Should I Buy SKYT? SKYT 2026 Analysis

Should You Buy Skywater Technology Inc (SKYT) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

32.960

1 Day change

-2.02%

52 Week Range

36.270

Analysis Updated At

2026/01/26

SkyWater Technology (SKYT) is a strong buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. The stock has shown exceptional financial performance in Q3 2025, with significant YoY growth in revenue, net income, EPS, and gross margin. Analysts have raised price targets and maintain positive ratings, citing strong revenue performance and strategic growth in quantum and space markets. Technical indicators are bullish, and options data reflects a strong bullish sentiment. Despite no recent news or congress trading data, the overall outlook is highly favorable for long-term investment.

Technical Analysis

The technical indicators for SKYT are bullish. The MACD histogram is positive at 0.311, suggesting upward momentum, though contracting. The RSI is neutral at 53.888, indicating no overbought or oversold conditions. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200). Key resistance levels are R1: 35.218 and R2: 37.396, while support levels are S1: 28.168 and S2: 25.99. The pre-market price of $33.26 is above the pivot point of 31.693, indicating bullish sentiment.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

The open interest put-call ratio of 0.21 and option volume put-call ratio of 0.29 indicate strong bullish sentiment. Call open interest is significantly higher than put open interest (62,188 vs. 13,205), and today's volume is above the 30-day average, further confirming bullish momentum.

Technical Summary

Sell

Buy

Positive Catalysts

Exceptional Q3 2025 financial performance, with revenue up 60.68% YoY and net income up 9424.67% YoY.
Analysts have raised price targets significantly, with Piper Sandler, TD Cowen, and Needham maintaining positive ratings.
Strategic growth in quantum and space markets, with 30%-plus growth expected in these sectors.
Bullish technical indicators and strong pre-market price performance (+6.45%).

Neutral/Negative Catalysts

Slightly below-expectation Q4 guidance due to lower ATS and Tool revenue offsetting Fab 25 strength.
Lack of recent news or congress trading data to provide additional sentiment insights.

Financial Performance

SkyWater Technology delivered outstanding financial results in Q3 2025. Revenue increased to $150.74M, up 60.68% YoY. Net income surged to $144.01M, up 9424.67% YoY, and EPS rose to 2.95, up 9733.33% YoY. Gross margin improved to 24.03%, up 11.40% YoY. These results reflect strong operational performance and growth in strategic markets.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts are highly bullish on SKYT. Piper Sandler raised the price target to $17 (from $12), TD Cowen to $24 (from $22), and Needham to $20 (from $15). All firms maintain Buy or Overweight ratings, citing strong Q3 results, strategic growth in quantum and space markets, and better-than-expected sales from the Fab 25 acquisition.

5 Analyst Rating

Wall Street analysts forecast SKYT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SKYT is 21.5 USD with a low forecast of 17 USD and a high forecast of 25 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

5 Buy

0 Hold

0 Sell

Strong Buy

Current: 33.640

Low

Averages

21.5

High

Current: 33.640

Low

Averages

21.5

High

Craig-Hallum

Buy

Hold

downgrade

$35

AI Analysis

2026-01-27

New

Reason

Craig-Hallum

Price Target

$35

AI Analysis

2026-01-27

New

downgrade

Buy

Hold

Reason

Craig-Hallum downgraded SkyWater Technology (SKYT) to Hold from Buy with a $35 price target. The firm cites the IonQ (IONQ) acquisition announcement yesterday. Craig-Hallum says the deal is most likely to close, as it doesn't think other quantum customers will raise enough of an issue to end the deal. The firm also notes the stock is within 10% of the transaction price.

TD Cowen

Buy

Hold

downgrade

$24 -> $35

2026-01-27

New

Reason

TD Cowen

Price Target

$24 -> $35

2026-01-27

New

downgrade

Buy

Hold

Reason

TD Cowen downgraded SkyWater Technology (SKYT) to Hold from Buy with a price target of $35, up from $24, after the company reached an agreement to be acquired by IonQ (IONQ) for $35 per share or $1.88B.

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SKYT Should I Buy

SKYT Should I Buy

Should You Buy Skywater Technology Inc (SKYT) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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