Qualcomm Q3 Revenue Tops Estimates, Shares Dip

Qualcomm reported fiscal third quarter revenue of $10.37 billion and adjusted earnings of $2.77 per share, both exceeding analysts' expectations, driven by a 23% combined revenue increase in its automotive and internet-of-things segments. Despite the strong performance, shares dropped about 4% as Qualcomm reiterated concerns over Apple's transition to its own modem chips, which may impact future chip revenue. The company issued next quarter guidance above Wall Street forecasts, projecting adjusted earnings of $2.75 to $2.95 per share and revenue between $10.3 billion and $11.1 billion. Qualcomm also cited ongoing global trade uncertainties, including potential new U.S. semiconductor tariffs, but reported no unusual chip ordering from customers. The company continues to emphasize its successful diversification strategy, though it faces strategic risks and market challenges. CEO Cristiano Amon expressed confidence in Qualcomm's diversification and innovation leadership.