Quarterly Financial Highlights
Qualcomm posted $12.25 billion in revenue for its first fiscal quarter, edging past the $12.21 billion consensus estimate. Adjusted earnings per share (EPS) came in at $3.50, well above the $3.41 forecast.
Net income reached $3.0 billion, or $2.78 per share, compared with $3.18 billion (or $2.83 per share) a year earlier.
Division Performance
Three core segments drove the results:
- Smartphone chips: $7.82 billion in revenue, a 3% quarter‑over‑quarter increase.
- Licensing (5G patents, IP): $1.59 billion, reflecting strong demand for Qualcomm’s technology portfolio.
- Internet of Things (IoT): $1.69 billion, up 9% as low‑power chips power devices such as Meta Ray‑Ban glasses.
- Automotive: $1.10 billion, up 15% on growing adoption of Snapdragon automotive solutions.
Memory Market Impact
CEO Cristiano Amon warned that memory availability will increasingly define the mobile market’s size. While Qualcomm does not buy memory chips directly, its customers’ purchasing decisions—shaped by component costs and supply constraints—will affect future sales, especially for flagship smartphones that carry higher margins.
Q2 Outlook and Analyst Expectations
Qualcomm projected Q2 revenue of $10.2‑$11 billion and EPS of $2.45‑$2.65, both below analyst expectations of $11.11 billion and $2.89 EPS. The shortfall underscores uncertainty around smartphone OEM pricing strategies amid rising component costs.
Shareholder Returns
The company continued its capital return program, buying back 15 million shares worth $2.6 billion in Q1 and paying $949 million in dividends ($0.89 per share).