Overview
- Qualcomm reported third-quarter adjusted EPS of $2.21 and revenue of $9.95 billion, and on July 29 issued fourth-quarter EPS guidance with a midpoint below analyst expectations.
- Handset revenue fell about 20% year over year to $5.09 billion while automotive revenue surged roughly 61% to a record $1.59 billion, highlighting a split performance within the company’s QCT chip division.
- Adjusted gross margin came in near 54%, below forecasts, and management cited higher wafer, packaging and memory costs plus inventory corrections at some Chinese Android OEMs as near-term profit headwinds.
- Management has accelerated diversification moves, closing the Modular Inc. acquisition, securing a BMW lead‑compute deal, and targeting about $5 billion of data‑center revenue by fiscal 2027 and over $40 billion of non‑handset QCT revenue by fiscal 2029.
- Shares fell sharply after the report and investors are watching upcoming guidance, margin trends and execution on automotive and data‑center wins to judge whether non‑handset growth can replace lost handset and Apple‑related royalty revenue.