Skyworks SolutionsLTS:0L77 -3.12%75 Operating Margin % is 5.62% as of Mar. 2026, which is 80% below its 10-year median of 28.40. GuruFocus rates LTS:0L77 with a GF Score™ of 75/100 and a GF Value™ of $83.20 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,023 Semiconductors companies, Skyworks Solutions ranks better than 61.97% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Skyworks Solutions Operating Margin % Related Terms
Skyworks Solutions Operating Margin % Historical Data
* Premium members only.
The historical data trend for Skyworks Solutions's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LTS:0L77 vs SIMO, SMTC, QRVO: Operating Margin % Comparison
For the Semiconductors subindustry, Skyworks Solutions's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Skyworks Solutions Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Skyworks Solutions's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Skyworks Solutions's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Skyworks Solutions's Operating Margin % for the fiscal year that ended in Sep. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Skyworks Solutions (LTS:0L77) has a Operating Margin % of 5.62% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Skyworks Solutions and its competitors. This is 80% below median its historical median of 28.40. Over the past decade, Skyworks Solutions' Operating Margin % has ranged from 9.72 to 34.35. According to the industry distribution chart, Skyworks Solutions ranks #389 out of 1023 companies in the Semiconductors industry, placing it in the top 38%.
Is Skyworks Solutions' Operating Margin % too high?
Skyworks Solutions' current Operating Margin % of 5.62% is 80% below median its 10-year median of 28.40. Over the past 10 years, this metric has ranged from a low of 9.72 to a high of 34.35. The Semiconductors industry median Operating Margin % is 5.18. Skyworks Solutions' value of 5.62% is 8.5% above this industry median. Based on the distribution chart, Skyworks Solutions ranks #389 out of 1023 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Skyworks Solutions has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Skyworks Solutions' Operating Margin % compare to SIMO and SMTC?
According to the Semiconductors industry distribution chart, Skyworks Solutions ranks #389 out of 1023 companies for Operating Margin %. This puts Skyworks Solutions in the upper half of its industry. The industry median Operating Margin % is 5.18. Skyworks Solutions' value of 5.62% is 8.5% above this benchmark. Historically, Skyworks Solutions' own Operating Margin % has ranged from 9.72 to 34.35 over the past decade. While the company's 10-year median is 28.40 vs. the industry median of 5.18, Skyworks Solutions has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Semiconductors company?
The median Operating Margin % among Semiconductors companies is 5.18, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Skyworks Solutions's current Operating Margin % of 5.62% is 8.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Skyworks Solutions and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Skyworks Solutions's current Operating Margin % is 5.62%, which is 80% below median its own 10-year median of 28.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Skyworks Solutions stock overvalued right now?
Based on GuruFocus' analysis, Skyworks Solutions (LTS:0L77) is currently considered Modestly Undervalued. The stock's GF Value™ is $83.20, compared to a current price of $70.15 — trading 15.7% below its estimated fair value. The current Operating Margin % is 5.62%, which is 80% below median its 10-year median of 28.40 and 8.5% above the Semiconductors industry median of 5.18. Skyworks Solutions' overall GF Score™ is 75/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Skyworks Solutions (LTS:0L77), the current Operating Margin % is 5.62% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Skyworks Solutions (LTS:0L77) Overvalued in 2026?
Based on GuruFocus' analysis, Skyworks Solutions stock appears to be undervalued.
The current stock price of $70.15 is trading 15.7% below its estimated GF Value™ of $83.20.
GuruFocus considers Skyworks Solutions to be Modestly Undervalued.
Key valuation signals for LTS:0L77:
Operating Margin %: 5.62% (80% below median its 10-year median of 28.40)
GF Value™: $83.20 vs. price of $70.15 (15.7% below fair value)
Industry Position: 8.5% above the Semiconductors median (#389 of 1023)
No single metric tells the full story. See the LTS:0L77 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Skyworks Solutions produces semiconductors for wireless handsets and other devices that are used to enable wireless connectivity. Its main products include power amplifiers, filters, switches, and integrated front-end modules that support wireless transmissions. Skyworks' customers are mostly large smartphone manufacturers, but the firm also has a growing presence in nonhandset applications such as wireless routers, medical devices, and automobiles.
75GF Score
Get the complete analysis for LTS:0L77
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LTS:0L77 has been successfully added to your 
