Skyworks Solutions reported first-quarter adjusted EPS of $1.54, surpassing the Zacks Consensus Estimate of $1.40 and comparing to $1.60 in the year-ago period. While total revenue declined 5% year-over-year, the company narrowly topped consensus revenue projections driven by resilient demand in its broadband and automotive connectivity segments. Gross margin expanded 120 basis points to 52.8%, reflecting improved manufacturing yields and disciplined cost control, offsetting softening smartphone-related sales.

Broad market growth in 5G infrastructure and connected car applications supported Skyworks’ performance, with non-handset revenue growing 8% sequentially. Sales to automotive OEMs increased over 15% from the prior quarter as newer EV platforms ramp, while wireless infrastructure accounted for 25% of sales—up 4 percentage points. By contrast, handset module shipments fell mid-single digits, driven by inventory adjustments at major OEMs in Asia.

The company ended the quarter with $2.1 billion in cash and equivalents and net debt of $300 million, maintaining a strong leverage ratio below 0.2x EBITDA. Free cash flow totaled $220 million, up 10% sequentially, enabling Skyworks to authorize a new $400 million share-repurchase program on top of its existing $600 million authorization. The board also declared a quarterly dividend of $0.55 per share, marking a 5% increase year-over-year.

Management affirmed full-year non-GAAP operating margin guidance of 50–52% and reiterated revenue growth of 2–4% for fiscal 2026, with second-quarter revenue expected to be roughly flat sequentially. Analysts have raised their consensus estimates for fiscal EPS by $0.05 on average following the results. Shares rose 3.5% in pre-market trading as investors welcomed the beat-and-raise tone and the company’s commitment to capital returns.