Q4 FY2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue (Skyworks Standalone) | $1.05 billion | Above guidance midpoint |
| Non-GAAP Diluted EPS | $1.28 | $0.01 above guidance midpoint |
| Operating Expenses | $237 million | Near low end of guidance |
| Broad Markets Revenue | $416 million | 9% year-over-year growth |
| Combined September Revenue | $1.98 billion | N/A |
Guidance and outlook
- We expect revenue of $1.8 billion to $1.9 billion for the December quarter.
- We expect non-GAAP gross margin of 46% to 48%.
- We expect non-GAAP operating expenses of $465 million to $505 million.
- We expect non-GAAP diluted earnings per share of $1.25.
How management sounded
Positive (+6 on our -10 to +10 scale). Management expressed high enthusiasm for the combined entity's potential and engineering capabilities, while providing clear guidance that accounts for integration costs and market headwinds. Management sounded more upbeat than on 8% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Long-term growth model
Asked: Analysts asked about the sustainability of the mid- to high single-digit revenue growth target.
Answer: Management noted that diversified growth markets are supply-constrained and growing well, while the smartphone business is shifting toward premium devices to provide more stability.
Synergy breakdown
Asked: Analysts inquired about the split between OpEx and COGS synergies.
Answer: Management stated that roughly 2/3 of the $500 million in synergies will come from OpEx, with the remainder from COGS, with OpEx savings realized earlier.
Android market exposure
Asked: Analysts asked about the status of the Android business and potential bottoming.
Answer: Management indicated that the Android business is declining as part of a strategic exit from the low end and should represent less than 10% of smartphone revenue in fiscal 2027.
Capital allocation
Asked: Analysts asked how the company will balance buybacks, deleveraging, and M&A.
Answer: Management emphasized maintaining flexibility with a bias toward share buybacks while remaining disciplined regarding accretive M&A.
What to watch before the next call
- The realization of the $150 million in operating expense synergies targeted for fiscal 2027.
- The progress of factory footprint consolidation and its impact on COGS synergies.
- The performance of the diversified growth markets segment relative to the smartphone business.
