Skyworks' 2025 Q2 Earnings Call: Unpacking Contradictions on Customer Relationships, Market Share, and Revenue Trends

Skyworks' relationship with the largest customer, content loss and share in the mobile segment, inventory position and demand trends, Android revenue and market position, and impact of new modem on Skyworks' content are the key contradictions discussed in Skyworks' latest 2025Q2 earnings call.



Revenue and Earnings Performance:
- Skyworks Solutions reported revenue of $953 million for Q2 Fiscal 2025, delivering earnings per share of $1.24 and generating free cash flow of $371 million.
- Revenue exceeded the midpoint of guidance, driven by strong execution and a diversified product portfolio.
- The company returned $600 million to shareholders through share repurchases and dividends.

Mobile Segment Dynamics:
- Mobile revenue accounted for 62% of total revenue, down 17% sequentially due to typical seasonal patterns.
- Smartphones evolved with AI driving more uplink workloads, suggesting higher transmit power and more RF content.
- Skyworks is positioned to benefit from these trends, driven by competitive product offerings and capability in RF solutions.

Diversified Business Growth:
- Broad markets revenue increased 2% sequentially and 3% year-over-year, marking five consecutive quarters of growth.
- Growth was driven by strength in Automotive, Edge IoT, and Wi-Fi 7 adoption across consumer and enterprise devices.
- Inventory normalization and improving bookings contributed to stability in these segments.

Tariff and Supply Chain Management:
- Skyworks is actively monitoring evolving tariff landscapes, emphasizing a diversified global supply chain to navigate potential disruptions.
- The company believes its current guidance reflects the current tariff environment, with no major direct impact on business operations.
- Continued focus on cost reduction initiatives and operational efficiencies supports financial resilience.

Leadership and Strategic Focus:
- Philip Brace, the new CEO, emphasized the importance of leveraging Skyworks' core wireless capabilities and exploring adjacencies for future growth.
- Changes in the executive leadership team include Mark Dentinger as the new CFO and Todd Lepinski as SVP of Sales and Marketing, effective June 2, 2025.
- The company aims to optimize operational efficiency and pursue strategic M&A opportunities within its strategic priorities.