Skyworks Solutions’ second quarter results reflected broad-based strength in both its Mobile and Broad Markets segments, with management attributing the performance to healthy sell-through at its largest customer and new Android product launches. CEO Philip Brace highlighted that “strong demand for our products”—particularly from the top customer—drove above-seasonal results, while ongoing operational discipline supported robust free cash flow and shareholder returns. Management also noted that Broad Markets, spanning edge IoT and automotive, contributed to sustained momentum, with six consecutive quarters of growth as inventory normalization continued across key verticals.
Is now the time to buy SWKS? Find out in our full research report (it’s free).
Skyworks Solutions (SWKS) Q2 CY2025 Highlights:
- Revenue: $965 million vs analyst estimates of $940.8 million (6.6% year-on-year growth, 2.6% beat)
- Adjusted EPS: $1.33 vs analyst estimates of $1.24 (7% beat)
- Adjusted EBITDA: $294.5 million vs analyst estimates of $280.7 million (30.5% margin, 4.9% beat)
- Revenue Guidance for Q3 CY2025 is $1.02 billion at the midpoint, above analyst estimates of $890.8 million
- Adjusted EPS guidance for Q3 CY2025 is $1.40 at the midpoint, above analyst estimates of $0.98
- Operating Margin: 11.5%, down from 14.4% in the same quarter last year
- Inventory Days Outstanding: 114, up from 110 in the previous quarter
- Market Capitalization: $10.64 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Skyworks Solutions’s Q2 Earnings Call
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Christopher Caso (Wolfe Research) asked about recent changes in handset demand and content trends. CEO Philip Brace described “strong unit demand and shipments” at the top customer, with positive mix trends supporting results and forward visibility.
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Edward Snyder (Charter Equity Research) probed the impact of internal modem adoption on content per device. Brace explained that as more phones transition to internal modems, Skyworks could see a “natural tailwind” for content, but cautioned that actual gains depend on customer product mix and shipment volumes.
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Samuel Feldman (BNP Paribas) inquired about Android revenue growth and inventory management. Raji Gill, VP of Investor Relations, confirmed Android revenues increased significantly due to a ramp with Google and highlighted that inventories remain “very lean.”
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Christopher Rolland (Susquehanna) questioned the strategic importance of diversification and potential for M&A. Brace acknowledged single-customer concentration as a risk and outlined a focus on expanding into higher-margin, stickier markets while maintaining core mobile execution.
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Krish Sankar (TD Cowen) asked about the scale and prospects of the automotive business. Gill detailed that automotive revenues are now around $60 million per quarter, with long design cycles and recent wins at global OEMs supporting future growth.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will closely watch (1) the pace of AI-enabled smartphone adoption and its impact on upgrade cycles, (2) continued momentum in Broad Markets, particularly automotive and edge IoT design wins, and (3) progress on manufacturing consolidation and resulting margin improvements. Execution on new WiFi platform investments and operational efficiency will also be key areas of focus.
Skyworks Solutions currently trades at $71.70, up from $67.68 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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