Skyworks Solutions Faces Challenges Despite Slight Earnings Beat

With a market cap of $10.5 billion, Skyworks Solutions, Inc. (SWKS) is a prominent player in the semiconductor sector, focusing on advanced technologies that enhance wireless connectivity. Based in Irvine, California, the company designs and manufactures high-performance analog and mixed-signal semiconductors, facilitating seamless communication across diverse applications such as mobile devices, automotive systems, the Internet of Things (IoT), and industrial technologies.

Stock Performance Overview

Over the past 52 weeks, Skyworks shares have underperformed compared to the broader market. The stock has declined by 27.8%, whereas the S&P 500 Index ($SPX) has seen a gain of 9.2%. Year-to-date in 2025, SWKS is down 24.1%, contrasting with SPX’s 3.7% decrease.

Focusing further, SWKS has also trailed the SPDR S&P Semiconductor ETF (XSD), which dipped 10% in the past year and dropped 16.6% this year.

Recent Earnings Release

Skyworks shares increased by 1.3% on May 7 after the company announced its second-quarter earnings. Reported revenue reached $953.2 million, marking a 9% year-over-year decline yet slightly exceeding analysts’ expectations. The company reported non-GAAP earnings of $1.24 per share, above the consensus estimate of $1.20, but down from $1.55 from the same quarter last year.

The company generated $409.5 million in operating cash flow and $371 million in free cash flow. Looking forward, Skyworks anticipates third-quarter revenue in the range of $920 million to $960 million.

Analyst Expectations

For the current fiscal year, which ends in September, analysts project SWKS’s EPS will decline 31.2% year-over-year to $3.67. The company has shown a mixed earnings surprise history, beating consensus estimates in two of the last four quarters while missing in the other two.

Among the 25 analysts covering the stock, the consensus rating stands at “Hold,” which includes one “Strong Buy,” 21 “Holds,” one “Moderate Sell,” and two “Strong Sells.” This is less optimistic than three months ago when two analysts had recommended a “Strong Buy.”

Price Target Insights

On May 8, Barclays plc (BCS) analyst Tom O’Malley reiterated an “Underweight” rating on Skyworks Solutions while raising the price target from $45 to $52. This increase indicates improved expectations but maintains a cautious view on potential underperformance compared to industry peers.

The average price target of $71.06 suggests a premium of 5.6% over Skyworks’ current trading levels. Notably, the highest price target of $108 indicates a significant potential upside of 60.5% from the present price.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.