Skyworks Solutions (SWKS) Q1 2026 earnings snapshot

Skyworks Solutions (SWKS) opened fiscal Q1 2026 with revenue of US$1.0 billion and basic EPS of US$0.53, alongside net income of US$79.2 million, setting a measured tone for the new financial year. The company has seen quarterly revenue move from US$1.03 billion in Q4 2024 to US$1.10 billion in Q4 2025 and then to US$1.04 billion in Q1 2026, while EPS has ranged from US$0.38 in Q4 2024 to US$1.01 in Q1 2025 and US$0.53 in the latest quarter. Margins remain a key focal point for investors as they weigh these earnings against the broader growth narrative and income expectations.

See our full analysis for Skyworks Solutions.

With the latest numbers on the table, the next step is to set these results against the widely discussed narratives around growth, profitability, and income sustainability to see which stories hold up and which start to look out of date.

9.7% net margin highlights pressure on profitability

• Over the last 12 months, Skyworks earned US$394.3 million on US$4.1b of revenue, which works out to a 9.7% net profit margin compared with 12.9% in the prior year period.
• Bears argue that the multi year earnings decline of 22.8% per year and the step down in margin to 9.7% both point to weaker earnings power. This view sits alongside forecasts for about 12% yearly earnings growth, which would need margins to at least hold up against recent quarters.
  • The trailing revenue line near US$4.1b supports the idea that demand has been relatively steady, while net income of US$394.3 million is lower than the US$596 million reported in the earlier trailing period, which is what critics focus on.
  • At the same time, quarterly net income in Q1 2026 of US$79.2 million compares with US$60.5 million in Q4 2024, so the most recent quarter does not fully match the bearish view of steadily weakening profitability.

Dividend coverage looks tight at 4.57% yield

• The dividend yield is 4.57% on the current share price of US$62.10, and the payout is described as not well covered by trailing earnings of US$394.3 million.
• Critics highlight the weak earnings coverage of that 4.57% yield as a key income risk, and the combination of a 9.7% net margin and a five year earnings decline rate of 22.8% per year gives them plenty to point to when they worry about how reliable that payout is over time.
  • With trailing EPS at US$2.60 against a P/E of 23.7x, income focused investors will likely pay close attention to how much of those earnings are paid out versus retained, especially given the margin compression from 12.9% to 9.7%.
  • Forecasts for around 12% yearly earnings growth, if achieved, would help backstop the dividend, but the current description that the dividend is not well covered comes directly from the recent earnings profile rather than future expectations.

P/E of 23.7x and DCF fair value of US$68.10

• Skyworks trades on a P/E of 23.7x at US$62.10, below the US semiconductor industry average of 44x and peer average of 36.7x, and also about 8.8% below a DCF fair value of US$68.10.
• What is interesting for a more bullish angle is that this lower P/E and the discount to the DCF fair value sit next to forecasts for roughly 12% yearly earnings growth and about 3.2% yearly revenue growth. The valuation currently reflects weaker trailing margins and a five year earnings decline even as expectations point to a different path ahead.
  • The trailing 12 month revenue near US$4.1b compared with US$4.2b in the earlier period and net income of US$394.3 million versus US$596 million help explain why the current multiple is below industry and peers.
  • At the same time, the share price sitting under both the US$68.10 DCF fair value and a US$71.50 analyst target suggests the market is still pricing in some caution around those past earnings and margin trends despite the growth forecasts.

To see how different investors are interpreting this mix of lower margins, dividend pressure, and a discount to DCF fair value, you can read the broader market narrative around Skyworks in one place: Curious how numbers become stories that shape markets? Explore Community Narratives

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Skyworks Solutions's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

With net margin at 9.7%, a five year earnings decline of 22.8% per year, and dividend coverage described as weak, income reliability looks exposed.

If that income pressure makes you cautious about relying on a single payer, it could be worth checking our 14 dividend fortresses to focus on payouts described as more robust.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.