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Call sheet · Q2'26

Skyworks Solutions (SWKS)

Q2'26 earnings call · held May 5, 2026 · compared with the Q1'26 call · management-credibility review
6/12
Disclosure score
2 high, 4 medium flags
Financial quality
Bottom line
The sleeper story is SWKS pivoting hard away from Apple dependence with their first major Android commitment - $1B through 2030 represents a strategic hedging strategy the market hasn't fully grasped. Yes, they beat revenue by $20M, but the financial quality deterioration is severe - they stopped reporting free cash flow, DSO, and receivables data right after beating, which screams revenue quality issues. The binding constraint isn't capacity anymore (they quietly dropped those claims) - it's margin compression from rising input costs and competitive pricing pressure. Most revealing quote: going from 'scrambling for every part' last quarter to 'input costs remain a modest headwind' signals demand is softening faster than they'll admit. My view changes if they restore cash flow disclosure next quarter and can demonstrate the Android win actually improves blended margins rather than just providing Apple diversification.

The 30-second version

  • Android content pivot just revealed SWKS exit strategy from Apple dependence
  • Qorvo deal timeline suddenly accelerated with zero justification
  • Stopped reporting DSO and receivables growth rates after two quarters of disclosure

What changed this quarter

MetricQ1'26Q2'26Change
Revenue$1.04B (+8% YoY)$944M (+2% YoY)-$96M sequential decline
Mobile Revenue$644M (62% of sales)$548M (58% of sales)-$96M with share compression
Broad Markets Revenue$395M (38% of sales)$396M (42% of sales)Flat dollars but mix shift acceleration
Gross Margin46.6%45.0%-160 bps compression
Operating Margin24.3%20.0%-430 bps dramatic compression
EPS$1.54$1.15-$0.39 steep decline
Free Cash Flow$339M (33% margin)Not disclosedMetric disappeared entirely
Largest Customer %67%60%-700 bps concentration reduction
Input Cost PressureModest headwind mentionedHigher input costs, expedite fees, gold pricesCost pressures accelerating
Q3 Revenue GuideNot provided$900M-$950MMidpoint down -$19M sequentially

Accountability tracked

8 new promises made5 narrative shifts flagged6 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
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Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

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