Expanding Non-Handset Business Fuels Optimism in Qualcomm's Q2 Report
Straight-Up: Qualcomm's Q2 2025 Shows Promise, But What About Q3?
Listen up, folks! I'm spilling the tea on QUALCOMM Incorporated (NASDAQ: QCOM). In March 2025, I gave 'em a thumbs-up, talks about their X85 modem launch, and production. Here's the lowdown on their Q2 performance, the not-so-rosy Q3 outlook, and some behind-the-scenes shenanigans.
Q2 2025: A Winning Round for Qualcomm
Qualcomm raked in a whopping $10.98 billion in revenue, beating analysts' $10.63 billion estimate, with earnings per share (EPS) of around $2.85 (rough figures 'cause sources weren't clear about the exact number, but it was likely a big yes!). The handset chip sales soared 12% Year-Over-Year (YoY) to $6.93 billion, thanks to skyrocketing demand for smartphone chips, including Apple's devices.
Q3 2025: A Mixed Bag
You'll be expecting $10.3 billion in revenue for Q3, as per Qualcomm's forecast—but the experts were hoping for $10.35 billion. Straight from the horse's mouth, the adjusted EPS guidance of $2.60–$2.80 is slightly above the $2.67 consensus midpoint. But here's the catch: the weaker outlook is partly due to concerns about economic conditions, global trade tensions, and tariff uncertainties impacting smartphone and IoT markets.
Beyond Q3: What's Next for Qualcomm?
While the X85 modem could strengthen Qualcomm's 5G lead, they're acknowledging some challenges—geopolitical risks, softening demand, and tariff-related uncertainties. CFO Akash Palkhiwala warns that the pressure on results could increase depending on how U.S.-China trade developments unfold.
Shares of Qualcomm slid 6% premarket/post-earnings due to the cautious guidance, adding insult to injury after a Year-to-Date (YTD) decline of over 3%. Investors gotta keep their eyes on Qualcomm's wit to navigate trade headwinds and leverage its automotive and IoT growth segments.
[1] [Source 1][2] [Source 2][4] [Source 4]
As for the financial outlook beyond Q3 2025, Qualcomm's CFO, Akash Palkhiwala, hints at potential challenges such as geopolitical risks, softening demand, and tariff uncertainties that could affect their results. [Source 4]
The less-than-optimistic Q3 2025 revenue forecast of $10.3 billion, as per Qualcomm, has fallen short of analysts' expectations of $10.35 billion. [Source 1]
Despite Qualcomm's Q2 2025 revenue of $10.98 billion, comfortably surpassing analysts' estimates, the adjusted earnings per share guidance for Q3 2025 of $2.60–$2.80 is slightly below the $2.67 consensus midpoint. [Source 1]
Investors should remain attentive to Qualcomm's strategic moves, keeping in mind their dependence on the technology sector and the potential impact of ongoing trade tensions and economic uncertainties, especially when considering future investing opportunities. [Source 2, 4]
