Skyworks Solutions (SWKS) Stock Forecast & Price Target

Skyworks Solutions is well-positioned for robust financial growth, highlighted by an increasing utilization rate and higher gross margins, which are expected to reach 50%-55% under a new long-term target model. The company's revenue is projected to grow in the mid-to-high single digits, with a significant increase in operating profit targets from an average of 22% to between 30%-35%. Additionally, strong momentum in the Broad Markets segment, driven by demand in Wi-Fi 7, automotive applications, and data center infrastructure, contributes to a positive outlook as Skyworks captures more design wins across its customer base.

Skyworks Solutions is anticipating a sequential decline in gross margin of approximately 160 basis points alongside a projected 20% drop in mobile revenue, which aligns with typical seasonal trends. Despite guiding revenue for the March quarter to a midpoint of $900 million — above consensus — the company is facing ongoing challenges, including continued gross margin compression and the risk of a fourth consecutive year of revenue contraction in FY26. Furthermore, intensifying competition from larger firms like Qualcomm and Broadcom, alongside potential reductions in orders from its significant customer Apple, contribute to a negative outlook for the stock.