Skyworks Solutions, Inc.

Good afternoon and welcome to Skyworks' third quarter 2026 earnings conference call. This call is being recorded. At this time, I will turn the call over to Raji Gill, Vice President of Best Relations for Skyworks. Mr. Gill, please go ahead.

Thank you, operator. Good afternoon, everyone, and welcome to Skyworks' third fiscal quarter 2026 conference call. With me today for our prepared remarks are Phil Brace, are Chief Executive Officer and President, and Philip Carter, Chief Financial Officer and Senior Vice President of Skyworks. This call is being broadcast over the web and can be accessed from the investor relations section of the company's website at skyworksinc.com. In addition, the company's prepared remarks will be made available on our website promptly after their conclusion during the call. Before we begin, I would like to remind everyone that our discussion will include statements relating to future results and expectations that are or may be considered forward-looking statements. Please refer to our earnings press release and recent SEC filings, including our annual report on Form 10-K, for information on certain risks that could cause actual outcomes to differ materially and adversely from any forward-looking statements made today. Additionally, today's discussion will include non-GAAP financial measures consistent with our past practice. Please refer to our press release within the investor relations section of our company website for a complete reconciliation to GAAP. With that, I'll turn the call over to Phil Brace.

Thanks, Raji, and good afternoon, everyone. Today, alongside our June quarter results, we're making several important announcements related to the Corvo combination. One, an update on the regulatory process. Two, our financing plans. Three, the expected leadership team for the combined company. And four, a new capital allocation framework. Let me take these first. The regulatory process continues to move forward. In China, the review has advanced to phase three with SAMR, and we are working constructively with regulators in all remaining jurisdictions. We are now optimistic that we can close within the calendar year, and we will be preparing to close as early as within this fiscal year. As always, the transaction remains subject to regulatory approvals and customary closing conditions. In connection with the transaction, we anticipate raising approximately $2 billion of debt financing in the near term, subject to market and other conditions. Philip Carter will cover the details, including what's already reflected in our September guidance. We're also announcing the expected leadership team for the combined company. Philip Carter, Chief Financial Officer and Senior Vice President Philip Chesliff, Senior Vice President and President of High Performance Analog Karilee Durham, Senior Vice President, Human Resources J.K. Givens, Senior Vice President and General Counsel Secretary Yusuf Jamal, Senior Vice President and General Manager of RF and Mixed Signal Intelligence Solutions Reza Kasnavi, Executive Vice President, Chief Operations and Technology Officer Joel King, Senior Vice President and General Manager of Mobile Solutions Business Todd Lepinski, Senior Vice President, Sales and Marketing Frank Stewart, Senior Vice President and President of Advanced Cellular Bob Bergerworth, President and Chief Executive Officer of Corvo, is expected to join the Board of Directors of the combined company. This team brings together proven leaders from both organizations and the work that we've done to identify these leaders now means we're ready to execute from day one. Finally, our board has approved a new capital allocation framework for the combined company. Let me first remind you why we're in a position to do this. We deliberately structured the transaction so the combined company starts with a favorable capital structure with modest net leverage, and as we said in October, we expect it to be immediately and meaningfully accretive to non-GAAP EBS post-close. That financial strength is the foundation for the framework. This combination creates a company with robust free cash flow and adjusted EBITDA generation, and we intend to put that capital work wherever it creates the greatest long-term value, repurchasing shares, de-levering the balance sheet, and pursuing strategic and accretive M&A. We expect stock repurchases to be a key vehicle for returning capital shareholders, and to support that, the Board has replaced our repurchase authorization expiring in February 2027 with a new $2 billion stock repurchase program expiring in January of 2029. As part of this framework, we have decided not to declare a quarterly dividend going forward, redirecting that capital toward these higher return uses. Taken together, we believe this framework returns more value to shareholders over time with far greater flexibility. Stepping back, the strategic logic of this combination is simple, scale and diversification. In mobile, we're creating a best-in-class RF portfolio with complementary capabilities that expands our reach across platforms and drives greater revenue stability. In broad markets, we're building a larger, more diversified business across defense and aerospace, edge IoT, AI data center, and automotive, a key growth platform for the combined company. The same scale is what drives our cost opportunities. and we continue to make good progress in integration planning and remain confident in our ability to realize the anticipated synergies of $500 million or more. A lot of important news all pointing in one direction. With that update on the transaction and consistent with prior practice, we won't be discussing it in any further detail on today's call and we'll focus on our third fiscal quarter results and September quarter outlook. Now let me turn to the June quarter where the business performed well. We delivered solid results with both revenue and earnings above the midpoint of our guidance, revenue of $935 million, and non-GAAP diluted earnings per share of $1.08, five cents above the midpoint. Let me touch on the demand environment. What we see across our business is steady. Channel inventories are lean, demand in mobile remains solid as we head into the fall lunch cycle, and in parts of broad markets, demand is running ahead of what we can supply. On memory, I know it remains front of mind for many investors We're not a buyer of memory, so I'll speak to what we can see directly. Our demand signals have remained stable, and our September guidance reflects what we see today, consistent with what we said the past couple of quarters. We recognize these dynamics are still playing out across the industry, and we're staying close to our customers and monitoring order patterns as we move through the second half. Our content sits predominantly in premium high complexity platforms, which have historically been The most resilient part of the market. In mobile, we executed well in what is seasonally a lighter quarter, with revenues slightly ahead of our expectations, supported by healthy demand at our largest customer, and successful new product ramps at our largest Android customer. Looking ahead, we're well positioned for the fall season, and over the long term, the demands placed on RF front end continue to expand, which is why we're confident in our growth thesis. Let me spend a moment on those drivers. Uplink is becoming as important as Downlink. Real-time applications like video, cloud AI, and live translation demand higher transmit power and more sophisticated power amplification. Received paths are multiplying to carry more simultaneous data streams, and satellite connectivity is going mainstream, requiring entirely new bands and components. All of this adds RF complexity to every device, and complexity is what we do best. Turning to broad markets, revenue of approximately $403 million, up 8% year-over-year. Our three growth engines, Wi-Fi, data center, and automotive, again, represented nearly two-thirds of our broad markets business and collectively grew 15% year-over-year. Demand for these products continues to run well ahead of what we can currently supply, and we are actively working to close that gap. Wi-Fi, Wi-Fi 7 adoption continues as AI workloads move toward the endpoint, Design engagement is strong, backlog is solid, and our early collaboration with customers on Wi-Fi 8 positions as well. Automotive. The connected car and infotainment are grabbing growth today, with power and connectivity expanding our footprint over time. We are engaged with global OEMs and Tier 1 suppliers on multi-year vehicle platforms. AI Data Center. Our fastest growing business is tracking ahead of the 50% annual growth we outlined last quarter, even with supply constraints. We're engaged with leading customers on two fronts, high speed connectivity as the industry moves to 800 gig and 1.6 terabit platforms and power as it shifts to 400 and 800 volt HVDC architectures. Rising data rates and rack density are driving demand for our precision timing and advanced power delivery solutions. Together, these engines are reshaping the mix of our broad markets business and validating the diversification strategy We've been executing. To summarize, we delivered another solid quarter of execution, revenue and earnings above the midpoint of guidance, with continued traction in broad markets. The corporal combination is advancing. Regulatory reviews are progressing, and we are optimistic that we can close within the calendar year, and we will be preparing to close as early as within the fiscal year. We are preparing the combined company to execute from day one, with our financing plans set the expected leadership team announced, and a new capital allocation framework in place, centered on balance sheet flexibility. Demand is healthy, and channel inventories are lean, and the long-term setup is compelling. More endpoints, more content per device, AI at the edge, and growing exposure to secular growth markets, including data center, automotive, defense, and aerospace. With that, let me turn the call over to Philip to take you through our third quarter results and fourth quarter outlook.