Skyworks Solutions SWKS is slated to release second-quarter fiscal 2026 results on May 5.
For the second quarter of fiscal 2026, the company expects non-GAAP earnings of $1.40 per share at the mid-point of the revenue range of $875 million to $925 million.
The Zacks Consensus Estimate for earnings has remained steady at $1.04 per share in the past 30 days. The projection indicates a 16.1% decrease from the figure reported in the year-ago quarter.
The consensus mark for fiscal second-quarter 2026 revenues is pegged at $900.1 million, indicating a 5.6% year-over-year decline.
Skyworks’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 10.49%.
Skyworks Solutions, Inc. Price and EPS Surprise
Skyworks Solutions, Inc. price-eps-surprise | Skyworks Solutions, Inc. Quote
Let’s see how things have shaped up prior to the announcement.
Factors Likely to Have Influenced SWKS’ Q2 Performance
SWKS’ fiscal second-quarter 2026 performance is expected to have suffered from seasonal weakness in the mobile business. The company expects Mobile segment revenues to decline 20% sequentially in the to-be-reported quarter. Broad Markets are expected to be flat sequentially but increase by high single digits year over year and should represent 44% of revenues.
SWKS’s fiscal second-quarter 2026 performance is likely to have benefited from its diversified, high-growth applications, including connected vehicles, enterprise infrastructure, satellite communications, data center networking, and edge AI. The Broad Market is expected to have benefited from strong underlying demand, as suggested by eight consecutive quarters of growth and the achievement of double-digit year-over-year growth in the first quarter. Expansion across a wider customer base is expected to have driven top-line growth despite supply constraints in some areas.
Skyworks’ gross margin projection of approximately 44.5% to 45.5% reflects seasonally lower volume. The company reported a gross margin of 46.6% in the first quarter of fiscal 2026.
Operating expenses are expected to be between $230 million and $240 million compared with $230 million reported in the previous quarter as SWKS continues to increase spending on research and development.
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. But that’s not the exact case here.
Skyworks has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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:
Audioeye AEYE has an Earnings ESP of +9.62% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Audioeye shares have declined 23.5% year to date. Audioeye is set to report first-quarter 2026 results on May 12.
Anet Networks ANET has an Earnings ESP of +2.79% and a Zacks Rank #2.
Anet Networks shares have gained 31.8% year to date. Anet Networks is set to report its first-quarter 2026 results on May 5.
Cisco Systems CSCO has an Earnings ESP of +1.92% and a Zacks Rank #2.
Cisco shares have returned 19.3% year to date. Cisco is set to report its third-quarter fiscal 2026 results on May 13.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
Skyworks Solutions, Inc. (SWKS): Free Stock Analysis Report
Arista Networks, Inc. (ANET): Free Stock Analysis Report
Audioeye, Inc. (AEYE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).