Skyworks Solutions (SWKS) has executed well amid an uncertain smartphone backdrop, with results and guidance coming in better than feared, Morgan Stanley said in a Wednesday research note.

The brokerage said Skyworks' fiscal Q1 results were driven by healthy smartphone demand and strong sell-through at its largest customer, with no evidence so far of inventory correction or demand degradation.

Skyworks' mobile revenue is expected to decline about 20% sequentially in the March quarter, consistent with normal seasonality as the company moves past peak flagship ramps. Morgan Stanley said overall mobile demand signals remain healthy.

The investment firm said Skyworks expects content to be flat year over year on Apple (AAPL)-related content, a better-than-feared outcome after investor concerns earlier this year. Gains tied to Apple's modem transition are expected to be offset by product mix, limiting upside, while share does not appear to be deteriorating further.

Morgan Stanley said potential memory-related headwinds remain an overhang for smartphone-exposed companies, though Skyworks has not seen any impact to date. The firm added that premium-tier exposure may help cushion volatility but severe or prolonged shortages could still weigh on results.

The firm said Skyworks guided for March-quarter earnings per share of $1.04 on revenue of about $900 million, above Morgan Stanley's estimates and Wall Street expectations. The brokerage lifted its fiscal 2026 estimates to $4.77 in EPS and $3.8 billion in revenue from $4.49 and $3.6 billion, eyeing stronger results from Skyworks' smartphone segment.

The firm raised its price target on the company to $69 from $68 and reiterated its equalweight rating.

Shares of Skyworks Solutions were up nearly 2% in recent Wednesday trading.

Price: 58.39, Change: +2.46, Percent Change: +4.40