Skyworks Solutions (SWKS) Stock Forecast & Price Target

Skyworks Solutions demonstrated robust revenue performance, with mobile revenue comprising 67% of total sales and increasing by 6% sequentially, largely attributed to multiple smartphone product launches. The Broad Markets segment also showed positive signs, accounting for approximately 33% of revenue and growing slightly both sequentially and year-over-year, supported by momentum in automotive and IoT applications. With a stable non-GAAP gross margin of 46.5% and expectations for long-term double-digit annual growth across diverse sectors, the company's outlook remains optimistic for continued expansion in both mobile and non-handset markets.

Skyworks Solutions is experiencing a significant downturn in revenue and profitability projections, with annual declines of approximately 11.1% in sales and 10.8% in adjusted earnings per share (adj-EPS) anticipated through fiscal year 2026. The firm has faced ongoing challenges from a softer smartphone market, resulting in overall sales contractions of 13% annually in both fiscal years 2023 and 2024, which are exacerbated by underutilization of manufacturing facilities and margin pressures. Additionally, the company forecasts a continued revenue decline of 8% in fiscal year 2025, followed by another 3% decrease in fiscal year 2026, alongside a significant expected reduction in its revenue from Apple.