Skyworks Solutions 2025 Q2 Earnings Misses Targets as Net Income Drops 62.5%
Wednesday, May 7, 2025 9:06 pm ET
54min read Skyworks Solutions (SWKS) reported its fiscal 2025 Q2 earnings on May 07th, 2025. The semiconductor manufacturer fell short of analyst expectations with GAAP EPS at $0.43, missing the estimated $0.72. However, revenue slightly beat forecasts, coming in at $953 million, surpassing the anticipated $951.47 million. Looking ahead, Skyworks anticipates revenue between $920 million and $960 million for Q3 2025, with a non-GAAP diluted EPS of $1.24 at the midpoint. The guidance remains in line with previous estimates.
Revenue
The total revenue of Skyworks Solutions decreased by 8.9% to $953.20 million in 2025 Q2, down from $1.05 billion in 2024 Q2.
Earnings/Net Income
Skyworks Solutions's EPS declined 62.3% to $0.43 in 2025 Q2 from $1.14 in 2024 Q2. Meanwhile, the company's net income declined to $68.70 million in 2025 Q2, down 62.5% from $183.30 million reported in 2024 Q2. The EPS reflects weaker profitability.
Price Action
The stock price of Skyworks Solutions has edged up 0.91% during the latest trading day, has climbed 4.04% during the most recent full trading week, and has surged 26.71% month-to-date.
Post-Earnings Price Action Review
Over the past five years, the strategy of buying Skyworks Solutions (SWKS) shares after an increase in revenue quarter-over-quarter and holding them for 30 days delivered moderate returns but underperformed the market. The strategy's compound annual growth rate (CAGR) was 2.91%, trailing the benchmark by 81.17 percentage points. With a maximum drawdown of -9.97% and a Sharpe ratio of 0.39, this strategy exhibited a challenging risk-return profile, which underscores the importance of risk management in such a volatile scenario.
CEO Commentary
Philip Brace, CEO & President, expressed excitement about Skyworks' position at the forefront of the wireless revolution, highlighting the company's strong performance with revenue of $953 million and an EPS of $1.24. He noted growth drivers in mobile, automotive, Edge IoT, and Wi-Fi 7 adoption, and emphasized the company's commitment to innovation and operational efficiency. Brace mentioned that the mobile business is experiencing typical seasonal fluctuations but is optimistic about the recovery and growth in diversified markets. He conveyed confidence in the leadership team and the company’s potential, stating, "I’m looking forward to partnering with Mark and Todd and leveraging their strong leadership capabilities."
Guidance
Skyworks Solutions anticipates revenue between $920 million and $960 million for Q3 of fiscal 2025, projecting diluted earnings per share of $1.24 at the midpoint of the revenue range. The company expects the mobile business to decline by low single digits sequentially, while broad markets are on track for another quarter of sequential growth. Gross margin is forecasted to be between 46% and 47% with operating expenses estimated at $220 million to $230 million.
Additional News
In recent business developments, Skyworks Solutions has announced significant shareholder returns, including a cash dividend of $0.70 per share payable on June 17, 2025. Additionally, the company has repurchased over $600 million worth of shares, marking the highest quarterly return ever. These actions reflect Skyworks' confidence in its financial health and prospects, aiming to enhance shareholder value. Furthermore, Axa S.A. significantly increased its holdings in Skyworks Solutions by 42.8% during the fourth quarter, as reported in the most recent SEC filing, reflecting strong institutional interest in the company.
Revenue
The total revenue of Skyworks Solutions decreased by 8.9% to $953.20 million in 2025 Q2, down from $1.05 billion in 2024 Q2.
Earnings/Net Income
Skyworks Solutions's EPS declined 62.3% to $0.43 in 2025 Q2 from $1.14 in 2024 Q2. Meanwhile, the company's net income declined to $68.70 million in 2025 Q2, down 62.5% from $183.30 million reported in 2024 Q2. The EPS reflects weaker profitability.
Price Action
The stock price of Skyworks Solutions has edged up 0.91% during the latest trading day, has climbed 4.04% during the most recent full trading week, and has surged 26.71% month-to-date.
Post-Earnings Price Action Review
Over the past five years, the strategy of buying Skyworks Solutions (SWKS) shares after an increase in revenue quarter-over-quarter and holding them for 30 days delivered moderate returns but underperformed the market. The strategy's compound annual growth rate (CAGR) was 2.91%, trailing the benchmark by 81.17 percentage points. With a maximum drawdown of -9.97% and a Sharpe ratio of 0.39, this strategy exhibited a challenging risk-return profile, which underscores the importance of risk management in such a volatile scenario.
CEO Commentary
Philip Brace, CEO & President, expressed excitement about Skyworks' position at the forefront of the wireless revolution, highlighting the company's strong performance with revenue of $953 million and an EPS of $1.24. He noted growth drivers in mobile, automotive, Edge IoT, and Wi-Fi 7 adoption, and emphasized the company's commitment to innovation and operational efficiency. Brace mentioned that the mobile business is experiencing typical seasonal fluctuations but is optimistic about the recovery and growth in diversified markets. He conveyed confidence in the leadership team and the company’s potential, stating, "I’m looking forward to partnering with Mark and Todd and leveraging their strong leadership capabilities."
Guidance
Skyworks Solutions anticipates revenue between $920 million and $960 million for Q3 of fiscal 2025, projecting diluted earnings per share of $1.24 at the midpoint of the revenue range. The company expects the mobile business to decline by low single digits sequentially, while broad markets are on track for another quarter of sequential growth. Gross margin is forecasted to be between 46% and 47% with operating expenses estimated at $220 million to $230 million.
Additional News
In recent business developments, Skyworks Solutions has announced significant shareholder returns, including a cash dividend of $0.70 per share payable on June 17, 2025. Additionally, the company has repurchased over $600 million worth of shares, marking the highest quarterly return ever. These actions reflect Skyworks' confidence in its financial health and prospects, aiming to enhance shareholder value. Furthermore, Axa S.A. significantly increased its holdings in Skyworks Solutions by 42.8% during the fourth quarter, as reported in the most recent SEC filing, reflecting strong institutional interest in the company.
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