Skyworks reported a strong beat for FQ1 2026, driven by higher demand in both mobile and broad markets, particularly for AI-capable devices and infrastructure. Q2 guidance points to a seasonal decline, with gross margin temporarily impacted by volume and expedite costs. The call emphasized the company's positive outlook on the forthcoming merger with Corvo and its strong momentum in 'hand-to-mouth' demand, which contradicts concerns about a broader smartphone demand weakness. FQ1 revenue of $1.035B exceeded the high end of guidance, driven by robust smartphone sell-through and strong growth in BroadMarkets, which grew 11% YoY.
Skyworks reported a strong beat for FQ1 2026, driven by higher demand in both mobile and broad markets, particularly for AI-capable devices and infrastructure. Q2 guidance points to a seasonal decline, with gross margin temporarily impacted by volume and expedite costs. The call emphasized the company's positive outlook on the forthcoming merger with Corvo and its strong momentum in 'hand-to-mouth' demand, which contradicts concerns about a broader smartphone demand weakness. FQ1 revenue of $1.035B exceeded the high end of guidance, driven by robust smartphone sell-through and strong growth in BroadMarkets, which grew 11% YoY.
Skyworks reported a strong beat for FQ1 2026, driven by higher demand in both mobile and broad markets, particularly for AI-capable devices and infrastructure. Q2 guidance points to a seasonal decline, with gross margin temporarily impacted by volume and expedite costs. The…
FQ1 revenue of $1.035B exceeded the high end of guidance, driven by robust smartphone sell-through and strong growth in BroadMarkets, which grew 11% YoY.
Guidance · revenue to 900
Management expressed confidence in strong demand, operational execution, and the strategic benefits of the Corvo deal, while also being measured about content and mix uncertainties.
Management highlights AI-driven workloads and edge AI as key demand drivers, expecting more RF content and complexity across mobile and broad markets (Wi-Fi 7, data centers), with AI inference moving to the edge.
Broad markets growing double digits, eighth consecutive quarter. Management expressed confidence in strong demand, operational execution, and the strategic benefits of the Corvo deal, while also being measured about content and mix uncertainties.
No specific capex guidance given, but management notes they are investing in priority growth areas (R&D), with operating expenses expected to be $230-$240 million in the March quarter.
Management expressed confidence in strong demand, operational execution, and the strategic benefits of the Corvo deal, while also being measured about content and mix uncertainties.
“We are definitely hand-to-mouth from that. We're scrambling to meet the REIT demands and right now our demand exceeds our supply and so we're continuing to work that.”
“We are seeing very strong unit demand. And we're certainly seeing that. That's reflected in our numbers, certainly above seasonality.”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| EPS | FY2026 Q2 | $1.04 | $1.04 | GUIDED |
| Gross margin | FY2026 Q2 | 44.5%–45.5% | 45% | GUIDED |
| Revenue | FY2026 Q2 | 875–925 | 900 | GUIDED |
| 제시 시점 | 지표 | 목표 기간 | 가이던스 | 실제 | 결과 |
|---|---|---|---|---|---|
| FY2026 Q2 | EPS | FY2026 Q3 | $1.03 | $1.08 | Met / beat |
| FY2026 Q2 | Gross margin | FY2026 Q3 | 44.5%–45.5% | 40.12% | Missed |
| FY2026 Q2 | Revenue | FY2026 Q3 | $0.9B–$0.95B | $0.9348B | Met / beat |
Skyworks is highly positive on the Corvo merger, citing complementary antenna technology and significant synergies; indicates a strong belief in the combined entity's future prospects.
“We believe this transaction is highly strategic and transformative, bringing greater scale, deeper R&D, and a broader technology portfolio.”
Thanks, Raji, and welcome, everyone. Before turning to the quarter, I want to briefly address our previously announced combination with Corvo. We believe this transaction is highly strategic and transformative, bringing greater scale, deeper R&D, and a broader technology portfolio. Together, this combination is expected to reduce historical mobile volatility, strengthen our competitive position, enhance our broad market capabilities, and expand our TAM into dispense and aerospace, while creating a clear path to more than 500 million of synergies over time. As highlighted in our investor presentation on October 28th, we believe this combination will deliver substantial financial benefits. We expect to achieve healthy gross margins through the cycles in the 50% to 55% range, supported by significant operating leverage and enhanced earnings power. The combined company will generate robust free cash flow, underpinned by an extremely favorable capital structure with expected net leverage of approximately one at close. These advantages position us to drive long-term value for our shareholders and customers and support continued investment in innovation and growth. Since announcing the …
Skyworks is 'hand-to-mouth' and 'scrambling' to meet demand, with demand exceeding supply across the board, despite broader industry commentary on component pricing and availability. — Indicates potential near-term supply constraints in the RF component supply chain, which could impact Skyworks' ability to fully capitalize on strong demand from key customers like Apple and affect pricing dynamics.
Skyworks is seeing a strong tailwind of unit demand, directly contradicting concerns about memory-driven headwinds in the smartphone market. — Suggests the AI-driven replacement cycle is real and broad, supporting demand for smartphone components despite memory price inflation, and challenges the bearish narrative on consumer electronics demand.
Hey, guys. Thanks for taking my question. Just in terms of the overall unit assumptions that you should be thinking, I think you talked about a pretty strong upgrade cycle going. At the same time, I think there's a lot of concerns about memory. And you guys historically have talked about low single-digit unit growth. Is that still the base case to assume for this year or because of some of the memory constraints that, you know, this could be more of a flat market? Maybe just, you know, you can share some color in your scene.
Well, look, I think that we're only really guiding one quarter out. But I would say, I think, you know, consistent with what, you know, has been said publicly on prior calls, I mean, we are seeing very strong unit demand. And we're certainly seeing that. That's reflected in our numbers, certainly above seasonality. And we're seeing very strong demand. So I'll leave it at that. I don't think we want to project demand going forward because we really don't know. We just take the input from the customers and go look at it there.