Skyworks Beats Q2, Offers Upbeat Q3 Forecast; Names New CFO Amid Chip Demand Strength

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Skyworks Solutions (SWKS.O), a key Apple supplier, reported stronger-than-expected second-quarter results and issued an upbeat Q3 forecast, signaling resilient demand for its analog and mixed-signal chips despite ongoing global trade tensions. The company also announced the appointment of Mark Dentinger as its new Chief Financial Officer, effective June 2, succeeding Kris Sennesael, who is stepping down to pursue another opportunity.

Shares rose 2.7% in extended trading following the announcements.

Q2 Results:

  • Revenue: $953M (vs. $951.5M expected)

  • Adjusted EPS: $1.24 (vs. $1.20 expected)

Q3 Outlook:

  • Revenue guidance: $920M–$960M (midpoint > $922M estimate)

  • Adjusted EPS guidance: $1.24 (vs. $1.06 estimate)

  • Mobile chip business: Expected to decline low single digits sequentially

  • Broad markets: On track for another quarter of sequential growth

“We remain encouraged by ongoing momentum in our broad markets,” the company said in its earnings release, citing improving year-over-year trends across industrial, automotive, and consumer segments.

Leadership Change:

  • Mark Dentinger, former CFO of Veritas, will step in as Skyworks CFO on June 2

  • Kris Sennesael, outgoing CFO, to exit on Friday

Skyworks continues to compete with chipmakers like NXP Semiconductors (NXPI), Qorvo (QRVO), and Texas Instruments (TXN) in supplying key components for wireless communications and IoT-driven applications.

Despite macroeconomic uncertainty and tech-sector volatility, the company’s stable mobile business and growth in diversified markets underscore investor confidence going into the back half of 2025.

CrowdStrike to Cut 5% of Workforce, Reaffirms Fiscal 2026 Forecasts

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CrowdStrike (CRWD.O) announced on Wednesday it will lay off approximately 500 employees—around 5% of its workforce—as part of a restructuring effort aimed at streamlining operations and managing costs. Despite the layoffs, the cybersecurity firm reaffirmed its fiscal 2026 forecasts, signaling continued confidence in its growth trajectory.

The layoffs will result in total charges of $36 million to $53 million, with $7 million recognized in Q1 (ended April 30) and the remainder expected in Q2. The charges include severance, benefits, and other employee-related costs.

“While we will continue to prudently hire, primarily in customer-facing and product engineering roles, we are reducing roles in some areas of the business,” said CEO George Kurtz in a message to employees.

Key Financial Outlook:

  • FY2026 Revenue Forecast: $4.74B – $4.81B (unchanged)

  • Adjusted FY2026 EPS: $3.33 – $3.45 (unchanged)

  • Q1 Revenue Guidance: $1.10B – $1.11B

Workforce & Market Context:

  • CrowdStrike had 10,118 full-time employees as of January 31

  • Layoffs affect primarily non-core roles; hiring will continue in engineering and customer operations

  • Shares fell ~4% in morning trading following the announcement

CrowdStrike has been a key player in global cybersecurity, maintaining strong customer trust after effectively managing last year’s Windows outage, which disrupted internet services worldwide.

Analysts at Piper Sandler noted:
“This will likely spark debate on if this announcement is coming from a place of weakness or strength — to which we broadly believe it is the latter.”

CrowdStrike will release full Q1 results on June 3, with investors watching closely to assess the impact of the restructuring and whether demand for its cybersecurity products remains robust amid growing digital threats.

Kyndryl Beats Revenue Estimates on AI Demand Surge, Hits $1.2B Hyperscaler Milestone

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Kyndryl (KD.N) topped Wall Street revenue estimates in the fourth quarter, driven by strong demand from businesses integrating artificial intelligence, the company reported Wednesday. The former IBM infrastructure unit reported $3.80 billion in quarterly revenue, slightly above analyst expectations of $3.77 billion (LSEG), despite a modest year-over-year decline.

Crucially, Kyndryl surpassed its hyperscaler revenue target, recognizing $1.2 billion in fiscal 2025 revenue from companies leveraging services from major cloud providers—well above its $1 billion goal.

“We expanded our capabilities in cloud, modernization, applications, AI and security,” said CEO Martin Schroeter, highlighting AI integration as a core growth area.

Key Financial Highlights:

  • Q4 revenue: $3.80B (vs. $3.77B expected)

  • Q4 net income: $68M (vs. $45M loss YoY)

  • Fiscal 2026 adjusted pretax income forecast: ≥ $725M (up $243M YoY)

  • AI and cloud modernization seen as major revenue catalysts

While overall revenue dipped ~1%, this is partially attributed to Kyndryl’s ongoing restructuring of inherited no-margin IBM contracts, a strategic shift aimed at long-term profitability.

Market Context:

  • Kyndryl stock rose 66% in 2023 but is down over 3% YTD, amid broader macroeconomic volatility tied to U.S. trade policy shifts under President Trump.

  • The IT services sector is experiencing strong AI-fueled transformation, as businesses invest heavily in data architecture and cloud-based solutions.

The strong performance and confident outlook affirm Kyndryl’s position as a key player in helping enterprises modernize for the AI era.