $750.0 million revolving credit facility had no borrowings outstanding, and the company stated it was in compliance with its debt covenants.
What litigation risk is disclosed?
Denso Corporation filed patent infringement suits against Skyworks in the U.S. (Central District of California) and in Japan (Osaka District Court), alleging willful infringement of piezoelectric thin film patents and seeking monetary damages and injunctive relief. The company states it believes it has substantial defenses and intends to vigorously oppose the suits, and says it cannot determine the ultimate outcome.
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