Title
Earning Preview: SkyWater Technology, Inc. revenue is expected to increase by 115.77%, and institutional views are bullish
Abstract
SkyWater Technology, Inc. will report quarterly results on February 25, 2026 Post Market; this preview synthesizes the latest reported quarterly metrics, current-quarter forecasts, and institutional commentary to frame expectations for revenue, profitability, and adjusted EPS.
Market Forecast
Consensus expectations point to current-quarter revenue of 160.06 million, with year-over-year growth of 115.77%, adjusted EPS of -0.018 representing a 71.70% year-over-year improvement, and EBIT of 6.26 million reflecting a 702.56% year-over-year increase. The revenue mix remains anchored by Wafer Services and Advanced Technology Services, with program execution and customer milestones serving as the primary near-term drivers; Advanced Technology Services is positioned to contribute material progress on development programs and commercialization pathways.
The most promising segment is Advanced Technology Services, which booked 54.20 million last quarter and is expected to benefit from project conversion and incremental demand in the current period, supported by the 60.68% year-over-year top-line growth achieved last quarter and the strong forecast trajectory for total revenue this quarter.
Last Quarter Review
SkyWater Technology, Inc. delivered last quarter revenue of 150.74 million, a gross profit margin of 24.03%, GAAP net profit attributable to the parent company of 144.00 million, a net profit margin of 95.54%, and adjusted EPS of 0.24 with year-over-year growth of 200.00%.
A key highlight was operating leverage reflected in EBIT of 13.61 million, nearly doubling year-over-year by 99.37%, alongside a revenue upside versus expectations of 15.25 million.
Main business highlights included Wafer Services revenue of 92.86 million and Advanced Technology Services revenue of 54.20 million; total revenue increased 60.68% year-over-year, underscoring strong program momentum across the portfolio.
Current Quarter Outlook
Main Business Outlook
Wafer Services remains the backbone of the company’s revenue, and the sequential set-up from 150.74 million last quarter to a 160.06 million forecast for this quarter indicates continued fulfillment strength and customer throughput. Management’s operating cadence last quarter supported gross margin of 24.03%, and the forecasted EBIT growth of 702.56% year-over-year this quarter suggests a favorable mix of higher-value projects and disciplined cost execution. The adjusted EPS forecast of -0.018, which represents a 71.70% improvement year-over-year, implies a narrowing per-share loss compared with the same quarter last year even as the company invests in capacity, program acceleration, and engineering resources.
Program-level timing often influences quarterly revenue recognition within Wafer Services, making delivery schedules and customer acceptance milestones pivotal for this quarter’s outcome. The strong prior-quarter surprise on revenue and the elevated EBIT trajectory signal that core wafer runs and service engagements are scaling in line with plan. Given the company’s dense book of activity and demonstrated operating leverage last quarter, the revenue projection for this quarter—backed by robust year-over-year growth—suggests the mainline wafer operations are tracking toward another solid performance, contingent on the timely completion of program deliverables.
Most Promising Segment Outlook
Advanced Technology Services is the most promising growth lever, supported by last quarter’s 54.20 million in revenue and a forecast backdrop that points to heightened development intensity and milestone conversion. The significant forecasted year-over-year increases for total revenue and EBIT this quarter align with a scenario in which complex, multi-phase projects move further into commercialization and higher-yield production phases. This segment’s contribution is amplified when flagship engagements hit program gates, moving from prototype and engineering phases into pre-production and early-volume stages that can materially lift recognized revenue.
The trajectory of adjusted EPS and EBIT reflects an improving unit economics mix that favors higher-value advanced services, which typically carry richer margins once project run-rate stabilizes. Execution risks are concentrated in specific development timelines, but last quarter’s performance indicates the company cleared important hurdles. If this quarter’s projected 160.06 million revenue is realized, it would reinforce the view that Advanced Technology Services is turning design wins and technology development into sustained billings, an important proof point for the segment’s long-term contribution to profitability.
Key Stock Price Drivers
Institutional commentary in the period emphasizes strategic initiatives and long-term growth vectors that remain front-of-mind for investors this quarter. The forecast profile—115.77% year-over-year revenue growth and a 702.56% year-over-year increase in EBIT—intentionally centers investor attention on whether the company can deliver on the implied operating leverage embedded in the model. That leverage rests on program execution within Wafer Services and the commercialization cadence in Advanced Technology Services, which, together, shape the near-term earnings narrative.
Corporate developments that enhance capacity, deepen customer relationships, or expand technology scope can substantially affect sentiment and valuation in the weeks surrounding results. In this context, investor focus gravitates toward the pace of bookings conversion, the sustainability of gross margin around the 24.03% reference point, and signals that adjusted EPS is trending toward breakeven and beyond on a normalized basis. Any clarity on milestone completions, backlog quality, and program funnel progression would be catalysts for stock performance through and after February 25, 2026 Post Market, with delivery confirmation typically rewarded in the near term and any slippage scrutinized.
Analyst Opinions
The majority institutional view in the current period is bullish. TD Cowen’s Krish Sankar maintained a positive stance on SkyWater Technology, Inc., highlighting a Strong Buy rating supported by strategic capacity positioning and a growth narrative tied to emerging compute applications. The emphasis on long-horizon growth opportunities, coupled with operational progress in recent quarters, underpins the constructive outlook into February 25, 2026.
Across the collected commentary in the specified period, bullish perspectives center on the company’s ability to translate development engagements into revenue scale. The forecasted 115.77% year-over-year increase in revenue for this quarter is consistent with the thesis that program milestones in Advanced Technology Services are moving forward, creating incremental upside in aggregate billing. Analysts point to the company’s progress in building durable customer relationships and enhancing program visibility, which supports confidence in the EBIT ramp and adjusted EPS trajectory implied by current-quarter estimates.
The bullish case also underscores the importance of execution signals in the upcoming report: confirmation of revenue at or near 160.06 million, evidence of ongoing operating leverage in line with the 702.56% year-over-year forecast for EBIT, and clarity on the pathway to sustained profitability beyond adjusted EPS improvements. Positive updates on deliverables and production readiness within key programs would validate the near-term set-up. This viewpoint expects management to detail how last quarter’s strong revenue and EBIT outcomes are being extended, framing continuity in delivery cadence and resource allocation as key pillars of the investment narrative.
In sum, the prevailing institutional stance anticipates that SkyWater Technology, Inc. will continue to demonstrate momentum across its mainline services and advanced program work. The near-term debate hinges on whether the company’s operational execution can fully convert the current forecast into reported performance and set a foundation for steadier earnings in subsequent periods. Bullish analysts argue the setup is favorable, given recent results and the composition of the program portfolio, with the February 25, 2026 Post Market release poised to offer critical validation points on revenue, EBIT, and adjusted EPS progression.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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