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Call sheet · Q3'26

Skyworks Solutions (SWKS)

Q3'26 earnings call · held 2026-07-28 · compared with the Q2'26 call · management-credibility review
4/12
Disclosure score
3 high, 3 medium flags
Financial quality
Bottom line
The market will tout a Q3 that beat revenue guidance, but the real story is **cash is disappearing while Skyworks piles on a $2 B debt raise and a $2 B buyback, eroding financial flexibility**. The headline margin is flat, and the promised AI‑driven content growth is now described as "flat" - a clear downgrade. The binding constraint is **supply bottlenecks in broad‑markets combined with an inventory build that is draining cash**; without a clear capex or inventory target, the balance sheet will be strained once the debt is issued. **My view flips if the $2 B debt raise is delayed, the inventory buffer exceeds $200 M, or the broad‑markets growth engines slip below 10% YoY**.

The 30-second version

  • The sleeper story - inventory buffer and capex surge are eating cash faster than anyone sees
  • Obvious headline - Q3 top‑line beats guidance, but the margin story is flat and input‑cost pressure is rising
  • Metric drift - backlog and DSO disappear, price‑increase language turns into vague “selective” talk

What changed this quarter

MetricQ2'26Q3'26Change
Revenue$944 M (Q2) (+0% YoY)$935 M (Q3) (‑1% YoY)‑1% YoY, ‑1% sequential
Mobile Revenue$547 M (58% of revenue)$532 M (57% of revenue)‑3% YoY, ‑2% sequential
Broad‑Markets Revenue$397 M (43% of revenue, +10% YoY)$403 M (43% of revenue, +8% YoY)‑2% YoY growth deceleration
Non‑GAAP Diluted EPS$1.15 (Q2)$1.08 (Q3)‑6¢ YoY, ‑7¢ sequential
Net Income$173 M (Q2)$164 M (Q3)‑5% YoY, ‑5% sequential
Operating Income$189 M (Q2)$182 M (Q3)‑4% YoY, ‑4% sequential
Gross Profit$425 M (Q2)$420 M (Q3)‑1% YoY, ‑1% sequential
Gross Margin45% (Q2)≈45% (Q3)flat
Operating Expenses$236 M (Q2)$238 M (Q3)+0.8% YoY, +0.9% sequential
Cash & Investments$1.40 B (Q2)$814 M (Q3)‑$586 M (-42%)

Accountability tracked

6 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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