Financial Data and Key Metrics Changes - Skyworks reported revenue of $1.1 billion for the fourth fiscal quarter of 2025, exceeding the high end of guidance, with earnings per share of $1.76 [10][11] - The company generated $1.1 billion of free cash flow for the full fiscal year, representing a 27% free cash flow margin [6][11] - Gross profit was $511 million, resulting in a gross margin of 46.5% [10][11] - Operating income reached $264 million, translating to an operating margin of 24% [11] Business Line Data and Key Metrics Changes - Mobile revenue accounted for 65% of total revenue, up 21% sequentially and 7% year-over-year, driven by strong sell-through at the top customer and growth in Android [10][11] - Broad markets revenue grew 3% sequentially and 7% year-over-year, supported by demand across edge IoT, automotive, and data center [10][11] Market Data and Key Metrics Changes - In edge IoT, Wi-Fi 7 adoption is accelerating, with strong demand for faster connectivity and lower latency [7][8] - The automotive business is experiencing robust design activity, with a record run rate exiting fiscal 2025 [8] - Data center infrastructure is rebounding as customer inventories normalize, with increasing design win activity for next-generation platforms [8][9] Company Strategy and Development Direction - The company is focused on long-term RF content growth driven by internal modem adoption, AI functionality, and higher RF complexity in smartphones [7] - A recent agreement to combine with Corvo is expected to add scale, diversification, and a complementary technology portfolio [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the mobile segment's performance, attributing it to better-than-expected unit sales and a favorable product mix [17][44] - The outlook for fiscal Q1 2026 anticipates revenue between $975 million and $1.025 billion, with a projected decline in mobile revenue [12][13] Other Important Information - The company ended the quarter with $1.4 billion in cash and investments and $1 billion in debt, maintaining a strong balance sheet [12] - Operating expenses were $247 million, slightly above guidance due to higher employee incentive accruals [11] Q&A Session Summary Question: What has changed regarding content loss at the largest customers? - Management noted that unit sales were better than expected, with a positive uptake from new phone models contributing to the strong results [17] Question: What structural changes were made in the sales team? - The company streamlined sales and marketing functions to enhance alignment between engineering and product roadmaps, focusing on revenue generation [19] Question: Are there opportunities for mergers or divestitures? - Management indicated that the Corvo deal provides both scale and diversification, and they do not expect major transformational activities in the interim [22][23] Question: What is the long-term growth outlook for the broad markets business? - Management expects the broad markets business to grow at a double-digit rate, driven by Wi-Fi advancements and automotive connectivity [35][36] Question: How is the company managing inventory going into a seasonally softer period? - The company anticipates some inventory build as they approach the end of the year, but overall inventory levels are running well [65]

Financial Data and Key Metrics Changes - Skyworks reported revenue of $1.1 billion for Q4 2025, exceeding guidance and reflecting a 21% sequential increase and a 7% year-over-year increase in mobile revenue [5][10] - Gross profit was $511 million, resulting in a gross margin of 46.5% [10] - Operating income reached $264 million, translating to an operating margin of 24% [11] - The company generated $1.1 billion in free cash flow for the full fiscal year, representing a 27% free cash flow margin [5][11] - The company ended the quarter with $1.4 billion in cash and investments and $1 billion in debt, maintaining a strong balance sheet [12] Business Line Data and Key Metrics Changes - Mobile revenue accounted for 65% of total revenue, with a 21% sequential increase and a 7% year-over-year increase [10] - Broad markets revenue grew 3% sequentially and 7% year-over-year, driven by growth in edge IoT, automotive, and data center [10][11] - The automotive business reached a new record run rate, surpassing previous highs, with a robust pipeline of design wins [8][10] Market Data and Key Metrics Changes - Demand in edge IoT is accelerating with Wi-Fi 7 adoption across various applications [6][8] - The data center infrastructure market is rebounding as customer inventories normalize, with increasing design win activity for next-generation platforms [8][10] - The broad markets segment is now approximately a $1.5 billion business with positive momentum over the past seven quarters [9] Company Strategy and Development Direction - The company announced a transformative agreement to combine with Corvo, which is expected to add scale, diversification, and a complementary technology portfolio [5][9] - Skyworks is focusing on internal modem adoption, AI functionality, and higher RF complexity to drive long-term RF content growth [6][10] - The company has streamlined its sales and marketing teams to enhance customer focus and collaboration with engineering teams [5][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the mobile segment, citing better-than-expected unit sales and a favorable product mix [18][22] - The outlook for fiscal Q1 2026 anticipates revenue between $975 million and $1.025 billion, with a projected decline in mobile revenue [12][13] - Management expects broad markets to grow slightly sequentially, representing 39% of sales, with a mid to high single-digit year-over-year increase [12] Other Important Information - The company appointed a new Chief Financial Officer, Philip Carter, who brings extensive experience in the semiconductor space [9] - Operating expenses for Q4 were $247 million, slightly above guidance due to higher employee incentive accruals [11] Q&A Session Summary Question: What has changed regarding content loss at the largest customers? - Management noted that unit sales were better than expected, with positive uptake from new phone models and a richer product mix contributing to the outperformance [18] Question: Are there opportunities for mergers or divestitures beyond the Corvo deal? - Management indicated that the Corvo deal provides both scale and diversification, and they do not expect any major transformational activities in the interim [23][24] Question: How is the Android business performing? - The Android business saw strong unit volumes, primarily driven by a major customer, and management remains focused on the premium segment [25][36] Question: What is driving revenue growth outside the largest customer? - Growth in the broad markets business is attributed to strength across automotive, IoT, and edge markets [28] Question: How does the company view its exposure to the China market? - Management stated that they are comfortable with their current exposure and are focused on premium segments, avoiding lower-end commodity markets [31] Question: What is the long-term growth outlook for the broad markets business? - Management expects the broad markets business to grow at a long-term double-digit rate, driven by Wi-Fi advancements and automotive connectivity [34] Question: How will operating expenses trend in the coming quarters? - Management anticipates maintaining a disciplined approach to spending, with no significant increases expected beyond normal inflation [35]