Skyworks Solutions Reports 8.9% Revenue Decline in Q2 Fiscal 2025

Skyworks Solutions, Inc. reported a decline in financial performance for the second quarter of fiscal 2025, with net revenue of $953.2 million, down 8.9% from $1,046.0 million in the same period last year. For the first half of the fiscal year, revenue decreased by 10% to $2,021.7 million compared to $2,247.5 million in the prior year. The decrease in revenue was primarily attributed to reduced demand for mobile products, although there was a partial offset from increased demand for non-mobile products. Gross profit for the quarter was $391.6 million, representing a 6.8% decline from $420.3 million a year earlier, with gross margins improving slightly to 41.1% from 40.2%.

Operating income also saw a significant drop, falling to $97.3 million from $189.2 million in the previous year, while net income decreased to $68.7 million, down from $183.3 million. This resulted in diluted earnings per share of $0.43, compared to $1.14 in the same quarter last year. The increase in operating expenses, which rose to $294.3 million from $231.1 million, was driven by higher research and development costs, which increased by 20.8% to $186.5 million, reflecting the company's commitment to investing in new technologies and products.

In terms of strategic developments, Skyworks appointed Philip Brace as the new President and Chief Executive Officer, effective February 17, 2025. Additionally, the company announced two senior management transitions, with Mark P. Dentinger and Todd J. Lepinski joining as Chief Financial Officer and Senior Vice President of Sales and Marketing, respectively, effective June 2, 2025. The company also initiated a stock repurchase program, repurchasing 7.4 million shares for $504.3 million during the quarter, with approximately $1.5 billion remaining under the program.

Geographically, the United States remained the largest market for Skyworks, generating $712.6 million in revenue, although this was down from $795.1 million a year ago. Revenue from China, Taiwan, and South Korea also declined, while the Europe, Middle East, and Africa region saw an increase in revenue to $47.1 million from $29.2 million. The company reported a total cash, cash equivalents, and marketable securities balance of $1,527.7 million as of March 28, 2025, a decrease from $1,574.1 million at the end of the previous fiscal year.

Looking ahead, Skyworks anticipates continued challenges in the mobile product segment, with expectations of revenue impacts from a decrease in market share at a significant customer beginning in the fourth quarter of fiscal 2025. The company remains focused on improving gross profit through increased unit volumes and manufacturing efficiencies, while also navigating the evolving semiconductor market landscape.