Qualcomm announced revenue of $12.2 billion for its fiscal Q1, reflecting a 5 percent increase compared to the same period last year. Despite this growth, the company provided a forecast for Q2 that fell short of analysts’ expectations due to ongoing challenges in the global memory chip supply chain. Analysts had anticipated revenue of $11.2 billion, while Qualcomm projects revenue between $10.2 billion and $11 billion.
CEO Cristiano Amon acknowledged that the company’s short-term outlook for handsets is significantly affected by memory supply constraints across the industry. Nonetheless, he expressed optimism regarding consumer demand for premium and high-tier smartphones, stating, “We are encouraged by end-consumer demand for premium and high-tier smartphones and remain on track to achieve our fiscal 2029 revenue goals.”
In terms of profitability, Qualcomm reported a net income of $3 billion, which represents a 6 percent decrease from the same quarter last year. Despite this decline in net income, the company experienced a 3 percent increase in handset revenue, rising to $7.8 billion. The automotive sector showed a notable performance, with revenue climbing 15 percent to reach $1 billion. Additionally, the Internet of Things (IoT) division generated $1.7 billion in revenue, marking a 9 percent increase.
Growth Across Divisions
Overall, sales in Qualcomm’s QCT division increased by 10 percent to $10 billion. The company’s licensing unit, QTL, also performed positively, reporting revenue of $1.5 billion, a 5 percent increase year-over-year. Amon highlighted the company’s momentum in various sectors, particularly in personal, industrial, and physical AI, noting the positive responses from recent product announcements showcased at the Consumer Electronics Show (CES).
The financial results underscore both the challenges and opportunities faced by Qualcomm as it navigates through a critical period in the technology sector, particularly with the ongoing memory chip shortage that is impacting manufacturers globally. As the company works to meet its long-term revenue goals, its performance in the coming quarters will be closely monitored by investors and industry analysts alike.
