Qualcomm reported its fiscal third-quarter earnings, exceeding Wall Street expectations in both revenue and earnings per share. The company\u2019s adjusted earnings per share stood at $2.33, surpassing the anticipated $2.25, while adjusted revenue reached $9.39 billion, exceeding the expected $9.22 billion. Despite a brief dip of 1% in extended trading, Qualcomm\u2019s stock initially surged by 7%.<\/p>\n
For the quarter ended June 23, Qualcomm\u2019s net income was $2.13 billion, or $1.88 per share, compared to $1.8 billion, or $1.60 per share, in the same period last year. Looking ahead, the company projects sales between $9.5 billion and $10.3 billion for the current quarter, with earnings guidance ranging from $2.38 to $2.58 per share, slightly below Wall Street\u2019s forecast of $2.45.<\/p>\n
The company\u2019s primary revenue driver remains its handsets business, which saw a 12% increase in sales from the previous year, generating $5.9 billion. This growth indicates a recovery in the smartphone market, which has been sluggish over the past two years. Qualcomm\u2019s advanced Snapdragon chips, integral to \u201cAI smartphones\u201d like recent Samsung models, have been a key contributor to this segment\u2019s performance. CEO Cristiano Amon noted that the premium tier of smartphones, fueled by AI capabilities, is growing faster than the broader market.<\/p>\n
While still a smaller portion of Qualcomm\u2019s revenue, the automotive sector showed significant promise with an 87% year-over-year increase to $811 million, surpassing analyst expectations of $641.7 million. The company views this area as a crucial opportunity for future expansion and diversification, particularly in integrating more software and semiconductors into vehicles.<\/p>\n
The \u201cInternet of Things\u201d (IoT) segment, which includes chips for lower-cost devices and Meta\u2019s Quest headsets, reported a slight decline of 8% year-over-year, bringing in $1.4 billion. However, this figure was above the expected $641.7 million. Qualcomm also marked a significant milestone with the launch of the Snapdragon X Elite chip for Windows laptops, furthering its diversification efforts.<\/p>\n
The company\u2019s chip business, collectively known as QCT, recorded a 12% year-over-year increase, with total sales reaching $8.1 billion. Meanwhile, Qualcomm\u2019s licensing business, QTL, which collects fees from companies using its 5G and other cellular technologies, grew by 3% to $1.3 billion.<\/p>\n
Despite the positive results, Qualcomm faced a setback as its U.S. license to export products to Huawei was revoked, potentially impacting future revenue. The company reported returning $949 million to shareholders through dividends and repurchasing 7 million shares worth $1.3 billion during the quarter.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boost in Phone Chip Sales and AI Integration Drives Growth<\/p>\n","protected":false},"author":331,"featured_media":48463,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[15044,4745],"class_list":["post-48449","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech","tag-qualcomm","tag-tech"],"reading_time":"2 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/48449","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/users\/331"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/comments?post=48449"}],"version-history":[{"count":0,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/48449\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media\/48463"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media?parent=48449"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/categories?post=48449"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/tags?post=48449"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}