Skyworks Q4 Profit Falls to $23 Million in Final Standalone Quarter

Skyworks Solutions (SWKS ) reported fiscal fourth-quarter results on November 3, 2026: net income fell to US$23.4 million from $141.4 million a year earlier, and the company issued its first quarterly outlook as a combined company following the Qorvo transaction.

Revenue for the quarter ended October 2, 2026 was $1.05 billion, compared with $1.10 billion a year earlier. GAAP diluted earnings per share fell to $0.15 from $0.94, while non-GAAP diluted EPS, which excludes specified items including acquisition-related expenses, share-based compensation and tax adjustments, declined to $1.28 from $1.76. The results cover Skyworks alone because the Qorvo combination closed after quarter-end.

Skyworks completed the Qorvo combination on October 5, 2026. Each Qorvo share was entitled to receive $32.50 in cash and 0.960 of a Skyworks common share. Legacy Skyworks and Qorvo shareholders own approximately 63% and 37%, respectively, of the combined company on a fully diluted basis.

GAAP operating income fell to $22.3 million from $111.0 million, and operating margin narrowed to 2.1% from 10.1%. Acquisition-related expenses increased to $35.7 million from $1.9 million, while the reconciliation also listed $66.4 million of settlements, gains, losses and impairments and $19.1 million of restructuring and other charges. Non-GAAP operating income, which excludes those operating adjustments along with share-based compensation and acquisition-related intangible amortization, declined to $227.2 million from $264.0 million.

Cash generation also weakened. Operating cash flow fell to $33.7 million from $200.0 million, while capital expenditures rose to $94.7 million from $56.0 million. Free cash flow, which Skyworks defines as operating cash flow less capital expenditures, was negative $61.0 million, compared with positive $144.0 million a year earlier.

The standalone balance sheet showed a larger financing footprint. Debt increased to $2.47 billion from $995.8 million, and the cash-flow statement recorded $1.98 billion of net proceeds from long-term debt issuance during the quarter. Cash, cash equivalents and marketable securities rose to $2.61 billion from $1.39 billion. Skyworks also reported that Moody’s upgraded it to investment-grade Baa3 following completion, while Fitch affirmed BBB+ and revised its outlook to Stable from Negative.

First Combined Outlook Points to a Sequential Decline

To frame the new reporting structure, Skyworks paired its just-reported quarterly revenue with $937 million from Qorvo, producing a simple combined total of $1.983 billion across their respective fiscal periods. The presentation sums the two companies’ results rather than providing a consolidated historical quarter. Qorvo’s period included an extra week that contributed approximately $70 million.

For the December quarter, chief financial officer Philip Carter forecast revenue of $1.80 billion to $1.90 billion. The midpoint comprises approximately $1.07 billion from legacy Skyworks and $780 million from legacy Qorvo. Non-GAAP diluted EPS is forecast at $1.25 at the revenue midpoint, based on approximately 241 million diluted shares and including approximately $50 million of other expense, primarily interest on the acquisition financing. The revenue midpoint is approximately 7% below combined September revenue, or approximately 3% lower excluding Qorvo’s extra week.

Carter expects Smartphone revenue to decline by a low-teens percentage sequentially, citing seasonality, Android-market softness and the extra week in Qorvo’s September quarter. Diversified Growth Markets revenue is expected to grow by a low-single-digit percentage sequentially and represent more than 40% of sales, led by data center and defense.

Synergy Targets Set the Integration Timetable

The December outlook reflects only early synergy realization. Carter expects approximately $150 million of operating-expense synergies during fiscal 2027, weighted to the second half, and an annualized run-rate of approximately $250 million to $300 million when the company exits the fiscal year. Initial integration work included consolidating the management team and HR systems.

Management is targeting full realization of its longer-term annual cost-synergy goal within 24 to 36 months of closing. Chief executive Phil Brace tied that goal to execution: “Our focus now is execution: delivering for our customers, achieving $500 million or more of annual cost synergies and building a stronger, more diversified Skyworks.”

The standalone quarter therefore captures acquisition-related charges and the financing build-up before Qorvo enters reported results, while the December forecast establishes a lower sequential revenue base. The next combined reports will show whether growth in Diversified Growth Markets and the scheduled savings can counter smartphone pressure and acquisition-related interest as integration progresses.