Skyworks Solutions SWKS is slated to release third-quarter fiscal 2026 results on July 28.
For the third quarter of fiscal 2026, the company expects non-GAAP earnings of $1.03 per share at the midpoint of the projected revenue range of $900-$950 million.
The Zacks Consensus Estimate for earnings has remained steady at $1.03 per share in the past 30 days. The projection indicates a 22.56% decrease from the figure reported in the year-ago quarter.
The consensus mark for third-quarter fiscal 2026 revenues is pegged at $922.08 million, indicating a 4.45% year-over-year decline.
Skyworks Solutions, Inc. Price and EPS Surprise
Skyworks Solutions, Inc. price-eps-surprise | Skyworks Solutions, Inc. Quote
Skyworks’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 12.31%.
Let us see how things have shaped up prior to the announcement.
Factors Likely to Have Influenced SWKS’ Q3 Performance
SWKS’ third-quarter fiscal 2026 performance is expected to have suffered from seasonal weakness in the mobile business. Management anticipates a low single-digit sequential decline in mobile revenues, consistent with normal seasonality, which could weigh on overall results, given mobile’s significant share of total revenues. However, management remains optimistic due to healthy sell-through at key customers, strong execution on new product launches and increasing RF complexity driven by artificial intelligence (AI) workloads.
The company is expected to benefit from its recently secured multigenerational Android design win, which is projected to generate more than $1 billion in revenues through 2030, reinforcing its position in premium AI-enabled smartphones. The quarter is also likely to have benefited from healthy customer demand, book-to-bill above 1, lean channel inventories and resilient demand for premium high-complexity mobile solutions, supporting the company’s revenue performance.
The company’s third-quarter fiscal 2026 performance is expected to benefit from continued strength in broad markets, particularly in WiFi, data center and automotive segments. The company reported nine consecutive quarters of growth in broad markets, with these three engines collectively growing 30% year over year and accounting for nearly two-thirds of the broad markets business. Broad markets are projected to be up modestly sequentially, representing 43% of sales and up high single digits year over year.
SWKS’ ongoing product innovation is set to drive growth. The company introduced new BAW filters targeting early 6G FR3 spectrum and next-generation RF front-end solutions supporting frequencies above 7 gigahertz. SWKS expanded its timing portfolio with new clock buffers for data center, wireless infrastructure and PCIe Gen 7 applications. These innovations position SWKS to capture opportunities in emerging technology cycles, such as 6G and WiFi 8, and to meet the increasing complexity and performance demands of AI-driven workloads.
For the fiscal third quarter of 2026, gross margin is projected to remain flat at approximately 44.5-45.5%, reflecting seasonally lower volume and higher input costs. In the second quarter of fiscal 2026, gross profit was $425 million, translating to a gross margin of 45%, which management said aligned with the midpoint of guidance. However, on a year-over-year basis, gross margin contracted 160 basis points.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the exact case here.
Skyworks has an Earnings ESP of +0.12% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases.
Amphenol APH has an Earnings ESP of +1.12% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Amphenol shares have gained 16.5% year to date. Amphenol is scheduled to report its second-quarter 2026 results on July 29.
ASE Technology ASX has an Earnings ESP of +21.21% and a Zacks Rank #2.
ASE Technology shares have surged 145.1% year to date. ASE Technology is set to report its second-quarter 2026 results on July 30.
Fortive FTV has an Earnings ESP of +2.82% and a Zacks Rank #2 at present.
Fortive shares have gained 9.8% in the year-to-date period. Fortive is set to report its second-quarter 2026 results on July 29.
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Skyworks Solutions, Inc. (SWKS): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).