Trading Analysis Report: SWKS
- Analysis date: 2026-06-01
- Processed decision: Hold
- Price Target: 80
I. Analyst Team Reports
Market Analyst
Market Report
Skyworks Solutions (SWKS) traded at $77.85 on May 29, 2026. yfinance showed a 52-week range of $51.93-$90.90, a 50-day average of $63.43, and a 200-day average of $66.44.
The stock has recovered but remains below its 52-week high. The local yfinance history showed a 12.8% one-year return and 20.9% YTD return.
StockAnalysis ranked SWKS #28 on its semiconductor industry list by market capitalization. Skyworks fits the semiconductor queue because it supplies analog, RF, mixed-signal, timing, power, wireless connectivity, automotive, data center, and infrastructure solutions.
Market read: SWKS is reasonably valued and cash-generative, but growth is modest and Qorvo merger risk is material. Use Hold with a $80 target.
Sentiment Analyst
Sentiment Report
Sentiment is mixed-to-constructive after Q2 fiscal 2026 results.
Revenue was $944 million, GAAP diluted EPS was $0.24, and non-GAAP diluted EPS was $1.15. Skyworks said revenue and non-GAAP EPS exceeded the high end of guidance.
The company secured a multi-generational Android OEM design win expected to generate more than $1 billion of revenue through 2030.
Broad Markets showed double-digit year-over-year growth, with Wi-Fi 7 momentum, automotive infotainment wins, and next-generation clock buffers targeting data center, wireless infrastructure, and emerging PCIe Gen 7 applications.
Sentiment read: Hold because results beat guidance, but Q3 revenue guidance is sequentially lower and the stock trades near analyst targets.
News Analyst
News Report
The key current source is Skyworks' Q2 fiscal 2026 results release.
Revenue was $944 million. GAAP operating income was $42 million, and GAAP diluted EPS was $0.24. Non-GAAP operating income was $189 million, and non-GAAP diluted EPS was $1.15.
Q3 fiscal 2026 outlook calls for revenue of $900-$950 million and non-GAAP diluted EPS of $1.03 at the midpoint.
Skyworks expects Mobile revenue to decline low-single digits sequentially, while Broad Markets should grow modestly sequentially and represent approximately 43% of sales.
Skyworks and Qorvo announced a definitive agreement to combine in a cash-and-stock transaction valuing the combined enterprise at approximately $22 billion.
News read: SWKS has better operational execution and a strategic merger catalyst, but merger approval and integration risks remain.
Fundamentals Analyst
Fundamentals Report
SWKS fundamentals show strong cash generation and a reasonable valuation.
yfinance showed market cap of approximately $11.71 billion, enterprise value of approximately $11.48 billion, total revenue of approximately $4.04 billion, operating cash flow of approximately $960.0 million, free cash flow of approximately $687.8 million, total cash of approximately $1.42 billion, and total debt of approximately $1.19 billion.
The same snapshot showed trailing P/E of 32.44x, forward P/E of 15.13x, price/sales of 2.90x, profit margin of 8.93%, operating margin of 7.70%, and a dividend yield field of 3.65.
The Qorvo combination is expected to create a larger company with $7.7 billion of revenue, $2.1 billion of adjusted EBITDA, and $500 million+ of annual cost synergies within 24-36 months post-close.
Fundamental read: Hold because valuation is not stretched, but organic growth is muted and transaction execution matters.
II. Research Team Decision
Bull Researcher
Bull Research
The bull case is that Skyworks is stabilizing mobile, growing Broad Markets, and using the Qorvo combination to scale into a broader RF, analog, and mixed-signal leader.
Q2 fiscal 2026 results exceeded the high end of revenue and non-GAAP EPS guidance. The Android OEM design win is expected to contribute over $1 billion of revenue through 2030.
Broad Markets delivered double-digit year-over-year growth. Skyworks cited Wi-Fi 7 momentum, BYD and German Tier-1 automotive infotainment engagements, and clock buffers targeting data center, wireless infrastructure, and emerging PCIe Gen 7 applications.
The proposed Qorvo combination would add scale, a $2.6 billion diversified Broad Markets platform, and $500 million+ of annual cost synergies.
Bull conclusion: SWKS can work if Broad Markets growth and Qorvo synergies offset mobile cyclicality.
Bear Researcher
Bear Research
The bear case is that Skyworks remains exposed to mobile cycles, customer concentration, merger risk, and modest organic growth.
Q3 fiscal 2026 guidance of $900-$950 million revenue is below Q2 revenue of $944 million at the midpoint, and management expects Mobile to decline low-single digits sequentially.
yfinance showed revenue growth of -1.0%, and analyst target prices were close to the latest stock price, with mean target price of $74.16 and median target price of $72.00.
The Qorvo merger adds regulatory approval, financing, integration, synergy realization, litigation, employee retention, customer retention, and execution risk.
Bear conclusion: Hold is appropriate because cash flow and valuation are attractive, but the upside case depends on execution and a successful merger.
Research Manager
Research Manager Synthesis
The bull case is a Q2 beat, Broad Markets growth, a $1 billion+ Android OEM design win, Wi-Fi 7 and automotive momentum, strong free cash flow, dividend support, and Qorvo scale and synergy optionality.
The bear case is modest organic growth, mobile cyclicality, Q3 sequential revenue pressure, merger uncertainty, and analyst targets below the current price.
The correct conclusion is Hold. The $80 target is modestly above the latest price and reflects cash generation plus merger optionality, balanced against muted organic growth.
Synthesis: assign Hold with an $80 target.
III. Trading Team Plan
Trader
Trader View
SWKS is a value-and-merger catalyst semiconductor stock rather than a pure AI momentum stock.
The stock is above the $63.43 50-day average and $66.44 200-day average, but still below the $90.90 52-week high.
Upside trigger: Q3 revenue above $950 million, non-GAAP EPS above $1.03, stronger Broad Markets growth, additional Android OEM or Wi-Fi 7 wins, or progress toward Qorvo transaction approvals.
Downside trigger: Q3 revenue below $900 million, weaker mobile demand, Broad Markets slowdown, Qorvo deal delays, integration concerns, tariff impacts, or customer concentration issues.
Trading plan: Hold with an $80 6-12 month base-case target.
IV. Risk Management Team Decision
Aggressive Analyst
Aggressive Risk View
Aggressive investors may hold SWKS for merger optionality, Broad Markets growth, dividend support, and valuation recovery.
The risk is that the stock lacks the explosive AI growth profile of higher-multiple semiconductor peers.
Aggressive conclusion: Hold.
Conservative Analyst
Conservative Risk View
Conservative investors may hold SWKS for free cash flow, dividend support, and reasonable valuation.
The main caution is Qorvo transaction risk and customer concentration in mobile.
Conservative conclusion: Hold.
Neutral Analyst
Neutral Risk View
The neutral view is balanced.
SWKS has a defensible valuation and strategic optionality, but the next leg higher requires sustained Broad Markets growth and a credible path through the Qorvo combination.
Neutral conclusion: Hold.
V. Portfolio Manager Decision
Portfolio Manager
Portfolio Manager Decision
Rating: Hold Price Target: 80
Horizon: 6-12 months Current Price Reference: $77.85 on 2026-05-29
Skyworks Solutions is rated Hold. SWKS is a semiconductor company in the web-researched semiconductor universe, with analog, RF, mixed-signal, timing, power, wireless connectivity, automotive, data center, and infrastructure products.
Skyworks reported Q2 fiscal 2026 revenue of $944 million. GAAP operating income was $42 million, and GAAP diluted EPS was $0.24. Non-GAAP operating income was $189 million, and non-GAAP diluted EPS was $1.15.
Skyworks said Q2 revenue and non-GAAP EPS exceeded the high end of guidance.
The company secured a multi-generational Android OEM design win expected to generate over $1 billion of revenue through 2030.
Broad Markets delivered double-digit year-over-year growth. Skyworks cited Wi-Fi 7 momentum across enterprise access points and home connectivity platforms, in-vehicle infotainment engagements with BYD and a leading German Tier-1 supplier, and next-generation clock buffers targeting data center, wireless infrastructure, and emerging PCIe Gen 7 applications.
Q3 fiscal 2026 outlook calls for revenue of $900-$950 million and non-GAAP diluted EPS of $1.03 at the midpoint. Skyworks expects Mobile to decline low-single digits sequentially and Broad Markets to grow modestly sequentially, representing approximately 43% of sales and up high-single-digits year over year.
Skyworks declared a $0.71 per share cash dividend payable June 16, 2026 to stockholders of record as of May 26, 2026.
Skyworks and Qorvo announced a definitive agreement to combine in a cash-and-stock transaction valuing the combined enterprise at approximately $22 billion. The proposed company would have $7.7 billion of revenue, $2.1 billion of adjusted EBITDA, a $5.1 billion mobile business, and a $2.6 billion diversified Broad Markets platform across defense and aerospace, edge IoT, AI data center, and automotive markets.
The Qorvo combination is expected to deliver $500 million+ of annual cost synergies within 24-36 months post-close. Skyworks shareholders are expected to own about 63% and Qorvo shareholders about 37% of the combined company.
yfinance showed a latest price of $77.85, market cap of approximately $11.71 billion, enterprise value of approximately $11.48 billion, 52-week range of $51.93-$90.90, trailing P/E of 32.44x, forward P/E of 15.13x, price/sales of 2.90x, total revenue of approximately $4.04 billion, operating cash flow of approximately $960.0 million, free cash flow of approximately $687.8 million, total cash of approximately $1.42 billion, total debt of approximately $1.19 billion, and a dividend yield field of 3.65.
The main risks are mobile cyclicality, customer concentration, tariff and export-control risk, margin pressure, Qorvo transaction approval and integration risk, synergy execution risk, merger-related debt and costs, and competition in RF, analog, mixed-signal, Wi-Fi, timing, and power products.
The $80 target reflects strong free cash flow, dividend support, Broad Markets growth, and merger optionality, but also recognizes muted organic growth and transaction uncertainty. Hold is appropriate.