Qualcomm has announced a revenue increase for its fiscal first quarter, reporting $12.2 billion, a rise of 5 percent compared to the same period last year. Despite this growth, the company’s outlook for the current quarter has fallen short of analyst expectations, largely due to a global shortage of memory chips that is affecting the technology industry.
For the second quarter, Qualcomm forecasts revenue between $10.2 billion and $11 billion, which is below the analysts’ average projection of $11.2 billion, as compiled by Bloomberg. CEO Cristiano Amon indicated that the supply constraints in the industry are impacting the company’s near-term outlook for handsets. However, he expressed optimism about 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, reflecting a 6 percent decline from the previous year. The company’s handset revenue rose by 3 percent to reach $7.8 billion, while the automotive segment saw a significant increase of 15 percent, generating $1 billion in revenue. The Internet of Things (IoT) division also performed well, reporting revenue of $1.7 billion, up 9 percent year-over-year.
Growth Across Key Segments
Overall, Qualcomm’s QCT (Qualcomm CDMA Technologies) division sales increased by 10 percent to $10 billion. The licensing unit, QTL (Qualcomm Technology Licensing), posted revenue of $1.5 billion, a 5 percent increase compared to the same quarter last year. Amon noted that the company is experiencing growing momentum across various sectors, including personal, industrial, and physical artificial intelligence. This momentum was highlighted by recent product announcements at the Consumer Electronics Show (CES) and positive customer engagement.
As Qualcomm navigates the challenges posed by supply chain issues, the company remains focused on long-term growth and innovation. With strong demand in high-end markets and strategic planning towards fiscal 2029, Qualcomm aims to continue its trajectory of revenue growth in a rapidly evolving technological landscape.
