Skyworks Solutions, Inc. Q2 FY2026 earnings call

• Secured a significant multi-generational design win with a leading Android OEM expected to generate over a billion dollars in revenue through 2030, reflecting expanding footprint in premium AI-enabled devices. - Introduced new product innovations including BA filters for 6G FR3 spectrum, next-gen RF front-end solution for above 7 GHz, expanded timing portfolio with new clock buffers, and engaged in early Wi-Fi programs. - Regulatory reviews for Corvo combination are progressing, entered phase two of China SAMR review, and maintaining dialogue with antitrust authorities, with hope to close in late 2026. - Skyworks delivered strong results driven by mobile and broad markets, solid demand across portfolio, mobile outperformed with healthy sell-through and new product launches, broad markets had nine consecutive quarters of growth with three growth engines (Wi-Fi, data center, automotive) accounting for nearly two-thirds of business and growing 30% year over year

Skyworks delivered revenue of $944 million. Mobile represented 58% of total revenue, and broad markets represented 42% of sales. Mobile outperformed expectations driven by healthy sell-through and product execution. Broad markets also outperformed, with growth across Wi-Fi, data center, and automotive. Gross profit was $425 million with a gross margin of 45%. Operating expenses were $236 million, operating income was $189 million with an operating margin of 20%. Net income was $173 million and diluted earnings per share was $1.15. For Q3 2026, revenue is expected to range between $900 million to $950 million, mobile is anticipated to decline low single digits sequentially, broad markets is expected to be up modestly sequentially, gross margin is projected to be approximately 44.5 to 45.5%, operating expenses are between $235 million and $245 million, and diluted earnings per share at the midpoint of revenue outlook is expected to be $1.03

• Revenue for Q3 2026 is expected to range between $900 million to $950 million. - Mobile is anticipated to decline approximately low single digits sequentially. - Broad markets is expected to be up modestly sequentially, representing 43% of sales and up high single digits year over year. - Gross margin is projected to be approximately 44.5 to 45.5%, flat sequentially. - Operating expenses are between $235 million and $245 million. - Diluted share count is expected to be 151 million shares, and at the midpoint of revenue outlook of $925 million, expected diluted earnings per share is $1.03

• Q: Talk about content trajectory at largest customer and next year's content with Android win.

A: Feel good about content position, not seeing unusual things, win emphasizes technology play and value proposition. - Q: Gross margin trajectory in back half of year.

A: Typically gross margin is down from Q2 to Q3 on average 70 basis points over last five years, guiding flat, seeing input cost increase but pursuing cost reductions. - Q: Sticky nature of Android win.

A: Multi-generational design win with significant RF content, confident about stickiness. - Q: Change in strategy regarding China.

A: Strategy is to grow business profitably, be prudent in allocating resources. - Q: Content trend since last guidance and lead times on order patterns.

A: Feel good about content position, lead times are long, book-to-bill is above one, inventory is low. - Q: Supply, lead times, and pricing impact on gross margin.

A: Dealing with dynamic environment, input price increases, sharing some price increases with customers, and seeing path to gross margin expansion. - Q: How Android win was got and differentiation.

A: Offered technology advantage solution, multiple generation design win enables focus on delivering over generations. - Q: Total China revenues and broad market revenues.

A: China overall business less than $200 million annually, enhance that less than $20 million; data center revenues under $100 million, auto revenues around $250 million a year, see good growth. - Q: Linearity of Android customer's $1 billion revenue opportunity.

A: Expected to be rising year over year. - Q: RF content per device at largest customer potentially accelerating.

A: Seeing more RF complexity driven by increased bands, MIMO capability, power requirements, smaller devices, which should be a tailwind for content