Will Skyworks' (SWKS) Steady Dividend and Big Buyback Amid Softer Earnings Recast Its Investment Narrative?

• In early February 2026, Skyworks Solutions reported first-quarter sales of US$1,035.4 million and net income of US$79.2 million, affirmed a US$0.71 per-share dividend payable in March 2026, and confirmed that its February 2025 buyback program had retired 12,695,909 shares for US$837.68 million.
• Together, resilient dividend payments and a completed, sizable share repurchase underscore management’s emphasis on returning cash to shareholders, even as recent quarterly earnings show pressure on profitability.
• We’ll now examine how Skyworks’ decision to maintain its US$0.71 dividend while earnings softened may influence its existing investment narrative.

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Skyworks Solutions Investment Narrative Recap

To own Skyworks Solutions, you need to believe its core RF business and growing Broad Markets segment can offset handset concentration and margin pressure over time. The latest quarter’s weaker profitability does not materially change that near term, but it does sharpen focus on the key catalyst of diversification and the immediate risk that mobile demand softness and pricing pressure could persist longer than expected.

Among the recent updates, the decision to hold the quarterly dividend at US$0.71 per share stands out. Keeping the payout steady while net income fell to US$79.2 million highlights management’s confidence in cash generation, but also raises questions about how comfortably the dividend is covered if earnings stay under pressure, especially as Skyworks aims to fund growth in Broad Markets and manage its still high reliance on a single mobile customer.

Yet behind this steady dividend, there is a concentration risk that investors should be aware of, especially if Skyworks’ largest customer were to...

Read the full narrative on Skyworks Solutions (it's free!)

Skyworks Solutions’ narrative projects $4.1 billion revenue and $520.7 million earnings by 2028. This requires 1.0% yearly revenue growth and a roughly $124.5 million earnings increase from $396.2 million.

Uncover how Skyworks Solutions' forecasts yield a $78.40 fair value, a 26% upside to its current price.

Exploring Other Perspectives

Some of the most pessimistic analysts were already projecting revenue to shrink about 4% a year and earnings to fall toward roughly US$271 million, so this softer quarter and unchanged dividend could either reinforce their concerns about handset reliance or prompt a rethink if Broad Markets and cash returns prove more resilient than those cautious forecasts assumed.

Explore 4 other fair value estimates on Skyworks Solutions - why the stock might be worth as much as 26% more than the current price!

The Verdict Is Yours

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Skyworks Solutions research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Skyworks Solutions research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Skyworks Solutions' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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