Skywater Technology Inc. (NASDAQ: SKYT), a significant player in the semiconductor industry, is drawing attention as it prepares to release its quarterly earnings report on November 5, covering the period ending September 30, 2025. Analysts are projecting notable trends, particularly around revenue and earnings-per-share (EPS).
Revenue Expectations
Based in Bloomington, Minnesota, Skywater Technology is forecasted to report a revenue increase of 44.4%, estimating earnings of approximately $135.496 million compared to $93.82 million reported in the same period last year. This optimistic outlook builds on the company’s initial guidance issued on August 6, 2025, where it projected revenues in the range of $130 million to $141 million.
Such an increase suggests that Skywater is gaining traction within its market, particularly in a global environment characterized by a growing demand for semiconductors driven by advancements in technology sectors like electric vehicles, artificial intelligence, and the Internet of Things (IoT).
Earnings Per Share and Analyst Ratings
Despite the favorable revenue outlook, the forecast for earnings presents a more challenging picture; analysts anticipate a loss of 17 cents per share for the upcoming report. Skywater’s EPS guidance from the August announcement ranged between -0.20 and -0.14, indicating that while revenue is expected to grow, profitability measures remain under pressure.
The current analyst consensus maintains a "buy" rating for Skywater’s shares, with five analysts issuing "strong buy" or "buy" recommendations, one "hold," and no recommendations for "sell" or "strong sell." This suggests a general positive sentiment about the company’s long-term potential, despite the current short-term challenges indicated by the expected loss per share.
Price Target Insights
The median 12-month price target on Wall Street for Skywater stands at $15.00, approximately 16.6% lower than its last closing price of $17.49. This discrepancy highlights a scenario in which, while some analysts express confidence in the company’s fundamentals, the anticipated near-term losses create caution surrounding the stock’s immediate potential.
Historical Performance Trends
To contextualize the current expectations, it is essential to revisit Skywater’s previous quarterly performances. The company has surpassed earnings expectations in recent quarters, suggesting potential for positive momentum. For instance, in the last quarter ending June 30, 2025, Skywater posted an EPS of -0.11, outperforming the expected -0.18, which constituted a surprise of 39.6%. Similarly, for the March 31, 2025 quarter, the company beat estimates by 37.5%, with reported earnings of -0.08 compared to a forecast of -0.13.
Such instances of beating negative expectations could lead to increased investor confidence, particularly as the company finds its footing in a highly competitive landscape.
Outlook and Market Conditions
The semiconductor industry is experiencing dynamic changes, with supply chain challenges and increasing global demand. While Skywater Technology faces its own set of challenges, including the anticipated losses, its revenue growth narrative suggests a deliberate effort to capture market share.
Skywater’s focus on innovative technology and dedication to advancing its semiconductor capabilities places it in a strategic position to potentially benefit from the growing trend of semiconductor manufacturing reshoring back to the United States.
Conclusion
As Skywater Technology Inc. approaches its earnings release on November 5, investors and market watchers will closely monitor both its revenue growth and NET loss per share. While the projected increase in revenue paints an optimistic picture of the company’s operational strength, the expected loss highlights some of the challenges Skywater continues to face in achieving profitability.
The mixed signals reflected in revenue forecasts, analyst ratings, and historical performance indicate a time of transformation for Skywater. For stakeholders, this quarter’s report can serve as a pivotal indicator of the company’s trajectory in the competitive semiconductor industry. As the landscape continues to evolve, Skywater’s responses to ongoing challenges will be crucial in shaping its future growth and investor confidence.
This analysis of Skywater Technology Inc., through its anticipated financial performance, demonstrates the complex dynamics present within semiconductor companies. Balancing revenue growth against expectations of losses provides a window into both the opportunities and risks inherent in the tech sector, particularly as companies adapt to rapidly changing market demands.
