On July 30, Qualcomm reported Q3 results (ended June 29): smartphone-related sales rose 7% to $6.33 billion, below analysts' average expectation of $6.48 billion. This fueled concerns about stalling chip recovery, following cautious signals from Texas Instruments and Intel, raising doubts about sustained sales rebound.
Post-earnings, Qualcomm's stock dropped over 6% in after-hours trading, having already lagged this year's semiconductor rally. However, overall Q3 revenue grew 10% to $10.37 billion, with adjusted EPS of $2.77—slightly beating Wall Street's $2.72 EPS and $10.33 billion revenue forecasts.
In segment results, automotive chip revenue jumped 21% to $984 million; connected device semiconductor sales rose 24% to $1.68 billion. Qualcomm projected Q4 (ended September) revenue of $10.3–$11.1 billion, with the midpoint aligning with analysts' $10.6 billion expectation.
A key supplier of smartphone processors and modems, Qualcomm also charges a percentage of phone costs. It faces challenges from Apple's in-house modem development—though delays have prolonged the transition, Apple already uses its own modem in the low-end iPhone 16e, with full replacement possible.
Qualcomm's mobile chip business is under pressure, offset by growth elsewhere. ICgoodFind monitors its strategic shifts.
