SKYWORKS SOLUTIONS, INC.

Cash-generative RF-chip supplier in a declining year, now defined by a transformative pending merger with Qorvo that adds scale but also debt and integration risk.

Strengths

• Strong cash generation — FCF margin 27.1% (90th), FCF $1.11B (84th), OCF margin 31.8% (82nd)
• Profitable with low pre-merger leverage — operating margin 12.2% (72nd), net margin 11.7%, D/E 0.17, interest coverage 18.5
• Solid liquidity — current ratio 2.33 (38th)

Risks

• Transformative pending merger — MD&A: Oct-2025 cash-and-stock deal to combine with Qorvo (~$22B combined, Skyworks the acquirer at 63%), funded partly by a $3.05B bridge facility — integration, regulatory, and leverage risk
• Declining business — revenue -2.2% (21st), net income -19.9% (46th) amid smartphone-cycle/large-customer content pressure
• Customer concentration — risk factors flag heavy reliance on a small number of customers (Apple) and China exposure

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Fund exitedNotable fund(s) exited this quarter: VANGUARD GROUP INC, RENAISSANCE TECHNOLOGIES LLC
• Strong balance sheetStrong balance sheet — $1.4B cash & investments
• Buying back stockNet buyback — share count -2%/yr over 4y
• Pending mergerRisks Associated with the Proposed Transaction with Qorvo • Completion of the proposed transaction with Qorvo may be delayed or not occur at all for a variety of reasons, including that the Merger A
• Notable holderHeld by 4 notable fund(s): STATE STREET CORP, GOLDMAN SACHS GROUP INC, CITADEL ADVISORS LLC +1 more (as of 2026-03-31)