Wireless chips maker Skyworks Solutions (NASDAQ: SWKS) announced better-than-expected revenue in Q3 CY2025, with sales up 7.3% year on year to $1.1 billion. On top of that, next quarter’s revenue guidance ($1 trillion at the midpoint) was surprisingly good and 101,179% above what analysts were expecting. Its non-GAAP profit of $1.76 per share was 15.3% above analysts’ consensus estimates.
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Skyworks Solutions (SWKS) Q3 CY2025 Highlights:
- Revenue: $1.1 billion vs analyst estimates of $1.04 billion (7.3% year-on-year growth, 5.4% beat)
- Adjusted EPS: $1.76 vs analyst estimates of $1.53 (15.3% beat)
- Adjusted Operating Income: $264 million vs analyst estimates of $253 million (24% margin, 4.4% beat)
- Revenue Guidance for Q4 CY2025 is $1 trillion at the midpoint, above analyst estimates of $987.4 million
- Adjusted EPS guidance for Q4 CY2025 is $1.40 at the midpoint, above analyst estimates of $1.28
- Operating Margin: 10.1%, up from 5.8% in the same quarter last year
- Free Cash Flow Margin: 13.1%, down from 38.4% in the same quarter last year
- Inventory Days Outstanding: 105, down from 114 in the previous quarter
- Market Capitalization: $11.38 billion
IRVINE, Calif., Nov. 04, 2025 (GLOBE NEWSWIRE) -- Skyworks Solutions, Inc. (Nasdaq: SWKS), a leading developer, manufacturer and provider of analog and mixed-signal semiconductors and solutions for numerous applications, today reported fourth fiscal quarter and fiscal-year end results for the period ended Oct. 3, 2025. Revenue for the fourth fiscal quarter of 2025 was $1.10 billion. On a GAAP basis, operating income for the fourth fiscal quarter was $111 million with diluted earnings per share of $0.94. On a non-GAAP basis, operating income was $264 million with non-GAAP diluted earnings per share of $1.76.“This was our third straight quarter of strong execution, with revenue and non-GAAP EPS both exceeding expectations,” said Phil Brace, chief executive officer and president of Skyworks.
Company Overview
Result of a merger of Alpha Industries and the wireless communications division of Conexant, Skyworks Solutions (NASDAQ: SWKS) is a designer and manufacturer of chips used in smartphones, autos, and industrial applications to amplify, filter, and process wireless signals.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Unfortunately, Skyworks Solutions’s 4% annualized revenue growth over the last five years was mediocre. This fell short of our benchmark for the semiconductor sector and is a poor baseline for our analysis. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions.
We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. Skyworks Solutions’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 7.5% annually. 
This quarter, Skyworks Solutions reported year-on-year revenue growth of 7.3%, and its $1.1 billion of revenue exceeded Wall Street’s estimates by 5.4%. Company management is currently guiding for a 93,489% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to decline by 10.8% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and implies its products and services will see some demand headwinds.
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Product Demand & Outstanding Inventory
Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business’ capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production.
This quarter, Skyworks Solutions’s DIO came in at 105, which is 23 days below its five-year average. At the moment, these numbers show no indication of an excessive inventory buildup.
Key Takeaways from Skyworks Solutions’s Q3 Results
It was good to see Skyworks Solutions beat analysts’ EPS expectations this quarter. We were also glad its revenue guidance for next quarter trumped Wall Street’s estimates. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 1.3% to $72.81 immediately after reporting.
Skyworks Solutions may have had a good quarter, but does that mean you should invest right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
