The company's recent quarterly performance saw total revenue contract 8% year-over-year to $10.32 billion alongside a 26% decline in handset chip sales. Although licensing contracts were secured with major partners including Apple and Huawei, licensing revenue dropped 7% to $1.3 billion. To counter this softness, diversification efforts yielded an 89% surge in automotive revenue alongside a newly disclosed Internet of Things technology agreement with SpaceX.
Key points
Qualcomm expects the overall handset market to remain flat in 2027 even as China Android…: Qualcomm expects the overall handset market to remain flat in 2027 even as China Android shipments begin to rebound.
Data center revenue generated $650 million in the quarter, with leadership targeting $5 b…: Data center revenue generated $650 million in the quarter, with leadership targeting $5 billion by fiscal 2027 amid supply constraints.
Growth in automotive and connected devices is helping offset broader revenue declines acr…: Growth in automotive and connected devices is helping offset broader revenue declines across the traditional handset and licensing divisions.
Sources checked by our analysis pipeline: 1
Qualcomm reported quarterly results on Wednesday that topped Wall Street estimates, but the chipmaker's earnings came in lighter than expected. The stock slid in extended trading.
Here's how the chipmaker did versus LSEG consensus estimates:
- EPS: $2.17 adjusted, versus $2.16 expected
- Revenue: $10.32 billion, versus $10.11 billion expected
For the current quarter, Qualcomm said it sees earnings per share of between $2.15 and $2.35 on revenue of $10.4 billion to $11.2 billion. Analysts expected earnings per share of $2.27 on revenue of $10.48 billion.
Most of Qualcomm's chip sales come from system-on-chips and modems for smartphones. It's a market that's currently in turmoil as rising memory costs force handset makers to raise prices, hurting demand. Overall company revenue fell 8% during from a year earlier.
Qualcomm raised prices in September. Still, handset chip sales during the quarter fell 26% to $5.14 billion, trailing a StreetAccount estimate of $5.21 billion. Qualcomm said it's starting to see sequential growth in the category, and that Android shipments in China have bottomed, even though the company predicts the handset market will be…
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