Operating margins have compressed significantly from 21.5% in 2024Q1 to just 4.5% in 2026Q2, reflecting the firm's inability to scale expenses amidst a -1.0% revenue decline.
| Metric | TTM | Oct'25 | Sep'24 | Sep'23 | Sep'22 | Oct'21 | Oct'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Oct'15 | Oct'14 | Sep'13 | Sep'12 | Sep'11 | Oct'10 | Oct'09 | Oct'08 | Sep'07 | Sep'06 | Sep'05 | Oct'04 | Sep'03 | Sep'02 | Mar'02 | Apr'00 | Mar'99 | Mar'98 | Mar'97 | Mar'96 |
|---|
| Sales/Revenue | 4.04B | 4.09B | 4.18B | 4.77B | 5.49B | 5.11B | 3.36B | 3.38B | 3.87B | 3.65B | 3.29B | 3.26B | 2.29B | 1.79B | 1.57B | 1.42B | 1.07B | 802.58M | 860.02M | 741.74M | 773.75M | 792.37M | 784.02M | 617.79M | 457.77M | 126.5M | 271.57M | 126.34M | 126.34M | 116.88M | 85.25M |
| Revenue Growth % | 2.33% | -2.18% | -12.45% | -13% | 7.37% | 52.25% | -0.62% | -12.7% | 5.93% | 11.02% | 0.94% | 42.2% | 27.87% | 14.24% | 10.55% | 32.38% | 33.55% | -6.68% | 15.95% | -4.14% | -2.35% | 1.06% | 26.91% | 34.96% | 261.87% | -53.42% | 114.95% | 0% | 8.09% | 37.1% | 8.88% |
| Cost of Goods Sold | 2.38B | 2.4B | 2.46B | 2.67B | 2.88B | 2.6B | 1.74B | 1.77B | 1.92B | 1.81B | 1.62B | 1.7B | 1.27B | 1.03B | 901.5M | 798.6M | 615.02M | 484.36M | 517.05M | 454.36M | 511.07M | 484.6M | 470.81M | 380.46M | 331.61M | 89.6M | 151.63M | 71.13M | 71.13M | 72.8M | 68.52M |
| COGS % of Revenue | - | 58.84% | 58.81% | 55.84% | 52.52% | 50.82% | 51.94% | 52.51% | 49.57% | 49.56% | 49.37% | 52.29% | 55.37% | 57.22% | 57.47% | 56.28% | 57.38% | 60.35% | 60.12% | 61.26% | 66.05% | 61.16% | 60.05% | 61.58% | 72.44% | 70.83% | 55.84% | 56.3% | 56.3% | 62.28% | 80.37% |
| Gross Profit | 1.66B | 1.68B | 1.72B | 2.11B | 2.6B | 2.51B | 1.61B | 1.6B | 1.95B | 1.84B | 1.67B | 1.55B | 1.02B | 766.6M | 667.1M | 620.3M | 456.83M | 318.22M | 342.96M | 287.38M | 262.68M | 307.77M | 313.22M | 237.32M | 126.16M | 36.9M | 119.94M | 55.21M | 55.21M | 44.08M | 16.73M |
| Gross Margin % | 41.07% | 41.16% | 41.19% | 44.16% | 47.48% | 49.18% | 48.06% | 47.49% | 50.43% | 50.44% | 50.63% | 47.71% | 44.63% | 42.78% | 42.53% | 43.72% | 42.62% | 39.65% | 39.88% | 38.74% | 33.95% | 38.84% | 39.95% | 38.42% | 27.56% | 29.17% | 44.16% | 43.7% | 43.7% | 37.72% | 19.63% |
| Gross Profit Growth % | - | -2.25% | -18.34% | -19.08% | 3.66% | 55.77% | 0.57% | -17.78% | 5.91% | 10.61% | 7.12% | 52% | 33.41% | 14.92% | 7.54% | 35.78% | 43.56% | -7.21% | 19.34% | 9.41% | -14.65% | -1.74% | 31.98% | 88.11% | 241.92% | -69.24% | 117.24% | 0% | 25.24% | 163.43% | -40.45% |
| Operating Expenses | 1.28B | 1.18B | 1.08B | 982.3M | 1.08B | 899.7M | 721.1M | 651.8M | 631.4M | 588M | 546.5M | 531.4M | 457.5M | 421.5M | 411.5M | 325M | 257.09M | 246.52M | 252.59M | 228.9M | 329.01M | 257.64M | 270.56M | 270.86M | 377.53M | 69.72M | 79.28M | 35.65M | 35.65M | 32.39M | 32.06M |
| OpEx % of Revenue | - | 28.92% | 25.93% | 20.58% | 19.64% | 17.61% | 21.49% | 19.3% | 16.32% | 16.1% | 16.62% | 16.31% | 19.97% | 23.52% | 26.23% | 22.91% | 23.99% | 30.72% | 29.37% | 30.86% | 42.52% | 32.51% | 34.51% | 43.84% | 82.47% | 55.12% | 29.19% | 28.22% | 28.22% | 27.72% | 37.61% |
| Selling, General & Admin | 429M | 371.5M | 300.8M | 314M | 329.8M | 322.5M | 231.4M | 198.3M | 207.8M | 204.6M | 195.9M | 191.3M | 179.1M | 159.7M | 158.4M | 137.3M | 117.85M | 100.42M | 100.01M | 94.95M | 135.8M | 103.07M | 97.52M | 80.22M | 50.18M | 28.14M | 43.25M | 22.77M | 22.77M | 22.36M | 20.44M |
| SG&A % of Revenue | - | 9.09% | 7.2% | 6.58% | 6.01% | 6.31% | 6.9% | 5.87% | 5.37% | 5.6% | 5.96% | 5.87% | 7.82% | 8.91% | 10.1% | 9.68% | 11% | 12.51% | 11.63% | 12.8% | 17.55% | 13.01% | 12.44% | 12.99% | 10.96% | 22.25% | 15.93% | 18.02% | 18.02% | 19.13% | 23.98% |
| Research & Development | 838.3M | 785.5M | 631.7M | 606.8M | 617.9M | 532.3M | 464.1M | 424.1M | 404.5M | 355.2M | 312.4M | 303.2M | 252.2M | 226.3M | 212.5M | 168.6M | 134.14M | 124M | 146.01M | 126.08M | 164.11M | 152.22M | 152.63M | 151.76M | 132.6M | 41.58M | 36.03M | 12.89M | 12.89M | 10.04M | 9.54M |
| R&D % of Revenue | - | 19.22% | 15.12% | 12.71% | 11.26% | 10.42% | 13.83% | 12.56% | 10.46% | 9.73% | 9.5% | 9.31% | 11.01% | 12.63% | 13.55% | 11.88% | 12.51% | 15.45% | 16.98% | 17% | 21.21% | 19.21% | 19.47% | 24.57% | 28.97% | 32.87% | 13.27% | 10.2% | 10.2% | 8.59% | 11.2% |
| Other Operating Expenses | 3M | 25.1M | 150.9M | 61.5M | 129.6M | 44.9M | 25.6M | 29.4M | 19.1M | 28.2M | 38.2M | 36.9M | 26.2M | 35.5M | 40.6M | 19.1M | 5.1M | 22.1M | 6.57M | 7.87M | 29.1M | 2.35M | 20.41M | 38.88M | 194.75M | 0 | 0 | 0 | 0 | 0 | 2.07M |
| Operating Income | 378.9M | 500M | 637.4M | 1.13B | 1.53B | 1.61B | 891.8M | 952M | 1.32B | 1.25B | 1.12B | 1.02B | 565.2M | 345.1M | 255.6M | 295.3M | 199.74M | 71.7M | 90.37M | 58.49M | -66.33M | 50.13M | 42.65M | -33.54M | -251.37M | -32.82M | 40.66M | 19.55M | 19.55M | 11.69M | -15.33M |
| Operating Margin % | 9.37% | 12.23% | 15.26% | 23.57% | 27.84% | 31.57% | 26.58% | 28.19% | 34.11% | 34.34% | 34.01% | 31.4% | 24.67% | 19.26% | 16.29% | 20.81% | 18.64% | 8.93% | 10.51% | 7.88% | -8.57% | 6.33% | 5.44% | -5.43% | -54.91% | -25.95% | 14.97% | 15.48% | 15.48% | 10% | -17.98% |
| Operating Income Growth % | - | -21.56% | -43.34% | -26.33% | -5.31% | 80.84% | -6.32% | -27.84% | 5.22% | 12.08% | 9.34% | 81.02% | 63.78% | 35.02% | -13.44% | 47.84% | 178.57% | -20.66% | 54.52% | 188.18% | -232.3% | 17.54% | 227.17% | 86.66% | -665.81% | -180.73% | 107.93% | 0% | 67.31% | 176.26% | -483.15% |
| EBITDA | 841.5M | 963M | 1.09B | 1.74B | 2.22B | 2.05B | 1.26B | 1.32B | 1.62B | 1.51B | 1.37B | 1.22B | 687.9M | 448.5M | 358.3M | 373.3M | 255.15M | 122.23M | 143.77M | 102.18M | -23.97M | 91.36M | 83.7M | 9.91M | -190.74M | -11.82M | 56.67M | 27.5M | 27.5M | 18.46M | -9.4M |
| EBITDA Margin % | 20.81% | 23.56% | 26.06% | 36.43% | 40.42% | 40.11% | 37.43% | 39.2% | 41.84% | 41.32% | 41.55% | 37.41% | 30.02% | 25.03% | 22.84% | 26.31% | 23.8% | 15.23% | 16.72% | 13.78% | -3.1% | 11.53% | 10.68% | 1.6% | -41.67% | -9.34% | 20.87% | 21.76% | 21.76% | 15.79% | -11.03% |
| EBITDA Growth % | -9.14% | -11.55% | -37.38% | -21.58% | 8.18% | 63.16% | -5.1% | -18.22% | 7.28% | 10.4% | 12.11% | 77.19% | 53.38% | 25.17% | -4.02% | 46.31% | 108.74% | -14.98% | 40.7% | 526.2% | -126.24% | 9.15% | 744.52% | 105.2% | -1513.74% | -120.86% | 106.1% | 0% | 48.94% | 296.29% | -214.7% |
| D&A (Non-Cash Add-back) | 462.6M | 463M | 451.3M | 613.7M | 690.1M | 436.7M | 364.3M | 371.6M | 299.2M | 254.8M | 247.8M | 195.8M | 122.7M | 103.4M | 102.7M | 78M | 55.4M | 50.53M | 53.4M | 43.69M | 42.35M | 41.23M | 41.05M | 43.45M | 60.63M | 21M | 16.01M | 7.94M | 7.94M | 6.77M | 5.92M |
| EBIT | 394.8M | 553.8M | 667.1M | 1.14B | 1.52B | 1.61B | 891.7M | 961M | 1.32B | 1.25B | 1.12B | 1.03B | 565.5M | 351.5M | 263.4M | 295.8M | 199.32M | 78.05M | 90.94M | 64.22M | -39.37M | 50.13M | 42.65M | -33.54M | -185.87M | -32.82M | 40.66M | 18.89M | 19.55M | 11.69M | -15.33M |
| Net Interest Income | -27.3M | -27.1M | -30.7M | -64.4M | -47.9M | -12.2M | 9.6M | 18.8M | 0 | 0 | 0 | 0 | 0 | 0 | -667K | -1.9M | -4.25M | -8.29M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 1.2M | 9.6M | 18.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 27.3M | 27.1M | 30.7M | 64.4M | 47.9M | 13.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 667K | 1.9M | 4.25M | 8.29M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -614K | 0 | 0 | 0 |
| Other Income/Expense | 10.2M | 26.7M | -1M | -46.2M | -50.4M | -14M | -100K | 9M | 12.8M | 3.2M | 81.9M | 500K | 0 | -600K | -700K | -1.4M | -4.67M | -1.95M | -8.18M | -1.72M | -6.45M | -9.14M | -16.26M | -20.09M | -4.28M | 5.53M | 8.61M | 670K | 670K | -241K | -246K |
| Pretax Income | 389.1M | 526.7M | 636.4M | 1.08B | 1.48B | 1.6B | 891.7M | 961M | 1.33B | 1.26B | 1.2B | 1.02B | 565.2M | 344.5M | 254.9M | 293.9M | 195.07M | 69.76M | 82.19M | 56.77M | -72.77M | 40.99M | 26.4M | -53.63M | -255.65M | -27.29M | 49.27M | 20.23M | 20.23M | 11.45M | -15.57M |
| Pretax Margin % | 9.62% | 12.89% | 15.23% | 22.61% | 26.92% | 31.29% | 26.57% | 28.46% | 34.44% | 34.43% | 36.5% | 31.41% | 24.67% | 19.22% | 16.25% | 20.71% | 18.2% | 8.69% | 9.56% | 7.65% | -9.41% | 5.17% | 3.37% | -8.68% | -55.85% | -21.58% | 18.14% | 16.01% | 16.01% | 9.79% | -18.27% |
| Income Tax | 27.9M | 49.6M | 40.4M | 96M | 201.4M | 100.4M | 76.9M | 107.4M | 413.7M | 246.8M | 205.4M | 225.3M | 107.5M | 66.4M | 52.9M | 67.3M | 57.78M | -25.23M | -28.82M | -880K | 15.38M | 15.38M | 3.98M | 652K | -19.59M | -9.01M | 15.9M | -1.26M | -1.26M | 1.15M | 0 |
| Effective Tax Rate % | 7.17% | 9.42% | 6.35% | 8.9% | 13.64% | 6.28% | 8.62% | 11.18% | 31.06% | 19.63% | 17.11% | 22.01% | 19.02% | 19.27% | 20.75% | 22.9% | 29.62% | -36.16% | -35.06% | -1.55% | -21.13% | 37.52% | 15.09% | -1.22% | 7.66% | 33% | 32.27% | -6.25% | -6.25% | 10% | 0% |
| Net Income | 361.2M | 477.1M | 596M | 982.8M | 1.28B | 1.5B | 814.8M | 853.6M | 918.4M | 1.01B | 995.2M | 798.3M | 457.7M | 278.1M | 202M | 226.6M | 137.29M | 94.98M | 111.01M | 57.65M | -88.15M | 25.61M | 22.41M | -451.42M | -236.06M | -18.29M | 33.37M | 21.49M | 21.49M | 10.3M | -15.57M |
| Net Margin % | 8.93% | 11.67% | 14.27% | 20.59% | 23.25% | 29.33% | 24.28% | 25.28% | 23.74% | 27.67% | 30.26% | 24.5% | 19.97% | 15.52% | 12.88% | 15.97% | 12.81% | 11.83% | 12.91% | 7.77% | -11.39% | 3.23% | 2.86% | -73.07% | -51.57% | -14.46% | 12.29% | 17.01% | 17.01% | 8.81% | -18.27% |
| Net Income Growth % | -12.35% | -19.95% | -39.36% | -22.93% | -14.89% | 83.89% | -4.55% | -7.06% | -9.09% | 1.51% | 24.66% | 74.42% | 64.58% | 37.67% | -10.86% | 65.05% | 44.55% | -14.43% | 92.55% | 165.4% | -444.2% | 14.27% | 104.96% | -91.23% | -1190.95% | -154.79% | 55.3% | 0% | 108.6% | 166.16% | -656.14% |
| Net Income (Continuing) | 361.2M | 477.1M | 596M | 982.8M | 1.28B | 1.5B | 814.8M | 853.6M | 918.4M | 1.01B | 995.2M | 798.3M | 457.7M | 278.1M | 202M | 226.6M | 137.29M | 94.98M | 111.01M | 57.65M | -88.15M | 25.61M | 22.41M | -54.28M | -236.06M | -18.29M | 33.37M | 21.49M | 21.49M | 10.3M | -15.57M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.40 | 3.08 | 3.69 | 6.13 | 7.81 | 8.97 | 4.80 | 4.89 | 5.01 | 5.41 | 5.18 | 4.10 | 2.38 | 1.45 | 1.05 | 1.19 | 0.75 | 0.56 | 0.68 | 0.36 | -0.55 | 0.16 | 0.15 | -3.24 | -1.72 | 0.75 | 0.72 | 0.63 | 0.30 | -0.46 | 0.11 |
| EPS Growth % | -5.49% | -16.53% | -39.8% | -21.51% | -12.93% | 86.88% | -1.84% | -2.4% | -7.39% | 4.44% | 26.34% | 72.27% | 64.14% | 38.1% | -11.76% | 58.67% | 33.93% | -17.65% | 88.89% | 165.45% | -443.75% | 6.67% | 104.63% | -88.37% | -329.33% | 4.17% | 14.29% | 110% | 165.22% | -518.18% | -8.33% |
| EPS (Basic) | - | 3.09 | 3.72 | 6.17 | 7.85 | 9.07 | 4.84 | 4.92 | 5.07 | 5.48 | 5.27 | 4.21 | 2.44 | 1.48 | 1.09 | 1.24 | 0.78 | 0.57 | 0.69 | 0.36 | -0.55 | 0.16 | 0.15 | -3.24 | -1.72 | 0.78 | 0.74 | 0.65 | 0.31 | -0.47 | 0.12 |
| Diluted Shares Outstanding | 150.6M | 155.1M | 161.5M | 160.3M | 163.3M | 167M | 169.9M | 174.5M | 183.2M | 186.7M | 192.1M | 194.9M | 192.6M | 192.2M | 191.85M | 190.67M | 182.74M | 169.66M | 164.75M | 161.06M | 159.41M | 158.86M | 149.41M | 139.38M | 137.42M | 44.75M | 34.05M | 34.05M | 34.05M | 34.05M | 34.05M |
| Basic Shares Outstanding | 150.3M | 154.4M | 160.1M | 159.4M | 162.4M | 165.2M | 168.5M | 173.5M | 181.3M | 184.3M | 188.7M | 189.5M | 187.2M | 187.5M | 185.84M | 182.88M | 175.02M | 167.05M | 161.88M | 159.99M | 159.41M | 157.45M | 149.41M | 139.38M | 137.42M | 43.03M | 32.92M | 32.92M | 32.92M | 32.92M | 32.92M |
| Dividend Payout Ratio | - | 90.67% | 73.67% | 41.23% | 29.26% | 22.73% | 37.68% | 32.09% | 26.48% | 21.24% | 20.2% | 15.42% | 9.05% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
High Customer Concentration
As reported in recent financial filings, Skyworks Solutions has experienced a sustained period of top-line decline, with revenue growth reaching -1.0% in 2026Q2, reflecting the ongoing challenges of navigating cyclical smartphone demand and the lack of sufficient offsetting growth from its broader market diversification initiatives.
The consistent negative revenue growth over the past ten quarters suggests that the company's reliance on a single major handset OEM remains a significant drag on performance. Investors should monitor whether the current trajectory indicates a structural loss of market share or merely a prolonged inventory correction cycle within the mobile segment.
Based on the provided income statement data, Skyworks' gross margin has remained tightly range-bound near 41%, with the most recent figure of 40.8% in 2026Q2 highlighting the difficulty of maintaining profitability amidst fluctuating production volumes and the inherent capital intensity of internal wafer fabrication.
The inability to expand gross margins despite the complexity of 5G-Advanced RF content suggests that pricing power may be limited by the dominant position of its primary customer. This structural margin profile appears to be a direct consequence of the company's high-fixed-cost manufacturing model, which necessitates high utilization rates to achieve meaningful operating leverage.
According to the quarterly income statement, operating margins have compressed significantly from 21.5% in 2024Q1 to just 4.5% in 2026Q2, indicating that the company is struggling to scale its operating expenses efficiently as revenue growth remains in negative territory across the observed period.
The sharp decline in operating income suggests that the company's cost structure is not sufficiently flexible to adjust to lower revenue levels. This trend warrants further investigation into whether the rising R&D expenditures are yielding the intended competitive advantages or if they are merely inflating the cost base during a cyclical downturn.
Based on reported figures, Skyworks continues to issue significant stock-based compensation, with $58.0 million recorded in 2026Q2, which represents a substantial portion of the company's $35.6 million in net income, potentially masking the true economic profitability of the underlying business operations for shareholders.
The high ratio of stock-based compensation relative to net income suggests that reported EPS may be artificially supported by accounting treatments rather than pure operational performance. Investors should be cautious of this trend, as it may indicate that the company is relying on equity-based incentives to manage cash outflows while core profitability remains under pressure.
As indicated by the recent financial data, the primary risk to the investment thesis is the potential for permanent margin erosion, as evidenced by the decline in operating margins to 4.5% in 2026Q2, which may suggest that the company's competitive moat is weakening against lower-cost domestic competitors.
Short-sellers would likely focus on the combination of declining revenue and rising R&D costs as a sign of diminishing returns on innovation. If the company cannot successfully pivot its Broad Markets segment to offset the volatility of its mobile business, the current valuation may be vulnerable to further downward revisions.
Quick answers to the most common questions about buying SWKS stock.
For fiscal year 2025, Skyworks Solutions, Inc. (SWKS) reported total revenue of $4.09B. This represents a 4693.8% increase compared to $85.3M in 1996.
Skyworks Solutions, Inc. (SWKS) is profitable, generating $477.1M in net income for the fiscal year ending 2025 with a net profit margin of 11.7%.
Skyworks Solutions, Inc. (SWKS) reported an operating income of $500.0M, resulting in an operating profit margin of 12.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Skyworks Solutions, Inc. (SWKS) generated $1.68B in gross profit for the year, representing a gross profit margin of 41.2%. This demonstrates the company's core pricing power and production efficiency.