Qualcomm's Q3 Earnings Preview:Earnings Under Pressure, but a Potential Turning Point for Handset Bu
Qualcomm is set to release its Q3 earnings report after the market closes this Wednesday. According to analyst forecasts, Qualcomm’s revenue in Q3 is expected to reach $9.627 billion, representing a 7.1% year-over-year decline.
Adjusted earnings per share are projected to reach $2.215, down 20% year over year.
In terms of valuation, Qualcomm’s current price-to-earnings ratio stands at 18.46x, which is relatively low compared with its historical levels over the past decade.
Qualcomm’s revenue is primarily generated from three major business segments: CDMA technologies (QCT), including Handsets, IoT, and Automotive; Technology Licensing (QTL); and Strategic Initiatives (QSI). Among these, CDMA Technologies (QCT) is expected to remain the largest revenue contributor in the third quarter.
According to analysts' forecasts, Qualcomm’s results could outperform expectations despite a weak smartphone market, driven by early orders from Chinese handset manufacturers and stronger iPhone 18 modem demand. However, the quarter is expected to mark a trough of its handset business cycle.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
