Qualcomm reported fiscal third-quarter results that exceeded analyst expectations, delivering adjusted earnings per share of $2.77 on revenue of $10.37 billion. Both figures narrowly beat estimates, which stood at $2.71 and $10.35 billion, respectively. Despite the solid results, the company’s stock dipped in after-hours trading. For the current quarter, Qualcomm projects adjusted EPS of $2.85 and revenue of $10.7 billion, again ahead of analyst forecasts.
Net income for the June quarter rose to $2.66 billion, or $2.43 per share, up from $2.13 billion, or $1.88 per share, a year earlier. The company’s key revenue generator—smartphone chips under the Snapdragon brand—accounted for $6.33 billion, slightly below the expected $6.44 billion. Qualcomm remains a critical supplier for Samsung and continues to provide modems to Apple, although it anticipates the eventual loss of Apple as a customer.
In response to the shifting landscape, Qualcomm has intensified efforts to diversify its revenue streams. The company is expanding into areas like Windows PCs and smart devices, notably Meta’s Quest VR headsets and Ray-Ban smart glasses. CEO Cristiano Amon underscored this pivot toward on-device AI, or “personal AI,” as central to the company’s growth vision. The Internet of Things (IoT) division, where Meta-related revenue is reported, grew 24% year-over-year to $1.68 billion.
Mark Zuckerberg’s recent comments on personal superintelligence were echoed by Qualcomm executives, who emphasized the company’s role in realizing that vision. CFO Akash Palkhiwala confirmed Meta’s stronger-than-expected chip consumption, noting a significant uptick in sales of Meta’s smart glasses.
Looking ahead, Qualcomm plans to offer more transparency regarding revenue growth excluding Apple, which is expected to rise about 15% this year. The company is also exploring opportunities in the AI chip market and has entered advanced talks with a major hyperscaler to provide chips for AI workloads, with initial revenue anticipated in fiscal 2028.
Meanwhile, the automotive division, another area of focus, grew 21% to $984 million. Qualcomm’s licensing segment (QTL), covering patented technologies including 5G, posted an 11% increase to $1.32 billion. During the quarter, Qualcomm returned value to shareholders with nearly $1 billion in dividends and $2.8 billion spent on share repurchases.
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