Skyworks delivered standout Q3 FY2025 results, defying the notion that chipmakers struggle with profitability.
Revenue hit $965 million (+5% QoQ, +7% YoY), beating expectations, driven by strong performance in its Mobile and Broad Markets segments. Mobile products (62% of revenue) rose 1% QoQ and 8% YoY, fueled by Apple sales and new Android models—with Apple accounting for 63% (down from prior periods). Broad Markets (38% of revenue) grew for the sixth straight quarter (+2% QoQ, +5% YoY), reflecting rising demand for Wi-Fi 7, automotive applications, and inventory normalization.
Q3 highlights: Secured 5G component orders for Samsung Galaxy flagships; new partnerships with automakers like BYD; expanded Wi-Fi 7 business; launched innovative clock chips for AI data centers.
Non-GAAP gross margin reached 47.1% (beating estimates); net income was $200.4 million, with diluted EPS of $1.33 (both exceeding expectations). Operating cash flow stood at $314.1 million, free cash flow at $253 million—healthy and stable. The company returned $430 million to shareholders this quarter, totaling over $1 billion in the past two quarters.
The board declared a $0.71 per share cash dividend (+1% YoY). Q4 guidance: Revenue $1–1.03 billion (with growth in both segments), gross margin stable at 46.5–47.5%, diluted EPS $1.40.
Skyworks plans to close its Massachusetts factory, consolidating operations in California to boost efficiency and expand margins.
Long-term, mobile RF components have strong growth drivers; Broad Markets is thriving in edge IoT, automotive, and data centers. Wi-Fi 8 and automotive connectivity are key growth areas, with Broad Markets targeting $1.5 billion annual revenue and double-digit growth prospects.
ICgoodFind: Skyworks’ strong profitability and diversified growth make its future trajectory noteworthy.
