Earnings per share: $2.75 adjusted compared to the expected $2.37.Revenue: $9.92 billion adjusted versus the anticipated $9.51 billion.For the upcoming quarter, Qualcomm predicts adjusted earnings within the range of $1.73 to $1.93 per share and revenue between $8.9 billion to $9.7 billion. Market consensus projected earnings of $2.25 per share on $9.3 billion of revenue.Net income increased by 24% during the quarter to $2.77 billion, or $2.48 per share, from $2.24 billion, or $1.98 per share, in the previous year.Qualcomm is renowned for manufacturing smartphone chips, including modems for cellular network connectivity and processors for high-end Android devices.Under the leadership of CEO Cristiano Amon, Qualcomm has been extending its chip technology to markets beyond smartphones, such as PCs, cars, and virtual reality headsets. However, it remains a major smartphone supplier despite the global market decline over the past two years.Qualcomm reported the shipment of $6.69 billion in handset chips during the December quarter, marking a 16% year-on-year increase. This indicates a positive trend for the smartphone market following two years of decline.Notably, Samsung’s recent high-end Galaxy phones, launched in January, use Qualcomm processors, and the company foresees this partnership continuing for several years under a new deal, eliminating the possibility of the second-largest smartphone manufacturer opting for its own chips.Qualcomm’s Internet of Things business encompasses the chips utilized by Meta in its virtual reality headsets. The segment experienced a 32% sales decrease, totaling $1.13 billion.Qualcomm is placing significant emphasis on selling chips to automakers and car suppliers. However, this process is expected to take several years due to the extended ‘qualification’ cycle for car parts, in compliance with regulations and industry requirements. Qualcomm’s emerging automotive business, a part of QCT, generated $589 million in sales, reflecting a 31% increase year-on-year.QCT, the company’s chip sales business, which includes automotive, Internet of Things, and handsets, achieved $8.42 billion in revenue during the quarter, marking a 7% annual growth.Qualcomm’s profitable licensing business, QTL, reported $1.46 billion in revenue, representing a 4% annual decline. During an analyst call, Amon confirmed that Apple had agreed to extend its patent licensing agreement through March 2027. Qualcomm stated that it utilized $800 million for share repurchases and $900 million for dividends during the quarter.
