Qualcomm (QCOM.US) Q3 Earnings Raise Concerns! Mobile-Related Business Revenue Falls Short of Expectations Stock Price Plunges After-Hours

Our Zhitong Caiping APP has learned that the world's largest smartphone chip manufacturer, Qualcomm (QCOM.US), has released its latest earnings report, showing a lackluster growth in its mobile-related business, which has raised concerns about the impact of tariffs on the industry. As of the release date, Qualcomm's stock price plummeted over 5% after-hours.

The report shows that, as of June 29th, Qualcomm's third-quarter revenue grew by 10% year-over-year to $103.7 billion, falling short of analysts' average expectation of $106.2 billion; adjusted net profit was $26.7 billion, up 25%; and adjusted earnings per share were $2.77, exceeding analysts' average expectation of $2.72.

Breaking down by specific business segments: Qualcomm's CDMA technology group reported revenue of $89.93 billion in the third quarter, a year-over-year growth of 11%. This includes revenue from mobile chip business of $63.28 billion, up 7%, but falling short of analysts' average expectation of $64.8 billion; revenue from automotive chip business was $9.84 billion, up 21%; and revenue from IoT business was $16.81 billion, up 24%. Additionally, Qualcomm's technology licensing group reported revenue of $13.18 billion in the third quarter, a year-over-year growth of 4%.

This earnings report has further exacerbated market concerns about the industry's prospects for recovery. In recent days, Texas Instruments (TXN.US) and Intel (INYC.US) have released cautious performance outlooks, raising concerns about the sustainability of sales growth.

Qualcomm expects its fourth-quarter revenue to be between $103 billion and $111 billion, with analysts' average expectation at $106 billion. CDMA technology group revenue is expected to reach $90 billion to $96 billion, while technology licensing group revenue is expected to reach $12.5 billion to $14.5 billion.

Worth noting is that Qualcomm faces a significant challenge in the form of Apple's (AAPL.US) plan to develop its own modem chip for iPhones. Qualcomm has told investors that its chips used in iPhones will eventually be replaced by Apple's own products, but due to Apple's slow development progress, this process has been delayed. Currently, Apple only uses its own developed modems in a low-end model, the iPhone 16e.