Skyworks Solutions, Inc. Q1 FY2026 earnings call

• Previously announced combination with Corwell is strategic, expected to reduce mobile volatility, strengthen competitive position, expand TAM, and create over $500 million in synergies. • Skyworks delivered strong results for the first quarter, exceeding guidance, with mobile outperforming expectations and broad markets posting eighth consecutive quarter of growth. • Mobile: Outperformed expectations with healthy sell-through, though blended mobile content expected flat YoY. • Broad markets: Grew double digits YoY, driven by edge IoT (Wi-Fi 7 momentum), automotive (solid demand), and data center infrastructure (improving demand).

Skyworks Solutions, Inc. reported revenue of $1.035 billion. Mobile represented 62% of total revenue, with revenue approximately $641.7 million. Broad markets, which grew for the eighth consecutive quarter, accounted for 38% of total revenue, with revenue up double digits year on year. Broad markets' growth was driven by strength in edge IoT, data center, and automotive segments.

• Revenue expected to range between $875 million to $925 million for 2026. • Mobile anticipated to decline approximately 20% sequentially, consistent with seasonality. • Broad markets expected flat sequentially, representing 44% of sales, and up high single digits year over year. • Gross margin projected to be approximately 44.5% to 45.5%. • Operating expenses expected between $230 million and $240 million. • Midpoint of revenue outlook of $900 million equates to expected diluted earnings per share of $1.40.

• Competitive pricing dynamics at the largest customer, as there are always fluctuations in pricing expectations. • Potential impact of broader market volatility on mobile revenue and content. • Regulatory review required for the combination with Corwell, which could impact the expected timeline and financial benefits.

Q: Harsh Kumar asked about the specific benefits of the combination with Corwell.

A: Philip Brace mentioned the complementary nature of portfolios, reduced volatility, increased scale in RF, and broader market synthesis.

Q: Karl Ackerman inquired about broad markets growth drivers.

A: Philip Brace cited Wi-Fi 7, automotive, and data center with power and timing as key growth areas.

Q: Edward Snyder asked about mix offsetting content gains.

A: Philip Brace stated difficulty in commenting on specific models but projected blended content flat.

Q: Timothy Arcuri asked about stock buyback and cash deployment.

A: Philip Carter said there is ample cash to buy stock but will maintain financial prudence.

Q: Peter Peng asked about unit assumptions and seasonality.

A: Philip Brace noted strong unit demand but couldn't comment on specific launch timings.

Q: James Schneider asked about impact of seasonal business cycles.

A: Philip Brace said they are managing strong demand and will adjust accordingly.

Q: Liam Pharr asked about data center growth and Wi-Fi complementarity.

A: Philip Brace said data center is growing faster than average, and Wi-Fi portfolios will be evaluated for combination.