Skyworks Solutions, Inc.

Read together, the scores and statements describe a company that remains profitable and has a sturdy balance sheet, but whose earnings are declining. The Beneish M-Score is -3.090, below -1.78 and therefore not in the elevated manipulation-risk zone. This screen compares ratios across years and is a prompt for closer reading rather than proof of anything; here it does not raise a flag. The Altman Z″-Score is 7.01, in the safe zone, which suggests low financial-distress risk under that model. It does not capture the contingent merger obligations described above. The Piotroski F-Score is 6 of 9 computable signals, a checklist of profitability, leverage, liquidity, and efficiency tests; the company meets most of the computable tests but not all of them. The operating cash flow to net income ratio of 2.73 means fiscal 2025 operating cash flow of $1.3 billion was about 2.7 times net income of $477.1 million. That gap is partly explained by non-cash charges, including share-based compensation of $115.7 million and amortization of intangible assets of $87.5 million in the first six months of fiscal 2026. Net income fell from $596 million in fiscal 2024 to $477.1 million in fiscal 2025, and revenue fell 2.2% to $4.09 billion. Balance sheet items to note include cash of $1,413.3 million, long-term debt of $496.7 million plus a current portion of $499.9 million, and total stockholders' equity of $5,765.7 million. Share repurchases under the stock program were $7.5 million in the first six months of fiscal 2026, compared with $500.0 million a year earlier. Capital expenditures rose to $138.9 million from $77.5 million. The filings provided do not include a Fog Index, so readability is not assessed here. Readers may want to look at the commitments and contingencies note (Note 9) in the 10-Q and the merger discussion in the 2025 10-K to see how the termination fees and new borrowing would change the company's financial position.

Catalyst.The business is being shaped by two forces. First, revenue and profit have softened: for the six months ended April 3, 2026, net revenue was $1,979.1 million versus $2,021.7 million a year earlier, and operating income fell to $145.9 million from $278.4 million. In the quarter ended April 3, 2026, net revenue was $943.7 million versus $953.2 million. Second, spending has risen: research and development was $415.7 million versus $362.9 million, and selling, general, and administrative expense was $228.0 million versus $170.6 million. The MD&A narrative text was not included in the excerpt provided, so these drivers come from the financial statements and risk-factor text. The most significant corporate event is the pending Qorvo merger, signed October 27, 2025.

Hidden risk.The most material item a casual reader could miss is the financial terms of the Qorvo transaction. The risk factors state that a $298.7 million termination fee may be owed by either party in specified circumstances, and Skyworks may owe Qorvo $100.0 million if the deal fails on certain antitrust or regulatory grounds. The risk factors also say the Mergers will require substantial additional indebtedness that could reduce operating flexibility. Meanwhile, six-month operating cash flow fell to $445.8 million from $786.6 million, and dividends paid were $213.2 million. About $262.1 million of the first-half cash generation came from lower receivables, a timing benefit that may not repeat.