Qualcomm Reports Strong Q3 Earnings Amid Slowing Smartphone Market
Qualcomm (QCOM) reported third-quarter earnings that met expectations on EPS of $2.21 while exceeding revenue forecasts with $9.9 billion in sales, driven by strong performance across its segments including handset and automotive businesses. Despite the positive results, Qualcomm's stock fell nearly 6% in premarket trading as investors weighed concerns over a slowing smartphone market. Analysts noted that rising memory prices and AI demand are straining supply chains, leading to negative unit growth for smartphones globally. CounterPoint Research reported an 11% year-over-year decline in Q2 global smartphone shipments. Qualcomm is actively diversifying into areas like data centers as part of its long-term strategy. The company aims to grow non-handset revenue from 24% in fiscal 2026 to over 60% by fiscal 2027, with a target of $5 billion in data center sales and $40 billion in total non-handset revenue by fiscal 2029.
Tickers: $QCOM
Topics: diversification semiconductors smartphones technology