Qualcomm Beats Q3 Earnings Estimates, Exceeds Guidance for Q4

Qualcomm reported Q3 results that beat top and bottom line estimates, with revenue and profit guidance exceeding expectations. The chip designer's shares were down 4.5% after hours.

Qualcomm (QCOM) reported its Q3 FY25 earnings, delivering a solid performance that exceeded both top and bottom line estimates. The company's adjusted earnings per share (EPS) came in at $2.77, surpassing the Zacks Consensus Estimate of $2.7 per share [1]. This represents a 2.59% earnings surprise, following a quarterly growth of 19% year-over-year. Revenue for the quarter totaled $10.37 billion, slightly missing the Zacks Consensus Estimate by 0.15% [1].

The chip designer's shares, however, took a hit in after-hours trading, declining by 4.5% following the release of the earnings report. Qualcomm's stock has been a laggard so far this year, adding about 5.5% since the beginning of 2025 compared to the S&P 500's gain of 8.3% [1].

The company's non-smartphone business saw significant growth, with revenue from automotive and Internet of Things products surging by 21% and 24% respectively [4]. Additionally, Qualcomm's augmented reality platform was recently featured in Meta Platforms' AI smart glasses, further demonstrating the company's diversification efforts.

Looking ahead, Qualcomm expects to produce revenue between $10.3 billion and $11.1 billion in the fourth quarter, with adjusted EPS between $2.75 and $2.95 [4]. The company's earnings outlook, as measured by the Zacks Rank, currently stands at #3 (Hold), indicating that the stock is expected to perform in line with the market in the near future [1].

The upcoming release of the Snapdragon 8 Elite 2 chip, which will power new devices from manufacturers like Xiaomi, could provide a boost to Qualcomm's earnings in the coming quarters [3]. The first devices featuring this chip are expected to be launched in September, with the Xiaomi 16 series being one of the first to adopt the new technology [3].

References:
[1] https://finance.yahoo.com/news/qualcomm-qcom-q3-earnings-surpass-211002172.html
[2] https://www.shacknews.com/article/145318/qualcomm-qcom-q3-fy25-earnings-results
[3] https://www.igeekphone.com/xiaomi-16-is-the-first-to-feature-snapdragon-8-elite-2-qualcomm-released-new-devices-right-after-the-release-of-its-chips/
[4] https://finance.yahoo.com/news/qualcomm-earnings-non-smartphone-growth-220353620.html