Skyworks Solutions (SWKS) Stock Forecast & Price Target

Skyworks Solutions demonstrated a strong financial performance, with mobile revenue constituting 67% of total sales and increasing by 6% sequentially, driven by multiple smartphone product launches. The Broad Markets segment also showed resilience, maintaining a contribution of approximately 33% to revenue and growing both sequentially and year-over-year, bolstered by demand in automotive and IoT applications. Additionally, the company's non-GAAP gross margin stood at 46.5%, aligning with market estimates, which reflects efficient operations and supports positive financial outlooks for continued growth across its diversified connectivity markets.

Skyworks Solutions is facing a significant downturn in revenue and profitability, with projections indicating annual declines of 11.1% in sales and 10.8% in adjusted earnings per share (adj-EPS) through fiscal 2026. The company has been negatively impacted by a prolonged softness in the smartphone market, resulting in overall sales contractions of 13% annually during fiscal years 2023 and 2024, compounded by underutilization of fabrication facilities and margin pressures. Additionally, a projected 20-25% reduction in expected dollar content from major customers like Apple is anticipated to further exacerbate revenue declines, with expectations of a sequential drop in RF revenue by approximately $150 million in the fourth quarter of fiscal 2025.