Qualcomm (NASDAQ: QCOM) shares fell despite the semiconductor company reporting robust fiscal first-quarter results and issuing upbeat guidance. The stock is up just over 15% over the past year as of this writing, but off about 28% from the high it hit in June.
Let’s dig into Qualcomm’s results to see if this is a good opportunity to buy the stock on the dip.
For the third quarter in a row, Qualcomm posted double-digit revenue growth, setting a new quarterly record in the process. For its fiscal Q1 ended Dec. 29, revenue jumped 17% to $11.67 billion, which easily topped the $10.93 billion consensus as compiled by LSEG.
Revenue for its chip segment (QCT) climbed 20% to $10.1 billion. Handset revenue, which includes smartphones, rose 13% to $7.6 billion, while automotive revenue soared 61% to $961 million. Internet of Things (IoT) revenue surged 36% to $1.5 billion.
The company credited its solid handset revenue performance to higher volumes from premium Android devices, such as the Samsung Galaxy S25 devices, which use its Snapdragon 8 Elite platform. It also said that its sales to Chinese customers were strong, as the premium part of the market grows in the country.
In the automotive chip segment, the company said automakers are using its “high-performance, low-power computing, and connectivity chips to bring next-generation experiences to consumers.” It also said that it is teaming up with a number of automakers on artificial intelligence (AI)-powered, in-cabin, and advanced driver assistance systems. Meanwhile, in IoT, it said it is seeing strength across the consumer, networking, and industrial verticals.
Revenue for its high-margin licensing segment (QTL), meanwhile, rose 5% to $1.5 billion. It said it extended key agreements with major original equipment manufacturers (OEMs) during the past year and that it is set to soon renew two new long-term license agreements with additional big OEMs.
|
Metric |
Handsets (QCT) |
Auto (QCT) |
IoT (QCT) |
QCT segment |
QTL segment |
|---|---|---|---|---|---|
|
Revenue |
$7.6 billion |
$961 million |
$1.5 billion |
$10.1 billion |
$1.5 billion |
|
Growth |
13% |
61% |
36% |
20% |
5% |
Data source: Qualcomm.
Adjusted earnings per share (EPS) jumped 24% to $3.41, topping analyst consensus expectations of $2.96.
Qualcomm guided for fiscal Q2 revenue between $10.3 billion and $11.2 billion, equating to growth of 10% to 19%. It is looking for chip revenue between $8.9 billion and $9.5 billion and licensing revenue between $1.25 billion and $1.45 billion. It is forecasting adjusted EPS in the $2.70 to $2.90 range. Analysts were looking for adjusted EPS of $2.69 and revenue of $10.3 billion, so the midpoint of its guidance was solidly ahead of those expectations.
