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what it is
SkyWater builds chips and chip processes in U.S. fabs for customers that want domestic manufacturing and custom engineering.
how it gets paid
Last year Skywater Tech made $442M in revenue. Advanced Technology Services was the main engine at $257.2M, or 58% of sales.
why it's growing
Revenue grew 29.2% last year. The 80% revenue growth mattered most because scale is the only clean way out of a subscale foundry margin profile.
what just happened
SkyWater printed $271M in quarterly revenue, up 80% vs. prior year, while EPS came in at $2.62.
At a glance
C++ balance sheet — some cracks in the foundation
11.9x trailing p/e — the market's not buying it — or you found a deal
$2.43 fy2025 eps est
$2B fy2026 rev est
0.6% operating margin
xvary composite: 30/100 — weak
What they do
SkyWater builds chips and chip processes in U.S. fabs for customers that want domestic manufacturing and custom engineering.
SkyWater sells trust as much as silicon. It is a U.S.-based, solely U.S.-owned pure-play foundry with 702 employees and DMEA accreditation, which means defense-sensitive customers can keep work onshore. If your product needs a domestic fab and custom process development, your list of alternatives gets short fast.
How they make money
$442M
annual revenue · their business grew +29.2% last year
Advanced Technology Services
$257.2M
Wafer Services
$97.2M
Advanced Packaging
$44.2M
Tools
$43.4M
The products that matter
foundry manufacturing services
Other Foundry & Engineering
$413.2M · 93.4% of revenue
this segment generated $413.2M of the company's $442.1M revenue. It's the whole story economically, which is why any shift in volume, mix, or pricing hits hard.
93.4% of revenue
tool and equipment revenue
Tools Revenue
$22.9M · 5.2% of revenue
it brought in $22.9M, or 5.2% of revenue. Useful support, but not the line that decides valuation.
supporting revenue
wafer-related services
Wafer Services
$6.0M · 1.4% of revenue
at $6.0M, this is only 1.4% of revenue. It matters more as operating infrastructure than as a driver of earnings.
small contributor
Key numbers
$35.00
deal price
IonQ agreed to pay $35.00 per share, so your near-term upside is driven by merger spread math, not a heroic multiple expansion story.
$442M
annual revenue
That is the current size of the business after 29.2% growth, which tells you SkyWater is no longer a science project.
11.9x
trailing p/e
Jargon: trailing P/E → price divided by the last 12 months of earnings → so what: the stock is not priced like a hype-only semiconductor name.
0.6%
operating margin
SkyWater grew fast, but the core business still barely cleared breakeven at the operating line.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 4 — safer than 20% of stocks
- price stability 5 / 100
- long-term debt $60M (4% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for SKYT right now.
source: institutional data · return history unavailable
What just happened
beat estimates
SkyWater printed $271M in quarterly revenue, up 80% vs. prior year, while EPS came in at $2.62.
Revenue growth was massive versus last year, but EPS fell 11% vs. prior year. Gross margin was 22.6%, which is solid for a foundry story that still posted a -0.6% operating margin in the figures underlying this snapshot.
$271M
revenue
$2.62
eps
22.6%
gross margin
the number that mattered
The 80% revenue growth mattered most because scale is the only clean way out of a subscale foundry margin profile.
source: company earnings report, 2026
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What could go wrong
this is not one of those pages where vague market fear does the work. the risk is specific: a stock at $28.82 with a signed $35 exit and a 14.9% Q4 gross margin underneath it.
med
deal break or delay risk
At $28.82, the stock trades $6.18 below the agreed $35 price. Markets do not leave that kind of spread open for decoration.
If the deal breaks, investors stop underwriting a takeout and go back to underwriting a volatile standalone foundry business with 5 / 100 price stability.
med
margin volatility
Gross margin was 22.6% for 2025 but just 14.9% in Q4. That is a big step down in one quarter.
If that lower level sticks, the 11.9x trailing p/e will look less cheap because the “e” shrinks fast in manufacturing businesses.
med
thin standalone valuation support
The consensus target shown here is $28.75, basically where the stock already trades. Analysts also moved to Hold after the spike near $36.
That tells you the market is not offering much extra credit for the business on its own if merger certainty fades.
med
violent repricing
The 52-week range runs from $6 to $36, and the price stability score is 5 / 100. Same ticker. Wildly different prices.
If merger confidence slips even a little, this does not have the profile of a sleepy arbitrage spread. It has already shown you how hard sentiment can move it.
A stock at $28.82 with an agreed $35 exit price implies real skepticism. Add Q4's 14.9% gross margin and you get a clean summary: this is a closing-risk trade with uneven fundamentals underneath.
source: institutional data · regulatory filings · risk analysis
Pay attention to
deal calendar
IonQ closing milestones
Watch for regulatory approvals, shareholder votes, and any change to the $35 per share terms. If the calendar slips, the spread matters more than the narrative.
metric
gross margin recovery
Q4 gross margin fell to 14.9% from 22.6% for the full year. If that does not bounce, the standalone case gets a lot less forgiving.
spread trend
whether the gap to $35 narrows
A healthy deal usually sees the spread compress as closing gets closer. If this one stays wide, the market is telling you risk is still alive.
standalone risk
what the street says if the deal wobbles
The current consensus target is $28.75. Any revisions around earnings or merger news will show you where analysts think the business stands without a buyer.
Analyst rankings
risk profile
below average
risk rank 4 — more volatile than most — brace for bigger swings.
source: institutional data
Institutional activity
institutional ownership data for SKYT is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$29
current price
n/a
target midpoint · n/a from current
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