Skyworks Solutions 2025 Q3 Earnings Mixed Performance as Net Income Dips 13.2%

Skyworks Solutions reported Q3 2025 results that showed a 6.6% revenue increase but a decline in net income year-over-year. The company’s non-GAAP guidance exceeded expectations, though its stock underperformed in the post-earnings period. CEO Phil Brace noted strong performance in key markets, with CFO Rob Schriesheim raising Q4 revenue guidance to $1.00–$1.03 billion.

Revenue
Skyworks Solutions generated $965 million in total revenue for the third quarter of 2025, a 6.6% increase from $905.50 million in the same period last year. Distributors accounted for the majority of revenue, contributing $816.80 million, while direct customers added $148.20 million. The performance reflects continued strength across key distribution channels and underscores the company's broad market presence.

Earnings/Net Income
The company’s GAAP diluted EPS for the quarter was $0.70, representing a 6.7% decline from $0.75 in the prior year. Net income also fell to $105 million, down 13.2% from $120.90 million in 2024 Q3. While non-GAAP metrics showed resilience, the drop in GAAP EPS and net income indicates a challenging operating environment. The EPS decline is a negative signal for investors expecting consistent earnings growth.

Price Action
The stock price of Skyworks Solutions has declined in recent trading periods, with a 0.89% drop on the latest trading day, a 5.99% fall for the week, and a 14.13% decline month-to-date. This downward trend highlights investor skepticism following the earnings report.

Post-Earnings Price Action Review
A post-earnings investment strategy of buying shares after the release of a revenue growth quarter and holding for 30 days has yielded poor returns over the past three years. The strategy produced a -27.35% return, significantly lagging behind the 48.58% benchmark return. With a negative CAGR of -10.44% and a Sharpe ratio of -0.26, the strategy demonstrates high risk and minimal downside protection, reinforcing the stock’s volatile nature.

CEO Commentary
Phil Brace, CEO and President, expressed optimism about Skyworks' Q3 performance, highlighting 7% year-over-year revenue growth and outperforming gross margin and non-GAAP EPS guidance. He emphasized the momentum in Mobile and Broad Markets, driven by 5G, automotive, and edge IoT adoption, as well as AI data center opportunities. The company is also focusing on manufacturing optimization, including facility consolidation, to enhance long-term operational efficiency.

Guidance
Rob Schriesheim, Interim CFO, provided Q4 2025 guidance, projecting revenue of $1.00 billion to $1.03 billion and non-GAAP diluted EPS of $1.40 at the midpoint. He noted that Mobile is expected to grow by mid-single digits sequentially, while Broad Markets will continue to show acceleration in year-over-year performance. The company anticipates strong order patterns across key business lines and ongoing demand in automotive and data center markets.

Additional News
Skyworks Solutions announced a 1% increase in its quarterly dividend to $0.71 per share, a move that underscores the company’s confidence in its financial position and cash flow generation. The dividend is payable on Sept. 16, 2025, to stockholders of record as of Aug. 26, 2025. Additionally, the company has initiated the consolidation of its Woburn facility into Newbury Park as part of its long-term manufacturing optimization efforts. This strategic move aims to streamline operations and improve cost efficiency. Skyworks also highlighted key business achievements, including new automotive program wins with global OEMs and the development of cutting-edge solutions for AI data centers.