Earnings call transcript: Skyworks Q3 2025 earnings beat lifts stock

Skyworks Solutions Inc. (SWKS) reported strong financial results for the third quarter of fiscal year 2025, surpassing both earnings and revenue forecasts. The company’s earnings per share (EPS) reached $1.33, exceeding the forecast of $1.24 and marking a 7.26% surprise. Revenue came in at $965 million, above the anticipated $940.85 million. Following the announcement, Skyworks’ stock rose by 1.53% in after-hours trading, reflecting positive investor sentiment. According to InvestingPro analysis, the company maintains a GOOD financial health score, though current trading prices suggest the stock is undervalued relative to its Fair Value.

[12 exclusive InvestingPro Tips are available for Skyworks, offering deeper insights into the company’s financial position and market outlook. Access these valuable insights with an InvestingPro subscription.]

Key Takeaways

• Skyworks exceeded earnings and revenue forecasts for Q3 2025.
• The company’s stock increased by 1.53% in after-hours trading.
• Strong growth was noted in mobile revenue and automotive sectors.
• Skyworks returned $430 million to shareholders through dividends and share repurchases.
• The company is expanding in Wi-Fi 7 and preparing for Wi-Fi 8 technologies.

Company Performance

Skyworks Solutions demonstrated robust performance in Q3 2025, continuing its trend of outperforming market expectations. The company’s strategic focus on mobile and automotive sectors has driven significant revenue growth. The expansion in Wi-Fi technologies and AI-capable phone content also positions Skyworks well in emerging markets. Despite challenges in the competitive RF technology space, Skyworks maintains a strong market position.

Financial Highlights

• Revenue: $965 million, exceeding forecasts and previous guidance.
• Earnings per share: $1.33, a 7.26% surprise over forecast.
• Gross margin: 47.1%.
• Net income: $200 million.
• Free cash flow: $253 million, representing 26% of revenue.
• Cash and investments: $1.3 billion.
• Shareholder returns: $430 million through dividends and share repurchases.

Earnings vs. Forecast

Skyworks reported an EPS of $1.33, compared to a forecast of $1.24, resulting in a 7.26% earnings surprise. Revenue reached $965 million, surpassing the forecast of $940.85 million. This performance reflects the company’s strong operational efficiency and strategic market positioning.

Market Reaction

Following the earnings announcement, Skyworks’ stock rose by 1.53% in after-hours trading to $68.98. This increase indicates a positive reaction from investors, who were encouraged by the company’s earnings beat and strategic growth initiatives. The stock’s movement is notable given its current range, sitting between its 52-week high of $110.76 and low of $47.93.

Outlook & Guidance

Looking forward, Skyworks projects Q4 revenue to be between $1,000 million and $1,030 million, with an expected gross margin around 47%. The company anticipates mid-single-digit growth in the mobile sector and continued expansion in broad markets. Operating expenses are targeted between $235 million and $245 million for the next quarter.

Executive Commentary

CEO Phil Brace highlighted the company’s diversification strategy, stating, "We need to walk and chew gum at the same time," emphasizing the importance of expanding beyond the handset market. Brace also noted the potential for growth in AI phone capabilities, which could drive future upgrade cycles.

Risks and Challenges

• High reliance on a single customer, contributing 63% of revenue.
• Competitive pricing pressures in the RF technology market.
• Potential market saturation in the smartphone sector.
• Supply chain management and inventory challenges.
• Macroeconomic factors affecting consumer spending.

Q&A

During the earnings call, analysts inquired about Skyworks’ inventory management and diversification efforts. The company emphasized its disciplined approach and focus on expanding beyond the handset market, with particular interest in automotive and IoT sectors.

Full transcript - Skyworks Solutions Inc (SWKS) Q3 2025:

Operator: Good day, and welcome to the Skyworks Third Quarter Fiscal Year twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. After the speakers’ presentation, there will be a question and answer session. Instructions will be given at that time. As a reminder, this call may be recorded.

I would now like to turn the call over to Raji Gill, Vice President, Investor Relations and Corporate Development. Please go ahead.

Raji Gill, Vice President, Investor Relations and Corporate Development, Skyworks Solutions: Thank you, operator. Good afternoon, everyone, and welcome to Skyworks’ third fiscal quarter twenty twenty five conference call. With me today for our prepared remarks is Phil Brace, our Chief Executive Officer and President and Rob Streischheim, Interim Chief Financial Officer for Skyworks. This call is being broadcast over the web and can be accessed from the Investor Relations section of the company’s website at skyworksinc.com. In addition, the company’s prepared remarks will be made available on our website promptly after the conclusion during the call.

Before we begin, I would like to remind everyone that our discussion will include statements relating to future results and expectations that are or may be considered forward looking statements. Please refer to our earnings press release and recent SEC filings, including our annual report on Form 10 ks for information on certain risks that could cause actual outcomes to differ materially and adversely from any forward looking statements made today. Additionally, today’s discussion will include non GAAP financial measures consistent with our past practice. Please refer to our press release within the Investor Relations section of our company website for a complete reconciliation to GAAP. With that, I’ll turn

: the call over to Phil.

Phil Brace, Chief Executive Officer and President, Skyworks Solutions: Thanks, Raji, and welcome, everyone. Skyworks delivered strong results this quarter, fueled by an upside in mobile and sustained strength across broad markets. We posted revenue of $965,000,000 delivered earnings per share of 1.33 and generated free cash flow of $253,000,000 Revenue, gross margin and EPS exceeded the high end of our guidance. We returned $430,000,000 to shareholders this quarter through share repurchases and dividends and more than $1,000,000,000 across the past two quarters, supported by strong free cash flow and disciplined working capital management. In mobile, revenue came in above seasonal trends, with strength continuing into the September, supported by healthy sell through at our top customer and new product launches in Android.

While end demand signals remain solid, we’re actively monitoring the channel and are maintaining a disciplined approach to inventory. Looking ahead, we see multiple drivers of long term RF content growth, including opportunities from internal mode of adoption, higher RF complexity with AI features, and a larger addressable footprint within the smartphone. At the same time, we’ll continue to deliver more performance in smaller form factors, enabling richer features within current sockets. Smartphone replacement cycles remain historically long, now averaging over four years, even as our top customer maintains a record installed base. The first wave of AI capable phones is reaching scale and early demand signals are encouraging.

As AI capabilities become more intuitive and integrated, we believe this could drive an inflection in upgrade cycles leading to a potential tailwind to volumes and content over time. Our deep RF expertise, strong customer relationships and advanced manufacturing put us in a strong position to lead through this next phase. Broad markets continue to gain momentum, driven by new customer engagements across edge, IoT and automotive. We are seeing stronger order flow, healthy book to bill levels and lean channel inventory. In edge IoT, Wi Fi seven adoption is accelerating across consumer, enterprise and industrial applications.

These systems demand faster speeds at ultra low latency, translating to greater RF complexity. Looking ahead, we’re already investing in Wi Fi eight to support the next wave of performance. Automotive remains a key growth driver for Skyworks, supported by long design cycles that offer greater visibility and more durable revenue streams. We broadened our reach across a growing roster of global OEMs, securing programs with BYD, Ford, Geely, Nissan and others. As vehicles become more software defined and connected, the need for secure wireless links continues to grow, from five gs telematics to over the air updates and infotainment, all of which increase our content opportunity.

In traditional data center and infrastructure, business activity is rebounding as inventory normalizes. Meanwhile, accelerating AI workloads are driving upgrades to 800 gig and 1.6 terabyte switches, increasing demand for our precision timing solutions. Altogether, Broadmarkets is becoming a stronger, more resilient growth engine for Skyworks, and we expect this momentum to continue with both sequential and year over year growth in the September. In aggregate, this is a $1,500,000,000 business with a double digit long term growth profile and gross margins above the corporate average, a core part of our portfolio that we believe remains underappreciated relative to its scale and contribution. Today, we’re taking action to optimize our manufacturing footprint with the planned closure of our Woburn manufacturing facility and the consolidation of operations into our Newbury Park site.

This move is designed to drive higher fab utilization, lower fixed costs and improve overall efficiency in the future. As our product mix shifts towards more advanced higher value content, this consolidation positions us to expand gross margins over time while reinvesting in next generation technologies and maintaining the scale and technical capability required to serve our premium customers at the highest levels. Before we dive into the numbers, I want to welcome Rob Sureshine to the team in his role as interim CFO. Rob has served on the Skyworks board for nearly twenty years and knows our business, strategy and leadership team exceptionally well. His appointment ensures continuity as we move through this transition.

On the CFO search, we’ve been taking a deliberate approach and have a number of strong candidates in the pipeline. I expect the process to conclude shortly. With that, I’ll turn the call over to Rob for a discussion of last quarter’s performance and outlook for 2025.

Rob Streischheim, Interim Chief Financial Officer, Skyworks Solutions: Thanks, Phil. It’s a privilege to step in as Interim CFO and support the Skyworks team during this transition. Having served on the Board for nearly two decades and being a shareholder, I know the company well and have confidence in our strategy, our financial discipline and our long term growth opportunities. Turning to our third fiscal quarter results. Skyworks delivered revenue of $965,000,000 exceeding the high end of our guidance range.

During the quarter, our largest customer accounted for about 63% of revenue. Mobile represented 62% of total revenue, up 1% sequentially and 8% year over year, driven by stronger sell through at our top customer and new product launches in Android. Broad markets, which includes Edge IoT, automotive, industrial, infrastructure and cloud grew 2% sequentially and 5% year over year. This marks the sixth consecutive quarter of growth and reflects stronger end demand and further inventory normalization across key verticals. Gross profit was $454,000,000 with gross margins of 47.1% above expectations driven by product mix and ongoing cost discipline.

We see further opportunities to expand margins over time as we execute on our manufacturing efficiency roadmap. Operating expenses totaled $230,000,000 aligned with our long term product roadmap. We remain disciplined with spend, balancing investment and future growth with prudent cost management. Operating income reached $224,000,000 translating to an operating margin of 23.3%. Other income was $1,000,000 and our effective tax rate was 11.2% resulting in net income of $200,000,000 and diluted earnings per share of $1.33.0.9 dollars above our guidance.

Cash flow remains strong with operating cash flow of $314,000,000 and capital expenditures of $61,000,000 resulting in free cash flow of $253,000,000 or 26% of revenue. Over the past two years, our free cash flow has benefited from effective working capital management as we’ve reduced inventory levels. We returned $430,000,000 to shareholders during the quarter comprised of 104,000,000 in dividends and $330,000,000 in share repurchases. Over the past two quarters, we’ve returned more than $1,000,000,000 to shareholders. We ended the quarter with $1,300,000,000 in cash and investments and $1,000,000,000 in debt maintaining a strong balance sheet and ample flexibility to support our strategic and financial priorities.

Looking ahead to the 2025, we expect revenue to range between $1,000,000,000 to $1,030,000,000 In mobile, we anticipate mid single digit sequential growth. We’re seeing healthy sell through, lean channel inventories and solid order visibility heading into the September. Broad markets is set to grow again this quarter with year over year trends accelerating and continued strength in bookings, backlog and channel sell through. Gross margin is projected to be approximately 47 plus or minus 50 basis points, reflecting the stable product mix and ongoing cost discipline. We expect operating expenses between $235,000,000 and $245,000,000 as we continue to fund key R and D initiatives while maintaining tight control over discretionary spend.

As a reminder, the September includes a fourteenth week, which adds about $7,000,000 incremental expenses. Below the line, we anticipate approximately $4,000,000 in other income and effective tax rate of 13% and a diluted share count of 149,500,000.0 shares. At the midpoint of our revenue outlook, this equates to expected diluted EPS of 1.4 With that, I’ll turn it back to Phil for closing remarks.

Phil Brace, Chief Executive Officer and President, Skyworks Solutions: Thank you, Rob. Before I close, I want to thank our employees for their incredible dedication and our customers and partners for their continued trust and collaboration. Operator,

: let’s

Phil Brace, Chief Executive Officer and President, Skyworks Solutions: open the line for questions.

Operator: Thank you. Our first question comes from Chris Caso with Wolfe Research. Your line is open.

Chris Caso, Analyst, Wolfe Research: Yes, thank you. Good evening. I guess the first question is, you know, within the handset business, is there anything that you consider that’s changed over the last ninety days or, with respect to what you expect on content, what you expect on unit sales? Just a little bit of color about what may have been changing within the mobile landscape.

Phil Brace, Chief Executive Officer and President, Skyworks Solutions: Thanks for the question. Look, I think, in general, we’ve just seen strong demand. I mean, strong demand for some of our products. I think our largest customer had a conference call the other day and kind of reflected that in some very strong demand. And we’re seeing the benefit of strong unit demand and frankly shipments that benefit us from a mix point of view.

So that continues to be strong as reflected in our results and our forward looking guidance.

Chris Caso, Analyst, Wolfe Research: Okay. And just with regard to the extra week that you talked about in the September, well, how should we think about December seasonality, both given some of the content changes that your largest customer, typical seasonal effects and then the impact of the extra the absence of the extra week as

Sam Feldman, Analyst, BNP Paribas: you go into the December quarter?

Phil Brace, Chief Executive Officer and President, Skyworks Solutions: Well, we’re not obviously not guiding beyond the current quarter. And I would say that we’re seeing solid demand across the board, both in mobile and in non mobile. Our book to bill remains strong, and we have low inventories at this point. So that’s where we are. I think it’s been December has been a little bit more volatile than others over the past years, I think just given by other factors.

So it’s hard for us to say. We’re just focused on one step at a time, continue to execute and deliver and our guidance for the quarter kind of stands.

Raji Gill, Vice President, Investor Relations and Corporate Development, Skyworks Solutions: And just a quick follow-up, Chris, this is Raji. The extra week did not have an impact on the revenue for the September guide. It just has an impact on the OpEx.

: Got it.

Chris Caso, Analyst, Wolfe Research: Okay. Thanks.

Operator: Thank you. Our next question comes from Edward Schneider with Charter Equity Research. Your line is open.

: Thank you very much. So you’ve talked at length earlier this year about the changes as your largest customer, this new product release. I wanna touch on a couple of things. Obviously, that has a lot to do with the kinda odd mix of of phones that they’ll be releasing this year. I know you can’t talk about details, but as we move into 02/1926, if the trends that they’ve talked about, other companies like Qualcomm have talked about, and other folks have hinted at, if they actually play out as expected with the mix starts favoring an internal modem, does that naturally increase your blended content?

Not so much on the phones that are being produced now, but if everything if we take a snapshot and hold the hold things constant on internal versus external loan for 02/1926, would that give you guys a significant boost, or are things gonna change significantly or could change significantly for next year’s model? So everything’s back up in the air and we gotta figure it all out from zero again.

Phil Brace, Chief Executive Officer and President, Skyworks Solutions: Yeah, I mean, look for this particular cycle, we’ve kind of commented that generally speaking, we have more content available to us in the internal modem as some parts that were previously unavailable to us now become available to again. So I think that, that apples to apples that remains to be seen through and constant through cycle. As we look at things that affect our overall business, that’s one factor. Mix of what the customer ships between the various different phones is another factor, mix of the various different iPhone particular models, geography. There’s a whole bunch of factors that reflected that.

And I think right now, we’ve got a little bit of tailwind with respect to we’re getting solid demand across the phones that have our content on them. So as of what happens going forward, we’ll see. But right now, it’s good.

: But part, if I could follow-up, part of the hand you were dealt this fall was basically because that internal enrollment is such a small percentage of telephone sold here that dual sensing on the part is It’s clear, you have talked about it, we’ve talked about it at length, the transmit to receive It’s hard to split that when you’re only doing maybe 10 or 15% of total volume. I guess my question is, is it irrational expectations that that might get split on the internal modem when volumes pick up as a natural consequence of, one, you gaining back share in that exact part in the upcoming phone on the external modem. So clearly you qualify for that part against the Vago or Broadcom. So I’m just trying to get a handle on is it a rational assumption to assume that if that volume picks up on that phone, the mix starts favoring you, and it’s large enough to start splitting you to get a bigger chunk of that? Because if your content’s already up on that without the transmit diversity received, and that’s what you said, then one would expect to be up significantly with it, right?

Phil Brace, Chief Executive Officer and President, Skyworks Solutions: Yeah, all things being equal, I think that’s probably fair. But all things aren’t necessarily equal. This depends on what phones they ship and all the rest of that stuff. But generally speaking, we do have more content to us available on the internal modem versus the external modem. As that shifts more to the internal modem, there’s a natural tailwind for us there, I would say that.

: Okay. Thank you.

: Thank

Operator: you. Our next question comes from Karl Ackerman with BNP Paribas. Your line is open.

Sam Feldman, Analyst, BNP Paribas: Hi, this is Sam Feldman on for Karl Ackerman. So you indicated Android revenues were flat on a sequential basis in March at around $70,000,000 How should we think about your Android business in this quarter relative to last quarter and going forward can you grow from these levels?

Raji Gill, Vice President, Investor Relations and Corporate Development, Skyworks Solutions: Yes, so this is Raji. So our Android revenue in the June was up significantly. It was up just under $100,000,000 and this is really primarily related to our ramp with Google. We expect continued growth into the September when we’re thinking about Android.

Sam Feldman, Analyst, BNP Paribas: Great. Thank you. And I have a follow-up. So, there any way to discern between demand points ahead of tariffs versus improved demand? And what inventory levels are you seeing at your end customers compared to last quarter?

Phil Brace, Chief Executive Officer and President, Skyworks Solutions: Yes. We’re trying to keep a really close eye on it. I think we’ve talked about in our prepared remarks, over the past year, we’ve really been trying to be disciplined and take our inventory down. Our inventories right now are at very, very thin lean levels. And so we’re trying to maintain focus of that.

Obviously, our customers don’t always tell us why they’re ordering products. We just try and deliver it where we can. And we’re just trying to keep our inventories low to manage that. And our current guidance kind of reflects what we believe is the current environment with respect to tariffs and all

: the rest.

Sam Feldman, Analyst, BNP Paribas: Great. Thank you so much.

Operator: Thank you. Our next question comes from Christopher Rolland with Susquehanna. Your line is open.

Christopher Rolland, Analyst, Susquehanna: Hey, guys. Thanks for the question and congrats on the results. Phil, maybe for you now that you’ve had some more time to look deeply at things at Skyworks. Have you kind of solidified your view on the importance of diversification beyond handset? And perhaps you have any thoughts just broadly without obviously identifying any targets, but thoughts on end markets or products that are desirable for Skyworks?

Or alternatively, would you be open to a larger merger within the RF industry? How might you feel on that? Thank you.

Phil Brace, Chief Executive Officer and President, Skyworks Solutions: Yes. I mean, look, I mean, that’s a very broad question. And I would say certainly, I mean, just look strategically at the company and it’s hard not to think that the single customer concentration we have is certainly probably suppressing our multiples compared to what it otherwise would be else wise. So obviously, kind of diversification and growing the business is important. Having said that, right, I mean, we remain incredibly focused on continuing to keep our eye on the ball where our current bread is butter, right?

We’ve got to maintain major focus on that. And so my message internally to team is you need to walk and chew gum at the same time, right? We need to continue to be focused on executing cleanly, delivering the best parts we can for our largest customer and then frankly continue to look ways to grow and diversify our businesses elsewhere. I think if you ask me about priorities and how I look at things in general, I’d probably look for things that are gross margin accretive, a little stickier, have a little, we’ll say, longer time constant of the revenue to help balance some of the potential volatility that comes from being in the handset market. So that’s how I’d prioritize that.

And in terms of size and scale, I mean, I’m really going to be focused on making sure that we can do things that are accretive. And I think that that’s going be kind of an important focus for us and the management team.

Christopher Rolland, Analyst, Susquehanna: Awesome. And perhaps as a follow-up, are there any economics attached with closing the Wilburn facility or consolidating that? Are there any other opportunities? More broadly, maybe you can just talk to OpEx growth from here, how you kind of view it on a multiyear basis?

Phil Brace, Chief Executive Officer and President, Skyworks Solutions: Yes. On the factory question, you kind of I mean, long term on that is we’re not really breaking out specific numbers at this time, primarily because, it takes a while to get through that. We’ve got to manage a bunch of parts and do that. And frankly, the end gross margin that we have is going to be driven by the utilization and all the things we get there. Having said that, clearly, will represent a tailwind, both in factory utilization, CapEx reduction, OpEx improvement and overall utilization of fixed cost assets.

And so it should remain a tailwind, and we’ll continue to guide that as it goes on. Rob, would you have any other comments on that?

: Yes, a couple of comments. First of all, having been on this board for almost, I’m embarrassed to say, twenty years, one of the things we were excited about when we brought Phil in was not only is he got heavy operational focus and chops and discipline, but he thinks very strategically. And he acts very decisively and the fab consolidation or optimization was very much in line with that. He made that decision very quickly and it was clearly focused on where the business is going, where the industry is going to forward invest in more advanced technologies. As to your second question on operating expenses, as I indicated in my prepared remarks, $235,000,000 to $245,000,000 in the September and we just did $230,000,000 in the June.

Now that $235,000,000 to $245,000,000 in the September includes about 7,000,000 related to the fourteenth week. So excluding that, OpEx is up only modestly quarter over quarter and we’d expect it to trend lower in the December. So for the full year, the 16% year over year increase in FY 2025 reflects both the timing dynamic and targeted investments we’ve made to support R and D programs. But I would also say, looking ahead to FY 2026 and beyond, Phil has made it very clear that we’re going to be very disciplined.

Rob Streischheim, Interim Chief Financial Officer, Skyworks Solutions: Excellent. Great to hear. Thank you, guys. Thank you.

Operator: Thank you. Our next question comes from Vivek Arya with Bank of America Securities. Your line is open.

: Hi. This is Liam Farrell on for Vivek. Thank you

Raji Gill, Vice President, Investor Relations and Corporate Development, Skyworks Solutions0: for taking our questions. On the first one, just what is your content visibility in flagship phones into next year?

Phil Brace, Chief Executive Officer and President, Skyworks Solutions: So, well, I’m hesitating on the question because, I mean, clearly, depends on lots of things. If you’re asking what the next down selection happened, that typically doesn’t happen until the late fall in the Christmas, January time frame. So we won’t have any other visibility other than that, other than what we’ve already shared. Having said that, right, I mean, think you can see our results suggest that we’ve our customer shipping good mix of the phones where we have high content now. And if I look out long term, what am I encouraged about?

I’m encouraged about RF content growth as more transmit capabilities come online, as the interim modem comes online, and as frankly, as if the customer gets good, uptick in the, refresh cycle. So all those things will kind of affect our performance going forward.

Raji Gill, Vice President, Investor Relations and Corporate Development, Skyworks Solutions0: Makes sense. Okay. So then in terms of kind of this pricing environment and you’re bidding for new sockets, has there been any material change there over the last kind of ninety days or six months as you kind of continue to work for those sockets for expanding off of your current base, but also maybe regaining the ones that you’ve lost at your top customer.

Phil Brace, Chief Executive Officer and President, Skyworks Solutions: Yeah. Look, the pricing is a highly competitive environment. We compete with very capable and incredible competitors. Those competition makes us stronger. When you’re playing in this game, you got to like that game.

It’s a competitive game and you got to thrive in that. And we do. And I think that the pricing environment really hasn’t changed. They expect us to deliver the best part at the best price, and we’re kind of focused on doing that. I mean, long term, what I’m encouraged about is we’ve got some of the stuff I talked about.

Long term content drivers include the movement to the internal modem, more transmit capability, a balance of increased transmit, which will drive more content, and frankly, a refresh capability on AI. So, I kind of look at it and stepping even further back, I go 99 as far out as you can go, percent of the devices connected to the internet are going to be connected wirelessly. And I feel good about that spot too.

Raji Gill, Vice President, Investor Relations and Corporate Development, Skyworks Solutions0: Thank you very much. Thank

Operator: you. Our next question comes from Edward Snyder with Charter Equity Research. Your line is open.

: Great. Thanks for the follow-up questions. So Phil, don’t if you wanna pontificate about it or not, but we’ve talked about it before. Do you feel like this year is probably your your low point in content at your largest customer given all the other trends?

Phil Brace, Chief Executive Officer and President, Skyworks Solutions: Well, yes, look, I mean, we’ve obviously had a couple of down selections that have not worked in our favor. And I think someone quoted happiness as an upward sloping line. And so I think we’ve changed the trajectory of the downward sloping line to the upward sloping line. I think we’re all laser focused on that.

: And then if I could ask, Wolverine’s being closed down, and I know you don’t wanna give too many specifics about the factory, but, obviously, I would imagine one of the goals here is to increase utilization in Newbury Park. When are we likely to see the first results of that? Is it something we’re see in a quarter or two? Do we wait till next calendar year?

Phil Brace, Chief Executive Officer and President, Skyworks Solutions: And then any No, not the next quarter or two. I mean, some of the products that are there, we’ve got to actually transition them to the Newbury Park side and some of them are long lead time items. So it’ll take a little while. But long term, look, you’re 100% correct. Long term, this positions us to invest in leading technology in Newbury Park, drive increased factory utilization, better fixed cost utilization, should benefit gross margin and reduce CapEx and all the rest of it.

So

: that’s kind of where we are.

: Any color on the timing long run? Is it two years or a year?

Phil Brace, Chief Executive Officer and President, Skyworks Solutions: No comment right now.

: Okay. And then, am I correct assuming that it’s all gas in Woburn? And is most of that gas for broad markets or mobile? Or is it split?

Phil Brace, Chief Executive Officer and President, Skyworks Solutions: It’s split, I mean the gas technology is used for amplifiers, right? So it’s split.

: But it is all gas, right?

Phil Brace, Chief Executive Officer and President, Skyworks Solutions: Yes.

: Okay, thank you.

Operator: Thank you. Our next question comes from Chris Sanker with TD Cowen. Your line is open.

: Yes, hi. Thanks for taking my question. I actually had like three of them. First one, in terms of the auto business, can you say how big the auto business is today? Is it mid single digit percentage, 10 percentage?

And could this double in the next year? How to think about it? And then I have two follow ups.

Raji Gill, Vice President, Investor Relations and Corporate Development, Skyworks Solutions: Yes, it’s a great question, Krish. This is Raji. So automotive is now tracking around $60,000,000 a quarter and up significantly on a year over year basis. In the press release, we talked about a number of programs that we won particularly at BYD, Nissan, Ford, and it’s really across a variety of our products, whether it’s five gs telematics, infotainment, power isolation. So we are quite bullish on that business and it’s very long design cycles and more durable revenue streams.

So we have a good pathway there to continue to accelerate that revenue.

: Got it. Thanks for that. And then on the mobile side, how solid is the visibility of your largest customer versus Android compared to, let’s say, three months ago? Are you seeing stronger sales due to content or units? Any any color on iOS’s Android visibility versus three months ago would be helpful.

And then I have one last follow-up.

Phil Brace, Chief Executive Officer and President, Skyworks Solutions: I don’t I mean, right now our I mean, if you right now, our visibility is strong across the board, primarily book to bill is higher one, channel inventories are low. And so and our visibility is solid at this point. We don’t see any material difference between the two.

: Got it. And then lastly, how to think about OpEx into next year, like or I should say OpEx this year relative pursuing opportunities in 2026? Is there flexibility on it? Or should we assume that’s going to kind of grow for future revenue growth? How do think about OpEx?

Thank you.

Phil Brace, Chief Executive Officer and President, Skyworks Solutions: Yes. I think when I started, I kind of mentioned, look, we’re going be taking very disciplined view of OpEx. I think over the past couple of years, the company has made significant increased investments, and you can look at that as OpEx. And that was really designed to, frankly, focus on our R and D. We are an engineering focused company.

And to the extent we do have some any modest increase in OpEx, it will be really targeted on core R and D. Having said that, we’re going to be disciplined about that. Wouldn’t expect anything other than kind of nominal rates of OpEx improvement over time.

: Awesome. Thank you very much. Appreciate it. Thank you.

Operator: Thank you. Our next question comes from Nicholas Doyle with Needham. Your line is open.

Phil Brace, Chief Executive Officer and President, Skyworks Solutions: Hey guys, thanks for taking

Raji Gill, Vice President, Investor Relations and Corporate Development, Skyworks Solutions1: my questions. Asking about the infrastructure networking cloud sub segment, in fiscal twenty twenty four you guys talked a lot about inventory digestion impacting the business and I think that lasted through the year. But we’re seeing a lot of positive demand signals from those end markets. So can you just talk about how that business is performing in the quarter and any specific demand drivers? I think you mentioned 800 gig and 1.6 T transition helping as well.

Phil Brace, Chief Executive Officer and President, Skyworks Solutions: Yes. I mean, think you got it exactly right. I think in the past couple of quarters, we talked about that the fact that we did continue to see a little bit of inventory overhang in that space. That does appear to be behind us at this point. Inventory seems to be low and we’re starting to continue to get seeing orders in order to grow.

So it does appear to be that the inventory issue is behind and that our supply demand is kind of aligned with consumption at this point.

Raji Gill, Vice President, Investor Relations and Corporate Development, Skyworks Solutions1: Okay. On the Apple broad markets piece, I mean, reason to think that’s very different from the average 15% of overall Apple revenue in 3Q or 4Q? Thanks.

Raji Gill, Vice President, Investor Relations and Corporate Development, Skyworks Solutions: Yes, Nick, this is Raji. So our top customer in the quarter in June was roughly 63% of sales. The split was roughly 85% mobile, 15% broad markets, thereabouts, and we expect both a similar percentage of sales and a similar split going into the September.

: Thank you.

Operator: Thank you. I’m showing no further questions at this time. I’d to turn the call back over to Phil Brace for closing remarks.

Phil Brace, Chief Executive Officer and President, Skyworks Solutions: Great. I’d like to thank everybody for participating on today’s call, and I look forward to speaking with you at upcoming investor conferences during the quarter. Thank you.

Operator: Thank you for your participation. You may now disconnect. Good day.

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