Skyworks beats Q1 estimates; reaffirms outlook as Qorvo merger nears close

Transcript intelligence

What changed

Skyworks beat expectations for the quarter: EPS of $1.54 came in 10% above the $1.40 consensus and revenue of $1.04B was about 3% above estimates, while free cash flow reached $339M. Broad Markets posted an eighth consecutive quarter of growth led by Wi-Fi, automotive and data center. Management also added detail on its pending combination with Corwell/Qorvo, targeting more than $500M in synergies and roughly 1x net leverage at closing. The shares reacted positively, moving up about 5.5% in the session around the print versus a slightly negative S&P 500.

Guidance delta

Management said Q1 FY2026 results beat the high end of its guidance on both revenue and EPS, and it kept its FY2026 outlook intact. It flagged a seasonal mobile decline of roughly 20% sequentially and expects mobile content to be roughly flat year over year, with mix called out as a watch item.

Key takeaways

• Q1 FY2026 revenue and EPS beat the high end of guidance; EPS of $1.54 came in 10% above the $1.40 consensus, with free cash flow of $339M
• Broad Markets delivered an eighth consecutive quarter of growth, led by Wi-Fi 7/8, automotive and data-center segments
• Management kept its FY2026 outlook steady and expects mobile content to be roughly flat year over year, with a ~20% seasonal sequential decline flagged
• The pending Corwell/Qorvo combination targets more than $500M in synergies and roughly 1x net leverage at closing
• Robust free cash flow continues to fund dividends, buybacks and strategic investments

Management priorities

• Complete the Corwell/Qorvo combination by early 2027 and capture more than $500M in synergies
• Invest in the next-generation RF and Wi-Fi portfolio, including Wi-Fi 8
• Scale the automotive RF product line across global OEMs
• Expand data-center timing and power-isolation offerings
• Continue R&D investment while maintaining disciplined operating-expense control