Qualcomm Surpasses Q2 Expectations with Strong Earnings and AI Focus
Qualcomm Inc. reported stronger-than-expected financial results for its second quarter, with net income reaching $2.33 billion, or $2.06 per share, an increase from the $1.7 billion reported in the previous year. The company's overall revenue for the quarter was $9.39 billion, surpassing analysts' projections of approximately $10.30 billion to $10.34 billion.
The company's handset division, which is its most profitable segment, saw a 1% year-over-year increase in sales to $6.18 billion. This suggests a resurgence in the smartphone market, particularly in the demand for advanced chips for AI-powered smartphones. Additionally, Qualcomm's automotive sales grew by 35%, though sales in the Internet of Things sector declined by 11%.
Looking ahead, Qualcomm provided a positive guidance for the third quarter, with expected revenue between $8.8 billion and $9.6 billion, and adjusted earnings per share between $2.15 and $2.35. This guidance exceeds Wall Street's forecasts, with the company citing strong demand for premium smartphones as a key driver. The upbeat forecast led to a 4.5% rise in Qualcomm shares in after-hours trading. During the quarter, the company also returned value to shareholders by paying $895 million in dividends and repurchasing $731 million in shares.
