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Shares of Skyworks Solutions rose nearly 8 per cent after the company delivered better-than-expected third-quarter earnings and gave an optimistic forecast for the next quarter. The semiconductor firm, known for its analog and mixed-signal products, saw healthy demand in its mobile business and steady growth across broader markets like automotive, IoT, and data centres.
Skyworks reported adjusted earnings of $1.33 per share, beating analysts’ estimates of $1.24. Revenue for the quarter was $965 million, also topping expectations of around $941 million. The company saw a 7 per cent year-over-year revenue increase. Both gross margin and non-GAAP earnings per share came in above the high end of Skyworks’ prior guidance range, highlighting strong execution.
CEO Phil Brace said the company was encouraged by the momentum in mobile and long-term strength in its broad markets. He emphasized solid trends in edge IoT, automotive, and AI-related infrastructure as driving factors behind the growth. For the fourth quarter, Skyworks is projecting revenue between $1 billion and $1.03 billion, with expected adjusted earnings around $1.40 per share. The company noted that its mobile segment remains strong, with mid-single-digit sequential growth expected, and that broad markets will likely continue to show accelerating performance compared to last year.
Skyworks also announced a 1 per cent dividend increase, raising its quarterly payout to $0.71 per share. The dividend will be payable on September 16 to shareholders on record as of August 26.
The company made several strategic moves during the quarter, including winning 5G design slots in premium Android smartphones and expanding into automotive programs with global manufacturers like BYD, Ford, Geely, and Nissan. It also made progress in Wi-Fi 7 technology and introduced new clocking solutions targeted at AI-powered data centres.
Rob Schriesheim, the interim CFO, confirmed that mobile order activity remained solid, backing the company’s guidance for continued sequential growth. With both product momentum and customer demand improving, Skyworks appears to be positioning itself well for the second half of the year.