Qualcomm reported better-than-expected fiscal first-quarter results, topping estimates for earnings per share ($3.41 vs. $2.96) and revenue ($11.67 billion vs. $10.93 billion). The chipmaker’s sales rose 18% from the same period last year.
For the March quarter, Qualcomm expects revenue of between $10.2 billion and $11 billion, which at its midpoint tops LSEG expectations of $10.34 billion. Adjusted earnings are expected to be between $2.70 and $2.90 per share, higher than Wall Street’s estimate of $2.69 per share.
The company’s major end markets for chips grew during the quarter, with mobile handsets up 13% to $7.57 billion in sales and automotive business growing 61% to $961 million. Qualcomm saw strong demand from Chinese customers for premium-tier smartphones and benefited from Samsung’s latest Galaxy device using its processors exclusively.
CEO Cristiano Amon attributed the company’s success to its chips being able to run efficient AI models locally, rather than in the cloud. He also mentioned that the recent release of the DeepSeek R1 AI model is good for Qualcomm, as its chips can handle it efficiently.
Qualcomm reported net income increased 15% to $3.18 billion, or $2.83 per share. The company’s IoT business grew 36% during the quarter to $1.55 billion. It also has a licensing business, where other companies pay for access to its intellectual property related to 5G and cellular technology.
In terms of financials, Qualcomm paid $942 million in dividends and spent $1.8 billion on share repurchases during the quarter.
Source: https://www.cnbc.com/2025/02/05/qualcomm-qcom-q1-earnings-report-2025.html