SkyWater Technology SKYT jumps 8.93% on robust earnings and strategic momentum

SkyWater Technology (SKYT) jumped 8.93% in pre-market trading on Dec. 23, 2025, driven by robust earnings and strategic momentum. The stock's surge followed a 36.36% profit margin and $150.74 million in third-quarter revenue, signaling strong operational performance.

Analyst upgrades further fueled the rally, with TD Cowen raising its price target to $24. The firm highlighted SkyWater's expansion in aerospace/defense markets and a 12.27% year-to-date total return as key catalysts. Institutional confidence is growing amid the company's 97.29% return on equity and strategic focus on analog/rad-hard ICs, positioning it to benefit from industry tailwinds.

Valuation metrics also appear attractive, with a low forward P/E ratio of 6.92 and a $875.57 million market cap. The stock's movement toward key resistance levels has drawn attention from capital allocators, suggesting potential for continued outperformance as the firm capitalizes on its capital efficiency and sector positioning.

Capital allocators are increasingly focused on capital efficiency and sector positioning, particularly within the analog/rad-hard IC segment. SkyWater’s strategic expansion and strong financial metrics suggest that it is well-positioned to continue capitalizing on these trends in 2026 and beyond.