Skyworks posts $944m Q2 revenue, lands $1bn Android design win
Skyworks Solutions (Nasdaq: SWKS) reported second-quarter fiscal 2026 revenue of $944 million, marginally ahead of the top end of its own guidance range, as mobile demand outperformed expectations and the company's Broad Markets division recorded double-digit year-on-year growth. The Irvine, California-based analogue and mixed-signal chipmaker said the quarter was characterised by momentum across Wi-Fi, data centre and automotive product lines.
On a GAAP basis, operating income came in at $42 million, yielding diluted earnings per share of $0.24. The non-GAAP operating income figure — which strips out share-based compensation, amortisation of acquisition-related intangibles, restructuring charges and acquisition costs — was $189 million, with non-GAAP diluted EPS of $1.15. The gap between the two measures widened year-on-year, partly owing to acquisition-related expenses of $34 million in the quarter, a figure the company attributes to its pending transactions with Qorvo.
Deal highlights and product momentum
The headline strategic disclosure is a multi-generational design win with an unnamed leading Android OEM, which Skyworks says is expected to generate more than $1 billion in cumulative revenue through 2030. Design wins of this scale are structurally significant for RF front-end suppliers: they lock in component content across multiple handset generations and provide multi-year revenue visibility that the broader semiconductor market rarely affords.
Beyond mobile, the company cited Wi-Fi 7 traction across enterprise access points and home connectivity platforms, in-vehicle infotainment engagements with Chinese electric vehicle maker BYD and a leading German Tier-1 automotive supplier, and the debut of a frequency range 3 (FR3) power amplifier at Mobile World Congress 2026, positioning Skyworks for early 6G design cycles. The company also broadened its timing solutions portfolio with next-generation clock buffers targeting data centres and PCIe Gen 7 applications — an indication of its diversification push beyond handsets.
Market context and the Qorvo overhang
Skyworks operates in a concentrated RF semiconductor market alongside Qorvo, Murata and Broadcom's wireless division. The company's pending acquisition of Qorvo — referenced repeatedly in the release's safe harbour language — represents the most consequential structural event in the sector since the 2015 consolidation wave that created both companies in their current forms. Regulatory approvals have not yet been confirmed, and Skyworks' financials carry elevated acquisition-related charges that will continue to depress GAAP earnings until the deal closes or is abandoned.
Free cash flow turned negative in the quarter at minus $32 million, driven by a sharp increase in capital expenditure ($82 million, up from $39 million a year earlier) and a $113-million inventory build. Cash and marketable securities on the balance sheet stood at $1.44 billion at quarter end.
For the third fiscal quarter ending in June, chief financial officer Philip Carter guided revenue of $900 million to $950 million, with non-GAAP diluted EPS of $1.03 at the midpoint. The Broad Markets segment is expected to represent approximately 43% of sales and grow by high single digits year-on-year, while mobile is anticipated to decline low-single digits sequentially in line with typical seasonal patterns. The board declared a quarterly cash dividend of $0.71 per share, payable 16 June 2026.
Editorial read-across
The $1bn Android design win disclosure arrives at a moment when RF content intensity per handset is rising — 5G sub-6 GHz and mmWave configurations require more filters and amplifiers than their 4G predecessors — and when competition from Chinese integrated chipmakers is intensifying at the mid-range tier. Skyworks' ability to convert the announced design win into recognised revenue remains subject to handset volumes, model mix and the OEM's own production ramp, all of which it flags as material uncertainties. Investors will watch closely for the win to be named and for the Qorvo transaction timeline to clarify.