Wireless chips maker Skyworks Solutions (NASDAQ: SWKS) beat Wall Street’s revenue expectations in Q1 CY2026, but sales were flat year on year at $943.7 million. On top of that, next quarter’s revenue guidance ($925 million at the midpoint) was surprisingly good and 7.3% above what analysts were expecting. Its non-GAAP profit of $1.15 per share was 10.1% above analysts’ consensus estimates.
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Skyworks Solutions (SWKS) Q1 CY2026 Highlights:
- Revenue: $943.7 million vs analyst estimates of $902.2 million (flat year on year, 4.6% beat)
- Adjusted EPS: $1.15 vs analyst estimates of $1.04 (10.1% beat)
- Adjusted Operating Income: $188.9 million vs analyst estimates of $170.3 million (20% margin, 10.9% beat)
- Revenue Guidance for Q2 CY2026 is $925 million at the midpoint, above analyst estimates of $861.7 million
- Adjusted EPS guidance for Q2 CY2026 is $1.03 at the midpoint, above analyst estimates of $0.93
- Operating Margin: 4.5%, down from 10.2% in the same quarter last year
- Free Cash Flow was -$32 million, down from $371 million in the same quarter last year
- Inventory Days Outstanding: 144, up from 115 in the previous quarter
- Market Capitalization: $10.36 billion
“We delivered another strong quarter, reflecting consistent execution and improving momentum across our portfolio,” said Phil Brace, chief executive officer and president of Skyworks.
Company Overview
Result of a merger of Alpha Industries and the wireless communications division of Conexant, Skyworks Solutions (NASDAQ: SWKS) is a designer and manufacturer of chips used in smartphones, autos, and industrial applications to amplify, filter, and process wireless signals.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Skyworks Solutions’s demand was weak over the last five years as its sales fell at a 1.6% annual rate. This wasn’t a great result and suggests it’s a low quality business. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions.
Long-term growth is the most important, but short-term results matter for semiconductors because the rapid pace of technological innovation (Moore's Law) could make yesterday's hit product obsolete today. Skyworks Solutions’s recent performance shows its demand remained suppressed as its revenue has declined by 5.6% annually over the last two years. 
This quarter, Skyworks Solutions’s $943.7 million of revenue was flat year on year but beat Wall Street’s estimates by 4.6%. Adding to the positive news, Skyworks Solutions’s flat sales marked an inflection from its revenue decline last quarter, news that will likely give some shareholders hope. Company management is currently guiding for a 4.1% year-on-year decline in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to decline by 7.1% over the next 12 months, a slight deceleration versus the last two years. This projection doesn't excite us and indicates its products and services will see some demand headwinds.
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Product Demand & Outstanding Inventory
Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business’ capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production.
This quarter, Skyworks Solutions’s DIO came in at 144, which is 13 days above its five-year average, suggesting that the company’s inventory has grown to higher levels than we’ve seen in the past.
Key Takeaways from Skyworks Solutions’s Q1 Results
It was good to see Skyworks Solutions beat analysts’ EPS expectations this quarter. We were also excited its revenue and EPS guidance for next quarter both outperformed Wall Street’s estimates. On the other hand, its inventory levels materially increased. Zooming out, we think this quarter featured some important positives. The stock remained flat at $73.28 immediately after reporting.
Sure, Skyworks Solutions had a solid quarter, but if we look at the bigger picture, is this stock a buy? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
