News: Microelectronics
7 August 2025
Skyworks’s June-quarter revenue, gross margin and EPS exceed guidance
For its fiscal third-quarter 2025 (ended 27 June), Skyworks Solutions Inc of Irvine, CA, USA (which manufactures analog and mixed-signal semiconductors) has reported revenue of $965m, up 5% on $953.2m last quarter and 7% on $905.5m a year ago. This exceeds the $920–960 guidance, fueled by an upside in the Mobile segment and sustained strength across the Broad Markets segment.
- Mobile product revenue grew 1% sequentially (outperforming an expected low-single-digits seasonal decline) and 8% year-on-year (comprising 62% of total revenue), driven by stronger sell-through at Skyworks’ top customer plus new product launches in Android.
Skyworks’ largest customer (Apple) accounted for about 63% of total revenue (down from 66% in the March quarter and as much as 72% in the December 2024 quarter).
- Broad Markets product revenue (edge IoT, automotive, industrial, infrastructure, and cloud) grew for a sixth consecutive quarter, by 2% sequentially and 5% year-over-year (comprising 38% of total revenue). This reflects stronger end-demand (particularly in Wi-Fi 7 and automotive connectivity) and further inventory normalization across key verticals.
“We’re encouraged by the momentum in Mobile and steady strength across our Broad Markets, driven by long-term growth trends in edge IoT, automotive and data center,” notes CEO & president Phil Brace.
Business highlights during the quarter included:
- securing 5G content across premium Android smartphones, including a flagship model from Samsung Galaxy;
- capturing new automotive programs with global OEMs such as BYD, Ford, Geely and Nissan, spanning 5G telematics and in-vehicle infotainment systems;
- expanding momentum in Wi-Fi 7 with increased design activity across cable, retail and enterprise access points;
- unveiling the industry’s first single-chip ultra-low jitter clocks supporting simultaneous Ethernet and PCI Express outputs for AI data-center applications.
On a non-GAAP basis, gross margin has grown further, from 46% a year ago and 46.7% last quarter to 47.1% (exceeding the 46–47% guidance), driven by product mix and ongoing cost discipline.
Aligned with Skyworks’ long-term product roadmap, operating expenses have increased further, from $197m a year ago and $223m last quarter to $230m. “We remain disciplined with spend, balancing investment in future growth with prudent cost management,” notes interim chief financial officer Rob Schriesheim.
Net income has risen further, from $195.1m ($1.21 per diluted share) a year ago and $196.8m ($1.24 per diluted share) last quarter to $200.4m ($1.33 per diluted share, exceeding the $1.24 guidance).
Operating cash flow has risen from $273.5m a year ago to $314.1m (amounting to $1.1bn year-to-date). So, despite capital expenditure rising from $24.4m a year ago to $61m, free cash flow was still a healthy $253m (26% of revenue) — up on $249.1m a year ago — amounting to $962m year-to-date. “Over the past two years, our free cash flow has benefited from effective working capital management, as we’ve reduced inventory levels,” says Schriesheim. “While end-demand signals [in Mobile] remain solid, we are actively monitoring the channel and are maintaining a disciplined approach to inventory,” adds Brace.
During the quarter, Skyworks returned $430m to shareholders (consisting of $104m in dividends and $330m in share repurchases). Over the past two quarters, the firm has returned more than $1bn to shareholders, supported by strong the free cash flow and disciplined working capital management.
During the quarter, cash and cash equivalents hence fell by $201.9m, from $1387.8m to $1185.9m, and debt remained about $995m, “maintaining a strong balance sheet and ample flexibility to support our strategic and financial priorities,” says Schriesheim.
Dividend increase
The board of directors has declared a cash dividend of $0.71 per share of common stock (a 1% increase on fiscal Q3’s $0.70 per share), payable on 16 September to stockholders of record at the close of business on 26 August.
September-quarter outlook
For its fiscal fourth-quarter 2025 (to end-September), Skyworks expects revenue to grow to $1–1.03bn.
Mobile product revenue should see mid-single-digit sequential growth, due to “healthy sell-through, lean channel inventories and solid order visibility”.
Broad Markets product revenue should grow sequentially for a seventh consecutive quarter, with year-on-year trends accelerating and continued strength in bookings, backlog, and channel sell-through.
Reflecting the stable product mix and ongoing cost discipline, gross margin should be steady at 46.5–47.5%.
Operating expenses are expected to rise to $235–245m, although this is due to the September quarter including a 14th week (which adds about $7m). Skyworks says that it continues to fund key R&D initiatives while maintaining tight control over discretionary spending.
Diluted earnings per share should rise to $1.40 for fiscal Q4/2025.
Manufacturing facility consolidation
“We see further opportunities to expand margins over time as we execute on our manufacturing efficiency roadmap,” says Schriesheim.
“We are taking action to optimize our manufacturing footprint with the planned closure of our Woburn [Massachusetts] manufacturing facility [the location of Skyworks’ former headquarters] and the consolidation of operations into our Newbury Park [California] site,” announces Brace. “This move is designed to drive higher fab utilization, lower fixed costs, and improve overall efficiency in the future,” he adds. “As our product mix shifts toward more advanced, higher-value content, this consolidation positions us to expand gross margins over time while reinvesting in next-generation technologies and maintaining the scale and technical capability required to serve our premium customers at the highest levels.”
Long-term growth outlook
“[In Mobile], we see multiple drivers of long-term RF content growth, including opportunities from internal modem adoption, higher RF complexity with AI features, and a larger addressable footprint within the smartphone. At the same time, we’ll continue to deliver more performance in smaller form factors, enabling richer features within current sockets,” says Brace. “Smartphone replacement cycles remain historically long, now averaging over four years, even as our top customer maintains a record installed base. The first wave of AI-capable phones is reaching scale, and early demand signals are encouraging. As AI capabilities become more intuitive and integrated, we believe this could drive an inflection in upgrade cycles, leading to a potential tailwind to volumes and content over time. Our deep RF expertise, strong customer relationships, and advanced manufacturing put us in a strong position to lead through this next phase,” he believes.
“Broad Markets continue to gain momentum, driven by new customer engagements across edge IoT and automotive. We are seeing stronger order flow, healthy book-to-bill levels and lean channel inventory,” Brace continues.
“In edge IoT, Wi-Fi 7 adoption is accelerating across consumer, enterprise and industrial applications. These systems demand faster speeds and ultra-low latency, translating to greater RF complexity. Looking ahead, we’re already investing in Wi-Fi 8 to support the next wave of performance.”
“Automotive remains a key growth driver for Skyworks, supported by long-design cycles that offer greater visibility and more durable revenue streams. As vehicles become more software-defined and connected, the need for secure wireless links continues to grow — from 5G telematics to over-the-air updates and infotainment, all of which increase our content opportunity.”
“In traditional data center and infrastructure, business activity is rebounding as inventory normalizes. Meanwhile, accelerating AI workloads are driving upgrades to 800G and 1.6TB switches, increasing demand for our precision-timing solutions.”
“Altogether, Broad Markets is becoming a stronger, more resilient growth engine for Skyworks. In aggregate, this is a $1.5bn [annual revenue] business with a double-digit long-term growth profile and gross margins above the corporate average – a core part of our portfolio that we believe remains underappreciated relative to its scale and contribution,” Brace concludes.
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