Financial Health Snapshot
What do Skyworks Solutions, Inc.’s latest financial metrics show about health?
Mixed. The strongest factor is liquidity, with cash exceeding debt, while the main concern is earnings and cash-flow pressure during merger preparation.
For 2026-04-03, this snapshot combines growth, profitability, cash generation, balance-sheet capacity, and capital efficiency. For a broader investor read, Exploring Skyworks Solutions, Inc. (SWKS) Investor Profile: Who's Buying and Why? can help connect the numbers to ownership and market sentiment.
Adjusted EPS was $115 for Q2 FY2026, while GAAP diluted EPS was $024; free cash flow deserves the first deeper look because it best shows whether Skyworks Solutions, Inc. can fund growth and protect flexibility.
Revenue Quality
Is Skyworks Solutions revenue and earnings quality durable?
Weak. Revenue was only slightly lower, but operating income, net income, and diluted EPS fell much faster, so the clearest divergence is that earnings conversion did not confirm revenue stability in the latest period.
Growth quantity matters less than growth quality. Investors compare revenue durability with operating income, net income, and diluted EPS across the same annual periods to see whether sales turn into real profit. For mission and strategy context, see Mission Statement, Vision, & Core Values (2026) of Skyworks Solutions, Inc. (SWKS).
| Measure | Latest Period | Previous Period | Quality Test | Investor Meaning |
|---|---|---|---|---|
| Revenue | $94370M, Revenue Growth: -886%, Q2 FY2026, 2026-04-03 | $95300M, Q2 FY2025 | Organic growth was unclear; the latest signal points to a slight decline | Repeatability looks limited in the latest quarter |
| Operating Income | $4210M, Q2 FY2026, 2026-04-03 | $11520M, Q1 FY2026 | Grew slower than revenue, with a sharp sequential drop | Operating leverage did not confirm stronger quality |
| Net Income | $3560M, Q2 FY2026, 2026-04-03 | $7920M, Q1 FY2026 | Weaker final earnings, with operating, interest, tax, or unusual-item pressure not broken out | Bottom-line results did not confirm operating strength |
| Diluted EPS | $024, Q2 FY2026, 2026-04-03 | $053, Q1 FY2026 | Per-share growth weakened, so share count did not improve the result | Shareholders received less per-share earnings than in the prior quarter |
How durable is Skyworks Solutions revenue?
Durability is moderate at best. The strongest visibility signal is the multi-generational Android OEM win expected to generate over $100B through 2030, but the largest limitation is customer concentration and buyer power, especially given Apple Inc exposure.
- Demand Quality: Recurring semiconductor demand is visible, but handset cycles remain important, so revenue can still swing with device timing and customer purchasing patterns.
- Pricing and Volume: The split is unavailable. The latest data show revenue pressure, but it does not isolate price, volume, or mix.
- Diversification: Apple Inc accounted for 7200% of revenue in Q1 2025 and 6300% in Q3 2025. Broad Markets represented 4300% of sales as of Q2 2026.
That concentration makes profitability and cash conversion the next test.
Margins and Cash Flow
Do Skyworks Solutions, Inc. margins and cash flow support financial health?
Not yet. Q2 FY2026 showed heavy income-statement pressure, and the supplied cash-flow trends also weakened, so reported earnings are not clearly backed by operating or free cash flow in the data provided.
Skyworks Solutions, Inc. is still profitable on paper, with $3560M net income in Q2 FY2026, but profit and cash are not the same thing. Gross profit, operating income, and net income all fell sharply, while operating cash flow and free cash flow also deteriorated, which points to a weaker conversion of earnings into cash.
| Measure | Latest Period | Previous Period | Verified Driver | Investor Meaning |
|---|---|---|---|---|
| Gross Margin | Unavailable; no verified margin field supplied for Q2 FY2026. | Unavailable; no compatible prior margin supplied. | Gross Profit Growth: -981% and Cost Of Revenue: $55840M against Revenue: $94370M show margin pressure, but a verified margin is not supplied. | Product economics look under strain, with cost pressure overwhelming gross profit growth. |
| Operating Margin | Unavailable; no verified margin field supplied for Q2 FY2026. | Unavailable; no compatible prior margin supplied. | Operating Expenses: $34320M, Research And Development Expenses: $21240M, and Selling General & Administrative Expenses: $11970M weighed on Operating Income: $4210M. | Scale is not yet turning into better operating efficiency. |
| Net Margin | Unavailable; no verified margin field supplied for Q2 FY2026. | Unavailable; no compatible prior margin supplied. | Interest Expense: $750M and Income Tax Expense: $980M reduced Income Before Tax: $4540M to Net Income: $3560M. | Final profitability is positive, but it does not erase the pressure earlier in the income statement. |
| Operating Cash Flow | Unavailable; no verified operating cash flow value supplied for Q2 FY2026. | Unavailable; no compatible prior value supplied. | Operating Cash Flow Growth: -8728% and Receivables Growth: -1566% point to weaker cash conversion and working-capital strain. | Accounting earnings are not clearly converting into operating cash. |
| Free Cash Flow | Unavailable; no verified Q2 FY2026 value supplied. | $41500M in Q1 FY2026. | Free Cash Flow Growth: -10944% and Growth Capital Expenditure: -4584% show heavier investment pressure on cash. | Less cash remains for reinvestment, debt service, and flexibility. |
What most affects Skyworks Solutions, Inc. cash conversion?
Working capital and cost pressure are the biggest drivers, led by receivables strain, inventory buildup, and weak operating leverage in Q2 FY2026.
- Main Driver: Receivables Growth: -1566% and Inventory Growth: 1539% suggest working-capital strain; that looks more temporary than structural, but it still hurts cash conversion now.
- Evidence Gap: The supplied data do not show the exact operating cash flow or free cash flow dollar amounts for Q2 FY2026.
- Metric to Monitor: Track operating cash flow against net income and next-quarter inventory changes.
If you’re using this topic for a paper or case study, a structured SWOT Analysis, PESTLE Analysis, or Business Model Canvas can help you organize the research into clear arguments. For company background, see Skyworks Solutions, Inc. (SWKS): History, Ownership, Mission, How It Works & Makes Money.
Balance Sheet Strength
Can Skyworks Solutions fund operations, debt, and Qorvo integration?
Mixed. Skyworks Solutions has strong liquidity and cash exceeds supplied total debt, but the main concern is refinancing and integration funding for the Qorvo deal, especially with $750M of interest expense and merger-related note exchange work still ahead.
Cash is only part of the picture. Skyworks Solutions also needs to cover working capital, protect asset quality, service debt, and keep refinancing access open while it integrates Qorvo. A balance sheet can look liquid on paper, yet still face pressure if goodwill is large, liabilities rise, or deal execution slows.
| Area | Latest Evidence | Assessment | Investor Meaning |
|---|---|---|---|
| Cash and Working Capital | Cash and Cash Equivalents: $141B, Short Term Investments: $850M, Cash and Short Term Investments: $142B, Total Current Assets: $313B, Total Current Liabilities: $132B | Strong | Near-term obligations look covered without forcing a cut in operating or integration spending. |
| Total and Net Debt | Short Term Debt: $49990M, Long Term Debt: $49670M, Total Debt: $99660M, cash above supplied debt | Strong | Leverage is manageable right now, and cash provides a clear buffer against debt pressure. |
| Debt Service and Refinancing | Interest Expense: $750M, May 20, 2026 exchange offers and consent solicitations for Qorvo’s senior notes due 2029 and 2031 | Mixed | Skyworks Solutions can service debt, but refinancing and merger-linked note handling still need careful execution. |
| Asset Quality | Net Receivables: $33600M, Inventory: $88560M, Other Current Assets: $48220M, Property Plant Equipment Net: $119B, Goodwill: $218B, Intangible Assets: $72160M, Goodwill And Intangible Assets: $290B, Total Assets: $790B | Mixed | Receivables and inventory need normal collection and sell-through, while goodwill and intangibles add acquisition risk. |
| Liabilities and Equity | Total Liabilities: $132B, Shareholders' Equity: $658B | Strong | The capital base is large enough to absorb shocks, which supports financing flexibility. |
Which balance-sheet risk matters most for Skyworks Solutions?
Refinancing and integration funding matter most. The May 20, 2026 exchange offers for Qorvo’s senior notes due 2029 and 2031 make deal execution, not cash alone, the key watch item.
- Current Exposure: Total Debt is $99660M, and Qorvo integration depends on exchange offers and consent solicitations for notes due 2029 and 2031.
- Protection: Cash and Short Term Investments of $142B give Skyworks Solutions a strong near-term funding buffer.
- Warning Signal: Watch whether goodwill of $218B and total goodwill and intangibles of $290B rise in importance if merger execution slows.
For readers using this in a paper or case study, a Business Model Canvas financing view helps connect liquidity, working capital, and integration funding. For deeper research, Exploring Skyworks Solutions, Inc. (SWKS) Investor Profile: Who's Buying and Why? can add context on investor positioning around the deal.
Capital Efficiency
How efficient is Skyworks Solutions at reinvesting capital?
Skyworks Solutions looks Mixed. Internal cash appears partly sufficient for reinvestment, but capital returns, buybacks, and merger-related funding needs mean some growth uses still depend on outside capital or balance-sheet flexibility.
Return analysis should separate operating quality from leverage and funding structure. ROIC tests operating profit against invested capital, ROE tests profit against shareholder equity, and ROA tests profit against assets. Asset intensity, capex, working capital, and acquisition funding can all change the picture quickly.
| Capital Measure | Latest Evidence | Quality Test | Investor Meaning |
|---|---|---|---|
| ROIC | ROIC was not supplied. | ROIC should be judged against operating margin and invested capital efficiency, not just earnings growth. | Investors need to see whether operating profit can justify the capital tied up in the business. |
| ROE and ROA | ROE and ROA were not supplied; Total Assets: $790B was supplied. | ROE can look stronger when leverage helps; ROA is more exposed to asset intensity. | Shareholder returns may look good on equity even when asset productivity is only moderate. |
| Maintenance and Growth Investment | Research And Development Expenses: $21240M in Q2 FY2026; R&D intensity stayed at 1400%–1600% of revenue; Property Plant Equipment Net: $119B; Growth Capital Expenditure: -4584%. | R&D and product development are clear reinvestment signals, while capex discipline looks tight on the supplied data. | Skyworks Solutions is spending to protect and extend its product base, not just to maintain current operations. |
| Internal Funding Capacity | Dividend: $071 per share quarterly dividend payable; annual dividend rate: $284 per share; Q3 2025 Capital Return: Returned $43000M to shareholders via $10400M in dividends and $33000M in buybacks; Weighted Average Diluted Shares Outstanding: 15060M for Q2 FY2026; Common Stock Outstanding: 15000M estimated as of June 05, 2026. | Capital returns are meaningful, but merger funding dependence rises because Qorvo holders receive cash and stock. | Internal cash supports shareholder payouts, yet merger financing and repurchases can reduce flexibility and increase dilution risk if cash generation weakens. |
Is Skyworks Solutions’s return on capital sustainable?
The strongest durability source is its patent-backed RF platform, including Mission Statement, Vision, & Core Values (2026) of Skyworks Solutions, Inc. (SWKS), Wi-Fi 7 FEMs and filters, SKY66424-11, 6G FR3, PC1 RF Front-End, Si86Px digital isolators, and Sky5 AI Platform. Returns weaken if merger funding and buybacks outpace cash generation.
- Operating Source: Patent depth and RF mix support pricing and asset use.
- Funding Requirement: Research And Development Expenses: $21240M in Q2 FY2026.
- Durability Test: If free cash flow turns thin while dividends, buybacks, and merger funding stay high, returns can weaken.
Customer Risk
How resilient is Given Company, and which warning signs matter most?
Mixed. The main buffer is Broad Markets at 43.00% of sales as of Q2 2026 plus 6,900 customers, but the biggest verified warning sign is Apple Inc. concentration, with Apple at 72.00% of revenue in Q1 2025 and 63.00% in Q3 2025.
Skyworks Solutions has real liquidity and diversification support, but its resilience is still tied to a few large customers and the mobile cycle. That matters because weak demand, slower iPhone shipments, or merger execution issues can hit cash flow quickly. For investor context, Exploring Skyworks Solutions, Inc. (SWKS) Investor Profile: Who's Buying and Why? helps frame ownership and sentiment.
| Pressure | Financial Effect | Existing Protection | Warning Signal |
|---|---|---|---|
| Revenue or Margin Pressure | Apple concentration can weaken operating leverage, earnings, cash flow, and debt capacity if buyer power rises or product timing shifts. | Broad Markets at 43.00% of sales as of Q2 2026 and 6,900 customers reduce dependence on one buyer. | Revenue Growth: -88.6% or further margin and cash-flow deterioration would confirm stress. |
| Working-Capital or Investment Pressure | Inventory growth can absorb cash, especially if smartphone demand slows and components sit longer before shipment. | Internal funding from operations and a broader customer base can help, if conversion stays stable. | Inventory Growth: 153.9% with weaker operating cash flow would signal rising pressure. |
| Interest or Refinancing Pressure | Merger integration and exchange offers could reduce flexibility if financing costs rise or synergies slip, hurting free cash flow. | Cash and cash equivalents of $141B versus total debt of $99660M give some buffer if maintained. | Falling cash, higher debt, or delayed refinancing on Qorvo senior notes due 2029 and 2031 would show stress. |
What financial warning signs should investors monitor at Given Company?
The top signals are revenue growth, operating cash flow, and inventory. Revenue decline is confirmed deterioration; the Qorvo deal is a future risk if integration or refinancing slips; Apple concentration stays the structural vulnerability.
Apple concentration and buyer power
Apple Inc. accounted for 72.00% of revenue in Q1 2025 and 63.00% in Q3 2025, so any dual-sourcing shift or iPhone timing change can pressure sales fast. Monitor revenue mix and Apple-related revenue next.
Mobile-cycle and competitive pressure
Apple began dual-sourcing RF components for iPhone 17 from Broadcom, which could reduce Skyworks Solutions' iPhone revenue by 20.00% to 25.00%. That risk sits on top of smartphone upgrade cycles and inventory digestion, so monitor Revenue Growth: -88.6%.
Merger execution and financing strain
The Qorvo merger is valued at $2200B, and projected annual cost synergies of $50000M depend on integration over 24–36 months. Exchange offers cover Qorvo senior notes due 2029 and 2031, so monitor cash and cash equivalents of $141B versus total debt of $99660M.
Investor Health
What does Skyworks Solutions, Inc. financial health mean for investors?
Mixed overall. The strongest factor is liquidity, while the weakest is revenue and earnings quality. The key investment condition is whether strong cash resources can offset softer growth, customer concentration, and execution pressure.
| Financial Factor | Rating | Evidence and Investor Meaning |
|---|---|---|
| Revenue and Earnings Quality | Weak | Q2 FY2026 revenue of $94370M, revenue growth of -886%, and EPS diluted growth of -5472% point to softer top-line and per-share support. |
| Profitability and Cash | Mixed | Gross profit of $38530M and operating income of $4210M are positive, but operating cash flow growth of -8728% and free cash flow growth of -10944% weaken conversion. |
| Balance Sheet and Liquidity | Strong | Cash and cash equivalents of $141B, cash and short term investments of $142B, and total current assets of $313B support flexibility, even with $99660M of total debt. |
| Capital Efficiency | Mixed | R&D intensity of 1400%–1600% of revenue and a portfolio exceeding 5,200 patents support reinvestment, but capital also goes to Qorvo funding and shareholder returns. |
| Financial Resilience | Mixed | Broad Markets at 4300% of sales helps diversification, but Apple concentration and Qorvo execution risk still create pressure points and earnings volatility. |
- What Supports the Thesis: Strong liquidity, positive operating income, and improving diversification give Skyworks Solutions, Inc. room to absorb cyclical pressure.
- What Challenges the Thesis: Customer concentration, margin pressure, and integration risk remain the biggest uncertainties for earnings stability.
- What to Monitor: Revenue Growth: -886%, Free Cash Flow Growth: -10944%, and Cash And Cash Equivalents: $141B versus Add Total Debt: $99660M.
For background on the business model, ownership, and operating history, see Skyworks Solutions, Inc. (SWKS): History, Ownership, Mission, How It Works & Makes Money; that context helps connect cash strength, scenario risk, and customer dependence to forecasts, scenarios, and valuation assumptions.
FAQ
What Do Investors Ask About 's Financial Health?
Investors most often ask about the company's revenue quality, profitability, cash generation, debt, liquidity, capital efficiency, and ability to withstand financial pressure.
How much does Apple concentration affect Skyworks margins?
Apple concentration mainly affects revenue visibility and operating leverage Apple Inc accounted for 7200% of revenue in Q1 2025 and 6300% in Q3 2025, so volume changes, sourcing shifts, and pricing pressure can flow through margins quickly
Can Skyworks sustain dividends from free cash flow?
Dividend support depends on cash conversion, not only earnings The company declared a $071 per share quarterly dividend and annual dividend rate of $284 per share, but Q2 FY2026 Free Cash Flow Growth of -10944% makes cash-flow monitoring essential
What does Qorvo financing mean for liquidity?
Qorvo financing adds integration and debt-management complexity Skyworks had Cash And Cash Equivalents of $141B and Add Total Debt of $99660M at 2026-04-03, while exchange offers addressed Qorvo senior notes due 2029 and 2031
How resilient is Skyworks if smartphone cycles weaken?
Resilience is mixed because Skyworks remains exposed to smartphone upgrade cycles and Apple concentration, but Broad Markets represented 4300% of sales as of Q2 2026 That diversification helps, though it does not remove mobile-cycle sensitivity
Do Skyworks returns justify current reinvestment needs?
The supplied data does not include verified ROIC, ROE, or ROA Investors should test returns separately against R&D intensity of 1400%–1600% of revenue, Property Plant Equipment Net of $119B, merger funding needs, and shareholder returns