01—Abstract
Summary
Summary of the 10-Q filed May 5, 2026. Cited figures are marked; the original filing is the authoritative source.
Skyworks Solutions, Inc. reported net revenue of $943.7 milliona for the three months ended April 3, 2026, down from $953.2 million a year earlier, and $1,979.1 million for the six months, versus $2,021.7 million.
The filing attributes the revenue decline primarily to a decrease in market share at a significant customer, partially offset by higher demand for Wi-Fi products. Net income fell to $35.6 millionb ($0.24 diluted EPS) for the quarter from $68.7 million ($0.43), and to $114.8 million ($0.76 diluted EPS) for the six months from $230.7 million ($1.44). Selling, general, and administrative expense rose to $119.7 million for the quarter from $88.0 million, mainly from professional services costs tied to the pending Qorvo transaction, which totaled $19.7 million in transaction costs for the quarter and $53.4 million for the six months.
The pending Qorvo merger, a cash-and-stock transaction valuing the combined company at approximately $22.0 billionc as of October 27, 2025, is expected to close early in calendar 2027. Qorvo stockholders would receive 0.960 of a Skyworks share and $32.50 in cash per share, with Skyworks holders owning approximately 63% of the combined company on a pro forma basis. Both companies' stockholders approved the transaction on February 11, 2026, but the FTC issued a Second Request on February 5, 2026, extending the HSR waiting period.
Goldman Sachs Bank USA's bridge commitment has been reduced to $1,500.0 milliond after the Qorvo Notes Tranche was permanently reduced to $0.00. Liquidity remained solid, with cash, cash equivalents, and marketable securities totaling $1,436.4 million at April 3, 2026, and no borrowings under the $750.0 million Revolver. Operating cash flow was $445.8 million for the six months, down from $786.6 million, mainly due to working capital changes, inventory in particular.
Capital expenditures rose to $138.9 million from $77.5 million. The company repurchased no shares in the quarter, with about $1.2 billion remaining under its $2.0 billion authorization, and declared a quarterly dividend of $0.71 per share on May 5, 2026.
02—Key points
Key Highlights
- Net revenue was $943.7 million for the quarter, down 1.0% from $953.2 million, driven primarily by a decrease in market share at a significant customer and partially offset by Wi-Fi demand.
- Operating income fell to $42.1 million from $97.3 million, as total operating expenses rose to $343.2 million from $294.3 million, driven by R&D up to $212.4 million and SG&A up to $119.7 million.
- Diluted EPS was $0.24 for the quarter versus $0.43 a year earlier, and $0.76 for the six months versus $1.44.
- Pending Qorvo merger, valued at approximately $22.0 billion for the combined company, is expected to close early in calendar 2027; the FTC issued a Second Request on February 5, 2026.
- Transaction costs for the Qorvo deal were $19.7 million for the quarter and $53.4 million for the six months, recorded within SG&A.
- Cash, cash equivalents, and marketable securities totaled $1,436.4 million, with no borrowings under the $750.0 million Revolver.
- Operating cash flow was $445.8 million for the six months versus $786.6 million, while capital expenditures increased to $138.9 million from $77.5 million; no shares were repurchased in the quarter.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Skyworks Solutions kept $0.04.
- Revenue$943.7M100.0%
- Cost of revenue−$558.4M59.2%
- Gross profit$385.3M40.8%
- Operating costs−$343.2M36.4%
- Operating income$42.1M4.5%
- Interest, other & tax−$6.5M0.7%
- Net income$35.6M3.8%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed May 5, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $943.70M$953.20M | −1.0% |
| Cost of Revenue | $558.40M$561.60M | −0.6% |
| Gross Profit | $385.30M$391.60M | −1.6% |
| R&D Expenses | $212.40M$186.50M | +13.9% |
| SG&A Expenses | $119.70M$88.00M | +36.0% |
| Operating Expenses | $343.20M$294.30M | +16.6% |
| Operating Income | $42.10M$97.30M | −56.7% |
| Interest Expense | $7.50M$6.80M | +10.3% |
| Net Income | $35.60M$68.70M | −48.2% |
| EPS (Basic) | $0.24$0.43 | −44.2% |
| EPS (Diluted) | $0.24$0.43 | −44.2% |
| Shares Outstanding (Basic) | 150.30M158.50M | −5.2% |
| Shares Outstanding (Diluted) | 150.60M158.80M | −5.2% |
05—Questions
Frequently Asked Questions
Why did revenue and profitability decline in the quarter?
Net revenue decreased to $943.7 million from $953.2 million, driven primarily by a decrease in market share at a significant customer, partially offset by increased demand for Wi-Fi products. Gross profit declined on unfavorable product mix, partially offset by higher unit volumes. Operating expenses rose, led by R&D and SG&A, so operating income fell to $42.1 million from $97.3 million.
What are the key terms and timing of the pending Qorvo transaction?
Under the Merger Agreement dated October 27, 2025, each Qorvo share would convert into 0.960 of a Skyworks share and $32.50 in cash, with Qorvo equityholders and Skyworks equityholders expected to own approximately 37% and 63%, respectively, of the combined company. The transaction is expected to close early in calendar year 2027, subject to regulatory approvals and other closing conditions. Both companies' stockholders approved the ballot measures on February 11, 2026.
What regulatory and financing developments affect the Qorvo deal?
On February 5, 2026, both companies received a Second Request from the FTC under the HSR Act, which extends the waiting period until 30 days after substantial compliance. Goldman Sachs Bank USA's bridge commitment is now $1,500.0 million, after the $1,550.0 million Qorvo Notes Tranche was permanently reduced to $0.00 when no ratings decline occurred. Receipt of financing is not a condition to Skyworks' obligation to complete the Mergers. Termination fees are $298.7 million in general and $100.0 million in certain antitrust or foreign investment circumstances.
How strong is the company's liquidity and what happened to cash flow?
Cash, cash equivalents, and marketable securities totaled $1,436.4 million at April 3, 2026, and the company had no borrowings under its $750.0 million Revolver, which matures November 18, 2030. Operating cash flow fell to $445.8 million from $786.6 million for the six months, mainly due to a $199.7 million reduction in working capital cash inflows, primarily inventory. Dividends paid totaled $213.2 million for the six months.
What are the capital return plans?
No shares were repurchased during the three or six months ended April 3, 2026, leaving approximately $1.2 billion available under the $2.0 billion stock repurchase program that runs through February 3, 2027. The Board declared a cash dividend of $0.71 per share on May 5, 2026, payable June 16, 2026, to stockholders of record as of May 26, 2026.
06—Continue