01—Abstract
Summary
Summary of the 10-Q filed July 28, 2026. Cited figures are marked; the original filing is the authoritative source.
Skyworks Solutions, Inc. reported net revenue of $934.8 milliona for the three months ended July 3, 2026, down from $965.0 million a year earlier, driven primarily by a decrease in market share at a significant customer, partially offset by growth in automotive and data center products.
Net income fell to $33.9 millionb from $105.0 million, and diluted EPS was $0.22 versus $0.70. For the nine months, net revenue was $2,913.9 million and net income was $148.7 million, compared with $2,986.7 million and $335.7 million a year earlier. Restructuring, impairment, and other charges rose to $19.8 million for the quarter, primarily tied to facility consolidation and closure, and SG&A increased on professional services costs for the pending Qorvo transaction.
The pending merger with Qorvo, Inc. remains the central item. Qorvo stockholders would receive 0.960 of a Skyworks share and $32.50c in cash per share, valuing the combined company at approximately $22.0 billion as of October 27, 2025. The filing says Skyworks is increasingly hopeful the deal closes within the calendar year, but the FTC issued a Second Request in February 2026 and the parties are working with FTC staff to conclude the investigation.
Both companies' stockholders approved the transaction on February 11, 2026. Transaction costs were $14.2 milliond for the quarter and $67.6 million for the nine months. Capital returns changed materially.
On July 28, 2026, the company announced it would no longer declare quarterly cash dividends in light of the pending mergers. On July 27, 2026, the Board replaced the February 2025 buyback with a new $2.0 billion repurchase program running through January 31, 2029, and no shares were repurchased under the prior program during the quarter.
The company also repaid $500.0 million of 1.80% Senior Notes due 2026, leaving $496.9 million of 3.00% Senior Notes due 2031 outstanding. Cash, cash equivalents, and marketable securities totaled $813.8 million, and the $750.0 million revolver remained undrawn.
02—Key points
Key Highlights
- Net revenue of $934.8 million for the quarter, down from $965.0 million; decline attributed primarily to lower market share at a significant customer, partly offset by automotive and data center demand.
- Gross profit of $375.0 million (40.1% of net revenue) versus $401.0 million (41.6%), with the decline attributed to unfavorable product mix partially offset by higher unit volumes.
- Net income of $33.9 million, or $0.22 diluted EPS, compared with $105.0 million, or $0.70, in the prior-year quarter.
- Restructuring, impairment, and other charges of $19.8 million for the quarter, primarily for facility consolidation and closure; SG&A rose to $98.7 million on professional services costs for the Qorvo transaction.
- Operating cash flow was $516.2 million for the nine months, versus $1,100.8 million, mainly from working capital changes including inventory, which rose to $1,015.5 million from $754.7 million at fiscal year-end.
- The Board decided not to declare future quarterly cash dividends and approved a new $2.0 billion stock repurchase program through January 31, 2029, both announced in light of the pending mergers.
- The Qorvo Notes Tranche of bridge financing was permanently reduced to $0, leaving $1,500.0 million of committed senior unsecured bridge term loans from Goldman Sachs Bank USA as of July 3, 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Skyworks Solutions kept $0.04.
- Revenue$934.8M100.0%
- Cost of revenue−$559.8M59.9%
- Gross profit$375.0M40.1%
- Operating costs−$326.5M34.9%
- Operating income$48.5M5.2%
- Interest, other & tax−$14.6M1.6%
- Net income$33.9M3.6%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed July 28, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $934.80M$965.00M | −3.1% |
| Cost of Revenue | $559.80M$564.00M | −0.7% |
| Gross Profit | $375.00M$401.00M | −6.5% |
| R&D Expenses | $207.80M$199.40M | +4.2% |
| SG&A Expenses | $98.70M$89.30M | +10.5% |
| Operating Expenses | $326.50M$290.40M | +12.4% |
| Operating Income | $48.50M$110.60M | −56.1% |
| Interest Expense | $5.90M$6.60M | −10.6% |
| Net Income | $33.90M$105.00M | −67.7% |
| EPS (Basic) | $0.23$0.70 | −67.1% |
| EPS (Diluted) | $0.22$0.70 | −68.6% |
| Shares Outstanding (Basic) | 150.40M150.00M | +0.3% |
| Shares Outstanding (Diluted) | 151.40M150.30M | +0.7% |
05—Questions
Frequently Asked Questions
What is the status of the proposed merger with Qorvo?
Both Skyworks and Qorvo stockholders approved the transaction on February 11, 2026. The FTC issued a Second Request on February 5, 2026, and each party has certified substantial compliance. The company says it is increasingly hopeful the deal will close within the calendar year, but states there can be no assurances on that timeline.
What will Qorvo stockholders receive under the merger terms?
Each Qorvo share would be converted into 0.960 of a Skyworks common share and $32.50 in cash. The company expects Qorvo and Skyworks equityholders to own approximately 37% and 63%, respectively, of the combined company, which the Merger Agreement values at approximately $22.0 billion as of October 27, 2025.
Why did revenue and profitability decline this quarter?
Net revenue fell to $934.8 million from $965.0 million, driven mainly by a decrease in market share at a significant customer. Gross profit declined on unfavorable product mix, while operating expenses rose due to R&D headcount investment, restructuring charges, and merger-related professional fees.
How are the company's capital return plans changing?
On July 28, 2026, the Board decided not to declare quarterly cash dividends going forward, in light of the pending mergers. On July 27, 2026, it terminated the February 2025 repurchase program and approved a new $2.0 billion program through January 31, 2029. No shares were repurchased under the prior program during the quarter.
How much debt does the company have and how is it being managed?
The company repaid $500.0 million of its 1.80% Senior Notes due 2026 during the quarter, leaving $496.9 million of 3.00% Senior Notes due 2031 outstanding. The $750.0 million revolving credit facility had no borrowings as of July 3, 2026. Exchange offers for Qorvo's senior notes, which a majority of holders had tendered by June 11, 2026, are conditioned on completion of the Mergers.
06—Continue