Skyworks Solutions, Inc. (SWKS)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Skyworks as a cyclical semiconductor supplier, not a steady compounder. In fiscal Q3 2026, the quarter ended 2026-07-03, revenue was $934.8 million, down 3.13% from $965.0 million in fiscal Q3 2025, and net income fell 67.71% to $33.9 million from $105.0 million; diluted EPS was $0.22 versus $0.70. The annual record is also softening: FY2025 revenue was $4.1 billion, net income $477.1 million and EPS $3.08, versus FY2024 revenue $4.2 billion, net income $596.0 million and EPS $3.69, and FY2023 revenue $4.8 billion, net income $982.8 million and EPS $6.13. That is a cyclical downswing with weak current profitability: FairStock's ROE is 5.09% and ROCE 3.44%, and the latest net margin was 3.63%. The balance sheet looks sound, with D/E 0.12 and an Altman Z-score of 5.95, and FairStock's Piotroski F-Score is 7/9. TTM free cash flow is $408.6 million, a 3.3% FCF yield. But at the 2026-10-26 close of $83.34, FairStock's P/E is 43.18, P/B 2.19, EV/EBITDA 15.25, and its Graham Number is $40.69, implying a -105.04% margin of safety—no Graham-style discount. The 4.13% dividend yield is attractive only if earnings recover. FairStock calls it CYCLICAL because semiconductor earnings follow the economic cycle. The figures do not prove a wide moat; returns are low and profits are cyclical. I would want evidence of sustained margin and earnings recovery before calling this a bargain.

In plain English: Skyworks makes analog and mixed-signal chips used in wireless devices, cars, and other electronics. The business looks weaker right now: sales and profits in the latest quarter were lower than a year earlier, and returns on the money it puts to work are low. At the 2026-10-26 close of $83.34, the stock looks expensive compared with profits and accounting value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-07-03) · fiscal Q2 2026 10-Q (period ended 2026-04-03) · fiscal Q1 2026 10-Q (period ended 2026-01-02) · fiscal Q3 2025 10-Q (period ended 2025-06-27) · FY2025 10-K (period ended 2025-10-03) · FY2024 10-K (period ended 2024-09-27) · FY2023 10-K (period ended 2023-09-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer