Skyworks Solutions Drops 15% After Weak Q1 Guidance Overshadows Beat Q4 Results and Qorvo Merger Close

Skyworks Solutions reported fiscal fourth-quarter results that topped Wall Street estimates but issued first-quarter revenue guidance below expectations, sending shares down roughly 15% in after-hours and pre-market trading on November 3 and 4. The company posted Q4 revenue of $1.046 billion against analyst expectations of approximately $1.03 billion, with non-GAAP earnings per share of $1.28 beating the consensus estimate of $1.27. Net income on a GAAP basis was $23.4 million, or $0.15 per share. For the full fiscal year 2026, revenue came in at $3.96 billion.

The selloff was driven by Q1 guidance. Skyworks projected fiscal first-quarter revenue in the range of $1.8 billion to $1.9 billion and non-GAAP EPS of $1.25, figures that fell short of analyst forecasts and reflected ongoing smartphone demand headwinds. The outlook comes as the company integrates Qorvo following the completion of their combination, a deal that creates what management called a full-stack RF front-end platform. Skyworks is targeting $500 million or more in annual cost synergies from the merger and has authorized a $2 billion stock repurchase program alongside $2 billion in new acquisition debt financing.

The mixed picture prompted a wave of analyst actions. Goldman Sachs resumed coverage with a Sell rating and a $78 price target, citing the company's heavy smartphone exposure. Bank of America cut its price target on the weak guidance. Mizuho also reduced its target, pointing to smartphone headwinds. Stifel, by contrast, raised its price target reflecting an updated view of the merger. B.Riley stood apart from the bearish moves, reiterating its Buy rating and $107 price target. Analyst price targets across the coverage universe ranged from a low of $61 to B.Riley's high of $107, with the average sitting near $78.68.