Shares of Skyworks Solutions (SWKS) rose about 3% premarket on Wednesday after fiscal first quarter results and outlook beat estimates, drawing positive reactions from analysts.
J.P. Morgan kept its Neutral rating on Skyworks but lowered the price target to $65 from $74. The firm said Skyworks’s solid results and guidance reflect strong iPhone demand, adding that flat content growth at Apple was better than feared.
“Skyworks’ Dec-Qtr results came in better than consensus, reflecting strong iPhone unit shipments trends alongside continued growth in the Broad Markets segment. For the Mar quarter outlook, management expects revenue to decline 6% Q/Q, better than expectations, driven by a 20% decline in the mobile business, while Broad Markets is expected to be flattish Q/Q. Regarding its main customer, Apple (AAPL), iPhone momentum remains strong,” said analysts led by Peter Peng.
The analysts noted that Skyworks expects blended content to be flat year-over-year for the upcoming iPhone cycle — better than feared, given market concerns about further content loss.
The analysts added that Skyworks is seeing strong demand signals from its lead customers, and while there are concerns about higher memory pricing potentially affecting smartphone demand, no such impact has been seen yet.
“That said, we are concerned about demand destruction on higher memory prices in 2H of this year. Outside of Apple, the Android business declined Q/Q in the December quarter but is expected to grow double digits Q/Q in the Mar-Qtr. We anticipate Google’s (GOOG) (GOOGL) business will remain strong, while Samsung (SSNLF) is expected to decline,” said Peng and his team.
The analysts noted that Broad Markets segment continues to gradually improve, with eight consecutive quarters of modest growth led by WiFi 7, automotive, and data centers. “We continue to view the acquisition of Qorvo favorably, as it should drive scale and diversification benefits,” said the analysts.
In October 2025, Skyworks said it was acquiring Qorvo (QRVO) in a $22B cash and stock deal. Both Skyworks and Qorvo are major suppliers to Apple (AAPL). Skyworks makes analog and mixed-signal semiconductor products.
Morgan Stanley maintained its Equal-weight rating but raised the price target on the stock to $69 from $68, noting that it was good execution by Skyworks amid an uncertain smartphone backdrop.
“Strong results were driven by healthy smartphone demand, with Apple content expected to be flat year over year and no impact from memory constraints to date. While execution remains solid, upside depends on smartphone demand holding up,” said analysts led by Joseph Moore.
The analysts noted that memory concerns were not yet visible in results, but it remains an overhang. But the analysts added that Skyworks’s premium exposure helps limit impacts for now.
“In smartphone, Skyworks outperformed expectations due to healthy demand and strong sell through at its largest customer, Apple, which represents approximately 67% of revenue. Management highlighted lean channel inventories and improving upgrade cycles. At present, Skyworks’ demand exceeds its supply, and the company noted it is scrambling to meet demand,” said Moore and his team.