SWKS

Skyworks is a leading analog/mixed-signal RF semiconductor supplier whose standalone fundamentals continue to erode. FY2025 revenue fell 2.2% to $4.09B, operating income dropped 21.6% to $500M, and net income declined 19.9% to $477M ($3.08 diluted EPS). This extends a multi-year slide from the $1.50B peak earnings of FY2021 — the result of smartphone-market maturity and heavy customer concentration. Margins remain decent (41.2% gross, 11.7% net) and the balance sheet is sound (total liabilities just 0.38x equity, $1.16B cash), but ROE has fallen to 8.3% and operating cash flow dropped 28.7% to $1.30B. Notably, R&D rose 24.3% to $786M even as revenue shrank, pressuring margins as the company invests to diversify beyond mobile.

The defining development is corporate, not operational: on October 27, 2025 Skyworks agreed to merge with Qorvo in a cash-and-stock deal valuing the combined RF company at approximately $22.0 billion. Qorvo holders receive 0.960 Skyworks shares plus $32.50 cash each, leaving Skyworks holders with ~63% of the combined company. The deal — backed by a Goldman bridge facility of up to $3,050.0 million — is expected to close early in calendar 2027, subject to shareholder votes and antitrust/foreign-investment approvals, with reciprocal termination fees of $298.7 million (and a $100.0 million regulatory-failure fee).