Skyworks Solutions delivered a positive Q3, with results that exceeded Wall Street expectations. Management credited the quarter’s strength to higher-than-anticipated mobile demand, particularly from its largest customer, and a favorable product mix. CEO Phil Brace highlighted, “Mobile results were stronger than expected and our guide reflects that,” attributing the outperformance to both increased unit volumes and richer content in leading smartphone models. The company also benefited from sustained growth across its broad markets segment, including automotive, edge IoT, and data center infrastructure.
Is now the time to buy SWKS? Find out in our full research report (it’s free for active Edge members).
Skyworks Solutions (SWKS) Q3 CY2025 Highlights:
- Revenue: $1.1 billion vs analyst estimates of $1.04 billion (7.3% year-on-year growth, 5.4% beat)
- Adjusted EPS: $1.76 vs analyst estimates of $1.53 (15.3% beat)
- Adjusted EBITDA: $336.4 million vs analyst estimates of $304 million (30.6% margin, 10.6% beat)
- Revenue Guidance for Q4 CY2025 is $1 trillion at the midpoint, above analyst estimates of $987.4 million
- Adjusted EPS guidance for Q4 CY2025 is $1.40 at the midpoint, above analyst estimates of $1.28
- Operating Margin: 10.1%, up from 5.8% in the same quarter last year
- Inventory Days Outstanding: 108, down from 114 in the previous quarter
- Market Capitalization: $10.27 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Skyworks Solutions’s Q3 Earnings Call
- Harsh Kumar (Piper Sandler) asked about the drivers behind mobile outperformance after prior concerns of content loss; CEO Phil Brace explained that both unit volumes and product mix contributed, and that execution remained strong despite earlier uncertainty.
- Christopher Rolland (Susquehanna) questioned whether the Qorvo merger signaled a lack of diversification; Brace disagreed, stating the deal would lower customer concentration and expand capabilities in wireless beyond handsets.
- Hadi Orabi (TD Cowen) inquired about broad markets growth excluding the largest customer; CFO Philip Carter highlighted strength across automotive, IoT, and edge markets as key contributors.
- James Schneider (Goldman Sachs) sought clarity on the long-term growth rate for broad markets; Brace projected double-digit growth, pointing to WiFi and automotive as long-term drivers.
- Edward Snyder (Charter Equity Research) asked about the sustainability of content gains at the largest customer and potential for further module wins; Brace acknowledged the highly competitive environment and said guidance would be updated as visibility improves.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will monitor (1) execution on the Qorvo integration and its impact on customer concentration, (2) sustained adoption of WiFi 7 and design wins in automotive and data center infrastructure, and (3) the company’s ability to maintain gross margin improvements while investing in next-generation product development. Progress in broadening the customer base and navigating normalization in working capital will also be important markers.
Skyworks Solutions currently trades at $69.18, down from $71.90 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.