Skyworks Solutions
SWKS
$74.02
+3.52%
Skyworks Solutions Inc. is a semiconductor company that designs and manufactures analog and mixed-signal chips for wireless connectivity, including power amplifiers, filters, switches, and integrated front-end modules used primarily in smartphones and increasingly in automotive, industrial, and IoT applications. As a leading supplier to major smartphone OEMs, Skyworks holds a critical position in the RF front-end supply chain, competing with the likes of Qorvo and Broadcom. The current investor narrative centers on the company's pending merger with Qorvo, announced in 2026, which is expected to reshape the RF semiconductor landscape, alongside ongoing efforts to diversify beyond mobile into higher-growth markets like automotive and data centers. Recent news highlights the commencement of exchange offers for Qorvo's senior notes, a key step in the merger integration, while investors debate the strategic merits and execution risks of the deal.…
SWKS
Skyworks Solutions
$74.02
Related headlines
Investment Opinion: Should I buy SWKS Today?
Based on the analysis, SWKS is rated a Hold. The consensus analyst recommendation is 'hold' with an average target price of $68.35, which is 7.7% below the current price, indicating limited upside potential. The stock's forward PE of 14.88x is attractive relative to the industry average of 20x, but this is offset by declining revenue and the uncertainties surrounding the Qorvo merger.
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SWKS 12-Month Price Forecast
The AI assessment is neutral with medium confidence. Skyworks' valuation is attractive on a forward basis, but the negative revenue trend and merger uncertainties cap near-term upside. The stock could be a value play if the merger succeeds, but the risk of execution failure is significant. Key factors to monitor are the merger's progress, quarterly revenue trends, and margin recovery. An upgrade to bullish would be warranted if revenue growth turns positive and the merger closes with clear synergy benefits. A downgrade to bearish would occur if the merger fails or revenue declines accelerate.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Skyworks Solutions's 12-month outlook, with a consensus price target around $68.35 and implied upside of -7.7% versus the current price.
Average Target
$68.35
0 analysts
Implied Upside
-7.7%
vs. current price
Analyst Count
—
covering this stock
Price Range
$52 - $85
Analyst target range
Skyworks is covered by 17 analysts, with a consensus recommendation of 'hold' and a mean recommendation score of 3.0 (where 1 is strong buy and 5 is sell). The average target price is $68.35, which is 7.7% below the current price of $74.02, implying a downside to the consensus target. The distribution includes 10 hold ratings, 5 buy ratings, and 2 sell ratings, reflecting a cautious stance among analysts. The low target of $52.00 is 29.7% below the current price, while the high target of $85.00 is 14.8% above, indicating a wide range of outcomes. The wide spread between low and high targets suggests high uncertainty, likely due to the pending Qorvo merger and its execution risks. Recent rating actions show a mix of neutral and positive stances, with Keybanc downgrading from Overweight to Sector Weight in July 2026, while Barclays upgraded from Equal Weight to Overweight in April 2026, indicating divergent views on the merger's potential.
Bulls vs Bears: SWKS Investment Factors
Skyworks presents a classic value-versus-growth dilemma. On the bull side, the stock trades at a compelling forward PE of 14.88x, boasts a strong balance sheet, and has shown impressive 6-month momentum. On the bear side, revenue is declining, analyst targets imply downside, and the Qorvo merger carries substantial execution risk. Currently, the bear case has slightly stronger evidence given the negative revenue trend and the stock trading above the consensus target. The most critical tension is whether the Qorvo merger will successfully drive earnings growth and diversification, or whether integration challenges and smartphone market weakness will continue to suppress performance. Resolution of this merger will likely determine the stock's trajectory over the next 12-24 months.
Bullish
- Forward PE below industry average: SWKS trades at a forward PE of 14.88x versus the semiconductor industry average of ~20x, suggesting the market is pricing in significant earnings growth. This discount could be unwarranted if the Qorvo merger delivers the expected synergies, offering upside potential.
- Strong 6-month momentum: The stock has surged 35.05% over the past six months, recovering from its 52-week low of $51.93 to $74.02. This rebound reflects improving investor sentiment and technical strength, with the stock now trading at 81.4% of its 52-week range.
- Healthy balance sheet: With a debt-to-equity ratio of only 0.21 and a current ratio of 2.33, Skyworks maintains a conservative capital structure. This financial flexibility is crucial for funding merger integration and weathering cyclical downturns in the semiconductor industry.
- Solid free cash flow generation: Skyworks generated $697 million in trailing twelve-month free cash flow, supporting a dividend yield of 3.63%. This cash generation provides a cushion for shareholders while the company navigates the merger and invests in diversification.
Bearish
- Revenue declining year-over-year: In the latest quarter (Q2 FY2026), revenue fell 1% YoY to $943.7 million, the lowest in the past four quarters. This deceleration signals softening demand in the smartphone market, which remains Skyworks' primary revenue driver.
- Analyst consensus target below current price: The average analyst target price of $68.35 is 7.7% below the current price of $74.02, implying that the stock has overshot its fundamental value. With a consensus rating of 'hold' and a mean score of 3.0, analysts are cautious about near-term upside.
- High volatility and beta: With a beta of 1.518, SWKS is 51.8% more volatile than the market, exposing investors to amplified swings. This is particularly risky in a high-interest-rate environment that pressures high-multiple growth stocks.
- Merger execution risks: The pending Qorvo merger introduces integration risks, including potential customer attrition, regulatory hurdles, and cultural clashes. Recent news of exchange offers for Qorvo's senior notes highlights the complexity of the deal, which could distract management and delay synergies.
SWKS Technical Analysis
Skyworks' stock has been in a strong recovery phase over the past six months, with a 6-month price change of +35.05%, though the 1-year change is slightly negative at -0.83%. The current price of $74.02 sits at 81.4% of the 52-week range (between $51.93 low and $90.90 high), indicating a rebound from the lows but still below the highs. This positioning suggests the stock is recovering from a prior downtrend, but has not yet reclaimed its previous peak, implying potential resistance ahead. The stock's beta of 1.518 indicates it is 51.8% more volatile than the market, which is typical for a semiconductor name and important for risk management.
Beta
1.52
1.52x market volatility
Max Drawdown
-36.7%
Largest decline past year
52-Week Range
$52-$91
Price range past year
Annual Return
-0.8%
Cumulative gain past year
| Period | SWKS Return | S&P 500 |
|---|---|---|
| 1m | +10.5% | -0.4% |
| 3m | +0.6% | +4.2% |
| 6m | +35.0% | +13.7% |
| 1y | -0.8% | +19.0% |
| ytd | +14.9% | +12.9% |
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SWKS Fundamental Analysis
Skyworks' revenue has been relatively stable but showing signs of deceleration. In the most recent quarter (Q2 FY2026, ending April 3, 2026), revenue was $943.7 million, down 1% year-over-year, following a sequential decline from $1.035 billion in Q1 FY2026. Over the past four quarters, revenue has ranged from $943.7 million to $1.10 billion, with the latest quarter being the lowest, indicating a softening demand environment, likely due to smartphone market weakness. The company's revenue growth has been negative or flat in recent quarters, reflecting a mature mobile market and the need for diversification into non-handset applications.
Quarterly Revenue
$943700000.0B
2026-04
Revenue YoY Growth
-1.0%
YoY Comparison
Gross Margin
40.8%
Latest Quarter
Free Cash Flow
$697000000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
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Valuation Analysis: Is SWKS Overvalued?
Given that Skyworks is profitable (net income of $35.6 million in the latest quarter), the PE ratio is the most appropriate valuation metric. The trailing PE is 24.95x, while the forward PE is 14.88x, implying the market expects significant earnings growth in the next year. This gap suggests that analysts anticipate a recovery in earnings, likely driven by the Qorvo merger synergies and cost savings. The forward PE of 14.88x is below the semiconductor industry average of around 20x, indicating the stock may be undervalued relative to its growth prospects.
PE
25.0x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 11x~37x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
11.7x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks stem from Skyworks' revenue concentration in the smartphone market, which is mature and cyclical. In the latest quarter, revenue declined 1% YoY to $943.7 million, and the company's operating margin contracted to 4.46% from 11.13% in the prior quarter, reflecting elevated costs and lower volumes. While the debt-to-equity ratio is low at 0.21, the company's net income of $35.6 million in Q2 FY2026 was significantly below the $141.4 million earned in Q4 FY2025, indicating earnings volatility. The payout ratio of 90.7% suggests that dividends are barely covered by earnings, leaving little room for error if profits decline further.